Apply Ship-to Organization and Ship-to Location Specific Pricing When Available
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.
If the unit price is taken from a price break in the first two groups, it might result in a higher price than if taken from a price break in the third group. Here's an example that illustrates how this works.
This screen capture displays multiple price breaks defined for a blanket purchase agreement line.
Ship-to Organization and Ship-to Specific Price Breaks
This table shows 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 opting in to this feature.
| Ship-to Organization | Ship-to Location | Ordered Quantity | Unit Price Before Opt-In | Unit Price After Opt-In |
|---|---|---|---|---|
| V2 | New York | 150 | $10 | $10 |
| V2 | New York | 250 | $8 | $8 |
| V1 | New York | 250 | $8 | $12 |
| V1 | Seattle | 250 | $8 | $14 |
Steps to Enable
Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
Offering: Procurement
Tips And Considerations
When multiple price breaks apply to a purchase based on the ordered quantity, ship-to organization, and 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. For example, let's suppose the following price breaks have been defined for a blanket purchase agreement line:
| Ship-to Organization | Ship-to Location | Quantity | Price |
|---|---|---|---|
| V1 | New York | 100 | $10 |
| V1 | New York | 200 | $12 |
A purchase of 250 units for ship-to organization V1 and ship-to location New York will be priced at $10 per unit, even though a price break with quantity (200) closer to the ordered quantity (250) exists.
Access Requirements
Users who are assigned a job role that contain these privileges can access this feature:
- Create Purchase Agreement (PO_CREATE_PURCHASE_AGREEMENT_PRIV)
- Change Purchase Agreement (PO_CHANGE_PURCHASE_AGREEMENT_PRIV)
These privileges were available prior to this update.