Amortization of Material Price

[Former Member]

Hi,

I think there is no any instant way to handle Amortization of material price in standard SAP. If any body had done any kind of work around/process map for this scenario, then, kindly share the same.

Scenario : Material price is Rs.10. Amortization charges Rs.1 is applicable for delivery quantity of first 10,000 items. We can prepare pricing condition for Amortization, but the requirement is after delivery of 10,000 quantity, Amortization charges should not be applicable.

I have tested with inforecord scale but it is not a success as it is picking the Amortization condition only when PO quanity is excatly 10,000. If PO quantity is less than 10,000 then Amortization condition is not picking.

[ashish_andani · Accepted solution]

hi..

At condition tab for the Infor Record.. you can defien scales ..

like

from scale quantity 1 Amount "9" for 1 UOM

from scale quantity 11 Amount "10" for 1 UOM..

Try itt...

Thanks

Edited by: ashish2210 on Jun 28, 2011 8:52 AM

[Former Member]

Hi,

I found some solution for this issue.

Instead of creating seperate condition type, add amortazisation price in basic price itself. Now, maintain the scale in info records, such that after amortization quantity, basic price should be normal price.

i.e.in case of my above scenario, maintain scale like this,

From 1 Uom 11 Inr

10000 Uom 10 Inr

Now, Price will pick up in purchase order accordingly as per the requirement.

In case, if we prepare PO for 900 qty and next time if we prepare for a 101 quantity, then, warning message 06244 will come.

As this message can not convert in to error message, we can customize an error message with the help of ABAPer. So that there will be perfect control over the Purchase Order quantity.

[Former Member]

Hi,

I found some solution for this issue.

Instead of creating seperate condition type, add amortazisation price in basic price itself. Now, maintain the scale in info records, such that after amortization quantity, basic price should be normal price.

i.e.in case of my above scenario, maintain scale like this,

From 1 Uom 11 Inr

10000 Uom 10 Inr

Now, Price will pick up in purchase order accordingly as per the requirement.

In case, if we prepare PO for 900 qty and next time if we prepare for a 101 quantity, then, warning message 06244 will come.

As this message can not convert in to error message, we can customize an error message with the help of ABAPer. So that there will be perfect control over the Purchase Order quantity.

Regards,

Anoop Kumar.

[ashish_andani]

hi..

you want after the certain quantity, Amortization value should not be charged.

From 2 UOM 9 INR

till quantity amortization will be charges..

from 11 the amortization will not be charged so u can charge with full cost..

11 UOM 10 INR..

these will be the sacles in your case.

And if u want from 101 UOM the price should be zero ..in that case system will give u an error "Net price must be greater than 0

"...

[Former Member]

Hirendra

As I explained, we need any system control that after 10,000 quantity, Amortization value should not be charged. In info record scale, it is working fine if we maintain like this -

From 1 UOM 2 INR

101 UOM 1 INR

Then, upto 100 qty it is picking Rs.2 and from 101 qty it is picking Rs.1.

Any body can suggest what should I need to do so that from 101 UOM it should be Zero. If I am maitaining price column blank,but it is not working.It is still picking 2 INR.

[Former Member]

Hi

Scale option will not work in this scenario. you make one po with amortization condition and other one with out amortization.

Regards

Hirendra

[Former Member]

Ashish,

Can you please explain the scale setting in Amortization condition type?

[Former Member]

Hi Sujoy,

PO will not be created for entire quantity at a time. Partial PO will be created as and when material required. Presently we need to manually check (maintaining in excel sheet) that how much quantity has been released in various POs and if quantity 10,000 is completed, then, Amortization charges need to be avoided. Instead of manual control, is there any way to establish system control?

[Former Member]

Hi Anoop,

Why can't you create two different PO line item one with 10,000 qty and with a condition in it as 1 Rs amort charges and the other with required quanity and this line item will have no condition for amort charges.

BR