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About price unit handling

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Sales and purchase price unit handling gives you the possibility to use one unit for the retrieval (i.e. the sales/purchase unit) and another unit in which the price is presented (i.e. price unit). For more information regarding the different system unit types available in the system see About unit handling in DC1.

Price unit functionality is applicable everywhere in the system where prices are handled. This includes the following routines:

  • Sales quotations
  • Sales orders
  • Requests and returns
  • Customer service enquiry
  • Purchase suggestions
  • Supplier quotations
  • Purchase requisitions
  • Purchase orders

You have the possibility to define a price unit in all places in the system where a price can be defined. This means that whenever a price is retrieved, the retrieval program will return a price unit. If no price unit is defined in the place from where the price is retrieved, the sales/purchase unit will equal the price unit.

The price unit functionality is controlled by the function PRCUNIT (Pricing unit) in the Function control file and has the following impact:

  • If this function is activated, all Pricing unit related fields (i.e. Price unit and Price unit quantity) will be displayed in the system. The Price unit and the Price unit quantity will be used to calculate line values.
  • If this function is not activated, the Pricing unit fields will never be displayed but always updated and used for line value calculations. Price unit will always be the same as the sales/purchase unit and the price unit quantity will always be the same as the ordered/confirmed/received quantity.

Impact at order line entry

If this functionality is activated the following will occur depending on how the end user chooses to price the order line:

  • If you let the system automatically retrieve a price to the order line, a price unit will always be retrieved from the price retrieval program. This could be:
    • the price unit itself from where the price is retrieved (e.g., Customer contract, Price list, Sales pricing method for Sales prices or Price list, Supplier agreement for Purchase prices)
    • or, the actual “transaction” unit, in the event no price unit has been defined in the place where the price is retrieved.
  • If the end user manually enters a price, but no price unit is defined during order line entry, the default sales/purchase price unit will be retrieved and displayed as a default.

Note: You can, of course, manually enter a price and manually enter the price unit.

A change in price unit will result in the price being presented according to another unit. The line value will remain the same and the price will automatically be re-calculated. The calculation for the Net line amount are:

  • Sales price x Price unit qty
  • Purchase price x Price unit qty

Search for the applicable price unit

There is the possibility to set up different default Sales/Purchase price units per item for the different unit values. The default values will only be used when prices are created and when prices are manually entered for order lines but no price unit is manually entered. See Setting up units for more information. If different price units, per item, have been set up, the search is as follows for each item on your order line:

Sales related order Purchase related order
  1. Item file maintenance, Units panel
  2. Item file maintenance, System units panel
  1. Item file maintenance, Supplier information panel
  2. Item file maintenance, Units panel
  3. Item file maintenance, System units panel

Pick confirmation/Goods reception handling

The price unit quantity always corresponds to the quantity used for line value calculation. This means that when a Sales order line is pick confirmed and when a Purchase order line is received, the price unit quantity will reflect the confirmed/received quantity instead of the ordered quantity.

Change price unit quantity

In conjunction with Price unit handling, the possibility exists to change the price unit quantity should the need arise if the CTCH-WGT (Catch weight handling) function is activated in the Function control file and the Sales and/or Purchase unit for the item has been set up for Catch weight handling. Catch weight handling for sales and purchase order lines is only applicable if the following is true:

  • the order line is flagged for Catch weight handling.
  • the item on the order line is not a fictitious item.
  • the item on the order line is not a serial number controlled item.
  • The order line is less than status 30.
  • The order is not an Internal replenishment order.

All catch weight quantities are accumulated to be the price unit quantity for the order line and will also be used to re-calculate the order line value.

See About catch weight handling for price units for more information.

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