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Background documentationMultiple Pricing

 

Multiple pricing, or multiple unit pricing, is a pricing scheme that specifies the item price for multiple units. A typical example of multiple pricing is an item that sells at 4 for $1.00. In this example $1.00 is the multiple unit price and 4 is the multiple unit quantity. The method for assigning item price is called a multiple pricing algorithm.

If the multiple unit price is divisible by a multiple unit quantity without a remainder, then the item’s unit price is the multiple unit price divided by the multiple unit quantity. In the previous example, the item’s unit price is $.25 ($1.00 divided by 4). In cases where the division of the multiple unit price by the multiple unit quantity results in a remainder (as in the case of 3 for $1.00, where the item price is $.333333.....), then the item price is assigned in such a way that the total item price for multiple unit quantity items is exactly the multiple unit price.

Various multiple pricing algorithms are used in the retail industry. SAP Enterprise POS supports base +1, group threshold, and highest price. You define the multiple pricing algorithm to be used for an item in the <Price> element of the input file for the item (see the example below). Keep in mind that an item can have many different prices associated with it, including future and level prices. And any of these prices can be configured for multiple pricing.

Note Note

Multiple pricing is a method for setting the item price for each successive unit of an item sold when multiple units are the same item are sold. In fact, the item price is set on an item-by-item basis. Multiple pricing is not a discount; it specifies the regular selling price of each item eligible for the multiple unit pricing. It is not a mix match pricing scheme, which sets the price for a collection of items rather than each individual item.

End of the note.

Example

Multiple pricing attributes of an item are defined in the <Price> element of an item input file. As long as two or more items have the same multiple price (<Amount>), multiple quantity (<Quantity>), multiple pricing algorithm (<PriceMethod>), and multiple group identifier (<MixMatchGroup>), they are accumulated together for the purpose of multiple pricing. When no multiple pricing algorithm is defined for the item, <PriceMethod> is set to UnitPrice.

<Price>

<PermanentPrice>

<PriceMethod>BasePlusOne>/PriceMethod>

<Amount>1.00</Amount>

<Sign>Positive</Sign>

<Quantity>3>/Quantity>

<MixMatchGroup>abc</MixMatchGroup>

<PermanentPrice>

More Information

For more information about the XML input file for item maintenance, see:

For more information about the three algorithms supported by SAP Enterprise POS, see the following example calculations. They describe how each pricing algorithm works for 3 for $1.00, 5 for $88, and 7 for $1.00. The algorithms produce the same end result, however they calculate the prices slightly differently.