Volume Breakdown

It is possible to run a PL/LPG with a volume breakdown. This feature allows you to apply different configurations per volume, depending on the quantity. To use this feature, utilize the secondary key in Matrix PL/LPG. The secondary key set will be the list of volumes.

Also, a calculation item in the PL/LPG with the volume equaling to 1 will always be added. It is to keep the default price without the volume discount applied and it will be used as the parent item price in dependent PL/LPG calculations.

Discount

The calculation logic takes the secondary key, looks for the additional discount, and applies the adjustment to list prices. There will be the Volume Discount element to show the discount per volume value. If there is no volume breakdown defined for an SKU, the PL/LPG shows 1 row of the SKU with Secondary Key value set to 1, and the Volume Discount 0%.

The volume breakdown configurations are defined in the Product dimension, <dependency>VolumeBreakdown PP table. In order to use the feature properly, the table has to be configurable on the level of the lookup key and has one PP per dependency level. Example:

Open

Exceptions on the SKU level are defined in the VolumeBreakdownExceptions PP. With this, the configuration in the corresponding <dependency>VolumeBreakdown will be ignored. Example:

Open

Margin Break-even and Revenue Break-even

When making pricing changes in the price list, there will be two added fields:

• Break-even volume for revenue

• Break-even volume for margin

This requires three fields:

• New Margin ( % )

• Previous Margin ( % )

• Previously approved price

The calculation formula:

• Break-even volume for revenue %: (New Price minus Previous Price) / Previous Price ) * -100%

• Break-even volume for margin %: ((( Old Price - Cost ) * Volume ) / ( New Price - Cost)) / Volume ) - 1

Example:

Usage

To use this feature, set proper data and create a matrix PL/LPG and use the VolumeBreakdownMatrixLogic as the Matrix logic: