# Determining Sales price based on Purchase/Cost price for a product in Ax 2012

In one of our implementations we came across a scenario where the user wanted to maintain standard sales prices for items, which will be based on the purchase price of the product and the price, will be inflated by certain percentage.

To handle this scenario, Ax provides an option of “Sales price model” & “Base price”.

In order to use this feature following are the pre-requisites:

1. Released product should be configured with a Default Purchase Price @ Purchase fast tab. Setup:

Access the Released product form à Sell tab (Price update field group)

Sales price model: this field determines how the sales price will be calculated.

1. None – No impact of the charges percentage/contribution ratio on the sales price
2. Contribution Ratio – Determines calculation of sales price considering the purchase price/cost price as a contribution to the sales price

Charges Percentage – Determines the sales price  based on Purchase price/cost price + charges percentage Base Price:  This field is used to determine the basis of calculating the sales price, be it Purchase price or Cost price

1. Purchase price – calculates the sales price by using the Purchase price @ purchase fast tab as basis.
2. Cost price – calculates the sales price by using the Price @ Manage cost fast tab as basis. Following are the scenarios that we will see in this configuration demo:

1. Sales price model = Contribution Ratio; Base price = Purchase price
2. Sales price model = Charges percentage; Base price = purchase price
3. Sales price model = Contribution Ratio; Base price = Cost
4. Sales price model = Charges percentage; Base price = Cost

1. Sales price model = Contribution Ratio; Base price = Purchase price

Pre-requisite => Purchase price @ Purchase fast tab = 90 In here the system calculates the Sales price as 100 based on the below formula.

Sales price – (Sales price * Contribution Ratio %) = Purchase price

2. Sales price model = Charges percentage; Base price = purchase price

Pre-requisite => Purchase price @ Purchase fast tab = 90 In here the system calculates the Sales price as 100 based on the below formula.

Sales price = Purchase price + (Purchase price * Charges percentage %)

3. Sales price model = Contribution Ratio; Base price = Cost

Pre-requisite => Price @ Manage Cost fast tab = 90 In here the system calculates the Sales price as 112.50 based on the below formula.

Sales price – (Sales price * Contribution Ratio %) = Cost price

4. Sales price model = Charges percentage; Base price = Cost

Pre-requisite => Price @ Manage Cost fast tab = 90 In here the system calculates the Sales price as 103.50 based on the below formula.

Sales price = Cost price + (Cost price * Charges percentage %)

Happy Learning.!

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