Price Determination in SAP MM

                       When we create a purchase order or scheduling agreement with time-independent conditions, the system searches for valid conditions and inserts them into the new document (This is the process of price determination).

Ø  In the case of purchase orders, the system searches for conditions in info records and contracts (for contract release orders), and for general conditions.

Ø  In the case of scheduling agreements with time-independent conditions, the system searches for conditions in info records and for general conditions.

If no conditions are found, but the last PO is noted in the info record, the system can adopt the conditions from this PO. We can specify how the system treats the conditions from the last PO in Customizing for Purchasing (default values for buyers).

The system can proceed in similar fashion in the event that a scheduling agreement with time-independent conditions is noted in the info record.

Note

                       Price determination involves the process of determining already existing conditions only. Thus, if the buyer enters further conditions in the purchase order - over and above those inserted by the system - and a new effective price results, the latter is not calculated via the price determination process.

If the conditions were adopted from the last document and the buyer performs the New price determination function, these conditions will not be inserted again.

Date of Price Determination

In the automatic price determination process, the price can be calculated as at the document date of the PO or as at another date (such as the current day’s date, the delivery date or the goods receipt date). We can specify the date to which the price that is determined relates at the following points:

Ø  In the vendor master record, in the Pricing date control field, if we wish to use the same price determination date for all a vendor’s materials.

Ø  In the purchasing info record, in the Pricing date category field, if we wish to use a different pricing date for a certain material supplied by a particular vendor.

Note

The value in the purchasing info record takes precedence over the value in the vendor master record.

Ø  In the purchase order, in the Pricing date category field (found via Item  More functions  Additional data ).

Ø  The value from the info or vendor master record is preset when a purchase order is created. However, this is only used if we change it in the purchase order and carry out a new price determination process.

Caution

The pricing date category in the PO takes precedence.

Example:

In the info record, we have specified that the price determination process is to be carried out with the conditions that are valid on the delivery date (pricing date category 2).

 Furthermore, we have created two validity periods (from 01.04.2021 until 31. 04.2021 and from 01.05.2021 until 31. 12.2021), each with different conditions.

We create a purchase order with the delivery date 05.05.2021.

The pricing date category from the info record is adopted. In the course of the price determination process, the info record conditions from the validity period 01.05.2021 until 31. 12.2021 are then adopted.

If we wish to adopt the info record conditions from the first validity period in the purchase order, we must change the pricing date category in the PO to blank and carry out a new price determination process.