A fasteners price increase, from diagnosis to invoice review

An invented fasteners price increase runs from order diagnosis through an invoice check. The annual plan uses a separate invented schedule.

Diagnose the fasteners price

Decision

Demo Industrial Co. is an invented A$180m industrial distributor. The commercial lead must decide whether to raise fasteners prices from 1 October 2027.

Start with the existing order sample

Reset the distributor demo. Select Fasteners and leave branch and customer segment at All. The 36 fasteners orders sit within the 144-order portfolio. They cover 8,126 packs and 27 delivered orders.

Baseline net revenue is A$591,563.10. Contribution is A$165,496.40 after A$421,467.60 product cost and A$4,599.10 modelled service cost. The baseline contribution margin is 28.0%.

Invoice discounts are A$53,183.20. Rebates and credits deduct A$6,863.70. Freight adds A$1,530. Check terms and order records before treating any deduction as avoidable.

Test one change

Set list increase to 1% and leave the other defaults in place. Apply the scenario. Net revenue and contribution each rise A$5,905.37. The calculation keeps order volume, product mix and service costs unchanged.

Move to the planning figures

Finance supplies a separate invented annual fasteners schedule of A$50.4m. Its planning basis is 700,000 standard packs at A$72 fully net. The demo sample contains multiple order terms and remains a diagnostic sample. The annual schedule is an independent case assumption.

• Distributor demo. Select Fasteners and apply 1%.

Approve the scope and date

Inputs to the decision sheet

Open the decision sheet and enter starting revenue 50400000, planned increase 1, exempt revenue 20, months before effect 3 and give-back 10.1. Optional margin is 30. All entries in this assignment are invented.

First-year revenue scenario

Proposed annual increase A$504,000. Exemptions remove A$100,800. Timing removes A$100,800. Discounts and rebates remove A$30,542.40. First-year uplift is A$271,857.60, shown as A$271,858 in the tool.

Compare a later date

Use the optional comparison. Leave scope and terms the same. Set the delay to four months for a November start. The alternative retains A$241,651.20. October retains A$30,206.40 more at unchanged volume and mix.

Record the approval

Commercial Director approves October for eligible direct fasteners accounts. Keep the A$10.08m contract exemption schedule. Planned eligible net price is A$72.64728 per standard pack. Sales escalates any additional discount or rebate before promising it.

Record the evidence and owner

Finance owns the starting revenue and rebate schedule. Sales owns exemptions and notice terms. Operations owns price loading. Finance will review first invoices in October and reconcile the eligible cohort at year end.

Planning year runs from 1 July 2027 to 30 June 2028. Revenue is spread evenly across that year. The plan holds volume and mix constant. The scenario gives no estimate of customer response or profit.

• Price increase decision sheet. Print the sheet or meeting paper.

Put the approved price into effect

Inputs to the rollout planner

Enter 1 October 2027, 30 calendar days and direct sales. The notice term is invented for this assignment. Sales checks each covered agreement before notice.

25 August and 1 September

Commercial Director approves the price schedule on 25 August. Sales issues notices by 1 September. Attach the list of eligible accounts and record who received notice.

24 and 30 September

Sales briefs account teams on 24 September. On 30 September, Operations loads eligible prices and checks contract exemptions. Finance checks net-price terms and the rebate basis.

1 and 2 October

Operations activates eligible prices on 1 October. On 2 October, sample new and exempt invoices. Record any differences and send them to the price-load owner.

31 October

Finance reviews early realised prices and credits. Continue collecting matched evidence through 30 June. Watch volumes and customer losses separately from the price comparison.

Trigger for review

An invoice below its approved net price needs a source check. Finance identifies the credit, rebate or invoice term before deciding how to respond. Escalate additional discounts or rebates through the existing approval route.

• Rollout planner. Enter the date, notice and sales route.

Check what reached the invoices

Match the eligible cohort

Use eligible fasteners sales from October 2027 to June 2028. The invented records cover 420,000 standard packs on the same unit, scope and currency basis. The example holds matched volume at the planned level. Exempt sales stay outside this check.

Inputs to the invoice check

Baseline fully net price A$72. Approved net price A$72.64728. Actual invoice price A$72.70.

Separate credit A$0.06. Separate rebate A$0.064. Enter 420000 actual units. Enter A$30,482,920 as the independent ledger control.

Price and ledger results

Actual fully net price is A$72.576. Planned uplift is A$271,857.60 and realised uplift is A$241,920. The A$29,937.60 shortfall is about 11.0% of planned uplift. The invoice check shows these figures rounded to dollars.

Calculated net revenue is A$30,481,920. The ledger sits A$1,000 higher. Keep that difference separate from the matched price shortfall.

Next decision

Finance traces the A$1,000 difference and checks credit and rebate records. Sales checks whether approved terms explain the shortfall. The Commercial Director reviews exceptions before changing the price schedule.

The matched comparison uses actual units. It leaves volume, mix, unmatched lines and operating profit for separate review.

• Invoice price check. Enter the matched line and ledger control.