How You Apply Ship-to Organization and Ship-to Location Specific Pricing When Available

You can use the Apply Ship-to Organization and Ship-to Location Specific Pricing When Available feature to configure pricing such that requisition and purchase order lines are always priced from ship-to organization or ship-to location specific price breaks whenever available.

When multiple applicable price breaks exist for a purchase, the following hierarchy is applied to select the price break from which the unit price will be taken:

Price break with matching ship-to organization and ship-to location that results in the lowest unit price.
Price break with matching ship-to organization and blank ship-to location that results in the lowest unit price.
Price break with blank ship-to organization and blank ship-to location that results in the lowest unit price.

When you configure pricing such that requisition and purchase order lines are always priced from ship-to organization or ship-to location specific price breaks, it could result in selecting a higher price.

Let’s see how this works with an example.

Suppose this is the list of multiple price breaks defined for a blanket agreement line.

Price Break	Ship-to Organization	Ship-to Location	Quantity	Price
1	Blank	Blank	100	$10
2	Blank	Blank	200	$8
3	V1	Blank	200	$12
4	V1	Seattle	200	$14

Here’s the unit price that would be derived from these price breaks for different purchases based on the ordered quantity, ship-to organization, and ship-to location before and after using the feature.

Ship-to Organization	Ship-to Location	Ordered Quantity	Unit Price without Using the Feature	Unit Price with Using the Feature
V2	New York	150	$10	$10 (No impact because ship-to organization and ship-to location values are blank.)
V2	New York	250	$8	$8 (No impact because ship-to organization and ship-to location are blank.)
V1	New York	250	$8	$12 (Price Break 3 is selected because it’s specific for the V1 ship-to organization.)
V1	Seattle	250	$8	$14 (Price Break 4 is selected because it’s specific for the V1 ship-to organization and Seattle location.)

Note: When multiple price breaks apply to a purchase based on the ordered quantity, ship-to organization, ship-to location, the application will select the one resulting in the lowest price, even if another price break with the quantity closer to the ordered quantity exists.