A price simulation for a quotation shows a new total amount or specific line amount created for an existing quotation based on a proposed new price. You can enter a price simulation and apply it later, or you can select to use the original quotation —without a price simulation— and make more changes as you work through the sales process with your customer.

A price simulation does not change the quoted price but is treated as either a special discount on the quotation header when it applies to a whole quotation or the quotation lines when it only applies to specific items. The unit sales price on the quotation line that is created does not change when the price simulation is applied. Instead, a discount percentage that corresponds to the price reduction of the quotation line is applied. When the desired price simulation is applied, the unit sales price and the discount percentage are transferred to the quotation line or the quotation header.

Adding supplementary items to quotation lines can result in line discounts or multiline discounts, and may trigger total discounts that will alter the contribution margins and contribution ratios of the quotation lines and the entire discount.

The impact of including a supplementary or free item is that it changes the contribution ratio and the contribution margin.

You can also run multiple price simulations to track the effects of price adjustments on the targets of a quotation. Running these simulations enables you to adjust the overall price of the quotation or the price of one or more specific lines within the quotation, and then apply the price simulation that is most likely to help close the sale.

You can set up an alert when you create a quotation. You can use alerts for a variety of reasons, including:

• Keeping informed about the status of quotations within the company.

• Triggering a review of a specific quotation or learning when discount limits are exceeded.