Retroactive pricing allows buyers to adjust the price on blanket agreement lines and have the new pricing be updated on all release lines that have not been received against. Over the life of purchasing documents price changes, this functionality allows buyers to make sure that the
price on the blanket agreement is the agreed upon price.
‘The Retroactive Price Update on Purchasing Documents ‘ concurrent program automatically updates existing blanket releases and standard purchase orders retroactively with price changes from the parent blanket agreement or global purchase agreement. Other changes can
include updates to price breaks quantities, ship–to organization or location, new price breaks, and deletion of existing price breaks.
Take a note:
- The Retroactive Price Update on Purchasing Documents concurrent program does not update the prices if purchase orders or releases have any accounting entries (receipt accruals, invoices, encumbrance) associated with them.
- It does not process documents associated with blanket Agreement lines that are cumulatively priced.
- It only considers price updates from lines of blanket agreements that are currently in thefollowing statuses:
- It updates the open Blanket Releases and Standard Purchase Orders against Global Agreements
‘The Retroactive Price Update on Purchasing Documents’ program uses Buyer entered parameter values to retrieve blanket agreement lines that have undergone price changes as well as the release shipments created against these lines. It then updates shipments with any new prices from the blanket agreement and update the timesta mp information on release shipments with that of the blanket agreement line.
Purchasing documents that were in an approved status prior to the update can be automatically submitted for re–approval.
Profile option PO: Allow Retroactive Pricing of POs is need to be set, generally it has to be set to ‘Open Release Only’ to update only all open releases on that Blanket and that the PO Change Order Workflow has been configured to allow automatic re–approval of the updated releases and purchase orders.