| # Material price information – purchase orders If the Material Pricing in Procurement check box is selected in the Material Price Parameters (tcmpr0100m000) session, material price information can be linked to a purchase order line. When a purchase order line is specified in the Purchase Order - Lines (tdpur4100m900) session, LN searches for a valid material price agreement. The material price information can be defaulted from the origin used to generate the purchase order, from the master data, or retrieved from the linked purchase contract line. Note The Apply Material Prices if No Contract Material Prices check box in the Material Price Parameters (tcmpr0100m000) is used to determine if LN must search for material price information for purchase order lines if the linked contract line has no material price information. On the Buying tab of the Purchase Order Lines (tdpur4101m000) session, in the Material Prices group box, you can view the (material) price for the purchase order line. On the appropriate menu of this session, click Material Price Information to view the detailed material price information in the Material Price Information (tcmpr1600m000) session. Note The Include Surcharges before Apply Discounts check box in the Material Price Information (tcmpr1600m000) session is used to determine the calculation of the Line Discount Amount, Order Discount Amount and Order Amount fields for the purchase order line. Purchase order line generation If the material price information is defaulted from an origin that generated the purchase order, the Manual check box is selected by default in the Material Price Information (tcmpr1600m000) and Document Material Information (tcmpr1110m000) sessions. Consequently, the material price information is not overwritten when material price information is redetermined for the purchase order line. If material price information is not defaulted from the origin used to generate the purchase order, but retrieved from the master data, LN does not select the Manual check boxes. Note If purchase order lines are generated from sources with a specified price, LN does not search for material price information. Commingling Before purchase order lines can be commingled, the material price information of the lines must be identical. If the material price information for two order lines differs, the lines are not commingled to a total line with two detail lines. However, a new purchase order with two separate lines can be created. Consequently, the material price information is defaulted from the target to the source order line. Updates Material price information for a purchase order line can be updated manually, or can be updated by LN during the redetermination process. If a purchase order line has line details in the Purchase Order Line (tdpur4601m000) session, material prices are displayed on the purchase order (total) line and not on the line details. The material price information, which is displayed in the Material Price Information (tcmpr1600m000) session, is defaulted to the related line details. Note If material price information is defaulted from a linked purchase contract line, the Always Use Contract Price and Discount check box in the Purchase Contract Parameters (tdpur0100m300) session is used to determine if the material price information for the purchase order line can be updated. Approval When you approve the purchase order in the Approve Purchase Orders (tdpur4210m100) session and you want to redetermine the material price information during the approval, select the Redetermine Material Price Information check box. If you approve a purchase order using the Approve option on the appropriate menu of the Purchase Orders (tdpur4100m000) or Purchase Order (tdpur4100m900) sessions, the Redetermine Material Information field in the Material Price Parameters (tcmpr0100m000) session is used to specify if the material price information is redetermined. If the material price information for a purchase order line is modified after order approval, the purchase order status is set to Modified, which means that the order must be reapproved. The Approved status is not affected if LN modifies the material actual prices. The order status is set to Modified only if you manually modify the material actual prices. Receipts After a receipt is generated for a purchase order line, a receipt is added to the Purchase Receipts (tdpur4106m000) session. The Payment field specified on the purchase order line is used to determine the link between the material price information and the receipts. Pay on Receipt When the receipt is confirmed, a purchase payable receipt is generated in the Purchase Payable Receipts (tdpur4130m000) session. The material price information is defaulted from the relevant order line and linked to the Purchase Receipts (tdpur4106m000) and Purchase Payable Receipts (tdpur4130m000) sessions. Pay on Use When the goods are consumed, a purchase payable receipt is generated in the Purchase Payable Receipts (tdpur4130m000) session. The Price Determination Based On field in the Purchase Order Parameters (tdpur0100m400) and Order Terms and Conditions (tctrm1130m000) sessions is used to determine the process to retrieve the material price information. This data is linked to the Purchase Receipts (tdpur4106m000) and Purchase Payable Receipts (tdpur4130m000) sessions. If this field is set to: Replenishment, the material price information is defaulted from the relevant order line. Consumption, the material price information is determined when the payable receipt is generated. If the order line is linked to a contract, the material price information is retrieved from the contract line. Note If the Redetermine Price and Discounts at Receipt check box is selected in the Purchase Contract Lines (tdpur3101m000) session for the linked contract line, the material price information is not defaulted from the order line. The price information is redetermined when the receipt is confirmed in the Purchase Receipts (tdpur4106m000) session ( Pay on Receipt), or when the payable receipt is generated in the Purchase Payable Receipts (tdpur4130m000) session ( Pay on Use). If the material actual price cannot be retrieved, LN considers the best possible option. For example, instead of using the invoice date, which is required but not known yet, the actual receipt date or usage date is used to retrieve an approximate material actual price. You can modify the prices and discounts after the receipt confirmation by actual receipt ( Pay on Receipt), or payable receipt ( Pay on Use) in the Change Price and Discounts of Purchase Payable Receipts (tdpur4132m000) session. You can modify the prices and discounts after the receipt confirmation for the total or detail line in the Change Price and Discounts after Receipt (tdpur4122m000) session. From the appropriate menu of the Change Price and Discounts of Purchase Payable Receipts (tdpur4132m000) or Change Price and Discounts after Receipt (tdpur4122m000) sessions, select Material Price Information to modify the material price information after receipt in the Material Price Information (tcmpr1600m000) session. Consignment replenishment and payment For consignment replenishment order lines, material price information is retrieved from the master data. After consumption of consigned inventory, a consignment payment order line is generated. The process to retrieve material price information for an order line, is based on the Price Determination Based on field of the Purchase Order Parameters (tdpur0100m400) or the Order Terms and Conditions (tctrm1130m000) sessions. If this field is set to: Replenishment, the material price information is defaulted from the replenishment order line to the payment order line. Consumption, the material price information is determined when generating the consignment payment order. Return orders If an original document is linked to a purchase return order line, the material price information is defaulted from the original document. For the copied material actual price, LN selects the Manual Actual Price check box in the Document Material Information (tcmpr1110m000) session. If no original document is linked to the return order line, the material price information is retrieved from the master data. Invoices Afters the goods are received, the invoice can be matched and approved in Accounts Payable. The amount to be invoiced is based on the actual material price. Therefore, the actual receipt price is used during receipt matching. Differences between receipt amount and invoice amount, due to material actual price differences, are logged as variance transactions. Supplier stage payments You cannot change the price or redetermine the material price for purchase order lines that are invoiced by supplier stage payments, after receipt. Accordingly, if the date used to determine the material actual price is set to Invoice Date for the linked material price agreement, this date is changed to Actual Transaction Date for invoicing by stage payments. The total order line amount can differ from the total stage payment amount, if the actual receipt date is used as the price date. To adjust the difference, a correction stage payment line can be created, or an open stage payment line can be used. If the difference is not corrected, a variance transaction is logged when the stage payment is closed during the processing of the delivered purchase order. Related topics Material pricing – overview Retrieving material price information – general logic Updating material price information – general logic Overview of purchase order commingling Purchase order approval Consignment in Sales and Procurement Purchase return orders Supplier stage payments Overview of purchase order handling |