Minimum Selling Price Validator Extension

The Validate Item Rate Based on MSP extension for Zoho Inventory helps you enforce pricing discipline by setting a minimum selling price for your items. It prevents users from creating sales orders and invoices when item rates are lower than the defined minimum.

You can choose to validate item rates against either a custom minimum selling price (MSP) you set per item, or against each item’s native selling price — making the extension flexible for both businesses with formal pricing floors and those that simply don’t want items sold below their listed price.

Install the Extension

Go to Zoho Marketplace and search for the Validate Item Rate Based on MSP extension.
Click Install at the top of the page.
Read and agree to the terms and conditions of your vendor and Zoho Marketplace, and click Next.
On the Extension Installation page, select the organization for which you want to install the extension, read and agree to the terms and conditions specified, and click Next.

Authorize the connection for your Zoho Finance suite of apps:

Hover over the Zoho Finance - Validate Item Rate Based on MSP card and click Connect.
On the page that follows, click Connect.
Zoho Flow requires access to your Zoho Finance suite of apps to fetch the necessary data from them. Click Proceed to continue.
On the page that follows, click Accept.

Note: When you install the extension, a custom field called Minimum Selling Price is automatically created under your item field customization. You don’t need to create this field manually. You can view it under Settings → Items → Field Customization, where it will be marked as created by an extension.

Set the Minimum Selling Price for Items

Once the extension is installed, you can set the minimum selling price (MSP) for each item:

Go to Items and select the item you want to update.
Click Edit.
Enter the desired value in the Minimum Selling Price field.
Click Save.

The MSP you enter will be used to validate the rate of this item in sales orders and invoices.

Note: You don’t need to set an MSP for every item. The behaviour for items without an MSP depends on your configuration — see Configure the Extension below.

Configure the Extension

After installation, you can choose how validation behaves and who it applies to.

To configure:

Go to Settings.
Select Marketplace under Integrations & Marketplace.
Open the Installed Extensions tab.
Click View Details for the Validate Item Rate Based on MSP extension.
Click Configure at the top right.

Set the following options based on your preference:

Skip MSP validation for admins
When enabled, only non-admin users are restricted from saving transactions with rates below the minimum. Admin users can save these transactions without any restriction. When disabled, validation applies to all users including admins.

Calculate MSP from item’s selling price
When enabled, the extension validates each item’s rate against its Selling Price instead of the Minimum Selling Price custom field. This applies to every item in the transaction. When disabled (default), the extension only validates items that have a value in their Minimum Selling Price field; items without an MSP are skipped.

Click Save.

Validate Prices in Transactions

Once configured, the extension automatically validates prices when you create transactions.

Supported Transactions: Sales Orders and Invoices.

How it works:

When you save a transaction, the extension checks the rate entered for each item against the configured price floor (either the item’s MSP or its Selling Price, depending on your configuration). If one or more item rates fall below this floor, an error message appears at the top of the screen listing every affected item by name, and the transaction cannot be saved until you correct the rates.

A Minimum Selling Price column is also displayed in the line items table when creating sales orders and invoices, so users can see each item’s MSP alongside the rate they’re entering.

Example:

Suppose you have set the following values:

Item A: Minimum Selling Price = ₹150, Selling Price = ₹200
Item B: Minimum Selling Price = ₹250, Selling Price = ₹300
Item C: Minimum Selling Price = (not set), Selling Price = ₹200

Case 1: Calculate MSP from item’s selling price is disabled (MSP-based validation)

When you create a sales order with the following rates:

Item A = ₹130
Item B = ₹200
Item C = ₹100

The extension validates only items that have an MSP value.

→ The transaction is blocked with the error:
“The rate entered for items Item A, Item B must be greater than or equal to their Minimum Selling Price.”

Item C is not validated because it does not have an MSP set.

Case 2: Calculate MSP from item’s selling price is enabled (Selling Price-based validation)

Using the same rates:

Item A = ₹130
Item B = ₹200
Item C = ₹100

The extension validates all items against their Selling Price.

→ The transaction is blocked with the error:
“The rate entered for items Item A, Item B, Item C must be greater than or equal to their Item’s Selling Price.”

Uninstall the Extension

Warning: After uninstalling the extension, price validation will no longer be enforced, and the Minimum Selling Price custom field created by the extension will also be removed along with any values stored in it.

Here’s how you can uninstall the extension:

Go to Settings.
Select Marketplace under Integrations & Marketplace.
Open the Installed Extensions tab.
Click View Details for the Validate Item Rate Based on MSP extension.
Click Uninstall on the top right corner.
In the pop-up that appears, click Yes.

The extension will be removed from your Zoho Inventory organization.