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.

Thanks,

Aroop

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### Related questions

• 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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• 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

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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• 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