My First Post and One Way to Use Advanced Pricing in Procurement
Hello all. This is my first post, and welcome to it. I hope everyone has a merry Christmas and a happy and prosperous New Year.
I want to share with you how I used Advanced Pricing in Procurement for the first time. As many of you know, one can use Advanced Pricing in Procurement in J.D. Edwards EnterpriseOne; however, for years I never came across a client that needed to use Advanced Pricing in Procurement. That changed when I had a client going live on 8.12 and had the following situation: The client had several suppliers that would ship directly to the client’s customers. No big deal–the SD/OD process works. The twist was that some of these suppliers would charge my client a different amount based on how far the product had to ship–basically burying the freight costs into the purchasing costs.
With me so far, I hope? Good. Now, I solved this by using Advanced Pricing for Procurement. I set up the adjustment to be by item group and by ship-to customer. I used one of the item’s category codes to indicate that the item was subjected to this pricing; the ship-to’s were the customers that received the drop-shipped items (or direct-shipped items if you prefer). In the adjustment details were the ship-to customer number and the supplier’s cost for delivering the item to that customer.
As a side note: since there were not many cases of this, I used the ship-to customer number. If there had been a lot of these, I would have worked out a way to use a ship-to customer group for easier maintenance.
The nice thing about this was the ease of updating the costs. Also, do not forget that when creating an SD and an OD at the same time, the SD’s cost comes from the OD. This means that the cost the supplier is charging comes onto the OD from Advanced Pricing then is sent to the SD for its cost.
This functionality is nice since if you or your client bases the SD price on the SD’s cost (like forcing a profit margin or doing a cost plus calculation), then you are set. Of course, your customer would notice that their price is changing on each order and may wonder why, so as a word of caution: You may want to discourage your client from combining the setup I mentioned with the OD cost/price if they do the price on the SD based on the cost.
I hope this helps someone that might have the same type of requirement. Please let me know if you have any questions.
As I blog, you will notice that I will talk mostly about the Distribution Suite as that is my strong suit. If you have a subject you want to see me talk about, please let me know.
Thank you.