Item Price

Item Price is a record utilized to specify the selling and/or buying rate of an item in ERPNext. It accommodates various pricing scenarios such as various currencies, price lists, UoMs, customer/supplier-based pricing, and validity periods.

1. Creating an Item Price

There are two methods for creating an Item Price:

1. From the Item Price list:

Selling / Buying / Stock > Items and Pricing > Item Price > New

2. From the Item Master:

Stock > Item > [Select Item] > "+" next to Item Price

Steps:

Select the Item. The name, default UoM, and description will be retrieved automatically.
Select the Price List (for example, Standard Selling, Standard Buying, or a custom price list).
Enter the Rate.
Set up optional fields as necessary (see below).
Save the record.

2. Fields and Options

2.1 Price List

Specifies the category of prices for selling, buying, or both.
Associated with a currency and applicability.
You can have multiple price lists based on different regions, currencies, or customers.

2.2 Unit of Measurement (UoM)

Price is always associated with a specific UoM.
By default, the primary UoM of the item is used.
In case of a transaction involving a different UoM, ERPNext automatically adjusts the price using the UoM Conversion Factor.

2.3 Packing Unit

Determines the quantity per package.
Example: Packing Unit = 2, UoM = Nos → 1 unit in the transaction means 2 pieces.
Can also be a decimal (e.g., 1.5 Kg oats per bag).

2.4 Minimum Quantity

Only applicable if the transaction quantity is as least as much as this minimum.
Useful for bulk pricing.

2.5 Customer/Supplier Specific

Selling Price List > give price to a particular customer.
Buying Price List > give price to a particular supplier.
Guarantees negotiated rates are only used for that party.

2.6 Batch Specific Pricing

Associate the Item Price with a batch.
When this batch is picked in a transaction, the associated price gets automatically applied.

2.7 Validity Period

Valid From: Automatic default to creation date.
Valid Upto: Date after which the price is no longer used.

2.8 Lead Time in Days

Estimated duration for which the product would reach from the supplier.
Facilitates varying prices with varying delivery times.

2.9 Notes

Free text field to include remarks or special instructions regarding the price.

3. How ERPNext Uses Item Price in Transactions

When a transaction is posted (e.g., Sales Order, Purchase Order, Invoice):

ERPNext verifies the chosen Item and Price List.
Looks for the UoM or converts using the UoM Conversion Factor.
Verifies against minimum quantity, customer/supplier restrictions, and validity dates.
Fetches and applies the correct rate automatically.