Formaula & average pricing

[Former Member]

Hi,

What is the logic used in calculation of formaula & average pricing in Oil industry?

regards,

Ajay

[Former Member · Accepted solution]

Hi,

Formula & Average pricing functionality of SAP is used for the pricing of Contracts and Orders (in both Sales and Purchase transactions). The F&A pricing is based on external as well as internal price quotations and with the help of formulas to determine/compute the correct rate from quotes available for a time period. The rate computation method depends upon the rules defined in the formula.

The formula is stored in a repository and called upon when condition record is created. The formula can also be created directly in the condition record.

Different quotes( Platts, Opis, ICIS,) are stored in the standard and customized tables.

regards,

Vijay

[Former Member]

The rate computation method depends upon the rules defined in the formula.

The formula is stored in a repository and called upon when condition record is created

please give marks if this suffice your query

Thanks

Niranjan