what is a pricing sheet

Pricing Sheet  Definition:



Pricing Sheet :-

Pricing Sheet is an internal document prepared by the Sales Officer at the Head Office as a basis of Price Quote offered to the customer in response to an order inquiry. It is the key document that segregates the cost and profit margin included in each sales order. It thus helps to keep a check on profit margin negotiated on an order-to-order basis.



The pricing sheet is divided into four segments that provide a break up of the Price Quote offered to a customer.



Pricing Sheet


The pricing sheet is divided into four segments that provide a break up of the Price Quote offered to a customer:

Seg.
Description
Guidelines/ Remarks
I
Cost of Manufacturing
-   The costs include direct cost of
     manufacturing, processing and overhead
     costs distributed based on ABC costing.
-   Price escalation terms is specified
     in the sheet.
-   The standard cost data is
     approved by the Costing Department and
     released in advance of  the applicable
     period.
II
Selling and Distribution Cost
-   The costs may vary based on selling and
     distribution (delivery) terms agreed with
     the customer. 
-   The standard costs is approved by
     the Costing Department

III
Cost of Credit & Discounts
-   Notional cost of credit period allowed
     is also worked (this is applicable
     in case of LC also).
-   The interest rates to be used is
     approved by the Costing Department.
IV
Expected Profit Margin
-   Profit margin as a percentage of cost and
     in absolute terms is computed.
-   In case the profit margin is lower than the
     floor limit for the sales officer dealing
     with the customer order, the authority
     approving the case.

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