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.