Temporary Purchase Order Pricing
You can now define price lists as temporary for purchase orders and supplier scheduled orders.
Some companies need to define price lists that do not represent final prices. For example, they may want to issue purchase orders and supplier schedules while prices are still being negotiated with the supplier. In some cases, companies may be legally prohibited from issuing POs without prices.
This is a widely accepted business practice in Asia. Additionally, repricing an order retroactively—that is, renegotiating a price after it has been agreed on—is common in the automotive industry.
To use temporary PO pricing:
• Set Temporary Price Enabled to Yes in Purchasing Control to turn on the feature.
• Set Temporary Price to Yes in Price List Maintenance to make a price list temporary.
When a purchase order or supplier scheduled order references such a price list, the temporary price applies. After the final price is negotiated and you update the price list, the process depends on the status of the order cycle:
• If the price list is updated with the negotiated price before the order is received, the system updates the purchase order or supplier schedule with the new price.
• If the price is updated after the order is received but before invoicing, the system creates receipts based on the temporary price, then adjusts the order with the new price when it is available.
• If the price is updated after invoicing, the system creates supplier invoices and pays the supplier based on the temporary (receipt) price.
Note: The system only selects order receipts with temporary prices for receiver matching (that is, invoicing) when Match Receipts with Temporary Price in Supplier Invoice Control is Yes.
When the price is finalized, the system reprices the order, then generates price adjustments for the invoiced receipts, creates supplier invoices for the difference between the receipt price and the final price, and pays the supplier as needed.
For information on Financials changes that support this new feature, see
Support for Temporary Purchase Order Pricing.