Version: Current

Contract pricing

Negotiating a price only saves money if somebody checks the invoices against it. Contract pricing records the rate you agreed for each item, and Zudello then compares every document line for that item against it as the document is processed.

Pricing rows sit in the Contract Pricing section on the contract. Your administrator adds that section to the contract form. See Setting up contracts.

Best practices

Match each row to a catalogue item where you can, because a row that is only free text cannot be checked
Add dimensions only where the price genuinely differs by location, project or the like
Keep one row per item and dimension combination, since Zudello rejects duplicates
Review the rows Zudello extracted from the document before relying on them

Adding pricing rows

Open the contract and find the Contract Pricing section.
Use the Dimensions picker to choose which dimension columns you need. Each dimension you select becomes a column in the grid.
Click Add row.
In the SKU cell, search for the item. You can select an existing catalogue item, create a new one, or type a value and leave it as free text.
Enter a Purchase Price, a Sell Price, or both. A row needs at least one of them.
Fill in any dimension columns that apply.
Click Save.

(Screenshot: the Contract Pricing grid with the stock code editor open)

To remove rows, select them and click Delete selected.

Note

Removing a dimension from the Dimensions picker clears that column's values from every row in the grid, and it cannot be undone. Zudello asks you to confirm first.

Purchase price or sell price

Purchase Price appears when the contract has a supplier, and Sell Price appears when it has a customer. In practice a supplier agreement shows purchase prices and a customer agreement shows sell prices.

Zudello uses the same split when checking documents. Purchasing, expense and inventory receipt documents are compared against the purchase price. Sales documents are compared against the sell price.

Items that are not in your catalogue

A row whose stock code does not match a catalogue item still saves, and shows an amber icon with the tooltip Item wasn't found in the catalogue. Matched rows show a link icon that opens the item.

Free text rows are useful for keeping the record complete, but they cannot be price checked. Only lines that resolve to a catalogue item are compared.

Rows Zudello creates for you

When you upload a contract that lists prices against stock codes, Zudello creates the pricing rows for you. Each extracted stock code is matched to your catalogue by trying, in order:

An exact match on the item's SKU
The SKU with spaces and dashes removed
The item alternatives recorded for that supplier or customer
The item's barcode

Rows are only created once the contract has a supplier or customer linked.

How the price check works

When a document line carries an item covered by an active contract, Zudello compares the contracted price against the line's unit price exclusive and gives the line one of four statuses:

Status	Meaning
Within contract	The line is priced below the contracted price
On contract	The line matches the contracted price
Over contract	The line is priced above the contracted price
N/A	No contract price applies to this line

A few points decide whether a check happens at all:

The contract's status type must be active, and the document's date must fall between the Effective Date and the Expiry Date
The contract's supplier or customer must match the document
The line must resolve to a catalogue item
Where several pricing rows on the contract could match, the most specific one wins, meaning the row with the most dimensions filled in

Note

The comparison uses the line's unit price exclusive, which is worked out when the document is saved. A price you have just typed can show as N/A until you save.

To see what your team sees on an invoice or an order, and what happens when a line is over contract, see Contracts on invoices and orders.