Material pricing – overview

	Material pricing – overview Prices of material such as copper, silver, gold, and aluminum often fluctuate. Because these prices usually represent a significant part of the finished goods' value, specific monitoring is required to minimize the risk and exposure. You can use material price surcharges to account for price increases of material and you can use material price surcharge costs to cover additional material-related costs. If the Material Pricing check box is selected in the Implemented Software Components (tccom0500m000) session and the Material Pricing in Procurement and/or Material Pricing in Sales check boxes are selected in the Material Price Parameters (tcmpr0100m000) session, LN calculates the material price and includes this price in the (document line) price for purchase and sales documents. Consequently, these documents include real time prices. The following is considered when material prices are calculated for purchase and sales documents: The material price agreements made with the business partner The item material content linked to the purchased or sold item The item material information linked to the business partner The difference between the base price and the actual price of the item's materials The exceptions for which no material prices are calculated Material pricing setup Before you can calculate material prices, you must specify the master data. For more information, refer to Material pricing – setup Generation of material content Retrieving material price information After you set up the material pricing master data, material price information can be retrieved and material prices can be calculated for sales and purchase documents. For more information, refer to Retrieving material price information – general logic. Material price information on sales and purchase business documents For more information, refer to: Material price information – sales quotations Material price information – sales orders Material price information – sales contracts Material price information – sales schedules Material price information – requests for quotation (RFQs) Material price information – purchase orders Material price information – purchase contracts Material price information – purchase schedules Updating material price information After the material price information is retrieved for a purchase or sales document, the material price information can be updated. For more information, refer to Updating material price information – general logic.