Price levels allow you to define how sales prices are calculated for price list items or their groups, applied to specific business partners or their groups.
Just like an individual price, each price level can also be assigned a validity period.
⚠️ Price levels are part of the price list extension service. They are available in the Business and Premium plans.
Ways of calculating the sales price
Depending on the selected base price, the sales price is calculated using one of three formulas:
Base price | Method | Formula |
Sales price | discount (rebate from SP) | SP − (SP / 100 × % discount) |
Purchase price | rebate | PP / (100 − % rebate) × 100 |
Purchase price | margin | PP × (% margin + 100) / 100 |
Unlike pricing set directly on a price list item, a price level can also be based on the sales price. This is useful whenever you want to maintain a consistent discount or margin even as the purchase price changes, because the result is recalculated each time the item is added to a document.
ℹ️ Both margin and rebate calculations are based on the Purchase price field stated on the price list item. In contrast, the Purchase price field on a sales document item shows the actual cost price from the stock card, i.e., the average or FIFO value. These two figures may therefore differ, and for pricing purposes, the former takes precedence.
Quantity discounts
A price level can also be used to define a quantity discount:
Based on purchase price - by changing the margin or rebate from a certain quantity onward
Based on sales price - by an additional discount from a certain quantity onward
You can set up to four quantity levels. A discount from a higher level replaces the original discount rather than being added to it.
Who and what the level applies to
On the Selected groups tab, you can add another key setting - specifying whether the level should apply to all item groups or all companies, or whether the document discount should be applied.
ℹ️ You'll mainly want to use the option not to apply the document discount when the customer has a percentage discount set in the address book. Otherwise, the price would be reduced twice - once by the price level and again by the discount carried over into the document.
When setting a price level for specific records, it's important to remember that at least one value must always be filled in on each side (provided it doesn't apply to all companies or item groups).
Sample setup
For this example, we'll set up a price level for just one price list item and one price list group. Both can be done using the Add/Remove button and checking the relevant record.
If we have the above configured, then on an invoice with a company belonging to price list group A, the item ITEM_1 will be given a 20% margin (or whichever sales price calculation method is set in the price level).
How to tell that a price level has been applied
A price level is applied automatically once the conditions are met on both sides - on the item side and on the company side. You never select it manually.
You can check which level was applied in the document item detail. There's a Price level field there, which shows the level that was used. If it's empty, no price level was applied and the price came from somewhere else.
ℹ️ A price level never changes the price stated on the price list card. The calculation is always carried out on the specific document into which you insert the item. You can find an overview of all pricing layers and their priorities in the introductory hub.
⚠️ If you change the company on an already created document, the price level for previously inserted items will not be recalculated. The items need to be inserted again.
Similar settings outside price levels
The same calculation method offered by price levels can also be set within a specific price list item, on the Pricing tab. The difference is that such a setting applies only to that one item and directly recalculates the price in the price list.
Or within an item group, on the Basic price level tab. In this case, the setting is not automatically applied to individual items - you need to use the button to project it into the price list.
💡 If you need a report that clearly shows, for a specific document, which layer the price was calculated from, we can prepare such a custom user query for you. Write to us at podporaflexi@abra.eu.