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Pricing Condition, Rebates, Penalities in Master Agreement

If a Master Agreement is integrated with ECC, one can maintain pricing conditions. This pricing condition can be price and discount or surcharge.

When the extended price is calculated, does the system dynamically apply the discount or surcharge to show the Extended price or is this information just replicated in ECC and the actual calculation happens in ECC?

Similarly, if a Master Agreement is not integrated with ECC, one can maintain the price, penalty and rebates in Master agrrement. Do these penalties or rebates, affect any extended price or any calculation within CLM?

Thanks,

Manoj

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1 Answer

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    Former Member
    Feb 28, 2013 at 05:06 PM

    Hi Manoj,

    If I'm understanding the question correctly - if you're using Pricing Conditions to determine the pricing, then the extended price should be calculated accordingly. 

    Penalties and rebates currently are informational only - there is no impact to any other calculation in the system - extended price on line items are the result of the calculations of the related line item price components (quantity times whatever the unit price is).

    Hopefully this helps some,

    Rosemary

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    • Hi Rosemary,

      Thanks for the response.

      Regarding the first point, I am using Pricing conditions to determine price in a Master Agreement.

      I have two conditions. 1. Price Condition & Other Discount & Surcharge condition for Customs.

      What I see is that system is taking the amount in the Price condition and multiplying by Qty to generate the Extended Price at the line item level. But it is not taking Discount & Surcharge condition to add the Custom % to the total extended price.

      Thanks,

      Manoj