Setting up price breaks

Access Vendor Agreement (PO25.1).

Add header information.

Use the following guidelines to enter field values:

Procurement Group: Type or select the identified for a group of companies that share a common procurement effort. They buy items and services together.
Vendor Agreement Reference: Select the vendor agreement reference to use with this vendor agreement.

Select Inquire as the form action.

Click the Lines button to access Vendor Agreement Lines (PO25.6).

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Click the Service Lines button to access Service Agreement Line (PO25.7).

Select a vendor item.

Select the line detail tab, and click the Quantity Breaks button to access Vendor Agreement Line (PO26.4) to set price breaks.

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Select the line detail tab, and click the Quantity Breaks button to access Vendor Agreement Line Price Breaks (PO26.5) to set price breaks.

Set regular price breaks for purchased items or service.

Select the Purchase/Service Pricing tab.

Use the following guidelines to enter field values:

Markup/Discount

Select whether the base percent is a M (Markup) or D (Discount).

A Markup is the vendor's profit for the item. The more you buy, the lower the vendor’s profit. Discounts are setup from the reverse perspective. The more you buy, the better the discount. The markup and discount is calculated on the base cost from PO25.6 or the base percent on PO25.2.

By Quantity or Amount

Select whether the markup or discount is applicable to a set Q (Quantity) or A (Amount).
In the fields on the first column, type the threshold quantity or amount that must be reached in order to get a discount or a markup.
If granting a discount or a markup based on amount, in the fields on the second column, type the percentage of the agreement line base cost should the purchase exceed the set threshold. The percentage becomes the discount or markup applied to the agreement line base cost and the resulting amount is the purchase unit cost.
If granting a discount or markup based on quantity, in the field on the third column, enter the actual cost should the purchase exceed the set threshold. This amount becomes the purchase cost, instead of the agreement line base cost.

Set price breaks for items that are purchased in a consignment basis.

Select the Consignment Pricing tab.

Use the following guidelines to enter field values:

Markup/Discount

Select whether the base percent is a M (Markup) or D (Discount).

By Quantity or Amount

Select whether the markup or discount is applicable to a Q (Quantity) or A (Amount) to indicate.
In the fields on the first column, type the threshold quantity or amount that must be reached in order to get a discount or a markup.
If granting a discount or a markup based on amount, in the fields on the second column, type the percentage of the agreement line base cost should the purchase exceed the set threshold. The percentage becomes the discount or markup applied to the agreement line base cost and the resulting amount is the purchase unit cost.
If granting a discount or markup based on quantity, in the field on the third column, type the actual cost should the purchase exceed the set threshold. This amount becomes the purchase cost, instead of the agreement line base cost.

Select the Quantities/Amounts tab.

Use the following guidelines to enter field values:

Purchased/Service Qty Ordered

View this field, which can convey any of the following information:

Quantitiy purchased against the agreement line for non-Service type (types "C", "B", "S", and "T") vendor agreements.
Quantity invoiced against the agreement line for Service type (type "V") vendor agreements.
Total of line quantities from all released purchase order lines that are tied to the non-Service type vendor agreement line.
Total of line quantities from all matched invoice lines that are tied to the Service type vendor agreement.

Purchased/Service Amt Ordered

View this field, which can convey any of the following information:

Total amount purchased against the agreement line for non-Service type vendor agreements.
Total amount invoiced against the agreement line for Service type vendor agreements.
Total of line amounts (purchase order unit-cost multiplied by quantity) from all released purchase order lines that are tied to the non-Service type vendor agreement.
Total of line amounts (invoice unit cost multiplied by quantity) from all matched invoice lines that are tied to the Service type vendor agreement.

Consigned Qty Ordered

View this field, which can convey any of the following information:

Total quantity purchased against the agreement line when the item on the vendor agreement line is a consignment item.
Total of line quantities from all released purchase order lines that are tied to the vendor agreement line when he item on the vendor agreement line is a consignment item.

Note: Service agreements cannot have consignment items.

Consignment Amt Ordered

View this field, which can convey any of the following information:

Total amount purchased against the agreement line when the item on the vendor agreement is a consignment item.
Total of line amounts (purchase order unit cost multiplied by quantity) from all released purchase order lines that are tied to the vendor agreement line when the item on the vendor agreement line is a consignment item.

Note: Service agreements cannot have consignment items.

Amount Requested

View the total amount of released requisition lines that have not been turned into purchase order lines that are tied to a vendor agreement line.

This field displays in the Quantities/Amounts tab when the Lifetime Maximum Edit flag on Vendor Agreement (PO25.1) header is set to a value of 1. This means that the total of both released purchase order lines and released requisition lines have not been turned into purchase orders.

Select Change as the form action.