Understanding Order-Level Adjustments for Procurement (Release 9.2 Update)
Repricing enables you to apply order-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 order-level adjustments to purchase orders only.
Order-level adjustments work similar to basket adjustments, except that the result of the adjustment is added to the order on a separate line, instead of affecting the items' unit price. For example, order repricing is often used to add an extra line for freight costs. The weight, quantity, or amount of the total of all eligible order lines determines the amount of freight cost to be added to the order as a separate line item.
Items are grouped by the Order Reprice Group (RPRC) code, which is defined in the Item Branch Information program (P41026/F4102). After you define the order 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 result of the adjustment is added as a new line in the purchase order. Order-level adjustments do not affect the item’s unit price.
For example, a vendor might tell you that if the total of purchase of Item A, Item B, Item C exceeds 100 quantity, then a 10% discount is offered on the purchase order.
Item A
Item B
Item C
On the purchase order, you might enter the following items and quantities:
|
Item |
Quantity |
Unit Price |
|---|---|---|
| Item A |
20 |
20 |
|
Item B |
40 |
40 |
| Item C |
50 |
50 |
Because the total quantity of Item A, Item B, and Item C exceeds 100 quantity i.e. 110, when you apply the order adjustment to the purchase order, a new line is added to the purchase order with a -11, meaning a discount of 11 USD will be applied to the purchase order, based on the total order quantity.