Increasing the sales price

Use Case

You are planning to increase the sales price of one of your products by €1. At the same time, you expect the annual sales volume of 5,000 units to remain constant due to the current high demand.

Calculation

The above situation has an impact on the P&L account ‘Sales Revenue’, which currently shows the following value:

Business figure	Account number	Amount
Sales Revenue	10001	165,000.00

As increasing the sales price by €1 for 5,000 items raises the value of the account by a total of €5,000.00, the Absolute Adjustment function can be called up in the Control File as follows:

CODE

[10001] + 5000

Result

The new value of the P&L account ‘Sales Revenue’ then becomes 165,000.00 + 5,000.00 = 170,000.00.

Variant

You are planning further increases in the sales price of €1 for each of the following two financial years. However, you expect a slight decrease in sales volume of 200 units and a further 300 units in the subsequent year.

To simulate this situation, the Absolute Adjustment function can be called up in the Control File as follows:

CODE

[10001] + (5000, 5000-200, 5000-200-300)

The new value of the P&L account ‘Sales Revenue’ then becomes

in the first business year: 165,000.00 + 5,000.00= 170,000.00
in the second business year: 170,000.00 + 5,000.00 - 200.00= 174,800.00
in the third business year: 174,800.00 + 5,000.00 - 200.00 - 300.00= 179,300.00