Enter Part Step Pricing for Supplier Agreement

Explanation

Use this function to enter step pricing for parts on supplier agreements. Part step pricing is used when you receive better terms for purchasing more from the supplier, i.e. if you purchase more, you could receive a lower price, a better discount, and/or lower additional costs.

Step pricing could be setup in two different ways. Either using the step pricing basis Cumulative, which means that the aggregated purchases for the part and period is used as a basis for the step pricing. If the step pricing basis is Order Line, it will be the quantity of each order line that decides which step price to use. Note that

Part step pricing is specified for the supplier agreement and purchase part combination. The part step pricing can be valid either for one site or for all sites specified in the supplier agreement. If you want the part step pricing to be valid for one specific site, enter this site in the Site field on Parts line in the agreement. It is possible to enter site-specific part step pricing for the same part on several sites. A site-dependent part step pricing will always be retrieved before a part step pricing valid for all sites is retrieved.

Part Detailed Pricing can also be used in Part Step Pricing. When detailed part pricing is used the purchase price can be built up by a base price and several price elements which will contribute to the final purchase price. 

Prerequisites

• A purchase part must have been entered and saved on the supplier agreement.
• The purchase part, as well as the combination of purchase part and supplier, must be entered on the site-s that the Part Step Pricing is valid for. Note that for an agreement that is valid for a supplier hierarchy, it is enough if there is a supplier for purchase part connection for any of the subordinate suppliers in the hierarchy.
• If the Object Level option has been enabled under Supplier Tax Code Validations in Company/Tax Control/General, a tax code must have been defined for the supplier for purchase part.
• If the part step pricing should be applied for several sites, the supplier agreement must be set as a Group Agreement and sites should be entered in Valid Sites tab.

System Effects

• The part step pricing is used if the supplier agreement is allowed to be used for purchasing. The part step pricing will be retrieved, based on the basis for the step pricing. If Order Line is selected the order line quantity will be considered and if Cumulative is selected, the cumulative quantity for the period, including the current purchase order line, will be considered.

Pages

Part Step Pricing

Activity Diagrams

Enter Blanket Purchase Order
Enter Purchase Agreement
Re-Negotiate Supplier Agreement