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I have faced this kind of issue. By seeded funationality Oracle is trying to Group the Item based on the setup as below and Choose the Price which is Lower.
Same Item / Description will be combined and the Lowest price will be the Price in the PO for such Items
In the Autocreate window we have Grouping Field which has 2 values...The explanation for this as below...
Default: Combine requisition lines for the same item, revision, line type, unit of measure, supplier item number, and transaction reason onto one purchase order line. Combine requisition lines for the same item, revision, supplier item number, and line type onto one RFQ line.
You can add need-by date or ship-to organization and location to the default grouping by using the profiles PO: Use Need-by Date for Default Autocreate grouping or PO: Use Ship-to Organization and Location for Default Autocreate grouping.
Requisition: Create document with one line for each requisition line. Used only when you select lines on a single requisition.
Hope this helps