Information about the applied purchase price and discount

When creating a purchase price line for a vendor that is set up with the Advanced Pricing method, the system will apply a price and discount according to the hierarchy mentioned in the topic Advanced pricing method hierarchy. The newly added Applied Purchase Price and Discount page, at the purchase price line level, gives more information about the applied price and discount on the purchase price line.

In this example, a purchase order line is created for item number “0015”, the base unit of measure is a can, and the vendor is set up with the Advanced Pricing method.

The system automatically calculates the unit price and line discount based on the Advanced Pricing method. The Applied Purchase Price and Discount page shows all relevant information about the selected purchase price line and purchase discount line on which these values are based. The conversion of the unit price to the Direct Unit Cost on the purchase price line is explained by considering different units of measures, different currencies, and including/excluding the VAT difference.

Open the Applied Purchase Price and Discount page from the following purchase documents:

• Purchase order
• Purchase return order
• Purchase invoice
• Purchase credit memo
• Purchase quote
• Blanket Purchase order

Purchase Order

The following example explains how to access the Applied Purchase Price and Discount page from a Purchase Order.

1. On the Purchase Order page, in the action bar, click Line > Applied Purchase Price and Discount. The page Applied Purchase Price and Discount can also be opened by clicking directly on the row button on the purchase order line on the Lines FastTab.
2. In the Type field, select the context menu , and then select Applied Purchase Price and Discount.

The Applied Purchase Price & Discount page has four FastTabs, as explained below:

• Applied Purchase Price Line FastTab: Shows the price line that is applied.

  Field	Description
  Originated From	Specifies where the price line originates from. It could be a price line that was set up in the Purchase Prices list, it could be the price from the item card (when no valid purchase price line exists), or it could be a price that was manually specified.
  Frozen	Specifies if the applied purchase price line is frozen. When frozen, it will not change anymore when you adjust, for example, the order quantity or UoM in the purchase line.
  Price List Code	Specifies the price list to which this purchase price line belongs.
  Source Type	Specifies to what type of source this price line applies. It is assigned based on the option selected in the Assign-to Type on the Purchase Price List page.
  Source No.	Specifies the number or the code of the source to which this price line applies.
  Asset No.	Specifies the number of the item to which this price line applies.
  Variant Code	Specifies the item variant to which this price line applies.
  Unit of Measure Code	Specifies the unit of measure of the item.
  Minimum Quantity	Specifies the minimum quantity required in a purchase line for this price line to be valid. The minimum quantity is expressed in the unit of measure of this line.
  Direct Unit Cost	Specifies the cost of one unit of the selected item or resource.
  Currency Code	Specifies the currency in which the unit price is expressed. An empty currency code represents the local currency as set up in the General Ledger Setup.
  Allow Line Disc.	Specifies if a possible available line discount may be subtracted from the unit price of this price line.
  Allow Invoice Disc.	Specifies if a possible available invoice discount may be subtracted from the unit price of this price line.
  Price Includes VAT	Specifies if the direct unit cost includes VAT.
  Starting Date	Specifies the date from which this line is valid.
  Ending Date	Specifies the date until which this line is valid.

• Applied Purchase Discount Line FastTab: Shows the origin of the discount that is applied.

  Field	Description
  Originated From	Specifies where the values in this line originated from. Options include: from the Purchase Discounts list or Manually Specified.
  Frozen	Specifies if the applied purchase discount line is frozen. When frozen, it will not change anymore when you adjust, for example, the order quantity or UoM in the purchase lines.
  Price List Code	Specifies the price list to which this purchase discount line belongs.
  Source Type	Specifies to what type of source this discount line applies.
  Source No.	Specifies the number or the code of the source to which this discount line applies.
  Asset Type	Specifies if the discount line applies to an item or item discount group.
  Asset No.	Specifies the number of the item or code of the item discount group.
  Variant Code	Specifies the item variant to which this discount line applies.
  Unit of Measure Code	Specifies the unit of measure of the item or of the item(s) within the item discount group.
  Minimum Quantity	Specifies the minimum quantity required in a purchase line for this price line to be valid. The minimum quantity is expressed in the unit of measure of this line.
  Line Discount %	Specifies the discount percentage that is granted for this discount line.
  Starting Date	Specifies the date from which this line is valid.
  Ending Date	Specifies the date until which this line is valid.

• Applied Item Unit of Measure FastTab:

  Field	Description
  Code	Specifies the unit of measure codes that are used in the applied purchase price line, the applied purchase discount line, or in the purchase document line.
  Quantity Expressed in the UoM	Specifies how many units (expressed in the unit of measure code) are linked to the number of units as specified in the field ‘Quantity Expressed in the Base Unit of Measure’.
  Quantity Expressed in BOX	Specifies how many units (expressed in the base unit of measure) are linked to the number of units as specified in the field ‘Quantity Expressed in the UoM’ (expressed in the unit of measure code).

• Price calculation FastTab: Shows fields related to applied price (Price field group) and applied discount (Discount field group).

  Field	Description
  Direct Unit Cost from Purchase Price Line	Specifies the direct unit cost per unit of measure (incl. or excl. VAT), as set up in the applied purchase price line.
  Unit of Measure Recalculation Factor	Specifies the ratio between the unit of measure from the applied purchase price line and the unit of measure from the purchase document line. This ratio is used to recalculate the direct unit cost from the price line to the direct unit cost on the document line, in case they are specified for different units of measure.
  Currency Recalculation Factor	Specifies the ratio between the currency from the applied purchase price line and the currency from the purchase document. This ratio is used to recalculate the direct unit cost from the price line to the direct unit cost on the document line, in case they are specified in different currencies.
  VAT Recalculation Factor	Specifies the VAT percentage as set up on the VAT Posting Setup page. This percentage is used to recalculate the direct unit cost from the applied purchase price line to the direct unit cost on the purchase document line, in case one of them is specified as ‘incl. VAT’ and the other as ‘excl. VAT’.
  Direct Unit Cost in Purchase Line	Specifies the direct unit cost per unit of measure (incl. or excl. VAT), as shown in the purchase document line. This value is calculated by applying the recalculation factors for UoM, currency, and VAT to the direct unit cost from the applied purchase price line.
  Line Discount %	Specifies the line discount percentage in the purchase line.

You can view how the unit price from the purchase price line (Direct Unit Cost from Purchase Price Line field) is converted into the direct unit cost on the purchase price line (Direct Unit Cost in Purchase Price Line field), taking into consideration the unit of measure code and/or the currency code from the applied purchase price line can differ from the codes on the purchase price line. The same calculation applies if the direct unit cost in the purchase price line is expressed including VAT, whereas the direct unit cost on the purchase price line is expressed excluding VAT (or vice versa).

• The Applied Purchase Price Line FastTab shows that the applied purchase price is set up with a direct unit cost of 10 Euros per piece, without VAT. The currency code in the applied purchase price line is empty, which means that the local currency is used for this price, which is, in this case, the currency code GBP. This information is summarized as “10 EUR/PCS excl. VAT” in the Direct Unit Cost from Purchase Price Line field on this FastTab.
• The Unit of Measure Recalculation Factor field on this FastTab specifies the ratio between the unit of measure from the applied purchase price line (pieces) and the unit of measure from the purchase document line (box). In this example, 12 pieces are contained in 1 box, which is shown in the following manner: “PCS: BOX = 12:1”. This information is taken from the item unit of measure table shown in the third FastTab of this page. This ratio is used to recalculate the direct unit cost from the price line to the direct unit cost on the document line, as they are specified for different units of measure.
• The Currency Recalculation Factor field specifies the ratio between the currency from the applied purchase price line (local currency) and the currency from the purchase document, which is in this case the currency code USD, which is shown in the following manner: “EUR: USD = 90:100”. This ratio is used to recalculate the direct unit cost from the price line to the direct unit cost on the document line, since they are specified in different currencies.
• The VAT Recalculation Factor field specifies the VAT percentage as set up on the VAT Posting Setup page. This percentage is used to recalculate the direct unit cost from the applied purchase price line to the direct unit cost on the purchase document line, since one of them is specified as “incl. VAT” and the other as “excl. VAT”. In this example, the VAT Recalculation Factor is set as “20%.”
• The Direct Unit Cost in Purchase Line field specifies the direct unit cost per unit of measure (incl. or excl. VAT), as shown in the purchase document line. This value is calculated by applying the recalculation factors for the unit of measure, currency, and VAT to the direct unit cost from the applied purchase price line, which results in this example in “160 EUR/BOX excl. VAT”.
• The Line Discount % on the Discount field group specifies the line discount percentage in the purchase line

On the action bar,

Purchase Invoice

• The data on the Applied Purchase Price and Discount page associated with the Purchase Invoice page is based on the table Document Price List Line linked to the invoice line. The Get Receipt Lines function is used to copy the Document Price List Line from the Purchase Order Line to the Document Price List Line linked to the Purchase Invoice Line.
• The currency rate captured in the purchase header of the invoice deviates from the currency rate applied in the Currency Recalculation Factor. The currency rate in the currency recalculation factor is the same rate as applied in the Purchase Order. This is to ensure that the same Direct Unit Cost is calculated in the Purchase Invoice as the agreed Direct Unit Cost in the Purchase Order.

Purchase Return Order

• The data on the Applied Purchase Price and Discount page associated with the Purchase Return Order page is based on the table Document Price List Line linked to the purchase return order line. The Get Posted Documents Lines function can be used to reverse the Posted Document Price List Line from the Posted Purchase Invoice Lines are copied to the Document Price List Line linked to the Purchase Return Order Line.
• The currency rate captured in the purchase header of the Purchase Return 0rder deviates from the currency rate applied in the Currency Recalculation Factor. The currency rate in the currency recalculation factor is the same rate as applied in the Posted Purchase Invoice Line. This is to ensure that the same Direct Unit Cost is calculated in the Purchase Return Order as the invoiced Direct Unit Cost in the Posted Purchase Invoice.
• If you change the Purchase Price and/ or Discount in the Purchase Return Order line prior to Posting the shipment, the changed Purchase Price and/ or Discount will be captured in the Document Price List Line linked to the purchase return order line. The Applied Purchase Price and Discount page also shows this changed price and/ or discount.

Purchase Credit Memo

• The data on the Applied Purchase Price and Discount page associated with the Purchase Credit Memo page is based on the table Document Price List Line linked to the Purchase Credit Memo Line. Using the Get Return Shipment Lines function, the Document Price List Line from the Purchase Return Order Line are copied to the Document Price List Line linked to the Purchase Return Order Line.
• The currency rate captured in the purchase header of the Purchase Credit Memo deviates from the currency rate applied in the Currency Recalculation Factor. The currency rate applied in the Currency Recalculation Factor is the same rate as applied in the Purchase Return Order Line. This is to ensure that the same Direct Unit Cost is calculated in the Purchase Credit Memo as agreed Direct Unit Cost in the Purchase Return Order.

Posted Purchase Invoice

• The data on the Posted Purchase Invoice page is based on the table Posted Document Price List Line linked to the Posted Purchase Invoice line. When posting the Purchase Invoice, the Document Price List Line from the Purchase Invoice Line are copied to the Document Price List Line linked to the Posted Purchase Invoice Line.
• The currency rate captured in the posted purchase header of the invoice deviates from the currency rate applied in the Currency Recalculation Factor. The latter currency rate is the same rate as applied in the purchase order and purchase invoice.

A Posted Purchase Invoice can be created by

• Using the Get Receipt Lines function in a Purchase Invoice and then post the Purchase Invoice.
• Using the function Post Receipt and Invoice or Post Invoice on the action bar, on Posting > Post directly from within a Purchase Order.

Posted Purchase Credit Memo

• The data on the Posted Purchase Credit Memo page is based on the table Posted Document Price List Line linked to the Posted Purchase Cr. Memo line. When posting the Purchase Credit Memo, the Document Price List Line from the Purchase Cr. Memo Line are copied to the Posted Document Price List Line linked to the Posted Purchase Cr. Memo Line.
• The currency rate captured in the posted purchase header of the invoice deviates from the currency rate applied in the Currency Recalculation Factor. The currency rate applied in the Currency Recalculation Factor is the same rate as applied in the Purchase Order and Purchase Invoice.
• Instead of using the Get Return Shipment Lines function in a Purchase Credit Memo and then post the purchase credit memo, a Posted Purchase Credit Memo can also be created directly from within a Purchase Return Order using the Post Shipment function.

Archived Purchase Quote

• In a Purchase Quote, the user registers a price agreement with the vendor. In many cases, multiple purchase quote versions are set up, before the business partners come to an agreement. Typically, each version of the purchase quote is archived for future reference. As with the posted and unposted version of purchase orders, quotes, etc. Information should be given on where the price in the purchase document originated from.
• When archiving a purchase document, the Applied Purchase Prices and Discounts Records should be copied as well.
• The data on the Applied Purchase Price and Discounts page is based on the table Archived Document Price List Line linked to the Archived Purchase Quote Line. When archiving the purchase quote, the Document Price List Line from the Purchase Quote Line are copied to the Document Price List Line linked to the Archived Purchase Quote Line.
• The currency rate captured in the Archived Purchase Quote deviates from the currency rate applied in the Currency Recalculation Factor. The currency rate applied in the Currency Recalculation Factor is the same rate as applied in the Purchase Order and Purchase Invoice.