Calculating material revenues when product unit pricing applies
If you work with Product unit pricing, you have defined unit price lists in a 'library' and linked these price lists to customers contracts. These contractually binding product unit prices (including any volume discounts and price exceptions) are used for the material revenue calculations when the back-office generates order revenues.
If product unit pricing is configured, the following revenue calculations for materials are affected by product unit pricing (applies to work orders and PPM orders):
• Revenue estimation lines
• Order revenue lines
• Customer quotation lines
When performing revenue calculations on an order, the system will:
• check if Product unit pricing applies to the materials (product) used on the Order lines of the order. This check is done per order line. It is even possible that some lines will result in revenues calculated via product unit pricing, while other lines are calculated based on terms for materials. If product unit pricing applies, the system will do further checks for applicable product unit prices, price exceptions and volume discounts.
 | If the fields, levels and steps that are used on the order lines and revenue lines are configured correctly in the following TSIs, the appropriate product prices are automatically applied in the material revenue calculations, including any volume discounts and price exceptions. • Products - set the field Allow purchase via order line? field to Yes for all relevant products, in the in the Products TSI. For more configuration information, see Product unit pricing and subsequent topics in the WebHelp. • Product unit pricing - see the above links to the information about setting up the unit pricing library and creating the links to the customer contracts. • Customer contracts - add the Contract price lists step to the Service contract line level. On the Service agreements level, add the Linked UPL products and Linked properties (contract price list) steps. Finally, add the Product exceptions step to the Service terms level. • Orders - add the Product reference field to the layouts of: Order lines, Revenue estimation lines and Customer quotation lines (materials). In addition, add the following snapshot fields to the layouts of: Order revenues - materials and Customer quotation lines - materials: 1. Product price - snapshot, 2. Product price volume - snapshot, 3. Product exception (contract) - snapshot, 4. Contract price exception (volume) - snapshot.
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• If product unit pricing does not apply to an ordered product, the system will check which Terms for materials are present on the order and apply these to the revenue calculations.
| | If you generate material revenues for a work order with suborders, the system will group equal suborders to come to a total volume used for the discount calculations. This grouping principle does not apply to PPM orders. |