Internal commercial rates

Overview

For internal pricing, commercial prices can be used for material and labor. Additionally, a single fixed price can be specified. This is a fixed repair rate that must be paid, on the actual material used and hours spent.

Commercial Material Costs

When the price origin on the relationship detail for material is Commercial Price, for the materials issued for the work order, the commercial rate is used to determine the price on the internal invoice. You can use the Internal Price Search Method field in the General Service Parameters (tsmdm0100m000) session to retrieve the price. These are the possible options:

• Price Book Service/Sales : The Default Service Price Book is used. This price cannot be specific to one Business Partner. If this price book is not defined, the Default Sales Price Book is used.
• Price Book Transfer : Using the Sales price book with Matrix Type field set to Transfer Price on the Matrix Definitions (tdpcg0110m000) session, an internal sales price between two internal business partners can be specified. Note: LN considers the internal business partners linked to the enterprise units to search for the sales price.
• Item Service Price : The sales price defined on the Items - Service (tsmdm2100m000) session is used. This price can also be used for the internal invoice. Item Service Price is used if Service Price Book and Price Book Transfer is not defined.

Commercial Labor Rates

To define a commercial labor rate when the Price Origin for labor pricing is set to Commercial Price in the Intercompany Trade Agreements (tcitr1100m000) session, the Internal Sales Labor Rate field in the Service Offices (tsmdm1100m000) session is used. This labor rate specifies the sales labor rate when a service department performs the work for another service department. Labor Rates for internal business partners can be specified using commercial labor rates.