Difference in between effective price & PO price
Dear Guru,
Material has been maintain V (MAP) as 6.06876/BOX. 1 BOX contains 30 tablet. However I created PO qty as 5 BOX & net price as 0.37/BOX. I'm getting warning message as 'Effective price is 0.38850 MYR, material price is 6.06876 MYR'. Appreciate if you explain me how the system calculate the effective price. Thank you.
rgds,
nantha
Hi,
Let me share you an example which would hopefully clarify your doubt.
A material costs $10 per piece (pc) in the purchase order.
A material price of $5 per 10 pc is stored in the material master.
Because the price in the material master is given per 10 pc, the
effective price is also calculated for 10 pc.
The price in the purchase order is first converted into the base unit of
measure for the material in the material master, then into the price
unit in the material master.
The effective price for 10 pc is therefore:
$10/10 pc * (no conversion into base unit) * 10 pc = $10
The effective price is $10, the material price is $5 (per 10 pc).
Please try to co-relate with your current problem.
Regards,
vineet
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DIFFERENCE BETWEEN GROSS PRICE, NET PRICE AND EFFECTIVE PRICE
HI FRIENDS,
CAN YOU EXPLAIN ME IN DETAIL, WHAT IS THE DIFFERENCE BETWEEN GROSS PRICE, NET PRICE AND EFFECTIVE PRICE WITH A GOOD EXAMPLE.
REGARDS.Hi,
Example: Material Price is Rs.1000/-
& Discount is 10% and tax is 10% and freight is Rs.50/-,Fixed( it may also %)
So Here the Material Price is called Gross Price Rs.1000/-
Gross Price (Rs.1000/-) Discount {Rs100/-(10% of Rs.1000/-)}= Net Price Rs.900/-
Here Net Price Rs.900/-
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Rs.1040/-
The Total Price (Rs.1040/-) is called Effective Price.
Note:
1) Total value = total quantity x price
When a price changes, the value of the stock changes, since the value is calculated from the price:( its also depends on price Control)
2) Effective (actual) price: Net price minus cash discount and plus miscellaneous provisions and delivery costs as well as non-deductible input tax.
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Hi,
Could anyone explain about the relation between STD Price and Costing & when and where it gets effected.
Points will be rewarded.
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Std. Price :-
A constant price at which a material is valuated without taking goods movements and invoices into account.
Costing:-
The value of use of economic goods both tangible and intangible for the creation and sale of goods and services, as well as the acquisition and maintenance of plant and machinery.
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Edited by: vk on Apr 24, 2008 7:17 AM -
Hi
After updating purchase price, what is the transaction for calculation of effective price?
Whether we can change effective price in ME1M?
Thanks and Regards
HariI suggest you ask that question in an MM forum, not in a database forum.
Markus -
PO release strategy on effective price
Dear Experts,
Currently PO release strategy is on net price. need to change this to effective price(net price +taxes). can you please give detail steps to change and any impact, if we change now.Hi,
I have not tested it but had found the answer from this forum which you may go through and apply.
Use User Exit "M06E0004" .
Adding a condition type with condition category as Tax in MM Pricing is not going to affect in Net value i.e. "GNETW" and also if you will mark it as statistical then also it will not get considered in Net Value "GNETW". And if don't activate "Statistical" indicator then it will get posted to FI.Better post the Effective value to a particular Subtotal for e.g. in 1 or 2 and then add that field KZWI1 or KZWI2 in Comm. Structure CEKKO using the above Exit. And create a characteristics with this field and use in Release Class and then configure Release Procedure.
Dhruba
Edited by: Dhruba Charan Behera on Apr 16, 2010 11:34 AM -
PO release strategy based on effective price
Hi
We have PO release strategy based on net order value.
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Effective price at the time of GR
Dear All,
PO price 100*200=20,000
discount:10% = 2000
NET INCLUDING DISCOUNT=18,000
effective price will become=18,000
now when i am doing GR system is hitting Stock account and GR/IR account with 20,000
wht are the setting to be maintained in pricing procedure or any other settings to hit correct amount 18,000
please help me.
Regards
GopalCheck your pricing procedure in M/08 see if your effective price has required subtotal "S" and check if the discount condition type in M/06 Cond.
class A Discount or surcharge
Calculat.type A Percentage or B for fixed amount
Cond.category blank
Rounding rule Commercial
StrucCond. blank
Plus/minus X Negative
BR -
Hello Experts,
I've maintained the tolerance limit as 30% for my company code and tolerance key 'PE'.
Even though I try to create a Purchase Order with the same effective price as the material price (no variance), still it gives me the following error:
"Effective price lower than material price (variance > 30.00 %) Message no. 06206"
However, I get this error only for Import vendors and not for Domestic vendors.
I'm using same currency (INR) in Purchase Order for Import vendor as for Domestic vendor.
I've debugged the code to find where exactly and why it throws that error but have been unsuccessful. When I reach METHOD pbo_finished, deep structure my_pushed_message already has the error message ID 06 and number 206 stored in it.
Seeking Experts' help!
BR//
Anishsince you are getting effective price lower than material price, your PO appears to be at a lower value. This may be since the total is not carried to the appropriate field. pl check whether Subtotal column is having S entry
if its an error, in attributes of system messages change to warning -
Effective price doubled in PIR
Hi,
Whenevr the condition PB00 is updated with a price, the effective price gets updated with doublt the amount.For ex: if Net price= 100 then Eff price = 200. What could be the possible reasons for this? But it gets updated with the correct amount when RM06INP0 is run.
Thanks
AparnaHello Prabhu
This is a customized supplementry pricing procedure. When I replace this with the standard one RM0002, the effective price is getting updated properly. Only with this customized one is it doubled.
Could you please tell m ewhat are the points I can check for correctness in this customized procedure. How are these fields subtotal, Step, Statistical etc. are used? I would like to learn something about pricing procedure with this issue.
Thanks very much for you help
Aparna -
Effective price is 0.00 $, material price is 30.00 $
Hi,
When I created PO in ME21N transaction, I am getting the message
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I have entered the same price from Material master as Net price in PO, still I am getting the same message.
Please help me to overcome this message.
thanks and regards
MurugesanDear,
The effective price in purchase order 0.00$ and material price (either starndard or moving)in material master is 30.00 $.
Change the messgae to warning.
Regards,
Syed Hussain. -
Effective price is 0.00 INR, material price is 100.00 INR error in contract
Hi All,
We are creating Contract with vendor and material with transaction ME31K.
When we enter tax code, system prompts a warning message :
"Effective price is 0.00 INR, material price is 100.00 INR
Message no. 06207"
Even if you ignore this and try nto create a PO w.r.t contract Tax values will be zero in invoice tab.
Please let me know why system is behaving like this and how to fix this.
With Regards,
Vijaykumar PDear Vijay,
If this is a value contract and system is working correctly.
For value contract,you are not entering any quantity value so system calculates the quntity as 0 and value = quntity *price
so 0*any price =0.000 Because of this it takes effective price as 0.00.
Regards,
ian Wong Loke Foong -
Hallo,
I'd like to get the effective price from the Order (ME23N) transaction into my list display, respectively into my dynpro.
By the use of F1 taste, it tends to result in structur KONV.
Does any one know the way to deal with it?
I thank you in advance
Best regards
JDHi,
The effective price is the price determined in the purchase order after all discounts and surcharges and the net price which is compared with the material price ,may be MAP or Standard Price maintained in the material master.In your case how the effective price is zero ,please check the total value of the item in the item condition.
Dhruba -
Effective price becomes negative
Hello,
When net weight is changed in PO, I am getting the error message no. 328 i.e "effective price becomes negative please correct" Can you please explain what may be the reason for this and how to correct. PO is thirdy party PO and invoice is posted.
Thanks in advance.
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RajashreeHi
Check the UOM.
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Anil.patreddy -
Effective price of the material
Hi Gurus,
When effective price will be triggered for material in PO. I had created one PO for one material but effective price shown as zero??
could you please advice when effective price will be triggered for material at the time of PO creation
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SubbuCheck
effective price? -
Dear All,
in my Purchase Info Record,
My net value is 100 Rs,
Effectice Price is 100 Rs..
But now when i am creating PO and change my price...
It shows warning Message that effective price is 2000 Rs.
I have also checked Update Info Box in PO...
But still the Effective price in PIR does not change.
Can you all tell me how Efffective Price in PIR changes and on what basis? ? /
Regards,Hi
PIR effectivce price can be updated with Quotation price only.You can update with po price.PO price will be updated in PIR as PO order price history.
More more info on this refer
http://help.sap.com/erp2005_ehp_02/helpdata/en/75/ee1fa755c811d189900000e8322d00/frameset.htm
Regards
Ramakrishna
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