The main purpose of the pricing functionality is to simplify the process of obtaining the price from your supplier. This is done by allowing you to enter price, discounts, and additional costs in the way you receive the information from your supplier, no matter whether you receive it via EDI/MHS or by any other means. The only mandatory place to enter the price from the supplier is on the combination of the purchase part and its supplier.
Note: When entering a purchase requisition and specifying the supplier, you can use the List of Values to see all available suppliers for the purchase part and the price specified for the combination of the purchase part and its supplier.
Note: You can use charges on purchase orders. Examples are charges for transportation, insurance, customs, and service fees. Each charge is entered as a line on its own. You can read more about charges in the document About Charges/Landed Costs.
If you have agreed with your supplier that you have discounts and/or additional costs for everything you buy from him/her, you can enter this directly on the supplier record. These terms will be overridden if you have entered terms with a higher priority. (See the tables below.)
Purchase groups are used for grouping purchase parts and are defined separately for each purchase part. The groups are entered as basic data in IFS/Purchasing.
The purchase group can be used for entering discounts and additional costs from a specified supplier. For the combination of supplier and purchase group, you can define discount and additional cost; these terms will be used for all purchase parts bought from the supplier if the purchase part is connected to the purchase group. This is valid unless there is information entered with a higher priority.
The price list is basically defined for the combination of purchase part and its supplier. In this list, you can enter a minimum quantity along with price, discount, and additional cost. You also must specify a valid starting date for each line. This functionality takes only the present purchase order line into account and, consequently, retrieves the terms from the line with the appropriate quantity.
This information can be entered from a price catalog message received via EDI/MHS.
Supplier assortments are used for grouping parts from a supplier. The assortments are usually defined by the supplier. With the use of supplier assortments, it is possible to group inventory registered purchase parts, non-inventory registered purchase parts, as well as no-number parts, in purchase agreements. One advantage with the supplier assortment concept is that you can use one purchase part even though you have several suppliers for the part, and the suppliers can give you different discounts and additional costs.
A supplier assortment should only be used for grouping purchase parts and/or no-number parts to one (1) supplier. The supplier assortments are set up as basic data in IFS/Purchasing and are then used for grouping purchase parts with similar conditions regarding discounts and additional costs. Supplier assortments can never be site specific, but they are valid for all sites entered in the purchase agreement.
There are two main types of supplier agreements, purchase agreements, and blanket purchase orders.
A purchase agreement is a general supplier agreement to be used for all applicable purchase order lines, i.e., all manually and automatically entered purchase orders. The purchase agreement will serve in the background and as a basis for the price on applicable purchase order lines. It is possible to include purchase parts, part assortments and supplier assortments to a purchase agreement. A purchase agreement can also be valid for subordinate suppliers in a supplier hierarchy.
A blanket purchase order is a type of supplier agreement that is used for supplier agreement releases. The supplier agreement release will automatically create a released purchase order with one order line. No authorization nor confirmation will be needed for this type of purchase order since your company already has negotiated the details in the blanket purchase order with the supplier.
You can read more about supplier agreements in the document About Supplier Agreement.
The price on a purchase order line is selected based on the following order of priority:
Note: If several valid agreements exists, the priority field in the supplier agreement is considered. If several agreements have the same or no priority, the newest agreement will be used.
Note: You can always change the price manually on the purchase order line.
There are some exceptions from this list of priority.
The discount and additional cost on a purchase order line is selected depending on the data entered. The priority is in accordance with the following table.
The exceptions are, as for the case with retrieving the price, supplier agreement releases and purchase order lines from order quotation. You can always update possible discounts and additional costs manually on the purchase order line.
If there is a purchase agreement for the supplier assortment, the price will be retrieved from the combination of the purchase part and its supplier and not from the price list. In the table below, you can view an example of from where the terms are retrieved when there is a supplier assortment valid for the purchase order line. The figures in the Prio column refer to the above definition.
| Prio | Page where the values are entered | Price | Discount (%) | Additional Cost |
| 3 | Supplier Agreement/Supplier Assortment | - | 15 | 0 |
| 4 | Supplier for Purchase Part/Price List | 90 | 2 | 3 |
| 5 | Supplier for Purchase Part/General | 100 | 8 | 0 |
| 6 | Supplier Discounts (Price group) | - | 10 | 0 |
| 7 | Supplier | - | 5 | 5 |
| Values retrieved to the purchase order line | 100 | 15 | 0 |
When the discount are fetched from a part assortment of a purchase agreement, the additional cost is also retrieved from the same source. The discount and/or additional cost is retrieved from the the defined closest part assortment node of the agreement. If the price is not defined per an assortment node but discount (and additional cost) is retrieved from the part assortment of a purchase agreement, then the price will be retrieved from the combination of the purchase part and its supplier and not from the price list.
If there is a purchase agreement, or a price list, and the discount and/or additional cost is set to zero (0), this value will be retrieved to the purchase order line. On the other hand, if the discount and/or additional cost is retrieved from supplier for purchase part, or from the purchase group, and the value is zero (0), the system will go on searching until it finds a value for the discount and/or additional cost that is not zero (0), i.e., the discount could be retrieved from the supplier for purchase part and the additional cost from the supplier if the additional cost is zero (0) for the combination of supplier and purchase part per purchase group.
Example of discount and additional cost retrieval to purchase order line when the additional cost is zero (0) for the combination of the purchase part and its supplier per purchase group:
| Prio | Page where the values are entered | Price | Discount (%) | Additional Cost |
| 5 | Supplier for Purchase Part/General | 100 | 8 | 0 |
| 6 | Supplier Discounts (Purchase group) | - | 10 | 0 |
| 7 | Supplier | - | 5 | 5 |
| Values retrieved to the purchase order line | 100 | 8 | 5 |
The Consolidated Price feature allows you to consolidate demands to achieve better prices. The feature calculates the price that the buyer will obtain by accumulating all quantities from all purchase order lines on one order. You can start this feature when you are preparing the purchase order. It is an optional step. You can use this feature when working in a single site scenario (all lines are to be delivered to the same site) or when working in a multi-site scenario, in which you take advantage of centralized purchasing using one central purchase order that contains lines of goods that will eventually be received by different sites. When the consolidated price calculation is done, you have the option to accept or reject the results. If you accept the results, the system will then update the prices on the order lines.
The logic and preference order to retrieve the applicable price, discount and additional cost is similar to the descriptions above, except that you will use the accumulated quantity for the whole order.
Lines that have the price freeze flag activated will not be considered in the consolidated price calculation.
The purchase order reports present the accumulated quantities on a single line. The purchase order reports are purchase order, purchase order work copy, purchase order changes, purchase order changes work copy.
External service orders are exempt from the normal pricing functionality. The external service order line will always retrieve its price from the external service prices setup. Any purchase agreements, prices per price list, and similar items will not be considered in the pricing.
Agreement Quotation
Agreement Quotation Lines
Create Agreement Release
Order Quotation
Order Quotation Approval
Order Quotation Approvals
Order Quotation Lines
Purchase Order
Purchase Order Lines
Purchase Orders
Purchase Part
Purchase Parts
Purchase Requisition
Purchase Requisition Lines
Purchase Requisitions
Request for Agreement Quotation
Request for Order Quotation
Supplier Agreement
Supplier Agreement Lines
Supplier Agreements
Supplier for Purchase Part
Supplier for Purchase Parts
Create and Maintain Supplier for Purchase Part
Create Supplier Agreement Release
Enter Purchase Agreement
Enter Purchase Order
Enter Purchase Requisition
Handle Supplier Agreement Quotation
Handle Supplier Order Quotation