1. Using Procurement
  2. Enter Price Break Information for Blanket Purchase Agreement Lines

Enter Price Break Information for Blanket Purchase Agreement Lines

Price breaks are reductions in the price of an item depending on certain conditions such as purchasing in bulk or from a certain location. The Price Break region of the Lines page enables you to enter price break information for blanket purchase agreement lines.

Suppliers often offer a reduction in per-unit price if your order exceeds a specified quantity. Price breaks are entered as basic price lists based on quantity ordered combined with either the price or the discount. You can also specify start and end dates.

Note: Price breaks can be specified to be cumulative or noncumulative. Cumulative indicates that you want to choose the price break by adding the current order schedule quantity to the total quantity already ordered against the blanket purchase agreement line. Otherwise, the price break is chosen by using the individual order line quantity.

In this scenario a procurement agent, Mathew Mancia, creates two blanket purchase agreement lines for some paper supplies for the New York office. This table lists the information he enters in the lines, including: quantities, price, and price breaks.

Ship-to Organization

Location

Quantity

Price

Discount Percent

Start Date

EndDate

V1

V1 - New York City

100

294

2.0

To be determined

To be determined

V1

V1 - New York City

200

291

3.0

To be determined

To be determined

Enter Price Breaks

  1. He enters the V1 ship-to organization. When an item is entered, only organizations in which the item is defined can be selected.

  2. He enters the New York shipping location for the price break. He can select only locations for this organization or locations for which no organization is defined.

  3. He enters the minimum quantity, 100, that must to ordered to obtain this price break.

  4. He enters the price of $294 for this quantity. The application calculates the discount percent. Optionally he could enter a Discount Percent to have the price calculated.

  5. Optionally he could enter a start date that this price break becomes effective.

  6. Optionally he could enter an end date that this price is no longer effective after.

  7. He adds an additional line and repeats 1 to 6 for one additional price break.