Purchase Order Pricing
If your purchase order line is sourced to a blanket purchase agreement, the order line price is based on a matching price break from the agreement line, if there is one. Otherwise, the price is determined from the agreement line itself.
How a Matching Price Break Is Identified
To identify a matching price break, the application performs the following checks:
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For noncumulative price breaks, if the price break quantity isn't less than the ordered quantity from the current order.
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For cumulative price breaks, if the price break quantity isn't less than the ordered quantity from the current order, plus any quantity that has already been ordered.
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For the pricing date, if the date is within the effective period of the price break.
The pricing date by default is the requested delivery date from the order line, or the current calendar date if the order line does not have a requested delivery date specified.
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If the price break ship-to organization, or the location when specified, matches those from the current order line.
If more than one price break satisfies these conditions, then the application uses the lowest price from these price breaks.
Purpose of Use Order Date for Order Pricing
You can use order date to determine the price on purchase orders instead of requested delivery or shipment dates. When you use the Use Order Date to Determine the Price on Purchase Orders feature, existing purchase order lines aren't repriced when the line's requested delivery or shipment dates are modified. Further, when requisition lines are sourced from a blanket purchase agreement, the price on requisition lines will be derived using the application date instead of the requested delivery date.
If you are not using the feature, the application uses the requested delivery or ship dates to derive the price on purchase order lines sourced from a blanket purchase agreement. As a result, existing purchase order lines would be repriced if a line's requested delivery or shipment dates were modified.
What Happens When You Enable Use Order Date for Order Pricing
Create a new blanket purchase agreement or edit an existing one and select the Use order date for order pricing control. To use the feature, you must configure non-cumulative price breaks on blanket purchase agreements by specifying a start and end date such that the order date lies between the start and end date of a price break.
This table provides an example of a blanket purchase agreement configured with price breaks:
| Price Break | Price | Discount Percent | Start Date | End Date |
|---|---|---|---|---|
| 1 | 90 | 10 | 1/1/23 | 1/15/23 |
| 2 | 80 | 20 | 1/16/23 | 2/28/23 |
This table provides an example of how price is derived on the PO based on order date when the feature is enabled:
| Scenario | Order Date | Purchase Order Line Price | Requested Delivery Date |
|---|---|---|---|
| When a purchase order is created and submitted | 1/12/23 | 90 | 1/14/23 |
| When a change order is created to update requested delivery date on the purchase order | 1/12/23 | 90 | 2/4/23 |
In the example, the order date on a purchase order sourced from a blanket purchase agreement is 1/12/23. The blanket purchase agreement associated with the purchase order has non-cumulative price breaks configured such that the order date lies between the start and end date of the first price break. The item price on 1/12/23 is 90 USD. When a change order is created to update the requested delivery date to 2/4/23, the price on the purchase order remains as unchanged.