Appendix A. Transition to Price Manager

This section explains what happens to prices when price management is transferred to Price Manager.

Let us review three distribution chain configurations.

Configuration #1:

• At reseller level n, a plan with defined prices is delegated to resellers at level n+1.

• During synchronization, prices are copied from level n to level n+1.

• To keep margin positive, the prices can be adjusted:

  • Manually at level n+1, or via a discount configured at level n.

  • Using discounts configured at level n.

During transition to Price Manager, prices at all levels are copied to the Price Manager database as wholesale and retail prices.

After you deactivate reseller prices at level n+1, there will no be prices defined at that level and Price Manager will take prices from the level above, in this case, level n. This means that all prices will be managed at level n.

However, for this configuration we recommend that you do the following after price migration, but before deactivating reseller prices:

1. If margin for resellers at n+1 level was ensured by discounts, deactivate those discounts.

2. Import new prices at level n, providing wholesale and recommended retail price.

3. Synchronize n+1 resellers with the option to deactivate reseller prices.

As a result, the prices at level n+1 will be defined by the prices imported at level n.

Configuration #2:

• At reseller level n, a plan has prices and manufacturer's suggested retail price (MSRP) configured.

• That plan is delegated to resellers at level n+1.

• During synchronization, MSRP is copied from level n to level n+1.

During transition to Price Manager, prices are saved as follows:

• At level n:

  • Prices are saved as wholesale and retail prices.

  • MSRP is saved as recommended wholesale and recommended retail prices.

• At level n+1:

  • MSRP is saved as wholesale and retail prices.

After you deactivate reseller prices at level n+1, there will no be prices defined at that level and Price Manager will take prices from the level above, in this case, level n. This means that all prices will be managed at level n.

Configuration #3:

• At reseller level n, a plan has vendor costs configured instead of prices.

• The plan is delegated to levels n+1 and n+2.

• At level n+1, prices and MSRP are defined.

During transition to Price Manager, prices are saved as follows:

• Prices are saved a the respective levels as wholesale and retail prices.

• MSRP at level n+1 is saved as recommended wholesale and recommended retail prices at level n+1 and as wholesale and retail prices at level n+2.

To make the plan at level n the only price source in the distribution chain, complete the following steps:

1. Import a price list at level n with the following prices:

   • Wholesale prices that will be used use for sales to resellers at level n+1.

   • Recommended wholesale prices that will be used for sales from resellers at level n+1 to resellers at level n+2.

   • Recommended retail prices. They will be used for sales from resellers at level n+2 to their customers.

    

2. Synchronize n+1 and n+2 resellers with the Deactivate reseller prices option enabled.

As a result, the plan at level n will become the price source for the whole distribution chain.