Defining Volume-Level Adjustments for Procurement

To use volume-level pricing for purchase orders, you must define the adjustment definition, create adjustment detail records, and add the adjustment definition to the adjustment schedule.

To set up your system for volume-level 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 volume-level adjustments for procurement.

   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.

   See Reviewing the Base Price Preference Hierarchy.

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

   When you create definitions using the Modify Adj. Controls form, complete the following setup:

   • Adjustment Name: Select the new adjustment name from UDC 40/TY or enter a new adjustment name.

   • Target Application: Select Procurement to set up the adjustment definition for purchase orders.

   • Adjustment Level: Select Volume Level Adjustment.

   • Adjustment Control Code: Select any of these supported adjustment control codes for volume-level pricing in procurement: Do not Print on Document, Print on Document, and Accrued to G/L.

   After you click Ok, the system navigates to the Price Adjustment Definition form. Set up the following values to define how the system should process the adjustment.

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

   • Level Break Type: Choose the level break for the adjustment definition. The level break can be based on quantity, weight, or amount.
   • Adjustment Options: Select the adjustment option which indicates how the adjustment affects the price of an unit in a purchase order line. The system supports these adjustment options for volume-level pricing in procurement: Sliding Rate, Override Price, Manual Add/Change, and Apply Absolute Value.

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

4. Add adjustment details in the Price Adjustment Details Revisions program (P4072).

   You define the parameters for calculating price adjustments and details of the adjustment amount in this step. Note that Basis Codes 0, 3, 4, and 9 are not valid for volume-level adjustments for procurement.

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

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

   You use this program to create the adjustment and specify the sequence in which the system applies adjustments to purchase orders.

   Skip To / Skip To End and New Base Price functionalities are not supported by volume-level adjustment for procurement.

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

6. 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 (Supplier Master Information form).

   See Entering Supplier Information in theJD Edwards EnterpriseOne Applications Accounts Payable Implementation Guidefor additional information and instructions regarding supplier setup.