A regular customer calls and asks for the same item you sold him last month. What rate did you give him? If the salesman guesses, one of two things happens: you quote too low and lose margin, or you quote too high and the customer notices the difference and starts to doubt you. Rate history, shown while you are writing the invoice, solves this quietly. This guide explains why it matters for a trading business and how to use it well.
Why rates drift between customers
Most traders do not have one price. They have a list price, a regular-customer price, a bulk price and a "we have dealt for ten years" price. Over time:
- The same customer is quoted different rates by different salesmen.
- Old verbal promises are forgotten. "I will keep the rate until the end of the quarter" is not written anywhere.
- Disputes start at payment time. The customer says the rate was lower, and nobody can prove it.
- New staff guess. They pick the list price or the last price they happened to see.
The invoices already hold the answer. The problem is that nobody has time to open old invoices while a customer waits.
What good rate history looks like
When the salesman chooses a customer and then a product, the screen should show, right there:
- The last few rates charged to this customer for this product.
- The invoice number and date of each, so the rate can be traced.
- A clear message when there is none, so the salesman knows this is a first sale.
Example for a customer, Ali Traders, buying a 25 kg flour bag:
| Invoice | Date | Rate charged |
|---|---|---|
| INV-0412 | 02 Oct | Rs 4,150 |
| INV-0377 | 11 Sep | Rs 4,100 |
| INV-0341 | 18 Aug | Rs 4,120 |
Now the salesman sees at a glance that Ali Traders pays about Rs 4,100 to Rs 4,150, and that the last sale was at Rs 4,150. He can decide to repeat it, raise it with a reason, or give a small concession.
Four ways to use it
- Keep rates consistent. A regular customer should not be quoted lower this week than last week without a reason.
- Raise prices fairly. When your cost goes up, you can show the customer exactly what he paid before and by how much the rate moves.
- Settle disputes in seconds. The invoice number is there.
- Train new salesmen. They learn the customer's pattern from the system instead of from the owner.
What rate history does not do
Be clear about what it is. It shows the rates already charged. It does not set a price for you, and it does not stop a salesman from changing the rate. Combine it with a margin check so you know whether the rate still earns a profit. See gross profit and margin analysis for traders.
Common mistakes
- Treating the last rate as the only rate. Look at the last few, because one invoice may have been an exception.
- Ignoring cost changes. A customer's old rate may now be below your new average cost. Compare it with your cost before you repeat it. See average cost method explained.
- Quoting by memory. Even the owner forgets.
- Mixing customers. History must be per customer, not the last price anyone paid.
How OneAccounts does it
On the sales invoice screen, choose the customer and then add a product. A box titled "Price history" opens under the items and lists up to the last five rates you charged that customer for that product, each with its invoice number and date. If you have never sold that product to the customer, the box says "No previous sales to this customer". You can close the box with the cross, and the rate you type on the invoice is always your own decision.
The history works from your saved invoices, so it needs no extra setup. It is shown on credit sales invoices, where a customer is chosen. See Trading ERP software.
Frequently asked questions
Does rate history change the rate on my invoice?
No. It only shows what you charged before. The rate on the invoice is the one you enter.
Do I need to enter old rates by hand?
No. It reads the rates from invoices you have already saved, so it grows with every sale.
Why would a customer have no history for a product?
Either it is the first time you have sold that product to this customer, or the customer was added recently. The box then tells you there are no previous sales.
Can I use rate history for pricing a quotation?
Yes, as a reference. Look at what the customer paid recently, check your current cost, and then decide the quotation rate.
Does the history show rates for other customers?
No. It shows only the customer you chose on the invoice, so you never see or reveal another customer's price.