Price Adjustments (SO UG)

Owned by Tatum Hohl (Unlicensed)
Last updated: Jun 21, 2018 by Kati Huttunen (Unlicensed)

Overview

The NorthScope Price Adjustment transaction allows users to generate price adjustments against Posted Invoices. Unposted Price Adjustment transactions are displayed in the Sales Order Transaction list view with Transaction Type ‘Price Adjustment’.

Prerequisites

  • Transaction Class setup
    • Price Adjustment Transaction Class
    • Order Transaction Class
  • Reason Codes & Notes
    • Price Adjustment Reason Codes
  • Preferences
    • Require a Note for all Price Adjustment Lots
    • Require a Reason Code for all Price Adjustment Lots

Understanding the data flow

When a price adjustment is saved as ‘Ready to Post’ and the Host system integration is set to Timed/Immediate, a price adjustment is created in the host system as a Sales Transaction in the Sales module. If the original order transaction had created sales program settlements, the price adjustment creates a new sales program settlement for the difference. The journal entries are also adjusted accordingly.

Step 1: Selecting the invoice for price adjustment

The first step in the price adjustment process is to search for the invoice. Expand the Sales Order module and select Transactions, click the ‘New’ toolbar icon and select ‘Price Adjustment’. This opens a ‘Find an Invoice’ page, where invoices can be searched. Enter the original Invoice number to the ‘Invoice #’ field.

Note: Enter the Invoice number, not the Order number.

Note: The status of the original transaction must be Ready to Post or Posted.

The default price adjustment reason code can also be selected, but this is not required. The code lookup displays all reason codes configured for Sales Order Price Adjustments.  After entering the ‘Invoice #’ (and Default Reason Code), click the ‘Find Invoice’ toolbar icon.

Step 2: Entering the price adjustment information

When the invoice is successfully found, the header section and the grid section populate with the transaction details.

Note: An invoice cannot have multiple price adjustments open simultaneously. A message is displayed for the user, if the invoice has open price adjustment records.

The header section displays the following information:

Invoice #: Displays the invoice ID. This field is not editable once the invoice is found.

Invoice Date: Displays the date the invoice was created. This field is for informational use only and cannot be edited.

# Prev. Adj(s).: Displays a number of previous price adjustments. This field is for informational use only and cannot be edited.

Transaction Class: This field allows users to select a transaction class for the price adjustment. Defaults to ‘Transaction Class for Price Adjustments’ property of the original transaction’s transaction class record.

Price Adj. #: This field displays the price adjustment transaction ID assigned to the price adjustment being created. The number defaults from the transaction class record, but it can be edited.

Adjustment Date: Allows users to enter a date for the price adjustment. This is used as the transaction date. The date defaults to the current date, but it can be edited.


The grid section displays all items assigned to the invoice with their lot information. An item can be displayed multiple times in the grid, if it was allocated from multiple lots. The grid section displays the following details:

Adj.Price: This field allows users to enter the new adjusted price. This field defaults to the sold price. The item is only added to the transaction when a new price is entered. The price cannot be negative, it must be 0 or greater.

Adj.Units: This field allows users to enter the units subject to the price adjustment. The field defaults to the remaining units. The field is only enabled if the item is managed by units or units & weight.

Adj.Weight: This field allows users to enter the weight subject to the price adjustment. The field defaults to the remaining weight. The field is only enabled if the item is managed by units or units & weight.

Adjusted: This field displays ‘Yes’, if a new Adjusted Price has been entered. This field is for informational use only and cannot be edited.

Item: Description: This field displays the ID and the description of the item assigned to the invoice. This field is for informational use only and cannot be edited.

Production Batch: This field displays the Production Batch ID of the lot the item was allocated from.

Reason Code: This field allows users to select a Reason Code for the price adjustment. The field defaults to the Default Reason Code, if selected when the invoice was searched.

Rem.Units: This field displays the remaining units of the item that have no previous price adjustments. This field is for informational use only and cannot be edited.

Rem.Weight: This field displays the remaining weight of the item that has no previous price adjustments. This field is for informational use only and cannot be edited.

Shipped Site: This field displays the site where the item was shipped from. This field is for informational use only and cannot be edited.

Sold Price: This field displays the price the item was sold for. This field is for informational use only and cannot be edited.

Units UOM: This field identifies the unit of measure the number of ordered units is based on.

Warehouse Lot: Displays the lot ID of the lot the item was allocated from. This field is for informational use only and cannot be edited.

Weight UOM: This field identifies the unit of measure the ordered weight is based on.


Note: ‘Sold Units’ and ‘Sold Weight’ columns can be added to the grid from the column setup. These columns are not in the system view.

To adjust a price, first verify that the ‘Transaction Class’ in the header section is populated with the correct transaction class and enter the ‘Adjustment Date’. Then enter the new price to the ‘Adj.Price’ field in the grid section. Enter the price as the unit/weight UOM weight and not as the extended price. The extended price is calculated when the transaction is created. The adjusted price must be 0 or greater, negative prices are not allowed. ‘Adj.Units’ and ‘Adj.Weight’ can also be entered, if the price should be adjusted only partially.

Note: When the adjusted price is entered, the ‘Adjusted’ column displays yes.

Note: The price adjustment details can still be edited on the transaction record, before approving/posting the transaction.

Step 3: Creating the price adjustment record

Click the ‘Build Price Adjustment’ toolbar icon to create the price adjustment record. This creates and opens the price adjustment transaction record. The ‘Order Date’ on the transaction record defaults to the Adjustment Date entered on the ‘Find an Invoice’ page, but the date can still be edited on the record.

The grid section of the transaction record, displays two rows for each item subject to the price adjustment. The first row displays the new adjusted price and the second row displays the item with negative quantities and extended price.

Sales Program details also display two rows for items subject to Sales Programs. The first row displays the new calculated sales program amount and the second row displays the original sales program amount. Brokerage settlement transactions are created for the difference. E.g. If the original brokerage program amount is $10 and the price adjustment changes the program amount to $8, a negative settlement is created for $2.

If the price adjustment is negative (the original price is decreased), the price adjustment transaction credits the Accounts Receivable account and debits the Sales account. If the price adjustment is positive (the original price is increased), the transaction debits the Accounts Receivable account and credits the Sales account.

Step 4: Editing price adjustment details

If the price adjustment details require editing, click the ‘Allocate Item’ grid toolbar icon.

Note: This step is not required, if the price adjustment details don’t require editing.

The ‘Allocate Item’ page is similar to the ‘Find an Invoice’ page and the grid section of the page displays all items from the original order transaction. Here users can edit the following details:

  • Adjusted Units
  • Adjusted Weight
  • Adjusted Price
  • Reason Code

Users can also add items to the price adjustment transactions that were not entered on the ‘Find an Invoice’ page, though only items from the original invoice can be added to the price adjustment transaction.

To remove an item from the price adjustment record, enter the sold price to the ‘Adj. Price’ field, this updates the ‘Adjusted’ field to be blank. To enter an item to the price adjustment record, enter the new price to the ‘Adj. Price’ field. Remember to add a Reason Code for each line item, if the Sale Order Preference ‘Require a Reason Code for all Price Adjustment Lots’ is set to Yes. Remember also to add a Note for each line item, if the Sales Order Preference ‘Require a Note for all Price Adjustment Lots’ is set to Yes.

Click Save to save any changes made and to refresh the page. After saving and closing the ‘Allocate Item’ page, the grid section of the transaction record is updated accordingly.

Step 5: Posting the transaction

Once all the price adjustment details have been entered and reviewed, change the Status to Approved/Ready to Post. If the Integration Setup for SO invoice is set to Timed or Immediate, the transaction is sent to the Host system when the transaction is saved as ‘Ready to Post’.