Calculating Unit Price for Inter-Entity Transfer Orders

For transfer order lines where the Inter-Site Parameters record's Posting Method for transfers between the two sites is set to Inter-Entity, the system calculates the unit price as follows:

A price code for the transfer order may be specified in the From site's Inter-Site Parameters form, and/or in the From site's Item Pricing form for the item being transferred. If a price code is found in only one of these two areas (or if no price code is found), the system skips to step 3.
If the system determines that two valid price codes exist, then:
1. The system looks for a Price Matrix record for this combination of codes.
2. If the system finds a Price Matrix record, it finds the corresponding price formula and then checks the quantity price breaks, as defined on the Price Formula form:
  - If the transfer line quantity exceeds one or more of the break quantities listed at the bottom of the form, the system uses the best valid quantity break to determine the unit price.
  - If the transfer line quantity does not exceed any break quantity or if all break quantities are zero, the formula in the upper right corner of the Price Formula form is used to determine the unit price.
If fewer than two price codes exist (one or none), and the system finds a current Item Pricing record for the item (based on the item pricing's effectivity date), then:
- If any quantity price breaks have been established for the item on the Item Pricing form, and if the quantity price breaks apply, the system uses these quantity price breaks to determine the default unit price.
- If no other pricing has been established, the default unit price is the value entered in the Unit Price 1 field on the Item Pricing record.
If no price code exists, and no current Item Pricing record exists, the Unit Price is set to the Unit Cost.

Example

Multi-currency calculations first try to locate price formulas and item pricing records in the To site's currency. If the To site's currency is available, those values are used. If no records are found in the To site's currency, records are located in the domestic currency and then converted to the To site's currency using the Exchange Rate on the transfer order.

For example:

Site A, Currency = USD

Site B, Currency = GBP

The transfer order has From Site = A and To Site = B and Exchange Rate = 2.4. Site A has two Item Pricing records for the item being transferred, one with Currency = USD for 100 and the second with Currency = GBP for 111.

When you enter the transfer order line, the system would set the price to 111. If the GBP record did not exist, then the price would be 41.67 (= 100 / 2.4).

Transfer order prices are always displayed in the domestic currency of the current site.