This document explains how different material pricing methods can be used for different customers when you work with maintenance agreements and maintenance customer orders (MCO).
The document includes three descriptions of how material pricing methods are managed. The descriptions are arranged so that the most general description comes first. The second gives a more detailed explanation than the first. The third describes a specific area of the second description in detail.
The descriptions explain how:
The material that is used in the work that is connected to an agreement has been priced according to the selected material pricing method. Work is connected to an agreement when a maintenance customer order is defined in 'Maintenance Customer Orders. Open' (COS100).
When you create a maintenance customer order, you specify which price list will be used for calculation of the price for which the customer will be debited for service measures if you specified a price list in a maintenance agreement.
The price list(s) that will be used must be defined in 'Sales Price List. Open' (OIS017).
Selecting different material pricing methods affects which prices are used for material.
Price lists are a method of processing material prices. This makes it possible for you to control the price that a customer is debited for items.
You select a material pricing method when you define a new agreement for a customer, or when you adjust an available agreement.
Use a customer-specific price list when you want a customer to be debited a specific price for the material that is used during a service.
Select the material pricing method that will be used when you define an agreement in 'Maint Agrmnt. Open' (COS410/G).
Different price lists for material are used when you want to receive different payments for the same item from different customers. You can, for example, have one price list with a percentage discount, one with a regular sales price and one with a higher price for some customers.
When you create a new agreement for a customer in 'Maint Agrmnt. Open' (COS410/F), you specify which price lists will be valid for the agreement you create. Up to five price lists can be specified when you enter a new maintenance agreement.
If you specify a price list after you create a new maintenance customer order, the prices for the material are taken from the price list and not from other sources, such as the agreement price or the purchase price.
Selection of General Agreement Price or Purchase Price
If you select material pricing method 1 when you define a new agreement for maintenance, then all material that is used during the service work connected to the agreement will be priced according to the following method:
Material prices are first taken from the general agreement price specified in 'Purchase Agreement. Open' (PPS100).
The general agreement price is updated in 'Supplier. Connect In Item' (PPS040). If the item does not exist in the agreement, the item's purchase price as specified in 'Item. Open' (MMS001) is used.
Selection of the Customer's Price List
If you select material pricing method 2, all material that is used during a service connected to the agreement is priced according to a specified price list that is unique to the current customer. See the description that follows.
Selection of Supplier's Agreement Price or Last Invoice Price
If you select material pricing method 3, the material that is used during service work is first priced outside of the price that exists in the agreement with the supplier in 'Purchase Agreement. Open' (PPS100).
If the item is not found in any supplier's price agreement, the latest invoice price in 'Supplier. Connect In Item' (PPS040) is used.
Selection of Average Price or Cost Price
If you select material pricing method 4, the average purchase price for an item in 'Item. Connect Facility' (MMS003) is used first. The average price is calculated with the following formula:
If no average price is found, the cost price in 'Item. Connect Facility' (MMS003) is used. The cost price is a calculated price where the real value for an item is used when the price is calculated. Thus, the management costs an item has according to the purchase model that has been specified in 'Settings - Purchasing' (CRS780) are taken into consideration.
The cost price is calculated in (PCS292), which can be run from 'Purchase/Distribution Costing. Calculate’ (PCS280)
Selection of Method for Material Pricing at Entry of MCO
If you select service price method 1 or 2 when you enter a maintenance customer order, you can specify a price list from which the material price will be retrieved. If you do not select a price list, the material price outside of the material pricing method that is specified in the customer's agreement is calculated.
Selection of Price List That Has Been Specified in the Customer's Agreement
You select a price list when you want the material price to be controlled by a predefined material price list. For example, this is used if you want to give a customer a discount on material used during a service. If the material's item number is not found in any of the price lists in the agreement, the price is zero. See M3 Checks Price Lists in the Customer's Agreement.
Selection of the Standard Method That Is Specified in the Agreement
You select the standard method that is specified in the customer's agreement when you want the customer to be debited material according to the pricing method that has been specified in the agreement.
If you select material pricing against price lists, M3 will search for a valid price list in the customer's agreement. A valid price list includes the item number of the material that will be used during the service that will be carried out.
Price lists are checked in the order that they are specified in the agreement; that is, the first price list is checked first. If the item number is not found, the next price list is checked. If several price lists include the correct item number, the price list that has the latest start date is chosen. If the lists have the same start date, the one that was most recently defined is chosen.