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Promo Prep and Pricing Formulae calculations

Thandi Lebeta Updated by Thandi Lebeta

Introduction

This manual defines in detail the formulae used by ICT and Brand Managers when creating prices for Promo Prep and Pricing Sheets every month.

Responsible Team

  • ICT
  • Brand Managers

Excel Promo Prep and Pricing Sheets.

On the Botle Buhle Brands Onedrive Folder dropdown, select BBB-Catalogue Prep Sheets/Pricing/the relevant Brand as shown on the screen below:

Process

  1. Start by opening the relevant promo prep and pricing sheet, example as shown below:
    Formulae
    1. South Africa Price = Now Price
    2. Distributor Factor = 2.273
    3. Manager Factor = 58%
    4. South Africa VAT Adjustment = 1.15
    5. Botswana VAT Adjustment = 1.14
    6. Botswana Factor= 1.25
    7. Mozambique Foreign Factor = Different values depending on what the Brand Managers choose
    8. Discount = Different values depending on what the Brand Managers choose
  2. Capture the formulae as follows:
    1. South Africa Distributor Invoice Price = [Now Price/1.15] * [1/2.273].
    2. South Africa Manager Invoice Price = [Now Price/1.15] * [58%].
    3. Mozambique Now Price = [South Africa Distributor Invoice Price] * [Mozambique Foreign Factor] * [1-Discount].
      Mozambique foreign factor is different with each brand, depending on whether the product is manufactured in South Africa or not.
  3. Mozambique Invoice Price = [Mozambique Now Price] * [Mozambique Foreign Factor] = [South Africa Distributor Invoice Price] * [1-Discount].
    This means Mozambique Distributors pays less than South Africa Distributors, this is because BBB does not take Mozambique VAT into account.
  4. Botswana Now Price= [Now Price/1.25].
    Exclude VAT adjustment in Botswana Now Price.
  5. Botswana Invoice Price = [Botswana Now Price/1.14] * [1.25] * [58%] = [Now Price/1.14] * [58%]. Which is equals to South Africa Manager Price.
  6. New Botswana Distributor Invoice Price = [Botswana Now Price/1.14] * [1.25] * [1/2.273]= [Now Price/1.14] * [1/2.273]. Which is equals to South Africa Distributor Price.
  7. Click [SAVE].

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