Regardless of whether your small business sells products or services, there are times when you want to offer sales and discounts as incentives. Fortunately with QuickBooks OnlineYou can make these price adjustments automatically, set them up for a specific period of time and extend the adjusted price to all of your customers or just to a specific segment.
This QuickBooks Price Levels guide provides step-by-step instructions on how to activate QuickBooks Online Price Levels and create a price level.
How to enable the QuickBooks price level
Before you begin, it’s important to note that the QuickBooks tiering feature is only available on the QuickBooks Online Plus and Advanced plans. It is not offered in QuickBooks Essentials, QuickBooks Simple Start, or QuickBooks Self-Employed.
If you are using QuickBooks Online Plus or Advanced, you can create price tiers. To do this, you must first activate the QuickBooks price level. That’s how it’s done:
Navigate to the gear icon in the toolbar.
Select “Account and Settings”.
Navigate to the Sales tab on the left.
In the Products and Services section, select the check box next to Enable Pricing Rules.
Here is an example of the screen where you can enable the QuickBooks pricing tiers:
While the pricing rules say “Beta” next to it, don’t worry – the pricing tier feature works great as it is. It should be noted, however, that pricing rules – or price levels – do not affect reporting. In other words, you cannot report specifically on sales affected by QuickBooks price levels.
After you have successfully enabled the setting for the QuickBooks price tiers, you can create a price rule.
How to create a pricing rule with QuickBooks pricing tiers
After your QuickBooks pricing tiers are activated, there are several ways you can create a pricing rule. Here is an option:
Navigate to the gear icon in the toolbar.
Select “Lists” and then “All Lists”.
Select “Price Rules” and then “New Price Rule”.
You can also create a pricing rule by navigating to the Products and Services list and then selecting the drop-down arrow next to the More tab. Alternatively, you can use the “Edit article data record” function to access the QuickBooks price levels.
From here you can name your pricing rule and choose a start and end date (if your promotion is only valid for a limited time).
In addition, you have the option to choose the customers that you want to apply your new price level to. You can select all customers if you want your new price to be available to everyone. However, if you just want certain types of customers to access your new price level, you can specify that.
If you assign your products and services to categories in the item list, you can also filter the price level by product category in order to more easily apply the price levels to the corresponding products.
You can set your retail price or price by either a percentage (i.e. 10%), a fixed amount (i.e. $ 25 off), or a custom price per item.
You also have the option of rounding the amount to the nearest increment (ie USD 0.10, USD 0.50) or leaving it unchanged (“no rounding”).
Here is an example of a proof of purchase for a product with an active price level. Note the standard sales rate of USD 100 and the rate of USD 75 due to the applicable pricing rule (in this case referred to as “Beyond the Basics”).
It is important to note that this is the visibility you have as the one sending the invoice. The customer only sees the price of $ 75 on their invoice and every report on the sale shows $ 75 instead of $ 100. There are currently no specific reports on QuickBooks price levels or pricing rules by the customer.
Create a customer type for QuickBooks pricing tiers
You can choose certain ones Customer types Who can access your new pricing rules if you don’t want all of your customers to get the discount or retail price for your products?
Even if you never plan on using QuickBooks pricing tiers, it may be worth checking this option just to be able to create customer types. This is because you can then run a “Sales by Customer Type” report – also known as Segmenting Your Customer List – which can be a very useful insight for your business.
To create a customer type:
Select “Sale” from the left menu.
Select the “Customer Types” button next to the “New Customer” button.
Select “New customer type”.
Label your new customer type as you wish.
After this customer type has been created, you can edit any of your existing customers and assign them to the respective customer type.
You can find the “Customer Type” field on the “Additional Information” tab in the “Customer Information” window.
If you don’t want to edit and assign customer types to each of your customers one after the other, you can also assign customers to specific types in the batch.
Once your customers are assigned to different types of customers, you can set your QuickBooks pricing tiers so that they only apply to certain types of customers. In this way, the customers who want to receive the changed price are automatically entitled, while customers who do not correspond to the specified customer type are not aware of any price changes.
An added benefit of creating customer types for your QuickBooks pricing tiers is that you can then create reports that are specific to customer types. Simply select “Sales by Customer Type” under the “Sales and Customers” section.
A version of this article was first published on Fundera, a subsidiary of NerdWallet.