Understanding Basket Price Adjustments for Procurement
Repricing enables you to apply multiple-line adjustments or basket-level adjustments to items based on the total amount, weight, or quantity of the items within a product grouping. These adjustments differ from line-level adjustments, which are applied on a single-line basis.
You can apply basket-level adjustments to purchase orders, to receipts, or to both the purchase order and the receipts for an order.
Purchase Orders
When you apply basket adjustments to purchase orders, the adjustments are applied based on the attributes (amount, quantity, or weight) of a group of purchase order detail lines. The system calculates the adjustment based on information accumulated from all of the lines on the purchase order that contain items from a predefined group, and that are not specifically excluded. Items are grouped by the Basket Reprice Group (RPRC) code, which is defined in the Item Branch Information program (P41026/F4102). After you define the basket reprice group, you add it to an adjustment definition and then add the adjustment definition to an adjustment schedule. You specify which adjustment schedule to use by associating the schedule with the supplier master record, or manually entering the schedule when you enter the purchase order. When you apply the adjustment, the system updates each item's extended cost with the adjusted cost.
For example, a vendor might tell you that if you purchase a combined quantity of 50 of any of these items, you get a 10% discount on all of those items:
Item A
Item B
Item C
On the purchase order, you might enter the following items and quantities:
Item A: 20
Item B: 20
Item C: 20
Because the combined quantity of the items on the purchase order is more than 50, when you apply the basket adjustment to the purchase order, the cost for each of those three lines on the order is adjusted by 10%.
Receipts
As with adjustments for purchase orders, when you apply basket adjustments to receipts, the adjustments are applied based on the attributes (amount, quantity, or weight) of a group of items. The system calculates the adjustment based on information accumulated from the receipt lines that contain items from a predefined group, and that are not specifically excluded. As with purchase orders, you set up item price groups, specify the item price groups in an adjustment definition, and associate the definition with an adjustment schedule. Because you apply basket adjustments to receipts using batch processing, the adjustment schedule that includes the adjustment definition must be associated with the supplier master record. When you apply the adjustment, the system updates each item's cost with the adjusted costs.