Selection Criteria for External Purchase Prices

Set criteria to determine how external purchase price lines are selected when multiple lines are available for a combination of item, unit of measure, and requisitioning business unit.

You can apply the selection criteria at a business unit or for all business units. You can set selection criteria using the attributes Source Type, Party Type, and Lowest Price. The Source Type attribute gives you these options:

Source Type Options	Description
Local, regional, group purchasing organization (GPO)	Select this option when you prefer an external purchase price sourced from a local contract over an external purchase price sourced from a regional contract. External purchase prices sourced from a GPO contract are least preferred.
Regional, local, GPO	Select this option when you prefer an external purchase price sourced from a regional contract over an external purchase price sourced from a local contract. External purchase prices sourced from a GPO contract are least preferred.
None	The source type won't be considered for selecting the external purchase price lines.

When you select the external purchase prices, the Party Type criteria option will be used after applying the source type criteria. The Party Type attribute gives you these options:

Party Type Options	Description
Distributor	Select this option when you prefer to purchase your items from a distributor over purchasing them from the manufacturer.
Manufacturer	Select this option when you prefer to purchase your items from the manufacturer over purchasing them from a distributor.
None	The party type won't be considered for selecting the external purchase price lines.

Select the Lowest Price check box if you prefer external purchase price with the lowest price. When you select the external purchase price lines, the lowest price criteria will be applied after applying the source type and party type criteria.

If multiple external purchase prices are eligible for selection after applying the selection criteria, then the latest external purchase price line is selected for the item.