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Pricing Methods

  • Article

The Microsoft CRM application uses the pricingmethodcode attribute of the product price level object for determining prices. The pricingmethodcode value affects the following:

  • How the price for the product is determined for each unit of measure that is defined for that product.
  • What attributes are required when you create or update a product price level and its associated product.

The formulas that are used for each value and the attributes that are required by each value are shown in the following table of pricingmethodcode attribute values.

Drop-down list value
and equivalent
PRICE_METHOD value		 Description and required attributes
Currency Amount

PM_CURRENCY_AMOUNT

 The price is specified for each unit of measure for each product. 
price = amount

For each unit of measure for each product, you must enter data in one attribute:

  • amount attribute of the product price level object
Percent of List

PM_PERCENT_LIST_PRICE

 The price is calculated on the basis of the manufacturer's or distributor's list price. 
calculated price = list price x percentage

For each unit of measure for each product, you must enter data in three attributes:

  • price attribute of the product object (List Price in the Product form).
  • percentage attribute of the product price level object. This is the desired percentage of the list price.
  • roundingpolicycode attribute of the product price level object.
Percent Markup - Current Cost

PM_MARKUP_CURRENT_COST

 The price is calculated as a percentage of your current cost for the item. 
calculated price = current cost x 
100% + percentage)

For each unit of measure for each product, you must enter data in three attributes:

  • currentcost attribute of the product object. You must update this cost each time you receive a shipment of the item; the price changes accordingly.
  • percentage attribute of the product price level object. This is the percent markup.
  • roundingpolicycode attribute of the product price level object
Percent Margin - Current Cost

PM_MARGIN_CURRENT_COST

 The price is based on the profit percentage you want to achieve and your current cost for the item. 
calculated price = current cost + 
[(current cost x percentage)/
(100% - percentage)]

For each unit of measure for each product, you must enter data in three attributes:

  • currentcost attribute of the product object. You must update this cost each time you receive a shipment of the item; the price changes accordingly.
  • percentage attribute of the product price level object. This is the profit percentage you want to achieve.
  • roundingpolicycode attribute of the product price level object
Percent Markup - Standard Cost

PM_MARKUP_STANDARD_COST

 The price is calculated as a percentage of the standard cost of the item. 
calculated price = standard cost x 
100% + percentage)

Because the standard cost is updated periodically, the standard cost amount in this equation is an average and won't always be the same as the amount you paid most recently for the item.

For each unit of measure for each product, you must enter data in three attributes:

  • standardcost attribute of the product object. Each time you update the standard cost, the price changes.
  • percentage of the product price level object. This is the percent markup.
  • roundingpolicycode of the product price level object.
Percent Margin - Standard Cost

PM_MARGIN_STANDARD_COST

 The price is based on the profit percentage you want to achieve and the standard cost of the item: 
calculated price = standard cost + 
[(standard cost x percentage)/
(100% - percentage)]

Because the standard cost is updated periodically, the standard cost amount in this equation is an average and won't always be the same as the amount you paid most recently for the item.

For each unit of measure for each product, you must enter data in three attributes:

  • standardcost attribute of the product object. Each time you update the standard cost, the price changes.
  • percentage attribute of the product price level object. This is the profit percentage you want to achieve.
  • roundingpolicycode of the product price level object.

To view the pricingmethodcode value for an existing product price level, use the PRICE_METHOD class.

To set the values for the pricingmethodcode attribute and the other product price level object attributes referred to in the preceding table, use the methods in the CRMProductPriceLevel class.

To set the values for the product object attributes referred to in the preceding table, use the methods in the CRMProduct class.

The XML schema for the product price level object is described by productpricelevel.xsd.

The XML schema for the product object is described by product.xsd.

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