Material price information – purchase orders

When a purchase order line is specified in the Purchase Order - Lines (tdpur4100m900) session, LN searches for a valid material price agreement. The material price information can be defaulted from the origin used to generate the purchase order, from the master data, or retrieved from the linked purchase contract line.

On the Buying tab of the Purchase Order Lines (tdpur4101m000) session, in the Material Prices group box, you can view the (material) price for the purchase order line. On the appropriate menu of this session, click Material Price Information to view the detailed material price information in the Material Price Information (tcmpr1600m000) session.

If the material price information is defaulted from an origin that generated the purchase order, the Manual check box is selected by default in the Material Price Information (tcmpr1600m000) and Document Material Information (tcmpr1110m000) sessions. Consequently, the material price information is not overwritten when material price information is redetermined for the purchase order line.

If material price information is not defaulted from the origin used to generate the purchase order, but retrieved from the master data, LN does not select the Manual check boxes.

Before purchase order lines can be commingled, the material price information of the lines must be identical. If the material price information for two order lines differs, the lines are not commingled to a total line with two detail lines. However, a new purchase order with two separate lines can be created. Consequently, the material price information is defaulted from the target to the source order line.

Material price information for a purchase order line can be updated manually, or can be updated by LN during the redetermination process.

If a purchase order line has line details in the Purchase Order Line (tdpur4601m000) session, material prices are displayed on the purchase order (total) line and not on the line details. The material price information, which is displayed in the Material Price Information (tcmpr1600m000) session, is defaulted to the related line details.

When you approve the purchase order in the Approve Purchase Orders (tdpur4210m100) session and you want to redetermine the material price information during the approval, select the Redetermine Material Price Information check box.

If you approve a purchase order using the Approve option on the appropriate menu of the Purchase Orders (tdpur4100m000) or Purchase Order (tdpur4100m900) sessions, the Redetermine Material Information field in the Material Price Parameters (tcmpr0100m000) session is used to specify if the material price information is redetermined.

If the material price information for a purchase order line is modified after order approval, the purchase order status is set to Modified, which means that the order must be reapproved. The Approved status is not affected if LN modifies the material actual prices. The order status is set to Modified only if you manually modify the material actual prices.

After a receipt is generated for a purchase order line, a receipt is added to the Purchase Receipts (tdpur4106m000) session.

If the material actual price cannot be retrieved, LN considers the best possible option. For example, instead of using the invoice date, which is required but not known yet, the actual receipt date or usage date is used to retrieve an approximate material actual price.

You can modify the prices and discounts after the receipt confirmation by actual receipt ( Pay on Receipt), or payable receipt ( Pay on Use) in the Change Price and Discounts of Purchase Payable Receipts (tdpur4132m000) session.

You can modify the prices and discounts after the receipt confirmation for the total or detail line in the Change Price and Discounts after Receipt (tdpur4122m000) session.

From the appropriate menu of the Change Price and Discounts of Purchase Payable Receipts (tdpur4132m000) or Change Price and Discounts after Receipt (tdpur4122m000) sessions, select Material Price Information to modify the material price information after receipt in the Material Price Information (tcmpr1600m000) session.

For consignment replenishment order lines, material price information is retrieved from the master data.

After consumption of consigned inventory, a consignment payment order line is generated. The process to retrieve material price information for an order line, is based on the Price Determination Based on field of the Purchase Order Parameters (tdpur0100m400) or the Order Terms and Conditions (tctrm1130m000) sessions.

If an original document is linked to a purchase return order line, the material price information is defaulted from the original document. For the copied material actual price, LN selects the Manual Actual Price check box in the Document Material Information (tcmpr1110m000) session.

If no original document is linked to the return order line, the material price information is retrieved from the master data.

Afters the goods are received, the invoice can be matched and approved in Accounts Payable.

The amount to be invoiced is based on the actual material price. Therefore, the actual receipt price is used during receipt matching.

Differences between receipt amount and invoice amount, due to material actual price differences, are logged as variance transactions.

You cannot change the price or redetermine the material price for purchase order lines that are invoiced by supplier stage payments, after receipt. Accordingly, if the date used to determine the material actual price is set to Invoice Date for the linked material price agreement, this date is changed to Actual Transaction Date for invoicing by stage payments.

The total order line amount can differ from the total stage payment amount, if the actual receipt date is used as the price date. To adjust the difference, a correction stage payment line can be created, or an open stage payment line can be used. If the difference is not corrected, a variance transaction is logged when the stage payment is closed during the processing of the delivered purchase order.