Using discounts on a regular basis or as the normal price for certain customers, Price Levels will offer an easier solution than discount items
Price Levels are found on the Lists drop down menu. There is a difference between Pro and Premier as to what kind of price levels can be used.
In QuickBooks Pro, Fixed % price levels are available.
Navigate to Lists->Price Levels and select New from the menu that pops up with a right mouse click, and you will see the above window. Name the price level so it can easily be identified. Set whether the price level is an increase or a decrease over the price set in the Item List.
Then round in a way you wish prices to appear on your customer invoices.
The completed Price Level is shown in the above graphic. We’ve named our new price level “15% Discount.” The price level will decrease item prices by 15%.
The rounding has been set so that discounted prices will show as whole dollars. There are many options for rounding. Prices can be specified to end in .25, .50 and others. Many choices will allow specifying prices to end in .49, .89, .99 and many others.
An important part of using price levels is that QuickBooks can be told to always use a certain price level for certain customers without any ‘reminding.’
Price level can set for a particular customer by choosing it on the Payment Settings tab in the customer edit window.
Now, without the need for a discount item, the price comes up automatically for this customer with a 15% discount. After using a 15% discount item in the first invoicing example, the price of a case of 500 ML mineral supplement for cattle was $2713.20. Now, with our same customer, QuickBooks automatically charges $2736.
Why the difference? Well, in the first example QuickBooks began with the total price of $3192 and deducted 15% (478.80) to arrive at a discounted price of $2713.40.
A case however, is 24 bottle priced at $133 each. So in the second example, QuickBooks starts with $133, discounts by 15% (19.95) to arrive at a price of 113.05. Per our rounding instructions, it then sets the price at $114, rounding up to the nearest whole dollar. The last part of the calculation is to multiply the each price times 24 to reach a case price of $2736.
You could alter the pricing or units of measure to make these two examples come out the same. But, this is a good illustration of how using different methods can yield different results.
The Premier level of QuickBooks offers an additional option to price levels. Per Item price levels.
Many of the same calculation and rounding parameters that are found in Fixed % type price levels are here as well. But, they can be applied to a single item rather than all items.
In addition, the calculation can be based on the price, as with Fixed % price levels, or cost.
Just like Fixed % price levels, the Per Item price levels can be applied to one or more specific customers.
Unfortunately, only one price level can be applied to a customer.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
12401 Orange Drive #136
Davie, FL 33330
954-414-1524
hector@garciacpa.com
