BPA – Blanket Purchase Agreement with Cumulative Pricing

Cumulative Pricing in Blanket Purchase Agreement

Cumulative: Price Breaks will be applied to the cumulative quantity on all released shipments for the item.

Step 1 – Create BPA:
Create an Blanket purchase Agreement with two Items pricing 100 for first item and 50 for second item.

Step 1(a) – Enter Price Breaks:
Click on “Price Breaks” and give as if the release reaches 200 quantity the discount will be 10% and the so the price becomes 90 instead of 100. Likewise 20% for 500 and 30% for 1000 quantities.
Do the same exercise for the second line item as well.

Step 1(b) – Enable Cumulative Pricing:
Now go to “Agreement” TAB and Enable the “Cumulative Pricing” box.
Approve the PO.

Step 3 -BPA Releases:
Now Perform the Blanket release for the above PO (16).
Navigation: Purchase Orders > Releases.
Query with the PO number.

Step 3(a) – Release – I:
Make the Quantity as 150 for both the line items and check the price where it doesn’t differ.
No changes in the Unit Price for each lines.

Step 3(b) – Release – II:
Release 75 quantities for both the line items and now the price changes as per our price breakups given in the line level. Here the discount applied for the items as the total quantities have crossed the 200 (150 in Release I and 75 in Release II) where it should apply 10% discount.

Step 4 – BPA Without Cumulative Pricing:

Now go to the same PO (16) and Uncheck the”Cumulative Pricing” in the “Agreement” TAB.
Now release the Blanket PO.

Step 4(a) – Release I:
Release for 150 quantities for both the line items.

Step 4(b) – Release II:
Release 75 quantities for line item1 and check the discount have not applied and notice the price is still 100.

Step 4(c) – Release III:
Now try to release 200 quantities in single individual line and notice the discount have applied to 10% and the price turns to 90.

Note: Price breaks apply to quantities on individual released shipments for the item in case when we have price breakups and not selected cumulative pricing.

  • November 14, 2014 | 82 views