Using JD Edwards EnterpriseOne Advanced Pricing and Blend Management
A contract with a grower may span several years or growing periods and you might want to maintain the contract and the price you pay for grapes over a long period. You can use the features of the JD Edwards EnterpriseOne Advanced Pricing system with the JD Edwards Blend Management system:
Price matrix to maintain adjustment detail records.
Minimum or maximum price adjustment to maintain minimum or maximum pricing on receipts for grapes.
Repricing on receipts when the weigh tag operation closes.
You can automatically recost blend lots when you reprice receipts.
Pricing based on quality tests.
Manually override the price on a contract and apply adjustments.
To use a price matrix, you can set up an adjustment definition to act as an override price of the contract price attached to a purchase order. You specify whether the adjustment definition uses a price matrix. You can then set up an order detail group to include category codes, such as District, Variety, or Level on which the system bases the contract price. To use the price matrix, you specify:
Pricing hierarchy.
Price override.
Order detail group, which might include the District or Variety fields.
You can also use a minimum or maximum price adjustment to ensure that the system use the contract prices as the minimum or maximum base price or to ensure that the base price is within the minimum or maximum range. You use the Min Adjustment and Max Adjustment options with the Min/Max Rule field on the Price Adjustment Definition form to ensure that the base price is from the contract or is within the valid range. The sequence of this adjustment on the adjustment schedule also determines what the price is at that point in the adjustment schedule. For example, if the base price is less than the minimum price you set on another price adjustment, then the system uses the minimum price on the contract as the base price. Similarly for maximum pricing, if the base price is greater than the maximum price you set on another price adjustment, then the system uses the maximum price on the contract as the base price. When the system verifies the minimum or maximum price, the system uses this adjustment as the base price on the receipt. You must enter a value of 5 (add-on amount) in the Basis Code field in the price adjustment details as the system does not accept any other value in the Basis Code field for minimum and maximum pricing.
You can use the JD Edwards EnterpriseOne Advanced Pricing system to integrate procurement tasks with the JD Edwards Grower Management and JD Edwards Grower, Pricing, and Payments systems. When you create a weigh tag operation in the JD Edwards Grower Management system, the system creates purchase orders. The purchase orders link information from the JD Edwards Grower Management and JD Edwards Grower, Pricing, and Payments systems and can have procurement adjustments to affect pricing. Likewise, when the weigh tag operation closes, the system creates receipts. The receipts link information from the JD Edwards Grower Management and JD Edwards Grower, Pricing, and Payments systems and can have receipt adjustments to affect pricing.
The system determines a price when it creates receipts using the information in a grower harvest record from the JD Edwards Grower Management system. When changes to the harvest occur, the grower harvest record is updated, which ensures the most up-to-date pricing information for receipts. The system searches for the following pricing information in the JD Edwards Grower, Pricing, and Payments system:
Price override.
Minimum or maximum price adjustment.
Price level.
Purchasing unit of measure.
Pricing group.
You can create adjustments to apply a penalty or award a bonus on the price of a shipment of grapes. The system can search for additional information—for example, information in the Variety, District, Target Quality, Current Quality, and Region fields. You can set up order detail groups using values from the grower harvest record, and the system resolves the adjustments when the values match. However, the price on the receipt is based on the original order quantity on the purchase order. Any adjustments that you manually change or add on the Price History form for the purchase order remain on the receipt record.
You can base the price you pay for grapes on quality tests you perform when you receive the grapes. Using this type of adjustment definition enables you to reduce or increase the price for grapes. For example, you can base the price for grapes on your specifications of quality test results for rot, material other than grapes, or Brix. Use this feature with JD Edwards EnterpriseOne Advanced Pricing, Procurement, and Quality Management systems. You create a receipt adjustment definition with a quality level break type, assign the test result names to the adjustment definition, and choose whether to adjust the quantity to pay at receipts entry. When you set up the price adjustment details, you can define the adjustment using a percentage, a formula, or an add-on amount using the Basis Code and Factor Value Numeric fields. Use the add-on amount to adjust the quantity with a quantity-to-pay adjustment. However, if you select the Adjust Quantity to Pay option on the Price Adjustment Definition form, you can enter only 5 (add-on amount) or 7 (formula) in the Basis Code field. On the Receipt Order Detail Group Definition form, you also select whether to base the adjustment on the Pricing Control 01 (Directed Harvest) and Pricing Control 02 (Inspection) fields. When you enter a Weigh Tag Operation in the JD Edwards Blend Management system, you add the quality tests you plan to perform to the operation. As you receive shipments of grapes, you perform the quality tests and enter the test results in the operation. After you receive all shipments of grapes and close this operation, the system creates a receipt using this adjustment definition to determine the price. Use the Price History form to view the deduction in the transaction unit of measure in the Quantity To Pay field. Verify that the JD Edwards EnterpriseOne Quality Management system is active and set up quality tests on the Blend Management Quality Management Setup menu (G31B41) before you define this type of adjustment. You cannot use this type of adjustment definition with advanced preferences or as a price override.
Additionally, you can choose to manually override the price on a contract and choose which adjustments apply to receipts when the weigh tag operation closes. This feature enables you to adjust the price of grapes for penalties or bonuses. To use this feature, you must first select the Procurement Pricing on Override Price field on the Pricing Constants form. When you create the adjustment definition, you select the Line Level Adjustment and Apply on override price options. The system stores the new price as the base price in the price history and accumulates accrual amounts.
When you reprice a receipt, you can also run the Recost Blend Lots Batch program (R31B30) to update the harvest cost-component and apply the repriced harvest cost proportionally to all existing lots that include the repriced grape. You can run the Recost Blend Lots Batch program when you run the Reprice Procurement/Receipts program (R45620) from the Batch Versions program (P98305W) or from the Contract Workbench program (P43C00).
See Understanding the Price Matrix.
See Creating Grower Contracts in the JD Edwards EnterpriseOne Applications Grower Pricing and Payments Implementation Guide.
See Managing Harvest Receipts in the JD Edwards EnterpriseOne Applications Grower Management Implementation Guide.
See Setting Up Quality Management in the JD Edwards EnterpriseOne Applications Blend Management Implementation Guide.