Weight Based Pricing

Weight based pricing defines the price of product based on weight, standard cost, or current cost of each of the components, which will be used while production. While creating the BOM user can select the pricing mode (Weight based, current cost or standard cost) for each of the component which to be used for pricing

 

Prerequisites

• Add Material and material rate
• Add components or products with current cost & standard cost
• Create BOM for Component or product
• While adding the BOM line set the weight and pricing mode (Weight based, current cost, standard cost)

Follow the below mentioned steps to calculate weight-based pricing

• Navigate to -> Menu Category.
• Select Sales menu category.
• Navigate to Sales -> Opportunity.
• Displays list page of Opportunity click on -> Click on opportunity record.
• Click on opportunity line record from “Items” tab.
• Select BOM in “Line BOM” lookup and save the record.

 

 

• Click on "Weight Based Unit Cost” from “Function” button, system calculates and displays the cost in “Weight Based Unit Cost” field.

 

 

 

 

 

 

• Weight Based Unit Cost = sum of cost of each BOM Line
  • Pricing Mode = Weight based, then Material Rate * Weight * Quantity
  • Pricing Mode = Standard Cost, then Standard Cost * Quantity
  • Pricing Mode = Current Cost, then Current Cost * Quantity
• On Opportunity line if “Pricing Model” selected “Cost Based”, then sum of weight-based unit cost and process-based unit cost will get set to “Per Unit cost” field.
• This process helps to quote or offer the price for product.