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author's profile photo Former Member
Former Member

PO calculation schema

Hello Gurus,

I am looking for some information on the facilities provided by the pricing procedure.

I would like to know how the net price is determined (how to mention which steps / conditions are to be included in the computation of the net price).

As an example, the discount condition R000 are included in the computation of the net price in the standard shema. I have a couple of conditions for freight and insurance as well. But they are also affecting the net price. How to stop that? Using a condition as statistical takes it out of the calculation.

Please help!

Thanks,

Aroop

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4 Answers

  • Posted on Dec 21, 2008 at 02:28 PM

    Put Statistical Indicator on for Condition types which you want not to Calculate on Net Price in M/08 trxn code

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 22, 2008 at 07:22 AM

    Hi,

    Briefly eloborated pricing procedure is given below.

    Sl.No. Formula

    1 Basic rate

    2 Quantity

    3 Cost 1*2

    4 Discount %

    5 Cost of materials 3* (100-4)

    5a Special tools cost buyer paid to supplier

    5b Total cost 5+5a

    6 Packing on 5b

    7 Forwarding charges on 5b

    7a Service tax on 7 12%

    7b Cess @ 2% on 7

    7c SHECess @ 1% on 7

    8 Excise Duty on (5b + 6 ) 14%

    8a Cess 2% * (5b+6)

    8b SHECess 1% * (5b + 6)

    9 Sub-total (5b + 6 + 7 + 7a+ 7b + 7c + 8 + 8a + 8b)

    10 VAT on 9 or CST on 9

    11 Sub-total 9+10

    12 Freight

    12a Service tax 12% on 12

    12b Cess 2% on 12

    12c SHECess 1% on 12

    13 Sub-total 111212a12b12c

    14 State level entry tax on 13

    15 Octroi within state on 14

    16 Transit insurance premium

    16a Service tax on transit insurance premium

    16b Cess @ 2% on 16

    16c SHECess @ 1% on 16

    17 Sub total 1314151616a16b16c

    18 Documentation charges

    19 Third party inspection charges

    19a Service charges on 19 12%

    19b Cess @ 2% on 19a

    19c SHECess @ 1% on 19a

    20 Cost of funds when advance given with PO

    21 Installation and commissioning charges

    21a Service tax on 21 12%

    21b Cess 2% on 21a

    21c SHECess 1% on 23a

    Regards,

    VB

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  • Posted on Dec 22, 2008 at 08:02 AM

    Hi

    1. Would like to know how the net price is determined (how to mention which steps / conditions are to be included in the computation of the net price).

    Net price will be calculated based on our pricing procedure only.

    For ex

    10 P000 Gross Price

    20 P001 Gross Price

    30 R000 Discount % on Gross

    40 R001 Discount/Quantity

    50 R002 Absolute discount

    60 R003 Discount % on Net

    Net value incl. disc.

    Here net price is basic price - discount .If u include freight and insurance in between steps 30-60 then this will also be included in net price itself. Normally net price is basic price and discount.

    effective price is net price +freight + insurance and taxes.

    So include freight and insurances after net price in pricing procedure.

    Ex:

    Steps Counter Condition From To

    1 1 P000 Gross Price

    1 2 P001 Gross Price

    10 10 R000 Discount % on Gross 1

    10 20 R001 Discount/Quantity

    10 30 R002 Absolute discount

    10 60 R003 Discount % on Net

    70 0 Net value incl. disc. 1 10

    180 10 ZXXX Freight 70

    185 0 ZXXX Insurance

    Check and revert

    Reg

    Raja

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 22, 2008 at 09:14 AM

    Hi

    subtotal which cotains statical tick mark will be considered for Net value (NETWAR) field

    If there are two subtotals the It searches from top to bottom in pricinig procedure and first one will be considered for net value

    Raju

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