Market Price Purchase Order

A market price purchase order links the product with a market price table. Rather than the price being set in the purchase order, it is assigned to a market price table and then the price is calculated based on the price that is in effect on the date that the product is received.

 

The following items must be completed prior to creating a market price purchase order.

Create a Market Price Purchase Order

The steps to create a purchase order are the same as outlined in Create a Basic Purchase Order with the exception of the Price Mode and the assignment of the Market Prices.

  1. Create a new purchase order as outlined in Create a Basic Purchase Order.
  2. Set the Price Mode to Market Prices. This invokes the logic to look to a market price table to establish the product price at receiving.
  3. Select the Complex Market No which defines the price table that will be used to establish pricing at receiving. The Complex Market No is comprised of the Market No and the Future Price Code as defined in Market Prices.
  4. Optionally, the user can enter a Basis Price on a per vendor unit rate. This value bases the price as established in Market Prices and then increases or decreases the purchase price rate at receiving. For example, if the Market Price at receiving is $100/ton and the Basis Price is set at 2.00, the product will be received at $102/ton. If the Market Price at receiving is $100/ton and the Basis Price is set at -2.00, the product will be received at $98/ton.
  5. The Price Basis Mode determines if the effective rate in Market Prices is set based on the receive date of the product or the ship date of the product.
  6. The remainder of the process remains the same as creating a Base Purchase Order.