SPA Pricing Overview

You can use Special Pricing Agreements (SPA) that handle these order entry scenarios:

• Normal Sell/Normal Buy: This is when a customer purchases an item at the normal list price or price code and the vendor sells it to you at the vendor's normal margin.
• Special Sell/Normal Buy: This is when a customer purchases an item at a special list price that has been established for them, but you still purchase the item at the vendor's normal margin.
• Special Sell/Special Buy: This is when you receive a special cost from the vendor that is then passed on to the customer. The margin stays the same as the Normal Sell/Normal Buy, but the customer receives a discount based on the special cost from the supplier.
• Normal Sell/Special Buy: This is when a customer purchases an item at the normal list price, but you receive a special cost from the vendor, which could increase the profit margin.

Costs are tracked for specific SPA inventory.

Which LIFO/FIFO stack is consumed for debit returns, sales order shipments, miscellaneous issues, and material transaction postings is determined as follows:

• For orders associated with a SPA number: First, a match is searched for on both the SPA number and reference where quantity on hand is available to fulfill the request. If a stack record is not found or quantity on hand is not available, a match is searched for on only the SPA number where quantity on hand is available to fulfill the request. If a stack record is not found or quantity on hand is not available, the user receives a message and the issue is not processed.
• For orders with no SPA association: First, a match is searched for on the SPA reference. If a stack record was not found or quantity on hand was not significant, it tries to consume stacks with a reference of Inventory. If the quantity on hand is not available, the process either stops, issuing an error message, or goes negative depending on how the inventory parameters are set.

Which LIFO/FIFO records are created for negative shipments, purchase order receipts, and miscellaneous receipts is determined as follows:

• When SPA pricing is applicable, the LIFO/FIFO stacks are created and associated with the correct SPA number and reference field values. When SPA pricing is not applicable, the reference field on the LIFO/FIFO stack is set to Inventory.
• When SPA pricing is not applicable, the reference field on the LIFO/FIFO stack is set to Inventory.

Material planning at the SPA inventory level is provided. Item planning values can be set for each SPA for use in replenishment calculations.