Rules for how AGRIS Adjusts Formula Item Price when a Component has a protected price Booking/Prepay (non-AGY)

Rules:

When you apply a booking or prepay to a component of a formula, (not AGY formula), then the invoice will be adjusted directly by the "special discount" that the customer received on the booking or prepay protected price. The system determines what amount of discount he should receive by comparing the selling price on the component to the protected price on the booking/prepay. Then applies that discount to the formulated item price.

AGRIS takes the price on the component that is saved in inventory item maintenance or price schedules and subtracts the protected price from it. This difference between current selling price and protected price becomes a discount for the formulated price.

Example:
Component as a sales price of $10 saved on the inventory item.
User keys a booking/prepay for $7 protected price
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AGRIS is going to lower the price of the formula by $3 ($10-$7)
So, if my formula item has a price of $30 a unit, it’s going to be lowered by $3.
Now the price is $27 x QTY = new invoice price.

By putting a prepay/booking on an item that is NOT an AGY formula component, the protected price acts as a discount from the components current price.

This means you are NOT locking in a price for that component.
You are giving them the difference between the current price and the protected price of the component but applied to the formula price.

If you maintain accurate pricing on your components, this will work calculating an accurate price on the formula item. If the pricing is not accurate on the components, you will see large swings in prices, as shown in this example.

AGRIS Inventory Formula items handle booking/prepay components differently than AgroGuide handles them. AGY Adds up components prices to get a formula price. With AGY, it uses the sum value of the protected prices to “add up to” the price of the formula. This is unique to AGY.
INV Formula items are given a price at the very start of the invoice. If you are just prepaying/booking components of a formula item, it uses the “protected Price” subtracted from the component current price to calculate a discount value. This discount is then subtracted from the formula item price. It does not add things up. It subtracts from the assigned formula price.

Therefore, we often end up with a zero-dollar line on the invoice; to force the formula price math.

Side-by-Side Comparison of AgroGuide Formula vs Inventory Formula Booking/Prepaid Process

AgroGuide Package Formula Price Calculation Process	Inventory Package Formula Price Calculation Process
Prepay/booking on components	Prepay/booking on components
Create blend formula, using prepay/booking prices as each component item is added. Components are visible as they pull into formula from the Blend Setup	Key in formula item with locked in price. Components are not visible. They are locked in with the inventory item setup.
Formula Price is calculated up from component prices.	Formula price is locked in, regardless of what price is on the components.
When you apply prepay/booking, invoice keeps adding up to give you a final price on the formulated item	Prepay/booking price is subtracted from component price to get a discount amount. Subtract this amount from the price of the formulated item. Multiply new price by quantity sold.

Example of a formula item with a single component.

ICEMIX – sold by the ton at $138.50 a ton
single component of 1-ton sand, sold at $100 a ton.

Note the selling price on the component item.

AGRIS will use this price less the prepay/booking protected price to find the amount to discount/lower the formula item price by.

Begin the invoice for the formulated item at the price keyed.

When you apply the booking/prepay, AGRIS will look at the price on the component and subtract the booking/prepay from that price (so it needs to be accurate).

This new amount will be used to lower the formulated items price.

In this example, we expect the $138.50 per ton to drop by $98.
The ICEMIX will be $40.50 a ton.
$138.50 less $98 = $40.50 a ton.

We do this because we START with a price on the formula in INV, unlike AgroGuide that starts with components in a blend to add UP to a price.

How to Make this Work

Maintain accurate pricing on your component items.
Be aware that you will be offered bookings first, then prepays
Be aware that I can apply one or the other, but not both.
Be aware that I will be offered the lowest document number of booking.
AGRIS is not going to offer components before formula items.
It will offer the first available booking that could be applied based on the lowest sortable booking document number.

Overall, it will be much less confusing if you can place bookings/prepays on formulated items if using AGRIS INV formula items.
Yes, AGRIS can handle booking/prepays on components but there is math involved and the result will be multiple split lines on the invoice (to show the booking/prepay application) where a final line might end in zero quantities in order to handle the pricing/unit math.