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Former Member
May 20, 2014 at 09:20 PM

Pricing in SRM when coming from Ariba


Hi All,

We're having an issue at a customer regarding the different ways that Ariba and SRM calculate price formula. Ariba has the ability to show the Unit Price in one UoM, but have the Qty ordered in a different UoM. They utilize a "conversion" factor in order to get the correct Total Price.

As an example I have this data:

From Ariba:

Quantity = 10 (ordering quantity is pallets)

Unit Conversion = 150 (150 Rolls in 1 Pallet)

Price unit quantity = 1

Price = 4.50 (price per Roll)

Unit of Measure = pallet (ordering UOM)

Price Unit of measure = Roll (priced by UOM)

The formula for amount is Line Item Amount = Quantity * ( Unit Conversion / price Unit ) * Price

Line Item Amount = 10 * ( 150 /1 ) * 4.50 = 6750

The issue is that when this data gets sent to SRM via OCI, they only send Quantity(10), Price in Price per Roll(4.5), Price Unit Quantity(1), and a Unit of Measure(Pallet).

The equation that the SRM system therefore does is: Line Item Amount = 10 * 4.50 = 45 which is incorrect, as it doesnt recognize that the 4.50 is for a roll, while the 10 is a pallet.

Have any of you worked through something like this in the past? Is there a workaround utilizng mapping tables, or perhaps passing the conversion factor over to SRM?


Andrew Bondarev