Set up and use of price unit and price reference unit

Setup

You must set Activate Item Price Ref. Units and Item Price Units in the Setup On/Off Switch page. Then you can use the price unit and price reference unit.

So that you can use price reference units and price units, you should show the following fields.

Note

Entries marked with an * are influenced by the fields price unit and price reference unit.

  • Item Card

    • Sales Price Unit
    • Purchase Price Unit
    • Sales Price Reference Unit
    • Purchase Price Reference Unit
    • Last Direct Cost (PU)*
    • Sales price (PU)*
    • Unit Cost (PU)*
    • Standard Cost (PU)*

  • Sales prices

    • Price Unit
    • Price Reference Unit
    • Sales Price (PU)*

  • Purchase prices

    • Price Unit
    • Price Reference Unit
    • Purchase Rrice (PU)*

  • Purchase/Sales documents

    • Price Unit
    • Price Reference unit
    • Price (PU)*
    • Unit Cost (PU)*

Goal of price unit and price reference unit

It is always useful to activate price unit and price reference unit if they have to be managed differently from the unit code or base unit code. In several industries it is common practice that the unit code differs from the price unit and the corresponding price reference unit code. Trade goods are often bought and sold in fixed units, but the price refers to so-called loose/flexible units.

Important

The following formula applies: Price / Unit Code * Price Unit Code * Price Reference Unit Code = price (pu).

The price (PE) is extrapolated if the price, the unit code, the price unit or the price reference unit changes. You can also maintain the Price (PE) field, which recalculates the unit price.

Example for price unit

A roof tile costs one customer per piece 0,65€. However, the roof tile is settled per thousand pieces by the supplier according to commercial practice. By setting the price unit to 1,000 the price (pu) of 650€ per thousand pieces is converted to 0.65€ per piece.

Example for price reference unit

A tile costs a customer 0.85€ per piece. The stock of tiles is usually kept in pieces, but the customer orders the tiles per SQM and these are usually invoiced per SQM by the supplier. The price is converted by maintaining the field price reference unit SQM. In our case, if a SQM contains four tiles, the price (pu) is 3.40€.

The unit code field in the master data

In Business Central standard it is already possible to display different prices per unit. However, here a line must be created per price:

Example:

  1. price 0,85€ per unit
  2. price 3,40€ per square meter

Keeping these prices up to date means a high maintenance effort. The advantage of the price reference unit is, is the minimization of the maintenance effort, because in this example the square meter price would be calculated automatically.

Price reference units and price units in process

These two fields are also available in the purchase and sales documents. However, they can only be edited in the purchase order and the sales order. The two fields behave exactly the same as in the master data. The above formula applies.