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Amotrization Concept

Hi Experts,

Kindly suggest me the idea to configure for the following scenario,

The client is buying a material from an import vendor who has promised them that they will be reducing the Price of the material gradually after every 100 Qty of purchase.

The client is expecting the system to consider how many ever PO we raise into account until 100 is completed and later automatically suggest the lesser price.

Example scenario,

PO no1: 98qty- 100rs

PO no2: 10qty

Here the system should assume that for 2 qty in PO no:2 will consider as Rs100(since the 100 qty is crossed) and for 8 quantity it is 90rs.


PO no1: 10 Qty

PO no2: 10 Qty

PO no3: 10 Qty

PO no4: 50 Qty

PO no5: 25 Qty

In this case, the system should consider, for POno:5, Rs100 for 20 and 98 for the rest of 5 quantity. since the 100 Qty is crossed.



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3 Answers

  • Best Answer
    Posted on Nov 06, 2015 at 02:07 PM


    You can go for creating a contract by maintaining quantity scale by having

    Quantity -----------------Price




    You can create PO from contract then.


    Biju K

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    • 1)

      Update the scale in info record of material purchasing in import.




      This will take care the price after a fixed quantity.


      If you have decided to create separate PO for every delivery, better give the PO in the lot of 100 only with different pricing. This will resolve your process by transaction itself.

      Hope this will resolve the issue. Let me know any further clarification.


  • Posted on Nov 06, 2015 at 11:40 AM

    automatically it does not work this way in standard, at least I have not seen a way how to achieve that.

    But you could create for example a contract with items per scale.

    You then do call of against item 1 until this is completed and then you call of against item 2 with the lower price until it is completely taken and then you switch with the call-offs to item 3 with an even smaller price.

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  • Posted on Nov 06, 2015 at 03:55 PM

    Amortization is more of FI concept then MM. Vendors are involved as you provide them loan and then you recover slowly. I would recommend you to go through following link and Ask FI team to provide the right solution.

    Amortization - ERP Financials - SCN Wiki

    Amortization - Securities - SAP Library

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