Pricing Basis Fundamentals

Your vendors use pricing references called basis names for pricing their products. Eclipse refers to these as local basis names and they can vary from vendor to vendor, therefore they are local to each vendor. For example, one vendor may use LIST as your highest cost, while another vendor uses DFLT-LST (default list).

The following can determine your local basis names:

Common marketplace names.

Common marketplace names.
Vendor pricing.
The companies who supply price update information, such as Trade Service or PlumLee.

Global basis names are defined in the system during Eclipse implementation, and the system uses them to calculate prices, sort information for reports, and select data sets for mass updating. You cross-reference the vendor's local basis names with global basis names to standardize basis names for the system. This creates consistent pricing and costing references for all transactions. Many areas of the system, such as Sales Order Entry, Purchase Order Entry, and Reporting rely on global basis names to calculate pricing and costing.

Pricing formulas are paired with basis names to determine costs and prices for all price-related transactions throughout the system. Use formulas to add, subtract, multiply, or divide pricing basis.

System-defined Pricing and Costing Basis

Your system includes basis names with specific uses for pricing, reporting, and purchasing. These basis names are required for internal system calculations.

Average Cost and Last Cost

The AVG-COST (average cost) and LASTCOST (last cost) basis names are system-defined measurements used for reporting and analysis.

The system calculates average cost as follows:

[(Current on-hand quantity) x (Current AVG-COST)] + [(Incoming quantity) x (Incoming cost)]

[Current on-hand quantity + Incoming quantity]

The LASTCOST is the last incoming cost on a purchase order.

To include an inventory adjustment in the average cost calculation, change the setting in the Should Inv Adj Update Avg/Last Cost For Brch#control maintenance record.

Global Basis Names

Many areas of Eclipse, such as Sales Order Entry, Purchase Order Entry, and Reporting rely on the system-defined global basis names to determine pricing.

You can rename basis names or add user-defined global basis names in the Global Buy/Sell Basis Namescontrol maintenance record, if you map them to local basis names in each price line.

The following table describes the system-defined global basis names.

Global Basis Names	Description	Example of use
DFLT-LIST	Default List Prompt	Use if no value is assigned to list price.
DFLT-COST	Default Cost Prompt	Use if no value is assigned to list cost.
COGS-COST	COGS (cost of goods sold) Cost Prompt	Assigned in the Cost Of Goods Sold Basis Namecontrol maintenance record.
COMM-COST	Commission (cost) Prompt	Use when calculating sales commissions.
REBAT-COST	Rebate Cost Prompt	Use when vendors offer rebates.
SELL-BREAK	$ (dollar) Break Sell Prompt	Use when offering quantity breaks to customers.
PURC-BREAK	$ (dollar) Break Purchase Prompt	Use when vendors offer quantity breaks to you.
DISP-COST	Display Cost Prompt	Use to openly display a vendor's special costs.
Strategic List	If you are using Strategic Pricing, the price basis for the strategic price assigned to a product.	Use if you use the Strategic Pricing companion product to refine your pricing structure.
Strategic Cost	If you are using Strategic Pricing, the price basis for the strategic price assigned to a product.	Use if you use the Strategic Pricing companion product to refine your pricing structure.

Access pricing through the following areas in the system: