Quantcast
Viewing all articles
Browse latest Browse all 3585

PR PO Net Price Valuation Tolerance Limit

Dear SAP Guru,

 

Good day.  We implemented user exit ZXM06U41 where it sets a limit to the price variance of PO based Purchase Requisition.  The PO price should be within the tolerance price set based on the value in PR.  For instance, if we set a tolerance limit of 5%, if we create a PR amounting to 1,000.00, when PO is created, the maximum amount will not exceed 1,050.00 (which is 5% of 1,000.00). 

 

Please see scenario below: Assuming there is no tolerance limit (amount of PR should be exact or lower when PO is created).  If PO total unit price is more than the PR amount, an error “PO amount is greater than the PR amount” will show up and will not proceed.

 

PR Qty:                                             14

PR Unit Price:                         20,669.64

Total PR Valuation:              289,374.96

 

Please see attached file:  Image1

 

After quotation from different suppliers, a supplier quoted the most favorable (lowest) price per item inclusive of 12% VAT is 23,150.00. When multiplied by the quantity (14 pcs) will sum up to a total of 324,100.00.  As seen below:

 

Price Net of 12%               20,669.64

VAT Amount (12%)             2,480.36             

Total PO Price:                 23,150.00

Qty:                                             14

Total PO Price:               324,100.00

 

When we translate it to PO, the system computes multiplies the PO qty and the PO unit price (w/o tax) before it computes for the VAT.  When VAT and the Total PO Price w/o Tax is added, there is a rounding off difference. As seen below:

 

PO Qty:                                                      14

PO Unit Price:                                  20,669.64

Total PO Price w/o Tax:                  289,374.96 (qty * PO Unit Price)

Add: (12% VAT):                              34,725.00

Gross Amount (w/ VAT):               324,099.96   (actual price with VAT)

 

Please see attached file:  Image2

 

Total Gross Amount should be 324,100.00.  There is a decimal difference.  As a work around to make the Gross Amount with VAT be 324,100.00, we adjust the “unit price” and the “per”.

 

PO Workaround:

 

PO Qty:                                                     14

PO Unit Price:                               206,696.43  (23,150.00 / 1.12 * 10 = 206,696.43)

Per:                                                           10 

 

The system will compute the PO, as seen below:

 

PO Unit Price:                                206,696.43

Add: (12% Tax):                               24,803.57

Total PO Price w/o Tax                    31,500.00

Per                                                            10

Total Unit PO Price w/ Tax               23,150.00

PO Qty:                                                     14

Total PPO Price w/ Tax                 324,100.00

 

 


Please see attached file:  Image3

 

The total price now equals to 324,100.00.

 

However, since we set a limit where the PO amount should be less than or equal to the PR amount (net price), it does not want us to continue, because in the PR, the unit price valuation is 20,669.64 per item.

Even though the PO Total price of Image2 and Image3 are the same, but in Image3, the net price is 206,696.43 per 10 pcs (where if you divide 206,696.43, you will get 20,449.64 per unit), which is greater than the PR amount of 20,669.64 per 1 pc.

 

 

Kindly assist.

 

 

Thanks,

Matt

 

 


Viewing all articles
Browse latest Browse all 3585

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>