Service Entry to adopt contract price from validity dates in the past

[mratnakaram]

All,

I have a business case where I would like service entry to adopt prices from a contract based on validity dates in contract item conditions.

Scenario further explained -

1. Business creates a value contract valid for an entire year, with prices changing in between. The item condition prices in the contract have these validity dates maintained along with the prices. Eg. Jan - March @ $100, April - Aug @ $105, Sept-Dec $102.

2. PO is created in reference to the contract in January but the PO is maintained with limits and price is NOT adopted from services in the contract.

3.  Business receives invoices for each month for the previous month. Now for all services performed in March, the invoices are received say on April 10th. The service entry sheet will be posted on April 10th and will reference the contract item service prices. At this time, since the services were rendered prior to April 1st, I would like to know what settings need to be done so the service entry adopts $100 (this is the price on service date) and not the current price of $105.

[RobynCouch]

This is an old question but the answer is that there is a pricing reference date on the service entry sheet header. This is used when determining which pricing period to use from the selected contract service items upon adoption into the service entry sheet.

[BijayKumarBarik]

Hi,

Contract is a outline purchasing agreement  with vendor where as purchase order is a committed  purchasing  document by business to vendor with all purchasing conditions.

You created contract where you have different pricing($95,$100,$105,$110,$115 and $120 etc....) based on validity period.

Better create purchase order in each month from contract to have defined price in it and then do service entry sheet for that purchase order which will pick price for your expected requirement.

1. Create one contract

2. Create PO for each month

2.1. PO-1 for February with price $95

2.2. PO-2 for March with price $100

2.3. PO-3 for April with price $105

Based on  service performed- you can do service entry sheet for respective PO number where you can find price picking from that PO only for that month created!

Regards,

Biju K

[mratnakaram]

Thanks for the quick response Bijay.

I had tested this before I posted to the forum, may be I am missing something somewhere.

Taking the example you have given, if I create a PO in March with Price of $100, and the invoices are received in April, the price valid at the time of service entry will be $ 105, which is the current price that will be adopted in the Service Entry. This price is adopted even if I enter the actual dates of service from March.

I am looking for a solution as to how I can still do the service entry in April but get the prices from March i.e. $100. 

Here is what I noticed in the behavior.

1. When PO is created with reference to the contract and the prices are adopted from the services in the contract: In this case, Service entry copies the prices from the PO (immediate reference document) as long as the condition is on a valid date. If the validity has expired, then system is looking for a valid price on the posting date. If available, current price is adopted. If the condition (PB00) validity has expired, then system asks for manual price (PBXX) entry.

2. When PO is created with reference to contract but limits are maintained and services/prices are not adopted from the contract: In this case, the message depends on the reference document. If the PO is referenced, since no service lines exist in the PO, system throws a message "PO does not contain any items". If contract is referenced and services are adopted, in service entry directly, then system by default pulls the price valid on current date. Else again manual price is required.

Pls let me know if I am missing anything, I have even tried working with user profile ->price adoption ( though this works mostly for PR to PO). Any insight will be greatly appreciated.

[BijayKumarBarik]

Hi,

With my above suggested options, can you create few PO's from contract  and SES,s from PO, and share all the screens.

Also check to use t.code : ML45 for having service price details. Also introduce process

Contract ---- Purchase requisition form contract ----- Purchase order form purchase requisition -----

Service entry sheet from purchase order.

Regards,

Biju K

[former_member213836]

What is Price Determination Date Control  in Contract?

Regards,

Niranjan