It is a very advanced way to set your product price with Intuit’s new QuickBooks Online Price Rules feature. It allows you to put an optional price on an invoice based on factors. You can apply this to a date range, customer type, product/service type, or a specific list of items and/or customers. It is an amazing feature of QuickBooks online.
Note: QuickBooks Online Price Rules feature is only available in QuickBooks Online Plus.
How to turn on QuickBooks Online Price Rules
To turn on this feature see the steps below:
- Click on the Gear icon
- Select Account and Settings ( Company Settings )
- After that, go to the Sales section > Product and Service
- Now you can see Turn on price rules.
Now follow the given steps to create QuickBooks Online Price Rules
To create QuickBooks Online Price Rules
- Go to Gear – > All Lists -> and from the list page select “price rules”.
- On the price rules page select “new price rule”.
There is another way, In the upper right corner of your products and services list, you will find Price rules in the More button menu.
This opens the Create a price rule window. Each and every price rule needs a clear and unique rule name.
Here we can explain two main aspects of price rules:
- How to alter the price,
- And Indicating which customers/items the rule applies to.
1. How to Alter the Price
You can edit/change the sales price of a product and the rate of service. You can enter the base price of a product when you create it.
A price rule will change that base sales price/rate when it is applied in a sales transaction. The rule will modify the base price/rate up or down by a percentage, up or down by an amount, or you can enter a specific price override for an item. The fields will change by your choice or option you’ll pick, that are displayed in the price rule window.
You can clarify that the rule will increase or decrease the base price/rate, the percentage to use, and clarify the type of rounding to use, when you select a Percentage. When you select a Fixed amount, the option is alike, the base price/rate will be changed by the amount you put.
Benefits of this feature
In this feature, you can see a good selection of rounding options: no rounding, to the next increment of (.05, .10, and so forth up to 1.00), or to price ending with a clear amount/value (.49, .79, .88, .89, .98, .99).
If you choose the custom price per item, the Products and Services tab of the price rule will show the item records, and you can enter an exclusive price for each item that is shown, at the right.
The Adjusted Price column will be populated with the current sales price for that item if you create a new rule with this option.
Note: You can still override the calculated price for a particular item within this price rule., if you have an Adjusted price column for the items, even if you specify the percentage or fixed amount.
Remember this in all cases, if you don’t enter an adjusted price for an item, the calculated price for any of these rules will always reflect the current sales price/rate which will found in the product/service item record. So, you need to enter an adjusted price if you want to fix the price and don’t want to change it.
2. Indicating which customers/items the rule applies to.
The price rule will be applied to all items in sales transactions for all the customers, By default. If you want to limit the customers, and/or the product/service items, that the rule will apply to, you can do it by your choice. And also, you have the option to set up a time-sensitive price rule by using the date of your choice, either or both of the start date and end date. This can be Used to create something like a special holiday price.
Then the option of “Select customers” lets you choose all customers, individual customers, or customers by Customer type.
Click on add customer to add the customer to the list. The display at the bottom of the price rule Be changed, If you click on Select individually. Instead of listing all customers, it will list just the customers that the price rule applies to.
Select products or services that allow you to select all products and services, just those items of a particular item type, or to select individually.
If you choose Select individually, you have a similar display as we had with customers. You can build your list by clicking the Add product or service button.
Here are some FAQs to know about QuickBooks Online Price Rules:
What are the price rules?
Price rules allow you to control the price of the products. You can offer discounts or increase the price of an item by your choice for a particular amount of time.
How do I turn on price rules?
To Turn on price rules:
- Go to Gear – > Account and Settings.
- Choose the Sales tab -> Click on the pencil icon under Products and services.
- Mark to “Turn on price rules – Beta” and Save.
How do I create a price rule?
To Set up a price rule:
- Go to Gear – > All Lists -> and from the list page Click on “price rules”.
- On the price rules page Choose “new price rule”.
How do I create the “X” type of rule (percentage, round down, select specific items or customers)?
On the price rule edit page, a user can choose the date range the rule will be active, the customer type or customers who qualify, the product category or product type which qualifies, and what price adjustment can be done. We support the ability to increase/decrease the sales price by a percentage, fixed amount or a set price. You can also round the amount.
How do I create a Customer type?
Customer type can be added by clicking on Customer Types from Customers.
How do I assign customer type to one of my customers?
- Select the customer and click on Edit -> Additional info.
Can I assign a customer type to multiple customers at the same time?
Yes. On Customers, check off all the customers you want to include in that customer type and then click the batch actions drop-down to select the customer type. Click on the apply button, After the customer type is selected.
Can I run a report for price rules or customer type?
The Customer Contact List report can be customized to add a Customer Type column. We are considering more reports for a future release.
How do I apply price rules to an invoice or transaction?
When creating an invoice, the price rule will automatically be applied as you add items. You can also override the price rule by clicking on the rate and seeing all active price rules.
What happens in a transaction if the customer/item combination selected is eligible for more than one price rule?
The default sales rate for that item will be displayed with an indicator next to the rate field. Which says, ‘There are multiple price rules that apply to this product or customer”. To resolve this, use the drop-down in the rate field. And select which rule you want to use or enter a completely different rate.
Can price rules be used for services to charge different amounts based on which employee did the work?
Yes, you could use price rules for that.
Can you tell QuickBooks Online to record the discount to COGS – Discounts?
The Price rules feature is similar to how it is managed in QuickBooks Desktop, where the price change is not recorded as a discount. It is more like overriding the sale price.
How do I use price rules on inventory bundles?
Bundles are just a grouping of items and do not have a price itself. (It is just the sum of the items), so you cannot add a bundle to a price rule. However, if you add the items that are in a bundle with a price rule. And then add the bundle to an invoice, it will show the price recommended by the price rule.
Can I use price rules on recurring sales transactions?
Recurring sales transactions will keep the rate of the item. As it was when the recurring transaction was created. So, if you used a price rule while creating the recurring transaction. It will continue using that same rate until the rate is edited on the recurring transaction. If a price rule expires or the rates are changed, the recurring transaction previously set up with that item will not be affected.
I hope this article will help you to understand the QuickBooks Online Price Rules. And after reading the above-given FAQs, I hope also that you have the answer to all your possible queries related to QuickBooks online price rules. But if you are not satisfied yet or want more discussion on this topic or need QuickBooks to help you can talk to our Certified QuickBooks ProAdvisor and get instant support anytime anywhere all over the USA. Call us now at our toll-free number +1-844-770-0699.
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