3 Replies Latest reply on Mar 17, 2014 1:02 PM by Paarthy-Oracle

    Senthil: Price Tolerance from requisition to Purchase order

    User608132-OC

      Hi,

       

      I have a requirement,

       

      1. I raise requisition for $10.

      2. I do autocreate PO from the approved requisition.

      3. Once Po is created, in PO form, it should not allow me to modify the price more than 10% of the amount,

       

      What are the setups needed to achieve this?

       

      Thanks,

      Senthil

        • 1. Re: Senthil: Price Tolerance from requisition to Purchase order
          Abhi83

          Senthil,

           

          The assumptions used to build the Requisition to PO flow is that the "Requester" is a user and has no clue about the price/ availability or sourcing aspects of the required items. He may optionally put an indicative price.

          The "buyer" being a professional has full authority and control over putting the actual prevailing price. Standard Oracle forms don't have an option to disallow price update from a requisition being auto created into a purchase order.

           

          The real solution would be to define a BPA/GBPA for the set of items (if catalog) or Bulk load items (If non catalog) with actual prices and have the users select it. The buying team is expected to maintain the sanctity of the Purchase Agreements with relevant revisions applicable.This will ensure, user selecting the item with a definitive price (not having to put an indicative one) and the Release/ SPO getting created with the same price.

           

          This perhaps is the best practice. Still if customer insists, customization and personalization both are needed to achieve this requirement.

           

          Just my thoughts.

           

          Rgds,

          Abhi

          • 2. Re: Senthil: Price Tolerance from requisition to Purchase order
            Paarthy-Oracle

            Please review note:


             

            Goal

            1.  To enforce price tolerance for purchase order (PO) line items.

            2. Identify what is the  price tolerance applicable to the Purchase order line item

            Solution

            1.  Assume the item in the purchase order line is 'Item 001'

            2. Check the inventory organization in the setup->organizations->financial options window.-> Supplier-Purchasing.(tab)

            3. Change the organization at Change organization  menu to the that inventory organization

            4. Go to Item ->organization items-> find the item 'Item 001'

            5. The item form appears . Go to Purchasing (tab). Check the price tolerance % . Assume it is 'PT-item'%.

            6. Then go to setup-> Organizations->Purchasing options->control (tab)->check for the price tolerance %. Assume it is 'PT-setup'%.  The enforce price tolerance check box should be ticked (ON).

            7. When the Purchase order is created from a Requisition the price in the requisition gets reflected in the purchase order.  The price can be changed and saved.

            8. If the  the changed price is more than PT-item%  the Purchase order will not get approved.

            9. If the PT-item% is null then if change is more than  PT-setup% then Purchase order will not get approved.

            10. If PT-Item% is zero then no changes can be made in the PO line price .

            11. If PT-Item% is greater than zero  then changes in the PO line price can be made  up to the tolerance specified in PT-Item%.

            • 3. Re: Senthil: Price Tolerance from requisition to Purchase order
              Paarthy-Oracle

              Also, Review note Price Tolerance Amount Functionality Example Scenarios (Doc ID 420772.1)


               

              Goal

              Understanding the Price tolerance amount functionality

              Solution

              The Price tolerance amount is restricted to any increase in the line amount of the PO with increase in Unit price.

              Test Case

              Navigate to Setup > Organizations > Purchasing Options > Control tab

               

              Price Tolerance percentage - 0
              Enforce Price Tolerance percentage - Uncheked

               

              Price Tolerance amount - 2
              Enforce Price Tolerance amount - Checked

               

              Created requisition with following details

              Qty - 10 Each
              Price - 15 USD

               

              Approved and autocreated into PO 5024

              Functionality - If the line amount of the Purchase order exceeds the sum of requisition line amount and price tolerance amount associated with an increase in unit price, then PO cannot be approved.  The same can be seen in the below test cases

               


              Case 1:

              Changed price to 16 USD and kept quantity as 10, tried to approve. Got the following error

               

              Error: Line #1 Shipment #1 total amount does not fall within amount tolerance

               

              Case 2:

              Changed price to 15.3 USD and kept quantity as 10, tried to approve. Got the following error

               

              Error: Line #1 Shipment #1 total amount does not fall within amount tolerance

               

              Case 3:

              Changed price to 15.2 USD and Qty to 20 Each and tried to approve the PO. Got the following error


              Error: Line #1 Shipment #1 total amount does not fall within amount tolerance

              Functionality - There is no error message when the line amount is more than the sum of requisition line amount and price tolerance amount when the quantity is increased and price is kept the same. The functionality can be seen in the below test cases


              Case 4:

              Changed price to 15.2 USD and kept quantity as 10, tried to approve. Got no error message. Was able to approve the PO.

               

              Case 5:

              Changed quantity to 20 Each with Price 15 USD and tried to approve. Got no error message. Was able to approve the PO.