Special RMA Pricing Considerations
In the case of RMAs, the system treats the discount applied as a result of service coverage like a manual discount. It displays this way in the price list inquiry functions. You cannot distinguish it from other overrides that you specify. The system marks the discount as coming from a service type and lets you reprice the issue line.
Minimum Prices
If you specify a minimum price on the applicable price list, the system uses it in calculating the price before it applies the service coverage discount. However, when the system applies the service coverage percent, it allows the net price for an item to fall below the minimum list price. For minimum prices the rules and agreements of the service coverage can override the rules set up in sales order pricing.
Minimum Price Examples
You issue item 116 on an RMA using a service contract that provides 50% coverage. The system determines that price list A gives the best price for item 116. This price list specifies a price of $6.00 with a minimum price of $5.00 and maximum of $7.00. The system finds no applicable price discounts when it calculates prices. If no coverage is provided on the RMA, the net price equals the list price of $6.00.
Now the system applies the coverage percent to the price, resulting in a net price of $3.00. Even though this net price is below the $5.00 minimum, the system does not generate an error. The adjustment is a result of service coverage and remains even if the issue line is repriced.
Using the same data, consider what happens if the system finds applicable price discounts that lower the net price below the minimum before service coverage is applied.
The initial list price of $6.00 is discounted 20% yielding a net price of $4.80. The system raises this to the minimum ($5.00) and then applies the service coverage (50%) for a net price of $2.50. A message indicates that the price has been adjusted because the net price is lower than the minimum.
Repricing RMA Issue Lines
You reprice sales orders in Sales Order Repricing (7.1.11) and can include RMA issue lines in this function. To reprice an RMA issue line, create it with Fixed Price set to No. Repricing does not affect RMA receipt lines, since the system determines prices for RMA receipts differently from RMA issues.
Note: If you have changed the price on an RMA issue line, the system does not reprice it. This is the same as with sales orders. The system only recalculates prices that it generated.
When the system reprices RMA issue lines, it recalculates list price and applicable discounts and adjusts for minimum/maximum list price as described previously. It then reapplies the coverage percent and any manual discount you specified.
Accrual for Price Breaks
Items issued on RMAs are like sales order lines in terms of price breaks and accrual.
Other Pricing Functions
RMAs follow the same rules as sales orders in calculating prices for configured products.
Use Sales Order Price Inquiry (1.10.1.17) for RMAs to display information about the price lists and discounts applied in calculating prices for line item issues. The service coverage amount displays as a manual discount. You can also use Sales Order Pricing Report (7.15.7).