In this Document

Applies to:

Goal

What are the steps required to change the line price on a Purchase Order that has already been received ?

Fix

The price can only be modified on a received Purchase Order by utilizing Retroactive pricing.

In order to enable Retroactive Pricing, the profile option PO : Allow Retroactive Pricing of POs to either ALL RELEASES or OPEN RELEASES as show in the following screen shot :

The next required part of the setup is to specify the Retroactive Price Adjustment Account. This is done in the Receiving Options form as shown below :

Now that the required setup is complete, the next step is to copy an item to use in the drop shipment test case. Navigate to the Item Master form and then select Copy From from the Tools menu as shown below :

Use the seeded Vision Demo CM96713 as the basis for the new item.

Specify the name of the new Item :

Click the Purchasing tab to confirm that the Item is Purchasable as seen in the screen shot below :

The next step is to create a Purchase Order using this new Item. Specify supplier as Advanced Network Devices and the Supplier Site as SANTA CLARA-ERS. The PO has one line with Quantity = 10 and Price = 5 as seen below :

Check the shipment and confirm that the destination Inventory Organization is V1 (Vision Operations) as shown in the screen shot below :

The PO can now be approved so that the quantity can be received at the price defined on the PO line. After being approved, the PO form should show the document status as Approved as shown below :

The next step is to create the Receipts. Navigate to the Receipts form and enter the PO number for the document created earlier :

Click the Find button and the expected receipt now appears. The quantity to be received will match quantity on the PO shipment. Check the check box for the record to be received and then save to process the Receipt as shown in the following screen shot :

The accounting transactions created as a result of the Receipt can be seen below :

Now that the Purchase Order has been received, the next step is to change the line price on the document. This can only be done if the profile option has been set as explained earlier. If this is not done then the price field will not be updatable on the PO form. Another thing to keep in mind is that Retroactive pricing cannot be used in encumbrance enabled environments.

Query the PO and change the line price. A new document revision will be created as shown below :

Once the PO is reapproved, the receiving accounting will be modified according to the new price as shown below :

Please note that this document only covers the steps required to modify the price on a received PO using Retroactive Pricing using data available in the Vision Demo database. It is also possible to use this functionality to update the price on Releases by modifying the price on the parent Blanket Agreement. This will be covered in a future Vision Demo note.

For more information on the functionality provided by Retroactive Pricing, please the following notes :

Note 561161.1 Retroactive Pricing
Note 563492.1 How To Diagnose Issues With Retroactive Pricing ?
Note 281181.1 11.5.10 Retroactive Pricing Checklist




For more Vision Demo Notes, please see Note 1075748.1 : Vision Demo Document Index Procurement)