How product prices should be set in Odoo to optimally use the power of Odoo and save time in the medium and long term.
Odoo offers a lot of options to customize your product pricing according to your customers. All these options can often seem overwhelming, but to provide a clear picture of Odoo's strength in this area, I will give an overview of the different possibilities in the order in which they should be set up.
Taxes
The administrative management of product prices in Odoo can be done either exclusive of taxes or inclusive of taxes, but not both at the same time. Therefore, it is important to decide in advance whether you will manage your prices exclusive or inclusive of taxes. When working with both B2B and B2C customers, managing prices exclusive of taxes is usually preferred.
Taxes are set in Settings ‣ Accounting ‣ VAT.
Base Prices
Odoo offers the ability to have your prices calculated automatically. For this, a base selling price and base cost price can be set for each product. I explicitly add the word 'base' here because these prices can be used as a basis for further price calculations.
Base prices are set in Sales ‣ Products ‣ Products, select a product or click New, ‣ General information.
Base Selling Price
If one or more of the following conditions are met, the base selling price is:
shown to visitors of the webshop:
as long as no price list for the webshop is set;
as long as the visitor is not logged in;
as long as a logged-in visitor has not been assigned a price list by an administrative user;
used in the checkout:
as long as no default price list for the checkout is set;
as long as no price list is selected in the checkout;
as long as a selected customer has not been assigned a price list by an administrative user;
used in quotes
- when no price list is selected;
- when the selected customer has not been assigned a price list by an administrative user;
Therefore, it is important that the base selling price is set as the regular selling price to consumers for 1 unit without discounts (with or without taxes as previously mentioned).
The base selling price is set in Sales ‣ Products ‣ Products, select a product or click New, ‣ General information ‣ Selling price.
Base Cost Price
The base cost price can be used as a basis to automatically calculate your selling prices and is used to calculate your profit margins in your sales statistics.
The base cost price is your basic purchase price per unit without additional quantity discounts.
The base cost price is set in Sales ‣ Products ‣ Products, select a product or click New, ‣ General information ‣ Cost price.
Custom Prices
Prices can be adjusted depending on the circumstances: based on the type of customer, quantity discounts, promotions, etc...
Price lists
With price lists, you can have product prices calculated dynamically, after which you can assign the price lists to your customers.
Price lists can work in tiers, one based on another.
Applications
Price lists are applicable to:
All products;
Specific administrative product categories;
- Specific products;
- Quantities;
- Periods;
and all possible combinations thereof.
Price calculation
Price calculations in a price list can be based on discount, formula or fixed price.
Discount
A discount percentage can be set on:
- the base selling price, or
- another price list
Formula
A formula can be defined, based on:
- the base selling price, or
- the base cost price, or
- another price list
Fixed price
We recommend setting a fixed price only in combination with a specific period, such as a temporary promotion.
NOTE
If a fixed price is set without a specific period, then this price will not be automatically adjusted when your purchase or sale price is changed.
Example
(Prices excluding VAT)
Product
- Selling price: 1,000.00 €
- Cost price: 500.00 €
Price lists
- Individuals: Discount: 0.00% on base sale price
- Companies: Discount: 10.00% on Individuals price list
- Wholesale: Surcharge (margin): 20.00% on base cost price
Webshop
Visitor | Price List | Application | Formula | Price |
|---|---|---|---|---|
Not logged in | none | base sale price | base sale price | 1.000,00 € |
Logged in | none | base sale price | base sale price | 1.000,00 € |
Individuals | Individuals price list based on the base selling price | 1.000,00 € - 10,00% | 900,00 € | |
Companies | Companies price list based on the Individuals price list | 900.00 € - 10.00% | 810.00 € | |
Wholesale | Wholesale price list based on the base cost price | 500,00 € + 20,00% | 600,00 € |
The same applies to prepared quotes/orders and customers at the checkout.
Price lists are activated in Settings ‣ Sales ‣ Prices ‣ Price lists, and set in Sales ‣ Products ‣ Price lists.
Custom prices
When you want to offer customized prices to specific customers on a regular basis, this can be done by applying it step by step. You can set up a specific price list for a specific customer based on another price list.
Example
If you want to agree on an additional discount or a fixed price for a specific product for wholesale 'Customer X', you can create a Customer X price list with 0.00% discount on the Wholesale price list for all products and set a specific discount or price for one or more specific products.
WARNING
Please note that you must first set a 0.00% discount on the applicable 'parent' price list for all products; otherwise, all products not included in the price list will be charged at the base selling price.
INFO
Only 1 price list can be assigned to a customer.