Setting Up Item Supplier Price Adjustment Rules
To set up Supplier price adjustments, use the Price Adjustment component (PRICE_ADJUSTMENT).
This section provides an overview of item supplier price adjustments and discusses how to Set Up Item Supplier Price Adjustment Rules
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Page Name |
Definition Name |
Usage |
|---|---|---|
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PRICE_ADJUSTMENT |
Define the rules for the system should follow when calculating the supplier adjusted price from the supplier's base price. You can define effective-dated adjustment rule sequences for each item-supplier combination. |
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PRICE_ADJUST_DTLS |
Define the quantities and adjustment methods for each of the price adjustment rules. |
With PeopleSoft Purchasing item Supplier price adjustment features, you can define Supplier price adjustments based on specific purchase order conditions, such as item quantity and ship to locations. The pricing schemes are ultimately used on purchase orders, where you can view the details of how a particular price was calculated.
You set up supplier price adjustments for items that have item-supplier relationships already established on the Purchasing Attributes - Item Supplier page. You can define as simple or complex a pricing scheme as you need for each of the items. You can also define contract price adjustments on the PO Line Price Adjustment (purchase order line price adjustment) page and combine them with the supplier price adjustments to define specific contract pricing terms.
Use the Price Adjustment page (PRICE_ADJUSTMENT) to define the rules for the system should follow when calculating the supplier adjusted price from the supplier's base price.
You can define effective-dated adjustment rule sequences for each item-Supplier combination.
Navigation:
Field or Control |
Description |
|---|---|
Calc Type (calculation type) |
For each adjustment rule, select one type of method by which to calculate adjustments. Choose from: Increment Adjustments: Each valid adjustment is made against the current (base or adjusted) price. For example, if you have a base price of 100 and two percentage adjustments of –10 percent each, then the first adjustment is deducted from the base price of 100, for a current adjusted price of 90. The second adjustment of –10 percent is deducted from 90 for a final adjustment price of 81. Sum All Adjustments: Adjustments are summed and made against the original base price. For example, if you have a base price of 100 and two percentage adjustments of –10 percent each, the system takes the total adjustment of –20 and deducts it from the base price of 100 for a final adjusted price of 80. |
Seq (sequence) |
Enter the sequence number for each rule. Price adjustment rules are applied in ascending order. |
Dflt UOM (default unit of measure) |
Select to use the default UOM for the item established on the supplier's UOM and Pricing Information page. The system makes a default UOM adjustment when the UOM on the transaction is the same as the supplier default UOM or when the UOM on the transaction is not established for the item-supplier combination. |
UOM Match (unit of measure match) |
Select to define an adjustment rule based on a specific UOM established for the item-supplier combination. |
UOM (unit of measure) |
If you selected the UOM Match check box, select the UOM that you want to use for adjustments. The item-supplier UOMs must first be established on the supplier's UOM and Pricing Information page. |
Match Ship |
Select to define an adjustment rule based on a specific ship to location code (SetID/ship to) established for the item-supplier combination. |
SetID, Ship To |
Select the values if you selected the Match Ship check box. |
Hard |
Select to indicate a hard price adjustment. This is an adjustment that the system uses to the exclusion of all other adjustments, even those with earlier sequence numbers. |
Stop Price |
Select to indicate a final price adjustment. No further adjustments can be made after the system applies this adjustment. |
Ignore Flg (ignore flag) |
Select to create a price adjustment scenario in which this price adjustment is ignored if the order qualifies for another adjustment. If no other adjustment applies, this adjustment applies even if the Ignore Flg check box is selected. Suppose that you have the following price adjustment conditions for an item: Apply a hard 10 percent discount if the UOM matches. Apply a 100 USD discount, but ignore this if another adjustment applies. The Ignore Flg is selected for this adjustment. If you order the item in the matching UOM, the 10 percent discount is applied and the 100 USD discount is ignored, according to the selected Ignore Flg option. If you order the item in a nonmatching UOM, you qualify only for the 100 USD discount. Because this is the only adjustment that applies, the adjustment can be applied. |
Use the Price Adjustment Details page (PRICE_ADJUST_DTLS) to define the quantities and adjustment methods for each of the price adjustment rules.
Navigation:
Field or Control |
Description |
|---|---|
Copy Price Adj. Qty (copy price adjustment quantity) |
Click to define the same price break quantities for multiple adjustment details. Define the quantities for a location on the Price Adjustment Details page, then access the Price Adjustment page and insert a new row in the Adjustment by UOM scroll area. Return to the Price Adjustment Details page, access the newly inserted detail row, and click this link to copy the adjustment quantities from the previous definition to the new definition. |
Min Qty/Max Qty (minimum quantity/maximum quantity) |
Enter the minimum purchase order quantity allowed for this price. When you insert a new range, the minimum quantity for the new range is supplied by default to the maximum quantity of the old range plus one. |
Adjusted Price |
Enter the adjusted price that you want. The adjustment amount or percent is automatically calculated and appears. Note: This column is provided for informational purposes only. If you have multiple adjustments for a particular transaction, the final adjusted price will not equal any of the adjusted prices calculated for the adjustment rules. The adjusted price provides an idea of what would happen if only the single adjustment were applied. |