| # Purchase Contract Prices (tdpur3103m000) Use this session to view, enter, and maintain purchase contract price revisions. To activate the price revision, click Activate. The price revision's status changes to Active. To deactivate the price revision, click De-activate. The price revision's status changes to Free. To recalculate the price revision's prices and discounts, click Recalculate Price/Discounts Contract Price. Note Price revisions with the Free status can appear in this session as a result of running the Convert RFQs (tdpur1202m000) session. You cannot delete price revisions for which the following are applicable: The price revision's status is Active The purchase contract line's called quantity is greater than zero A purchase order or a purchase schedule is linked to the purchase contract line If the Allow Zero Price check box is selected in the Purchase Contract Parameters (tdpur0100m300) session, you can specify a price of zero (0) on the price revision. If the item is a configurable item, the Option Based Pricing check box is selected in the Purchase Contract Lines (tdpur3101m000) session. If this check box is selected, the item price is retrieved from the generic price list in the Generic Price Lists (tipcf4101m000) session and not from the price revision. However, discounts for the configurable item must still be specified in the purchase contract price revision. Related topics Setting up purchase contract price revisions Purchase contracts Configured items on purchase schedules Contract Purchase contracts are used to register specific agreements with a buy-from business partner that concern the delivery of specific goods. A contract is comprised of: A purchase contract header with general business partner data, and optionally, a linked terms and conditions agreement. One or more purchase contract lines with (central) price agreements, logistic agreements, and quantity information that apply to an item or price group. Purchase contract line details with logistic agreements and quantity information that apply to an item or price group for a specific site (warehouse) of a multisite corporation. Contract line details can exist only for corporate purchase contracts. Buy-from Business Partner The business partner from whom you order goods or services; this usually represents a supplier's sales department. The definition includes the default price and discount agreements, purchase-order defaults, delivery terms, and the related ship-from and invoice-from business partner. Contract Line The number of the purchase contract line Purchase Office A department in your organization that is responsible for buying the materials and services needed by your organization. You assign number groups to the purchase office. In this way, you can assign serial numbers to: Purchase orders Purchase schedules Requests for quotations Purchase contracts You can also define a default warehouse where goods ordered by the purchase office must be delivered. Item In LN, the raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, sold, and so on. An item can also represent a set of items handled as one kit, or exist in multiple product variants. You can also define nonphysical items, which are not held in inventory but can be used to post costs or to invoice services to customers. The following are examples of nonphysical items: Cost items (for example, electricity) Service items Subcontracting services List items (menus/options) Line The number that identifies the purchase contract price revision. Effective Date The revision's effective date date, which must fall between the effective date and the expiry date of the purchase contract line. Note Because revisions only have a start date, only one revision can be effective at a time. Status The purchase contract price revision's status. You can assign a status to each purchase contract price revision by using the following commands: Activate Changes the price revision's status to Active. De-activate Changes the price revision's status to Free. You can update price revisions with this status. Price The contract price for the line item. Note This field is unavailable: If a price book code is specified in the Price Book field. And reads zero if the Option Based Pricing check box is selected in the Purchase Contract Lines (tdpur3101m000) session. If the Material Pricing in Procurement check box is selected in the Material Price Parameters (tcmpr0100m000) session, this price can include material base prices. Related topics Material price information – purchase contracts Currency The currency in which the amounts on the purchase contract are expressed. Purchase Price Unit The item unit in which an item's purchase price is expressed. This unit can differ from the item's inventory unit. Price Book The price book that is used by the purchase contract price revision to retrieve prices. If you want to link subcontracting prices to the contract, use a price book that includes prices for different subcontracting scenarios. If you link a price book to a purchase contract price revision, the following conditions are mandatory: The Used for Contracts check box must be selected for the price book in the Price Books (tdpcg0111m000) session. The price book's effective date, as displayed in the Effective Date field of the Price Book Lines (tdpcg0131m000) session, must be the same as, or fall before the Effective Date in the Purchase Contract Lines (tdpur3101m000) session. The price book's expiry date, as displayed in the Expiry Date field of the Price Book Lines (tdpcg0131m000) session, must be the same as, or fall after the Expiry Date in the Purchase Contract Lines (tdpur3101m000) session. In this way, date breaks in the purchase contract price revision are determined by the contract, while the price book determines the quantity breaks. Note You cannot enter a price book if: You specified a price in the Price field of the current session. The Option Based Pricing check box is selected in the Purchase Contract Lines (tdpur3101m000) session. Related topics Setting up a price book Matrix structure Book Price The price for the item according to the price book, increased by an upgrade price if applicable. The default price for an item is stored in the default price book. Note If the Material Pricing in Procurement check box is selected in the Material Price Parameters (tcmpr0100m000) session, this price can include material base prices. Related topics Material price information – purchase contracts Currency The currency in which the amounts are expressed. Price The price of the purchase contract line item. This price is retrieved from the Price, or Book Price field. Related topics Material price information – purchase contracts Material Prices The total material price for the contract line item. Note Because a contract line cannot have material price surcharges, this field shows the total material base price. Related topics Material pricing – overview Material price information – purchase contracts Discount % The single discount percentage of the item. This single discount percentage applies to the total amount. To specify more levels of discount percentages, you can zoom to the Line Discounts (tdpcg0200m200) session. The value from the Number of Discount Levels field in the Pricing Parameters (tdpcg0100m000) session determines whether, in the Line Discounts (tdpcg0200m200) session, you can specify a maximum of five discount levels. Note You can only enter a discount percentage if the Discount Amount and Discount Schedule fields are empty. Multi Level Discount If this check box is selected, a multi-level discount is applied to the purchase contract line. Related topics Multiple discount levels Discount Amount The single discount amount of the item. This single discount amount applies to the total amount. Note You can only enter a discount amount if the Discount % and Discount Schedule fields are empty. Discount Code The code by which LN recognizes the discount. In Pricing, this code is used for printing reports of discount amounts by type. Discount Schedule The discount schedule that is linked to the contract price revision. If you link (a) discount schedule(s) to a purchase contract price revision, the following conditions must be met: The discount schedule must be Used for Purchase Contracts. The discount schedule line's effective date, as displayed in the Effective Date field of the Discount Schedules (tdpcg0121m000) session, must be the same as or fall before the Effective Date in the Purchase Contract Lines (tdpur3101m000) session. The discount schedule's expiry date, as displayed in the Expiry Date field of the Discount Schedules (tdpcg0121m000) session, must be the same as, or fall after the Expiry Date in the Purchase Contract Lines (tdpur3101m000) session. In this way, date breaks in the purchase contract price revision are determined by the contract, while the discount schedule determines the quantity breaks. To link more discount schedules to the contract, you can zoom to the Line Discount Schedules (tdpcg0521m100) session. The value from the Number of Discount Levels field in the Pricing Parameters (tdpcg0100m000) session determines whether, in the Line Discount Schedules (tdpcg0521m100) session, you can specify a maximum of five discount schedules. Note If you specified a value in the Discount % or Discount Amount fields, you cannot enter a discount schedule. You can specify discount schedules in the Discount Schedule (tdpcg0612m000) session. Related topics Discount schedules on contracts Matrix structure Agreed Quantity The quantity that must be delivered according to the contract agreements. The contract quantity must always be greater than zero. Note The agreed quantity must lie between the minimum contract quantity and the maximum contract quantity. Quantity Unit The unit in which the quantity is expressed. Agreed Quantity The quantity that must be delivered according to the contract agreements. The contract quantity must always be greater than zero. Note The agreed quantity must lie between the minimum contract quantity and the maximum contract quantity. Inventory Unit The unit of measure in which the inventory of an item is recorded, such as piece, kilogram, box of 12, or meter. The inventory unit is also used as the base unit in measure conversions, especially for conversions that concern the order unit and the price unit on a purchase order or a sales order. These conversions always use the inventory unit as the base unit. An inventory unit therefore applies to all item types, also to item types that cannot be kept in stock. Discount % The percentage that you can subtract from the gross sales price or purchase price. Discount Amount The total discount amount of the goods recorded on the contract. Net Amount The total value of the goods recorded on the contract. Determining If this check box is selected, the selected contract line is taken into account when the total contract value is calculated in order to calculate the collective (additional) discount. Related topics Determining/eligible Eligible If this check box is selected, if a collective discount is distributed among a group of lines, the current contract line is included while distributing the collective discount over the lines. Cumulative Price Break If this check box is selected, the price and discounts from the price book and discount schedules are retrieved based on the contract line's total received quantity. The purchase price/discount that is retrieved from the purchase contract price book/discount schedule at order/schedule line entry or modification, is based on the following calculation: Purchase orders Contract called quantity + purchase order line quantity (converted to the unit of the contract line's agreed quantity) Purchase schedules Required cumulative+ schedule line quantity. The required CUM does not include requirements with a planned receipt date that is later than the schedule line's planned receipt date. If the Redetermine Price and Discounts at Receipt check box is selected in the Purchase Contract Lines (tdpur3101m000) session, purchase schedule line prices and/or discounts are recalculated during receipt. Therefore, when confirming the receipt (pay-on-receipt) or consuming the receipt (pay-on-use), recalculation is based on the following formula:
    Previous received cumulative + actual receipt quantity
Note You can select this check box only if you have specified a Price Book or Discount Schedule in this session. If the purchase contract is a corporate purchase contract, a schedule line’s price is calculated based on the aggregated CUM values of all schedules that share this contract Total line. Example The purchase contract price book that is specified on the purchase contract price revision is defined as follows:
Break (maximum) | Qty Unit | Price
--- | --- | ---
10 | pieces | 30
20 | pieces | 20
30 | pieces | 10
The following purchase order lines are created:
Order line | Order quantity | Contract called quantity (before order line is saved) | Quantity for price determination | Price (from price book)
--- | --- | --- | --- | ---
1 | 5 | 0 | 5 | 30
2 | 10 | 5 | 5 + 10 | 20
3 | 10 | 15 | 15 + 10 | 10
Related topics Corporate purchase contracts Text If this check box is selected, purchase contract price revision text is available. Activate Activates the purchase contract price revision. As a result, the price revision's status changes to Active. De-activate De-activates the purchase contract price revision. As a result, the price revision's status changes to Free. Material Price Information Starts the Material Price Information (tcmpr1600m000) session, in which you can view the material price information that is linked to the purchase contract line, such as the material price agreement, item material content, and material base prices. Recalculate Price/Discounts Contract Price Starts the Price and Discount Recalculation Parameters (tdpcg0240s000) session. Price Inquiry Starts the Price Inquiry (tdpcg0250m000) session. Contract Prices History Starts the Purchase Contract Prices History (tdpur3553m000) session. |