Mastering Cost-Plus Pricing in NetSuite 2026.1: A Comprehensive Guide

In the latest release of NetSuite (2026.1), pricing managers gain access to an enhanced feature set for Cost-Plus (Cost+) pricing. This sophisticated pricing strategy allows for more flexible pricing structures based on costs, giving businesses an edge in managing their item pricing more effectively.

Understanding Cost-Plus Pricing

Cost-Plus pricing is a method where you set prices by adding a markup or discount to a cost basis. In NetSuite, you can apply this method at the price level, enabling you to choose how your pricing updates in response to changes in input costs. This feature is particularly vital in industries where prices fluctuate frequently due to market conditions.

Key Features of Cost-Plus Pricing

With the 2026.1 update, several new functionalities have been introduced:

• Enhanced Price Level Record: You can now select from new pricing methods when managing your price levels.
  • Markup/Discount: Maintains the traditional pricing functionality if you choose this option.
  • Cost+ Method: A new addition that allows for the selection of a cost basis along with a markup or discount percentage.

Choosing Your Cost Basis

When employing Cost+ pricing, you have two options for establishing a cost basis:

• Average Cost: This option takes the Average Cost field from the inventory item, making it a straightforward choice for items with consistent pricing trends.
• Cost for Pricing: This newly introduced field allows users to specify a custom cost. This is particularly beneficial for items that might lack standard costing or for those subject to significant price volatility.

Management and Configuration

To create and manage your price levels, navigate to Setup > Lists > Accounting. Within this menu, you can initiate adjustments and oversee all aspects related to pricing.

Item Record Updates

Another noteworthy update is within the item record. The former Discount % column has been replaced with a new Pricing Method column. This adjustment allows users to quickly identify whether a price level uses a discount structure or Cost+ pricing, enhancing overall usability and transparency.

Best Practices

1. Evaluate Your Item Costs: Before implementing Cost+ pricing, perform a thorough analysis of your item costs to ensure accurate pricing setups.
2. Monitor Your Price Changes: Regularly check the average cost and your custom costs to ensure they're reflective of your current market conditions.
3. Utilize Reporting Tools: Leverage SuiteAnalytics to track the impact of your Cost+ pricing adjustments on sales and profit margins.
4. Test Before Full Implementation: If possible, test new Cost+ methodologies on a small scale before applying them across your entire inventory.
5. Train Your Team: Ensure that your pricing and inventory management teams are well-acquainted with the new features to maximize the benefits of Cost+ pricing.

Key Takeaways

• Cost-Plus pricing offers flexibility in pricing strategies for inventory management.
• Choose between Average Cost and custom cost for accurate pricing baselines.
• The new Pricing Method column streamlines the identification of pricing strategies.
• Regular monitoring and testing can enhance pricing effectiveness and profitability.

Empowering your pricing strategy with Cost-Plus pricing in NetSuite 2026.1 can significantly improve your inventory dynamics and profitability. Utilize these updates to sharpen your competitive edge and enhance your financial reporting capabilities.