Price Calculation in Quotation

Diagram Flow: https://app.diagrams.net/#G1nsI4vueVdIjvsfdWcYxlyW4btX4WrkeW

When the Product Hierarchy 4 is selected or updated in the Product page layout, the Product H4 Bracket linked to the Product Hierarchy 4 is automatically copied from the system into the pricing settings linked to the active product pricing for the product.

Price Update in Quotation

When the price list is updated, all the quotes in draft will be impacted.

The system will not update the draft quotes immediately, but only when the account manager clicks on "Send for Approval" button.

After clicking on the button, there's a message displayed on the top of the page, advising the account manager that there's new information in the price list for one or more specific products that must be updated into the quote.

He is forced to accept the changes, otherwise is not possible to submit the quote for apporval.

The Account Manager needs to take one of the following actions:

• remove the product and add the product again by clicking on "Add Product" button
• update the annual volume for something different from the previous value (e.g. if the annual volume now is 2000, update it to 2001 and then back to 2000)

After that, the system loads the most recent price into the quote and the account manager is able to click on "Submit for Approval" button again in order to send the quote for approval and finalize the process.

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Auto-Maintain Feature

iCARe Auto-Maintained Epics Links:

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Diagram Flow: https://app.diagrams.net/#G1WkhoxxMnYdHxfplABdbuKjpo5s8OUvnw

Which Prices can be auto-maintained?

The auto-maintain is an automation implemented in the system to automatically create/update/delete the price list for Korea, India and China. The process is running daily over night (GMT).

The auto-maintain was anabled manually for the pricing settings provided by the business (not all the pricing settings are auto-maintained) that match the following criteria:

• the pricing setting currency is USD (the auto-maintained is only working for USD currency)
• the pricing setting Region & Incoterms is one of the combinations in the table below:

The auto-maintain feature creates automatically Pricing Settings and Product Brackets with the price in the local currencies with specific Incoterms.

The “Auto maintained in local currency?” checkbox is hidden when

• the currency is not USD or
• the region is not China, India or Korea or 

• the Product Pricing is not Valid.

Auto_maintain price calculation:

Depending on the region and incoterms, the calculation of the price includes the conversion from USD to the local currency plus some extra charges like Import Doty, Import Fee and Domestic Transportation, also based on Product Family.

The local prices are calculated based on:

• Currency Exchange rate maintained in ICare - Manage Currencies rates in the setup
• Import duties, Import fees and Domestic Transport managed by SC in this file and uploaded in ICare in the custom object Auto_Maintained_Price_Setting__c
• The import duties and the additional charges can be different within one product family. eg. Ryton anti-dumping
• Any change to the Currency Exchange rates and or additional charges percentages will be reflected into the auto-maintained prices over night

In the Auto_Maintained_Price_Setting__c, the system follows the logic below to determine the charges to apply:

• searches if the material group code exists
  • if yes, gets the import duty, import fee and domestic transportation changes from the record that matches (only one record per material group code)
  • if not, continues

• searhces if the product family and pricing region exists
  • if yes, gets the import duty, import fee and domestic transportation changes from the record that matches (only one record per material group code)
  • if not, nothing to apply

Price Calculation Example 

Local Currency Price = USD price * Currency Exchange Rate * (1+ import duty%+ duty fee% + domestic transportation%) 

Example 1:   PPS -R-7-121B /   Import Duty: 214%  

CNY price list = 10.62 USD/kg * 6.3 *  (1+ 214% + 1% +1% ) = 211.4 CNY/KG

Example 2:   Veradel PESU A-301 GN001 import duty changes from 8.5% to 10%   

INR  new price/old price =   (1+ 10%+1%+1% )/ (1+8.5%+1%+1%) = 1.01      1% increase in local price

Auto-maintained restrictions:

If the price is auto-maintained, perform the changes only into the parent price in USD.

Changes on USD  Pricing Settings  (MOQ,  LT,  order fulfillment, price, etc) or Product Brackets (price , approval%, etc) will be automatically cascaded daily into local currency Price Setting or Product Brackets.

Any changes performed on local currency (PS or PB)  will be overwritten (and lost) by the daily refresh with the data from the Master Price List in USD.

The system does not allow any product manager to change the information in the auto-maintained pricing settings and product brackets, except deactivate the auto-maintain feature/flag.

Only data stewards and system administrators are allowed to change auto-maintained prices, however, the automated process running over night is smashing all the changes.

An auto-maintained pricing setting presents a message on the top of the page to alert that the price is being auto-maintained.

The Product Manager can deactivate the auto-maintain feature - he goes into the Pricing Setting and deselect the checkbox “Auto maintained in local currency?”

The Product Manager can see if the auto-maintained is enabled or not, through the grids but he cannot change the auto-maintained field in Grids..

AUTO MAINTAINED IN LOCAL CURRENCY? - if checked, indicates that the Pricing Setting in USD is enabled to be auto-maintained in the local currency (CNY, INR, KRW)

AUTO MAINTAINED - if checked, indicates that the Pricing Setting is created automatically through the auto-maintained feature.

Email Notifications sent to the Data Steward

There are 2 types of notifications that are sent to the data stewards:

• Every time the Product Manager deactivates an auto-maintained pricing setting

• every time the Product Manager activates or re-activates the auto-maintain in a pricing setting

The actions that need to be taken by the Data Steward are:

• when the auto-maintained was deactivated on the pricing setting in USD:

  • Go into the Pricing Setting record received on the emai,  click on Product Pricing, tab Related, Pricing Settings, View All and open the Piricng Setting in the Local Currency 

  • update Auto-Maintained field on the Pricing Settings in the local currency to false

  • keep the Auto_maintained From Id 

• • update the Auto-Maintained field on the Product Brackets in the local currency to false

  • keep the Auto_maintained From Id

• when the auto-maintained was re-activated on the pricing setting in USD: 
  • Go into the Pricing Setting record received on the email, click on Product Pricing, tab Related, Pricing Settings, View All and open the Piricng Setting in the Local Currency
  • update the field Auto-Maintained in the Pricing Setting in the local currency to true
  • confirm that Auto-Maintained From field is populated with the Pricing Setting in USD
  • update the field Auto-Maintained Product Brackets in the local currency to true
  • confirm that Auto-Maintained From field is populated with the Product Bracket in USD

• when the auto-maintained was activated for the first time on the pricing setting in USD:
  • Go into the Pricing Setting record received on the email, click on Product Pricing, tab Related, Pricing Settings, View All and open the Piricng Setting in the Local Currency
  • update the field Auto-Maintained in the Pricing Setting in the local currency to true
  • update the Auto-Maintained From field with the Pricing Setting in USD
  • update the field Auto-Maintained Product Brackets in the local currency to true
  • update the Auto-Maintained From field with the Product Bracket in USD

Manage people that receive auto-maintain notifications:

There is a custom metadata named PP Control Panel to configure the emails from the people that is added in the CC of the email, to receive the notifications when the product manager deactivates or re-activates the auto-maintain.

Auto-Maintain process when a new Pricing Setting in USD is created

Auto-Maintain process when an existing Pricing Setting in USD is updated

Auto-Maintain process when the auto-maintained feature is disabled for an existing Pricing Setting in USD

Including the manual steps that must be performed by the data stewards

Auto-Maintain process when the auto-maintain feature is reactivated for an existing Pricing Setting in USD

Including the manual steps that must be performed by the data stewards

IMPORTANT REMARK ABOUT AUTO-MAINTAIN

If a product is set to inactive, the product manager must contact the data steward to disable the auto-maintain feature in all the pricing settings in USD linked to this product.

What needs to be done is:unselect the field "Auto maintained in local currency?" on pricing settings in USD.

Documentation about Auto-Maintain:

Product H4 Brackets creation

When a product hierarchy 4 is created, 3 product H4 brackets are created and the prices proposed for each range From-To are calculated based on the Ratio field.

Price List Data Model