Defining Basket Price Adjustments for Procurement

To use basket-level pricing for purchase orders and receipts, you must set up your system to define the adjustment schedule, the repricing groups, and the adjustment definition.

Note: Be aware that many of the forms used to view and maintain basket-level cost adjustments for purchase orders are also used for basket-level price adjustments for sales orders. Because of this, the item cost will sometimes appear in item price fields. For example, you use the Price Adjustment Definition form to set up the price adjustment, but you are actually creating a cost adjustment.

To set up your system for basket adjustments for procurement:

1. Set up pricing constants in the Branch/Plant Constants program (P41001).

   You must enter Y in the Advanced Procurement Pricing field to use basket adjustments for procurement.

   Note: Regardless of the value in the Procurement Pricing on Override Price field, the system:

   See Setting Up Pricing Constants.

2. Set up advanced pricing hierarchies in the Preference Hierarchy program (P40073).

   These hierarchies determine how the system retrieves base costs and calculates cost adjustments. Hierarchies that you set up for basket-level adjustments must include an item group; otherwise, the system issues an error when you try to use the hierarchy in the Price Adjustment Definition program (P4071).

   See Reviewing the Base Price Preference Hierarchy.

3. Create cost adjustment types in the Price Adjustment Definition program (P4071).

   When creating your definitions, the following values are required:

   • Adjustment Name: Enter the code that you created in UDC (40/TY).

   • Target Application: Select the Procurement option to set up the adjustment definition for purchase orders, or select Receipt to set up the adjustment definition for receipts.

   • Adjustment Level: Select Basket Level Adjustment.

   • Preference Hierarchy: Enter the preference hierarchy that you created in Step 2.

   See Working with Adjustment Definitions for additional information and instructions regarding adjustment definitions.

4. Add adjustment details, such as the special processing for free goods or cost formulas, in the Adjustment Details program (P4072).

   You define the Basket Reprice Group, the criteria for receiving the cost adjustment, and the details of the adjustment amount in this step. Note that basis codes 3, 4, and 9 are not valid for basket adjustments for procurement.

   See Setting Up Adjustment Details for additional information and instructions regarding price adjustment details.

5. Create adjustment schedules using the Price and Adjustment Schedule Revisions program (P4070).

   You use this program to specify the sequence in which the system applies adjustments to purchase orders and receipts. Note that regardless of the sequence that you enter here, the system will always apply line-level adjustments before applying basket-level adjustments.

   See Building Adjustment Schedules for additional information and instructions regarding adjustment schedules.

6. Update Item Branch records (F4102) with the item code from UDC 40/PI for each item in an adjustment group.

   For example, if you want to create a basket-level adjustment for all items from a specific vendor, you would create a code in UDC 40/PI and then add that code to all of the item branch records for that vendor.

7. Add adjustment schedules to your supplier records, if desired, by entering the adjustment schedule name in the Adjustment Schedule field on the Purchasing 1 tab of the supplier master record.

   You can apply basket adjustments to receipts only by running a batch process, so the adjustment schedule must be populated in the F4301 table.

   See Entering Supplier Information in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide for additional information and instructions regarding supplier setup.