Overview
The common planning workflow in Item Plan is to plan units and then the cost, price & ticket information calculate based on price information. Throughout time pricing and costing will change based on different factors. The Update Prices function will set the Unit Cost and Unit Ticket based on date and channel referring to the Pricing Table from the Master Data imports.
The Unit Cost and Unit Ticket will all metrics (Inventory, Sales, Returns and Receipts) in the proper order. The Discount and Markdown metrics will output to give you an AUR.
For Cost:
Unit Cost changes happen more frequently and first impact the Receipts Cost. For On Order metrics we respect the cost that is on the PO. For any OTB cost we will respect the
Pricing Table.Receipts will now flow into your Inventory and your Inventory Cost will be accurately weighted.
The new Inventory AUC will be used to update Sales AUC and Returns AUC. This ensures that the product cost is sold how it is owned and keeps a balance.
All Actual Cost data comes straight from the data feeds and the Pricing Table will not alter those.
Pricing Information Source
Pricing Table
While Updating Prices, Toolio needs to know the effective cost & price information at any point in time. For this information Toolio uses the Pricing data if this information is available. Pricing table is updated using the Pricing Feed or manually, and is accessible under Master Data > Pricing
Pricing Table is useful, if you are expecting future cost or price changes and you want the system to reflect that. This information is provided to Toolio at the Variant Id (i.e. SKU) level.
Variant Level Pricing
If there is no entry for an item in the Pricing Table, Toolio uses the Variant level:
Unit Cost
Unit Ticket
Variant/Channel Level Pricing
If you to update the your pricing of your skus (variants) at the channel level you are able to do so with the use of Import Mappers. You can create these by going to Settings and navigate to Import Mappers.
In this example I have set up my mapper to review my Channel Id and choose the appropriate pricing fields.
I will need to create a mapper for each one of my Channels. However, the import file does not need to be broken out into separate files. See below the example that I fed into the above mapper and a mapper for the Web channel.
Price Update Heuristic
Below is the heuristic for applying Prices Info to item level plans:
Handling AIR
Inventory AIR, Receipts AIR, Sales AIR and Returns AIR will update based on the start dates that are in the
Pricing Table.You will be able to change these by Channel with different dates as well.
Handling AUC
Unit Cost changes happen more frequently and first impact the Receipts Cost. For
On Ordermetrics we respect the cost that is on the PO. For any OTB cost we will respect thePricing Table.Receipts will now flow into your Inventory and your Inventory Cost will be accurately weighted.
The new Inventory AUC will be used to update Sales AUC and Returns AUC. This ensures that the product cost is sold how it is owned and keeps in balance.
All Actual Cost data comes straight from the data feeds and the Pricing Table will not alter those.
Handling Channels
Depending on the configuration you have will alter the behavior:
Omni Channel - This means you sell to all channels at different pricing (think Retail vs Wholesale).
The AIR or Unit_Ticket will update the sales and returns for each channel but your inventory and receipts are brought in at the value you use at your source warehouse.
Looking at the AIR for your total inventory it will be valued at the Unit_Ticket you choose.
Trying to do the math from BOP (starting Inventory) to Next BOP for Ticket Value will not add up at the Total Company because the Sales Ticket will be a blend on how it sells to the channels.
Cost will be weighted and that is the best way to review the Total Company Inventory position.
Channel Specific Warehouses - This means each Channel has their own Inventory associated with it.
In this case it will use the associate Unit_Ticket and Unit_Cost you designate for each Channel.
At the Total Company, Inventory, Sales, Receipts and Returns will be weighted based on the channel rollup.
Sample Spreadsheet
Understanding how Pricing Info is applied on a time basis to each of the metrics can be tricky. Please see how this all works in action on this spreadsheet.
Price Update Workflow
Updating Prices is done via the Update Prices function that can be reached by right clicking on the grid in Item Plan. Please see what it looks like below.
This function applies to the selected time frame and items, like all other functions. Also, note that Update Prices is run automatically when any of the other inventory updating functions such as generate receipts or forecasting are run.