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Scale for MM price in PO and contract

Logistics : MM and its sub-modules (WM, IM, PO, LIS)

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Scale for MM price in PO and contract

Postby sapera01 on Fri Mar 27, 2009 3:29 am

Hi all.
I have been searching in many posts information about this topic but finally I am not sure if what I want to set in my system is possible or not. Any help or guide will be welcomed.

I want the system to determine prices in MM purchase orders based on scale, different and cummulative received quantities should have different prices. For instance:
To 10 units=> 10€/unit
To 20 units=> 5€/unit
To 999 units=>1€/unit

If I order 25 units then, the first 10 units should have price 10€/unit; the next 10 (until 20 units) will have price 5€; the next 5 will have price 1€.
The case is that the calculation in PO seems to be OK, the total price for this item is 10*10+10*5+5*1=155 but the net price that appears in PO per unit is 6,2€ (155/25). In fact, when I received the first unit I check the settlement and it appears 6,2€ in account, but it should be 10€. If I receive 11 units at the same time, the total cost reflected should be 105€ (10*10+1*5) and so on. If I receive the 25 units completely, the total PO price is correct but my question is: is this the way the system is supposed to behave?
For this purpose I used a MM price condition based on scale, in fact, interval scale (D)

I am testing with PO but what I would like to have in my system is an outline agreement with scale and then create schedule agreement (or maybe PO) from the outline respecting the cumulative quantity received in order to assign a price. When I create an outline agreement and include a big target quantity (999999), the receiving price is very little based on this target quantity.

Anybody knows if what I want to set is possible in SAP and how should I do it?

Many thanks in advanced and best regards.

sapera01
 
Posts: 35
Joined: Fri Mar 27, 2009 2:47 am

Re: Scale for MM price in PO and contract

Postby Ha Tran on Sun Mar 29, 2009 7:23 am

sapera01 wrote:Hi all.
I have been searching in many posts information about this topic but finally I am not sure if what I want to set in my system is possible or not. Any help or guide will be welcomed.

I want the system to determine prices in MM purchase orders based on scale, different and cummulative received quantities should have different prices. For instance:
To 10 units=> 10€/unit
To 20 units=> 5€/unit
To 999 units=>1€/unit

If I order 25 units then, the first 10 units should have price 10€/unit; the next 10 (until 20 units) will have price 5€; the next 5 will have price 1€.
The case is that the calculation in PO seems to be OK, the total price for this item is 10*10+10*5+5*1=155 but the net price that appears in PO per unit is 6,2€ (155/25). In fact, when I received the first unit I check the settlement and it appears 6,2€ in account, but it should be 10€. If I receive 11 units at the same time, the total cost reflected should be 105€ (10*10+1*5) and so on. If I receive the 25 units completely, the total PO price is correct but my question is: is this the way the system is supposed to behave?
For this purpose I used a MM price condition based on scale, in fact, interval scale (D)

I am testing with PO but what I would like to have in my system is an outline agreement with scale and then create schedule agreement (or maybe PO) from the outline respecting the cumulative quantity received in order to assign a price. When I create an outline agreement and include a big target quantity (999999), the receiving price is very little based on this target quantity.

Anybody knows if what I want to set is possible in SAP and how should I do it?

Many thanks in advanced and best regards.

First of all, it is feasible through the standard scaling of the PO pricing schema to determine the correct price based upon the total PO quantity. Yet, if only one PO line item is maintained with such accummulative quantity, SAP will automatically calculate and default the average price which will then be used to valuate your GR quantity. Therefore, it is not feasible to set it up as per your request. Besides, I would wonder how it can be practical when you are dealing with your vendor. Perhaps, the best alternative workaround solution is to implement the so-called vendor rebate arrangement.

Cheers,
HT
Ha Tran
 
Posts: 28179
Joined: Sun Mar 30, 2003 8:29 pm
Location: Perth, Western Australia

Re: Scale for MM price in PO and contract

Postby sapera01 on Mon Mar 30, 2009 2:52 am

First of all, thanks for yur reply.
Do you mean that if I include in the PO more than one item, SAP will not calculate an average price and will take into account the scale pricing to make GR? I tried to include more than one item but it consider each separately, not summarizing and making cummulative quantities. The price condition has been defined per item not per header, maybe this is the problem. In every item I include some scheduled lines (differnet dates and quanitties) and price in each of them is calculated adding the previous quantity, but when I include a new item with the same part, the system begins with zero units again.

Related to rebates, as far as I know rebates are a kind of disccount and the company wants to manage gross prices, not disscounts. They want to negotiate with vendors prices per big quantities bought, not in some plants, even in some purchasing organizations, but in all company creating a global purchasing organization. Do you think it is better to define rebates instead of including the scale in the own gross price condition, although what you have negotiated with vendor is the gross price?

I want to void the system calculation of average for GR, ¿could you be so kind to tell me how to do this?

Many thanks again and best regards.
sapera01
 
Posts: 35
Joined: Fri Mar 27, 2009 2:47 am

Re: Scale for MM price in PO and contract

Postby Ha Tran on Mon Mar 30, 2009 3:18 am

sapera01 wrote:First of all, thanks for yur reply.
Do you mean that if I include in the PO more than one item, SAP will not calculate an average price and will take into account the scale pricing to make GR? I tried to include more than one item but it consider each separately, not summarizing and making cummulative quantities. The price condition has been defined per item not per header, maybe this is the problem. In every item I include some scheduled lines (differnet dates and quanitties) and price in each of them is calculated adding the previous quantity, but when I include a new item with the same part, the system begins with zero units again.

Related to rebates, as far as I know rebates are a kind of disccount and the company wants to manage gross prices, not disscounts. They want to negotiate with vendors prices per big quantities bought, not in some plants, even in some purchasing organizations, but in all company creating a global purchasing organization. Do you think it is better to define rebates instead of including the scale in the own gross price condition, although what you have negotiated with vendor is the gross price?

I want to void the system calculation of average for GR, ¿could you be so kind to tell me how to do this?

Many thanks again and best regards.

Did you activate the ''Group Condition'' indicator checkbox for your base condition type in M/06 transaction?

Cheers,
HT
Ha Tran
 
Posts: 28179
Joined: Sun Mar 30, 2003 8:29 pm
Location: Perth, Western Australia

Re: Scale for MM price in PO and contract

Postby sapera01 on Mon Mar 30, 2009 9:40 am

Hi again.
You can not use "group conditions" when you set the price condition as intervals (scale type "D"). You can do it with the rest of scales but not with intervals.
Have you ever tried to set up pricing like this? Do you know if it works? I read in a post that this functionality didn´t work for this purpose but it was posted in 2005, I don´t know if SAP finally did it or not. I don´t think it is such a particular issue. :roll: If you negotiate with the vendor prices per purchasing volume, there must be a way to control the cummulative quantity received in a contract (WK), for example, and get the price from the scale. I think in SD is similar and I think it works.

Maybe with a user-exit or coding? I am bit lost
sapera01
 
Posts: 35
Joined: Fri Mar 27, 2009 2:47 am

Re: Scale for MM price in PO and contract

Postby Ha Tran on Mon Mar 30, 2009 5:31 pm

sapera01 wrote:Hi again.
You can not use "group conditions" when you set the price condition as intervals (scale type "D"). You can do it with the rest of scales but not with intervals.
Have you ever tried to set up pricing like this? Do you know if it works? I read in a post that this functionality didn´t work for this purpose but it was posted in 2005, I don´t know if SAP finally did it or not. I don´t think it is such a particular issue. :roll: If you negotiate with the vendor prices per purchasing volume, there must be a way to control the cummulative quantity received in a contract (WK), for example, and get the price from the scale. I think in SD is similar and I think it works.

Maybe with a user-exit or coding? I am bit lost

I don't really get what you meant. How was your base condition type set up? If you don't mind, send the screen shot of your settings and I will get back to you.

Cheers,
HT
Ha Tran
 
Posts: 28179
Joined: Sun Mar 30, 2003 8:29 pm
Location: Perth, Western Australia

Re: Scale for MM price in PO and contract

Postby sapera01 on Tue Mar 31, 2009 1:23 pm

Hi again.
I am trying to include the screen shots but I don´t really know if the way I did it is permitted here. I have been checking the FAQ and I can not find the correct way, sorry.

Anyway, I include two pictures tfor the whole screen related to price definition.
I hope it helps. Otherwise, please, let me know:

Many thanks again!!!
Last edited by sapera01 on Wed Apr 01, 2009 2:59 am, edited 1 time in total.
sapera01
 
Posts: 35
Joined: Fri Mar 27, 2009 2:47 am

Re: Scale for MM price in PO and contract

Postby Ha Tran on Tue Mar 31, 2009 5:06 pm

sapera01 wrote:Hi again.
I am trying to include the screen shots but I don´t really know if the way I did it is permitted here. I have been checking the FAQ and I can not find the correct way, sorry.

Anyway, I include two pictures tfor the whole screen related to price definition.
I hope it helps. Otherwise, please, let me know:
http://www.flickr.com/photos/14784949@N08/3401553408/
http://www.flickr.com/photos/14784949@N08/3400747019/

Many thanks again!!!

You can send these screen shots to my e-mail address ha.tran@accenture.com

Cheers,
HT
Ha Tran
 
Posts: 28179
Joined: Sun Mar 30, 2003 8:29 pm
Location: Perth, Western Australia

Re: Scale for MM price in PO and contract

Postby wetwetwet on Mon Apr 13, 2009 7:51 am

Hi,Guys

Did u solve this problem?
I have the same problem like this.
If you've solved,please kindly let me know. :cry:

Thank you,
Gee
wetwetwet
 
Posts: 10
Joined: Tue Apr 05, 2005 4:30 am

Re: Scale for MM price in PO and contract

Postby renaat on Tue Mar 01, 2011 3:29 am

Hello,

someone any ideas?

I'm facing the same problem!

Kind regards,

Renaat
renaat
 
Posts: 2
Joined: Thu Nov 25, 2010 4:52 am


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