Update Order Prices from Supplier Agreement
Explanation
Through an automatic background job, this activity is used to update the
prices on existing purchase order lines that use the agreement as a price source
with new prices defined in the agreement.
Users can choose which order lines to update based on criteria such as supplier
agreement(s), buyer, site and/or supplier, line status, and a specified date
range for the order date, receipt date, or delivery ate. The option is also
available to decide
only to update the Planned orders, and the choice can be made to update the orders
directly or based on a scheduled interval. Only agreement lines where the price
has been updated for the specified criteria will be considered in the update
process.
Any lines with the price freeze flag enabled will be excluded from
the update. If there are open change orders for a purchase order, the price
update will be done on the change order line rather than directly on the purchase
order line.
Authorized orders will be updated based on the setting in the purchase order
authorization rule.
Note that:
- Only the order lines that has an existing reference to the agreement
will be updated.
- For group agreements, orders on all valid sites will be updated (provided
that the user initiating the job has access to all sites).
- For agreements valid for a supplier hierarchy. Orders related to both
the agreement supplier and all subordinate suppliers will be updated.
- As the new agreement price is considered confirmed both externally and
internally there will be no new revision created for the purchase order.
- This activity can be triggered directly from the supplier agreement,
Update Price on Orders command, or through the navigator, Update Price on
Orders for Supplier Agreement.
Prerequisites
- You must have a supplier agreement in a state where the agreement is
valid for purchasing. That means either in status Active or if the
status is Negotiate and the setting Effective while Negotiating
is enabled.
- For any orders to be updated, the price on at least one agreement part
line should have been updated.
System Effects
The update job will be triggered for the agreement part lines with a Latest
Price Update date later than the Include Lines Modified After date
defined for the job and where the Exclude from Order Update is not enabled:
- The price will be updated on all purchase order lines that refers to
the agreement line and where:
- The status of the order line matches the conditions defined for
the job
- The order, planned receipt or planned delivery date of the order
line falls within the defined valid from/to period for the job.
- Authorized order lines will be updated if the authorization rule
allows automatic updates from agreements
- There are no open purchase order change order
- The price freeze flag is not enabled
- The price will be updated on all purchase order change order lines that
refers to the agreement line and where:
- The status of the order line matches the conditions defined for
the job
- The status of the change order is Planned, Released or Authorized
- The order, receipt or delivery date of the order line is within
the valid from/to period defined for the job
- Authorized change order lines will be updated if the authorization
rule allows automatic updates from agreements
- The price freeze flag is not enabled
Note that the automatic update of prices through this job will not
generate a new purchase order revision. It should be the implicit understanding,
both internally and externally, that the price updates based on agreements are
already agreed upon.