Net & effective price

Dear all,
Effective price = net price + freight
1. Is Taxes inclusive or exclusive of net price...kindly explain
and also
2. Total price = basic price + discount + frieght cost
Is basic price means Grossprice?
kindly provide your feedback
tks

Hi Kali,
Your problem is only the close meaning of all the English words here. I will try to put forth my understanding of these words to help you.
Basic cost
Less: Discount (if any)
Add: Freight
Add: Taxes
Gross Price
Less: Non-inventorised protion of Taxes (like CVD credit in India)
Less: Discount (if any)
Net Price/Effective Price
I equate Net price with Effective price because they both are calculated the same way and they mean the effective Procurement Cost of any Material.
Please let me know if you need any other explanation.
Cheers.
Keshav

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Effective Price being calculated as double of Net Price in PIR

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I have noticed that this problem is with a particular Pricing schema.
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Hi,
According to your requirement I have observed that u might have maintained conditions records for the condition types withe combination different fields,I mean to say that u might maintained two or more than 2 condition tables and maintained prices.according to given priority given in condition tables(exclusive indicator),system takes the price.For example if you maintained three condition tables,and exclusive indicator has been selected for the two tables in access sequence.system gives priority from top to bottom like wise.....just try....
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Hi
If you maintain multiple validity period than the PIR will show the price which you created first.
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REGARDS.

Hi,
Example: Material Price is Rs.1000/-
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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.
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<<Locked - reason: failed to search before posting question>>
Edited by: Csaba Szommer on Feb 14, 2011 8:26 AM

Hi,
The net price (that is the price including the vendor's discounts or surcharges).
The gross price (that is the price excluding discounts or surcharges).
You maintain the conditions for the item. The net price is then calculated by the system.
Effective Price in Purchasing Info Record
End price after taking all conditions (for example, cash (prompt-payment) discounts, delivery costs etc.) into account
effective price use in inforecord for vendor evaluvation for price,as you we can evaluvate vendor for quality,quantity and price
Regards
Kailas

Net & effective price

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