Pricing Matrix Overview

The purpose of a matrix cell is to define parameters that determine how your products are priced. A matrix cell can be set up as a two- or three-dimensional matrix, as shown below.

Two-dimensional matrix cells contain an x and a y axis, where x represents customer or vendor information, and y represents product information. Three-dimensional matrix cells contain an x, y, and z axis, where x and y represent the customer/vendor and product information, and the z axis represents branch or territory information.

Each cell in the matrix contains pricing information for buying or selling products. Buy matrix cells are vendor specific and are active when your company purchases products, and sell matrix cells are customer specific and are active when you sell products.

For general pricing, create matrix cells in Quick Buy or Quick Sell Matrix Maintenance. If you include the following pricing or costing rules, create matrix cells in Buy or Sell Matrix Maintenance:

To...	Use...
give customers extra discounts for buying quantity	quantity breaks
split pricing for items when a customer orders enough to qualify for one quantity break, but not enough to reach the next quantity break	split quantity pricing
use customer or product ranking to determine pricing	velocity pricing
include a commission plan in a matrix cell	commission plans
create matrix cells for rebate pricing to maintain accurate dates for sales and ensure payment of vendor rebates	rebates
check the matrix hierarchy for the best possible price	Best price checking
override the current price sheet effective date with that of another price sheet	price date

When a customer orders a product, the system checks a matrix hierarchy to determine which matrix cell to use to determine a price for the transaction. The system checks matrix cells in a fixed process starting with standard matrix cells, then checks promotional matrix cells, and finally checks the default matrix cell. The standard hierarchy is dependent upon the Best Price Check flag for promotional items, and on the Best Price Check Through Matrix Cell and Stop Best Price Check At First Valid Sell Group control maintenance records.