Browse Prior Art Database

Method for Pricing and Taxing Different Products

IP.com Disclosure Number: IPCOM000181343D
Original Publication Date: 2009-Mar-30
Included in the Prior Art Database: 2009-Mar-30
Document File: 5 page(s) / 86K

Publishing Venue

IBM

Abstract

This invention provides methods for pricing and taxing differently for different products which have a special price e.g. a 'solution' or 'bottom line priced deal'). The invention utilizes a table and various settings to determine the product for prices and taxes and performs calculations to a special price. The pricing and taxes differ based on the product being a simple and or complex product or a combination of both a simple and complex product.

This text was extracted from a PDF file.
At least one non-text object (such as an image or picture) has been suppressed.
This is the abbreviated version, containing approximately 51% of the total text.

Page 1 of 5

Method for Pricing and Taxing Different Products

This invention provides a method for maintaining a price and tax differently for different products which combine to a 'solution' or 'bottom line priced deal' which has a special price.

Some of the advantages to this method are as follows:
Allows for transaction processing within one system for different combinations of products.

Reduces reconciliation processes between the transactional based system and other systems.

Timely Financial reporting.

End customer negotiated prices are supported within one system.

System enforces criteria and validations for correct pricing and tax to eliminate manual intervention.

Reuse existing prices and tax rates within an existing process without changing the overall process.

Accelerate overall price and tax validations in order-to-cash area.

Figure 1: Novel ideas addressed, and basic flow:

1

Page 2 of 5

Invention Description (as shown in Figure 1):


Customers buy complex product offerings and or bundles with a special price and the ERP transaction system has to process with different methods to determine the prices and taxes. When a solution or special offering is processed, the invention will examine

2

[This page contains 2 pictures or other non-text objects]

Page 3 of 5

each line item and determine the prices for the products and components. Within a transaction based system, the products can have simple products and components that are hardware, software and or service and the prices and taxes depend on the transaction system prices and data settings..

When the product is a complex product, or a combination of both a simple and complex product it is offered with a bottom line price different from the ERP transaction system prices and data settings the product and components need to be adjusted to agree with the special price offering.

The complex product may require a price and tax for one product within the offering and only require a price on another product within the offering. The invention is to allow the one special total solution / price offering, while allowing the break down of independent prices and taxes on each product.

The complex product is broken down to the simple product and or component level to find prices and taxes.

Within the ERP system the Customer and Material have settings to determine if the product is taxable and or exempt. The invention utilizes a table and various settings to determine the product for prices and taxes and determines if there is a special price and then performs calculations to equate to the special price.

Table to determine when different Product logic method for price and tax is required

Product Offering

Type of product

Taxable (1)

Table /

Comparison Logic (5)

Simple Hardware Y or N Y Y Contracts N Simple Software Y or N Y Y Contracts N Simple Service Y or N Y Y Contracts N Complex

H...