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Pricing logic and rules
Zilliant Guidance
What is called Zilliant Guidance is the determination of the Product Start Target and Floor Prices based on customer pricing data and the Valio Pricing logic implemented in Zilliant Price Manager.
These prices are used to define the optimal price limits for a product in order to help the sales person choose the best price for the customer.
Note that the Target Price is used in the definition of the default value of Invoice Price without VAT and that the Floor Price is used in the approval rule at product line level.
Valio Guidance
Introduction
Valio Guidance serves in the product pricing process as an additional information to the Zilliant Price Manager Guidance and company internal Guidance, in order to help the Sales Rep to propose product price not lower than authorised, taking into consideration strategic or regulatory contraints. these guidances are applicable on a specific set of product that are associated to one of the following Categories
Basic Milk
Butter
or Milk Cream
The sales team uses this guidance to help set prices and ensure they are within the company's acceptable range.
For these product we determine a minimum selling price based on the Volume
In addition to that Regulatory Limits are set for these group of product where a minimum or a maximum value is determined
Data management
Valio Guidances are maintained in 3 lookup tables within the CPQ system and are applicable to some, but not all, of Valio's products
Valio Prices : this table includes a "floor value" which is the minimum price the company is willing to accept for a product, and a "value average target" which is the ideal price the company would like to achieve.
Valio Guidance
Regulatory Limits
The guidance is based on classifying products into categories like "basic milk and cream" and "butter", with corresponding ABCD classes that determine the pricing and discounts.
The system should calculate the total volume of products in each category to determine the correct ABCD class and pricing.
This complex Value Guidance logic is applied separately for different product categories, while simpler lookup is used for the rest of the products
There should only be one value guidance type per product.
For detailed information about the data Structure please refer to the CPQ Data Structure Model Chapter
Edit : Product Price claculation
Invoice Price
The Invoice Price corresponds to the product PRice calcultaed based on the following inputs
Valio Guidance
Value
Minimum Valio
Regulatory Limits
Milk Minimum
Milk Powder MAximum
Zilliant Guidance
Target
Floor
These inputs define a default value for “Invoice Price without VAT” with the following Formula
if([Valio Guidance - Value] > [Zilliant Guidance - Target] then [Valio Guidance - Value])
Else (if [[Valio Guidance - Value Minimum] ] > [Zilliant Guidance - Target] then [Valio Guidance - Value Minimum])
Else (If [Regulatory Limits - Milk Minimum] > [Zilliant Guidance - Target] then [Regulatory Limits - Milk Minimum])
Else (If [Regulatory Limits - Milk Powder Maximum] < [Zilliant Guidance - Target] then [Regulatory Limits - Milk Powder Maximum] )
Else ([Zilliant Guidance - Target] )The Field can be updated by the user, however its value is controlled with the same inputs using the following formula, the result is used to define wether the product Price requires an approval
If [Invoice Price without VAT] < [Valio Guidance - Value] then yes
Else (If [Invoice Price without VAT] < [Valio Guidance - Value Minimum] then yes)
Else (If [Invoice Price without VAT] < [Regulatory Limits - Milk Minimum] then yes)
Else (If [Invoice Price without VAT] < [Regulatory Limits - Milk Powder Maximum] then yes)
Else (If (Invoice Price without VAT < Zilliant Guidance -Floor then yes)
Else NoThe follwong Formula is used to calculate The invoice Price is calculated with VAT using the VAT of the Product.
Invoice Price without VAT*(1+VAT)