E Sourcing 7.0: Formula Pricing and Line Item Formula

Question

Hi
I am currently working on e sourcing 7.0. Here there are new features provided in Rfx->Line Item setup called Formula Prcing and Line Item Formula
I was trying to use Line Item Formula feature to provide pricing formula for line items.I chose pricing structure as Formula Prcing and tried to advance the phase of Rfx, System gave an error that I need to create unit price formula if I choose Formula Pricing.But once I create unit price formula it makes the Line Item Formula redundant.
Moreover the problem with unit price formula is Unit Price field is only available with Line Item Formula.It doesnot allow me to create an effective unit price formula beacuse of limitations of field at exposure.
Has anybody used this feature? Kindly help me understand
Regards
Shobha
Edited by: Shobha M Narayanaswamy on Aug 12, 2011 11:02 AM

Answer 1

Hi Shobha,
I hope members who have used this feature chime in. I am only playing with Formula Pricing because we are evaluating these as well.
I was not able to use the standard fields when using Formula Pricing.
I am retracting what I said in the last post, apologies, I made a mistake in the supplier response.
From what I understand now:
If you want to have sub components of the unit price (or more important, any other calculations for unit price), you should choose "Formula Pricing" under Pricing Structure. E.g., my company asks for supplier's manufacturing costs, their purchased parts cost etc all of which contribute to make up the unit price. In this example, I created Supplier Entered Attributes for Manufacturing Cost and Purchased Parts Cost and added a Unit Price formula which was the sum of both. In addition, I created a Supplier Entered Attribute for "Freight Cost" which is not really a part of the unit price, but is an additional cost. In Line Item Formulas, I added 2 formulae, just for example.
Total Freight Cost = Quantity * Freight Cost (Supplier Entered Attribute)
Total Calculated Cost = Total Freight Cost + (UnitPrice(IncoTerm) * Quantity)
Part 1 - Quantity = 10, Manufacturing Cost = 5, Purchased Part Cost = 5, Freight = 3
Part 2 - Quantity = 10, Manufacturing Cost = 6, Purchased Part Cost = 6, Freight = 3
System correctly calculated
Part 1 Unit Price = 10
Part 1 Unit Price = 12
Part 1 Total Freight Cost = 10 * 3 = 30
Part 2 Total Freight Cost = 10 * 3 = 30
Sum=60
Part 1 Total Calculated Cost = 30 + (10*10) = 130
Part 2 Total Calculated Cost = 30 + (10*12) = 150
Sum = 280
If you do not need the sub-components of the Unit Price, we can leave the pricing structure at Unit Price. I did that for an RFX, and also added the same 2 formulae in Line Item Formulas as above. This worked fine for me.
Part 1 - Quantity = 10, Unit Price = 3, Freight = 5
Part 2 - Quantity = 10, Unit Price = 3, Freight = 5
System correctly calculated:
Part 1 Total Freight Cost = 10 * 5 = 50
Part 2 Total Freight Cost = 10 * 5 = 50
Sum=100
Part 1 Total Calculated Cost = 50 + (10*3) = 80
Part 2 Total Calculated Cost = 50 + (10*3) = 80
Sum = 160
Both the above scenarios work fine for me.
The only open item is, I could not find a way to get these added to the Total Cost and Total Price listed on the "RFX Responses tab". I don't think it is possible to do that. I think you have to view these in the "Formula View" of the respective supplier proposal.
Let me know if this helps.
Thanks,
MP