Understanding Adjustment Definitions
An adjustment definition is a record that describes a special pricing situation, such as a pricing plan or promotion. You create adjustment definitions by specifying the characteristics of the adjustment. The characteristics of the definitions determine:
The sequence that the system uses to search for prices using the pricing hierarchy.
Whether the adjustment prints on invoices.
Whether the adjustment applies to basket-level price adjustments, order-level price adjustments, or line adjustments.
Whether the adjustment uses a price matrix.
Whether the adjustment is based on the quantity, amount, quality, or weight.
Whether the adjustment applies to an override price.
Which general ledger offset directs the advanced pricing entries to the appropriate general ledger accounts based on AAIs.
Whether a minimum and maximum price is to be paid for an item.
Whether the adjustment is mandatory.
Note: You define mandatory adjustment definitions for pricing that you require. For example, a mandatory adjustment might be for specific items during a sale, transfer, direct ship order entry, or to accommodate surcharges and special taxes. An adjustment might also be mandatory when you use contracts with a purchase order.
If an adjustment schedule contains mandatory adjustment definitions that you did not define for the sales order for that customer and item, the system issues an error. The system does not process the order detail line. If you receive an error message, review the information in the order detail area. You may detach the sales order line item from the adjustment schedule or enter information to make the customer eligible for all adjustments so that the mandatory adjustment applies.
You can use a minimum or maximum price adjustment to indicate a minimum or maximum price or use both to indicate a price range. You base the minimum or maximum price with a minimum or maximum rule. Set the rule by selecting either a contract or adjustment details. You do not have to set up a pricing hierarchy and price adjustment details if the Min/Max Rule field is set for a Purchasing Contract. The system retrieves the minimum or maximum amounts from the contract during transaction processing. Additionally, you can use minimum or maximum pricing with all level break types, such as weight, quantity, or quality. If you select Procurement or Receipt with a minimum or maximum price adjustment, you must also select a contract rule. You cannot use minimum or maximum price adjustment with these features:
Rebate price adjustments
Rebate accrual price adjustments
Print on Invoice - Detached
Order Level Adjustment
Supplier proof of sale rebates
Rounding rules
Price partials
Additionally, you can choose to manually override the price on a purchase or sales order and select which adjustments you want to apply. To use this feature, you must first select the Procurement Pricing on Override Price and Sales Pricing on Override Price fields on the Pricing Constants form. Select the Line Level Adjustment and Apply on Override Price options when you create the adjustment definition. When you manually change the price on a purchase or sales order, the system:
Clears previous price history information.
Stores the new price as the base price in the price history.
Applies adjustments where the Apply on Override Price option is active.
Continues to accumulate accrual amounts.
However, if you create a purchase or sales order from a quote release, blanket release, credit memo; or you copy the order, the price history remains in the system. Also, if you select a non-accrual type of adjustment (Do not print on Document, Print on Document, Rounding Adjustment), the system displays a warning that this type of adjustment changes the unit price that you manually enter. You cannot use this feature with basket, order, or volume level price adjustments.