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    *** E S
    Need the concept/logic behind why Retroactive pricing is...
    Topic posted March 29, 2019 by *** E SRed Ribbon: 250+ Points, tagged Agreements, Approvals, Approvals/Notification, Approved Supplier List, BI Publisher Reports, Business Intelligence, Create Requisition, FAQ, Financials, Fusion, General Ledger, How-To, Manage Procurement Catalog, Notifications, Orders, Payables, Public Sector, Requisition Processing, Security, Setup, Supplier Communication, Supply & Distribution Planning Cloud, Tip, Web Services, White Paper 
    64 Views, 1 Comment
    Title:
    Need the concept/logic behind why Retroactive pricing is viable only with Non-Cumulative Price Break and not with Cumulative Price Break in BPA on Procurement Cloud ?
    Summary:
    We have a request from our client to have Retroactive pricing under Cumulative Price break in Blanket Purchase Agreement.
    Content:

    Hi all,

    Based on my research,

    For a retroactive pricing to reflect, it is suggested to choose price break type as Non-Cumulative.

    Need to understand the relation between Price Break and Retroactive Pricing, an explanation with a Business example would help.

    Please refer this document ID in My Oracle Support - (Doc ID 2259539.1) 

    Thank you,

    *** E S

     

     

    Version:
    19A (11.13.19.01.0)

    Comment

     

    • Ivan Pena

       

      Hi E.S.

      This has to do with the fact that under non-cumulative price breaks, the price breaks applicable to a given purchase order are solely determined based on the purchase order., while under cumulative price breaks the price breaks applicable to a given purchase order would also be determined by the other purchase orders being retroactively priced. Therefore one could get different results based on whether the retroactive pricing is applied to all purchase orders or only to open POs, the "Date From" entered when launching the Initiate Retroactive Price Update, and the order in which the POs are processed for retro pricing (as there is no guarantee that they will be processed in any particular order.)

      Hope this clarifies.

      Ivan