Price elements are used for detailed part pricing of purchased parts in supplier agreements and there are three types of price elements: material, amount, and percentage.
This activity is used to specify the materials contained within the inventory purchased part that will affect its pricing. It involves defining the proportion of a specific material included in the part, measured in the materials unit of measure. Additionally, an extra surcharge can be added, which is calculated as a percentage of the material's share. The material price elements will contribute to the final price based on the proportion of the material defined for the part and the price for the material.
You have the flexibility to add, modify, or delete information about material price elements as needed. The unit of measure used for the material needs to be of the same unit of measure base as the material price element basic data (e.g. from kg to g).
Material price elements can also be phased in and out over time, but note that the same material cannot have overlapping time periods.
The material price elements must have been created in the basic data.
As a result of this activity the material price details will be calculated and added to the part detailed pricing of purchased parts in supplier agreements.