Retrieving material price information – general logic

After you set up the material pricing master data, LN can retrieve material price information for purchase or sales documents, which you can view in the Material Price Information (tcmpr1600m000) session. The following material price information is retrieved and calculated for a document:

Material price agreement

Based on the document line's price list, business partner, item and date, LN searches for a valid material price agreement in the Material Price Agreements for Procurement (tcmpr0130m000) or Material Price Agreements for Sales (tcmpr0130m100) session.

If a valid price agreement exists, material price information is generated for the business document in the Material Price Information (tcmpr1600m000) session.
Item material content

Based on the document line's item, effectivity unit, option list ID, product variant, and date, LN retrieves item material content from the Item Material Content (tcmpr0120m000) session.

For each material, a material (price information) line is generated in the Document Material Information (tcmpr1110m000) session. This session is displayed as a tab in the Material Price Information (tcmpr1600m000) session. If a material line is generated, but no price agreement exists, material price information is defaulted based on the data in the Material Price Parameters (tcmpr0100m000) session. Consequently, the search date to retrieve the material actual prices is set to Fixed Price.
Billable quantity factor

Based on the document line's business partner, item and date, LN retrieves the Billable Quantity Factor for the material lines.
Material base price

Based on the document line's business partner, item and date, LN retrieves the base prices for the material lines.
Material actual price
Based on the Price Rule of the material price agreement, LN determines a search date to retrieve the actual prices for the material lines.

Determining the material actual price is not always mandatory. This is applicable if:
- The material actual price is not yet required in the business document line process
- The search date that is used to determine the actual price is in the future or is not specified
- A material actual price is not yet specified for the search date
If the material actual price cannot be retrieved, but is required in the document line process, LN considers the best possible option. Accordingly, LN uses the last date that is before the search date and for which an actual price is specified, or retrieves the last available material actual price.

For sales documents, the material actual price becomes mandatory when the business document line is released to invoicing. If no material actual price is available, an error message is displayed. You can manually specify a material actual price, or redetermine the actual price using the Price and Discount Recalculation Parameters (tdpcg0240s000) session. For purchase documents, the material actual price is not mandatory at this stage, because the invoice must be paid even if the actual price is not specified for the purchase document. However, the invoiced amount is displayed on the purchase document.
Material price surcharge

If material base prices and actual prices are specified for the material lines, LN adds surcharges to the material base prices. A material price surcharge is calculated by subtracting the material base price from the material actual price.
Material price surcharge costs
LN calculates material price surcharge costs to include the additional material costs, such as administration costs. These surcharge costs are calculated by multiplying the material price surcharge by a surcharge factor.

Example
- Material price surcharge = €0.432
- Material price surcharge factor = 1.5
The material price is increased with the material price surcharge costs of €0.648 (€0.432 * 1.5)
Document line price

LN determines the document line price.

General rules

When retrieving material price information, such as agreements, exceptions, item material content, and material base prices, LN initiates the search at the most detailed level. If information is found, the search stops.

If a Business Partner for Prices/Discounts is specified for the document, LN first searches for material price information specified for this business partner. If no material price information can be retrieved for this business partner for prices/discounts, LN searches the buy-from or sold-to business partner for this information.

The date used to retrieve date effective material price master data is determined using the Search Date (purchase documents) and Search Date (sales documents) fields in the Material Price Parameters (tcmpr0100m000) session. To retrieve material actual prices, other search dates are used.

For document lines with a customized item, the Use Derived-from Item (purchase documents) and Use Derived-from Item (sales documents) fields in the Material Price Parameters (tcmpr0100m000) session are used to determine the item that must be used to retrieve material price information.

You can manually specify material price information for a business document line in the Material Price Information (tcmpr1600m000) session. Consequently, the Material Price Agreement field is blank and the Manual check box is selected in the Material Price Information (tcmpr1600m000) session.

If an exception is applicable, you can manually link a material price agreement or material to the document. However, a warning message is displayed.