| # Price calculation code A price calculation code is the code that specifies the cost-price calculation data that is used to calculate a cost price, a valuation price, or a sales price. Specific cost-calculation data are stored under this code, for example: Operation rates Surcharges Subcontracting rates Simulated purchase prices Price calculation codes are defined in the Price Calculation Codes (ticpr1100m000) session. Only one price calculation code is used to calculate the standard cost price. This price calculation code is defined in the Cost Price Calculation Parameters (ticpr0100m000) session. For customized items, the price calculation code is defined in the Projects (tipcs2101m000) session. All other price calculation codes are for simulation purposes. All actualized prices are saved by the date and time of calculation. Prices can be calculated many times each day. A price calculation code can be of type Cost Price or Sales Price. For a sales price calculation code, surcharges are only defined at the moment the item is issued to work-in process, or as material on a service order. No warehouse surcharges can be defined. The sales price calculation code is used in the Calculate Sales Prices (ticpr2250m000) session. The price calculation code states the purchase price that is used in the calculation of the cost price for the purchased item. This can be done by priority. If the first option is not available, the software takes the next option. The choices are current, latest, average, and simulated purchase price. The current, latest, and average purchase prices are stored in Procurement. Related topics Standard cost price Valuation prices Operation rates |