Problem with price calculation for dropship purchase orders

[Thomas Nadler]

Hi.

We have noticed a problem with the price calculation for purchase orders
that are automatically generated for dropshipments:
The product prices of the corresponding sales and purchase orders do not
match.

Background: The invoked Method makePurchaseOrderItem - that is
responsible for the creation of new purchase order items - uses
lastPrice from supplierProduct for the BasePrice calculation. In
contrast to this the price calculation for the corresponding sales order
bases on price from productPrice.
The lastPrice value is set everytime a merchant updates an existing
(purchase) order in the editOrderItem-view from GUI. Because of this all
newly generated purchase order items will base upon the last changes and
not on the original product price.

Possible Solution:
Change the value of baseprice in makePurchaseOrderItem from lastPrice
(supplierProduct) to price (productPrice).

Question:
What is the reason for using lastPrice from supplierProduct for the
creation of purchase orders and what kind of side-effects might occour
if price from productPrice is used instead.

We are working with Apache OFBiz 10.04.


Regards,

Thomas

[BJ Freeman]

Basic concept the price for a product you buy should be less than the
price you sell it for.
so you get the price you pay for it (last price) Which becomes the
baseprice of the product then add what ever to that price to come up
with the price (default price) you sell it for.
Usually the supplier will also give you an MSRP that will be the
ListPrice, so you can discount from the Listprice to the defaultprice.
The Defaultprice is the one used for promos and marketing.

So when doing a PO you look at the lastprice or Baseprice. Since the
code for receiving uses lastprice it seem ok to use lastprice for PO.s

I can see an argument for using baseprice as long as the costing service
update the baseprice from the lastprice.

checkout page 88 of the data model book for the pricing component and
page 111 for the supplier product.

Thomas Nadler sent the following on 8/17/2010 2:39 AM:

> Hi.
>
> We have noticed a problem with the price calculation for purchase orders
> that are automatically generated for dropshipments:
> The product prices of the corresponding sales and purchase orders do not
> match.
>
> Background: The invoked Method makePurchaseOrderItem - that is
> responsible for the creation of new purchase order items - uses
> lastPrice from supplierProduct for the BasePrice calculation. In
> contrast to this the price calculation for the corresponding sales order
> bases on price from productPrice.
> The lastPrice value is set everytime a merchant updates an existing
> (purchase) order in the editOrderItem-view from GUI. Because of this all
> newly generated purchase order items will base upon the last changes and
> not on the original product price.
>
> Possible Solution:
> Change the value of baseprice in makePurchaseOrderItem from lastPrice
> (supplierProduct) to price (productPrice).
>
> Question:
> What is the reason for using lastPrice from supplierProduct for the
> creation of purchase orders and what kind of side-effects might occour
> if price from productPrice is used instead.
>
> We are working with Apache OFBiz 10.04.
>
>
> Regards,
>
> Thomas
>

[Jacques Le Roux]

From: "BJ Freeman" <[hidden email]>
> Basic concept the price for a product you buy should be less than the
> price you sell it for.
> so you get the price you pay for it (last price) Which becomes the
> baseprice of the product then add what ever to that price to come up
> with the price (default price) you sell it for.
> Usually the supplier will also give you an MSRP that will be the
> ListPrice, so you can discount from the Listprice to the defaultprice.
> The Defaultprice is the one used for promos and marketing.

The ListPrice is the one used for promos and marketing. Defaultprice is one used.... by default ;o)
https://cwiki.apache.org/confluence/display/OFBENDUSER/Price+Rules

Jacques

> So when doing a PO you look at the lastprice or Baseprice. Since the
> code for receiving uses lastprice it seem ok to use lastprice for PO.s
>
> I can see an argument for using baseprice as long as the costing service
> update the baseprice from the lastprice.
>
> checkout page 88 of the data model book for the pricing component and
> page 111 for the supplier product.
>
> Thomas Nadler sent the following on 8/17/2010 2:39 AM:
>> Hi.
>>
>> We have noticed a problem with the price calculation for purchase orders
>> that are automatically generated for dropshipments:
>> The product prices of the corresponding sales and purchase orders do not
>> match.
>>
>> Background: The invoked Method makePurchaseOrderItem - that is
>> responsible for the creation of new purchase order items - uses
>> lastPrice from supplierProduct for the BasePrice calculation. In
>> contrast to this the price calculation for the corresponding sales order
>> bases on price from productPrice.
>> The lastPrice value is set everytime a merchant updates an existing
>> (purchase) order in the editOrderItem-view from GUI. Because of this all
>> newly generated purchase order items will base upon the last changes and
>> not on the original product price.
>>
>> Possible Solution:
>> Change the value of baseprice in makePurchaseOrderItem from lastPrice
>> (supplierProduct) to price (productPrice).
>>
>> Question:
>> What is the reason for using lastPrice from supplierProduct for the
>> creation of purchase orders and what kind of side-effects might occour
>> if price from productPrice is used instead.
>>
>> We are working with Apache OFBiz 10.04.
>>
>>
>> Regards,
>>
>> Thomas
>>
>

[BJ Freeman]

The actual price can be based on List Price, Default Price, Average
Cost, or Promotional Prices, as entered in the Product - Prices screen.

thanks Jacques

Jacques Le Roux sent the following on 8/17/2010 5:48 AM:

> From: "BJ Freeman" <[hidden email]>
>> Basic concept the price for a product you buy should be less than the
>> price you sell it for.
>> so you get the price you pay for it (last price) Which becomes the
>> baseprice of the product then add what ever to that price to come up
>> with the price (default price) you sell it for.
>> Usually the supplier will also give you an MSRP that will be the
>> ListPrice, so you can discount from the Listprice to the defaultprice.
>> The Defaultprice is the one used for promos and marketing.
>
> The ListPrice is the one used for promos and marketing. Defaultprice is
> one used.... by default ;o)
> https://cwiki.apache.org/confluence/display/OFBENDUSER/Price+Rules
>
> Jacques
>
>> So when doing a PO you look at the lastprice or Baseprice. Since the
>> code for receiving uses lastprice it seem ok to use lastprice for PO.s
>>
>> I can see an argument for using baseprice as long as the costing
>> service update the baseprice from the lastprice.
>>
>> checkout page 88 of the data model book for the pricing component and
>> page 111 for the supplier product.
>>
>> Thomas Nadler sent the following on 8/17/2010 2:39 AM:
>>> Hi.
>>>
>>> We have noticed a problem with the price calculation for purchase orders
>>> that are automatically generated for dropshipments:
>>> The product prices of the corresponding sales and purchase orders do not
>>> match.
>>>
>>> Background: The invoked Method makePurchaseOrderItem - that is
>>> responsible for the creation of new purchase order items - uses
>>> lastPrice from supplierProduct for the BasePrice calculation. In
>>> contrast to this the price calculation for the corresponding sales order
>>> bases on price from productPrice.
>>> The lastPrice value is set everytime a merchant updates an existing
>>> (purchase) order in the editOrderItem-view from GUI. Because of this all
>>> newly generated purchase order items will base upon the last changes and
>>> not on the original product price.
>>>
>>> Possible Solution:
>>> Change the value of baseprice in makePurchaseOrderItem from lastPrice
>>> (supplierProduct) to price (productPrice).
>>>
>>> Question:
>>> What is the reason for using lastPrice from supplierProduct for the
>>> creation of purchase orders and what kind of side-effects might occour
>>> if price from productPrice is used instead.
>>>
>>> We are working with Apache OFBiz 10.04.
>>>
>>>
>>> Regards,
>>>
>>> Thomas
>>>
>>
>
>

[BJ Freeman]

also when you have more than one supplier for a product, there are
considerations to decide which supplier is used, the last price is part
of that determination.
In simpler Ecommerce sites the supplier Item code is used for a single
supplier. In ofbiz you can use the default productID generated by ofbiz
and have separate supplierProducts that have the supplierProductId.

BJ Freeman sent the following on 8/17/2010 5:33 AM:

> Basic concept the price for a product you buy should be less than the
> price you sell it for.
> so you get the price you pay for it (last price) Which becomes the
> baseprice of the product then add what ever to that price to come up
> with the price (default price) you sell it for.
> Usually the supplier will also give you an MSRP that will be the
> ListPrice, so you can discount from the Listprice to the defaultprice.
> The Defaultprice is the one used for promos and marketing.
>
> So when doing a PO you look at the lastprice or Baseprice. Since the
> code for receiving uses lastprice it seem ok to use lastprice for PO.s
>
> I can see an argument for using baseprice as long as the costing service
> update the baseprice from the lastprice.
>
> checkout page 88 of the data model book for the pricing component and
> page 111 for the supplier product.
>
> Thomas Nadler sent the following on 8/17/2010 2:39 AM:
>> Hi.
>>
>> We have noticed a problem with the price calculation for purchase orders
>> that are automatically generated for dropshipments:
>> The product prices of the corresponding sales and purchase orders do not
>> match.
>>
>> Background: The invoked Method makePurchaseOrderItem - that is
>> responsible for the creation of new purchase order items - uses
>> lastPrice from supplierProduct for the BasePrice calculation. In
>> contrast to this the price calculation for the corresponding sales order
>> bases on price from productPrice.
>> The lastPrice value is set everytime a merchant updates an existing
>> (purchase) order in the editOrderItem-view from GUI. Because of this all
>> newly generated purchase order items will base upon the last changes and
>> not on the original product price.
>>
>> Possible Solution:
>> Change the value of baseprice in makePurchaseOrderItem from lastPrice
>> (supplierProduct) to price (productPrice).
>>
>> Question:
>> What is the reason for using lastPrice from supplierProduct for the
>> creation of purchase orders and what kind of side-effects might occour
>> if price from productPrice is used instead.
>>
>> We are working with Apache OFBiz 10.04.
>>
>>
>> Regards,
>>
>> Thomas
>>
>

[BJ Freeman]

Correction:
the base price is used to determine the floor price you will sell and
item for when doing promotion calculations. so it can not be used as the
price to the supplier. Last price is your only option.

BJ Freeman sent the following on 8/17/2010 5:33 AM:

> Basic concept the price for a product you buy should be less than the
> price you sell it for.
> so you get the price you pay for it (last price) Which becomes the
> baseprice of the product then add what ever to that price to come up
> with the price (default price) you sell it for.
> Usually the supplier will also give you an MSRP that will be the
> ListPrice, so you can discount from the Listprice to the defaultprice.
> The Defaultprice is the one used for promos and marketing.
>
> So when doing a PO you look at the lastprice or Baseprice. Since the
> code for receiving uses lastprice it seem ok to use lastprice for PO.s
>
> I can see an argument for using baseprice as long as the costing service
> update the baseprice from the lastprice.
>
> checkout page 88 of the data model book for the pricing component and
> page 111 for the supplier product.
>
> Thomas Nadler sent the following on 8/17/2010 2:39 AM:
>> Hi.
>>
>> We have noticed a problem with the price calculation for purchase orders
>> that are automatically generated for dropshipments:
>> The product prices of the corresponding sales and purchase orders do not
>> match.
>>
>> Background: The invoked Method makePurchaseOrderItem - that is
>> responsible for the creation of new purchase order items - uses
>> lastPrice from supplierProduct for the BasePrice calculation. In
>> contrast to this the price calculation for the corresponding sales order
>> bases on price from productPrice.
>> The lastPrice value is set everytime a merchant updates an existing
>> (purchase) order in the editOrderItem-view from GUI. Because of this all
>> newly generated purchase order items will base upon the last changes and
>> not on the original product price.
>>
>> Possible Solution:
>> Change the value of baseprice in makePurchaseOrderItem from lastPrice
>> (supplierProduct) to price (productPrice).
>>
>> Question:
>> What is the reason for using lastPrice from supplierProduct for the
>> creation of purchase orders and what kind of side-effects might occour
>> if price from productPrice is used instead.
>>
>> We are working with Apache OFBiz 10.04.
>>
>>
>> Regards,
>>
>> Thomas
>>
>