Net Price vs Total Price (Rounding Problem)

[Former Member]

Hi experts,

SRM 7.0 PPS Extended Classic scenario.

Users want to create a SC with a known total price (lets suppose 150k). As I have to split this value into net price and tax amount (supposing a tax rate equal to 16%):

- If I enter 129.310,34 as net value then total value is 149.999,99

- If I enter 129.310.35 as net value then total value is 150.000,01

So there is no way to achieve a total value equal to 150.000,00 (no more no less)

How can we handle this situation? Is it possible to directly enter gross prices instead of net prices at item level?

I am afraid that similar problem will be present when dealing with all other SRM documents...

Thanks in advance for your suggestions

Best regards

Vicente

[Former Member]

Hi,

Please configure the currency in SPRO to 2 digits which will solve your problem

try

Regards

G.Ganesh Kumar

[Former Member]

Thanks for the info Ganesh,

I have tried to configure decimal places for EUR but I can only select 0, 1, 3, 4 or 5 decimal places from the matchcode. I also get an error message if I directly enter 2... do you know why can't I select just 2?

[Former Member]

Indeed it seems that currency was already configured with 2 decimal places by default, cause I always get 2 decimal places in all price fields in EUR...

[former_member22425]

Hello,

Each currency has a different number of decimal places. If you are adding new currencies, which do not have two decimal places, you have to enter these currencies in the menu option 'Decimal places'.

Example

Currencies with different decimal places

Standard Settings

In the settings delivered with the system, the most important currencies which do not have two decimal places are pre-set according to the ISO standard.

Activities

1. Check whether in your company currencies are in use which do not have two decimal places, in addition to those delivered.

2. Set the appropriate number of decimal places for these currencies.

Best Regards,

Rahul

[Former Member]

Thanks Rahul,

This explains why I cannot select 2 decimal places for EUR. In fact, EUR is already pre-set to have 2 decimal places.

But the original problem of rounding is still open

Customer is used to manage prices as a whole (total price). They do not need tax details. Taxes are implicitily included in their total price, but they don't need to split into net price*quantity + tax rate.

Basically they have a budget of nnnnn.dd EUR for some requisition. So they need to see exactly nnnnn.dd EUR in the total price.

As they have to split into net price and tax rate to fill in the shopping cart items, they will almost never get exactly the desired total (due to rounding). This is not acceptable by business cause they work with the total price and they need the total price to be exactly what they want...

I guess that bidders will have the same problem when entering prices in bid responses (actually, surrogate bidding is being always used, so for sure customer will have the same problem).

I am sure that there should be some kind of solution. For instance, I am thinking of using 0.0 as tax rate and hide tax rate field, but I don't like this at all (they don't need tax details, but it doesn't mean that there is no taxes...)

All suggestions are welcome

Thanks again

Regards

Vicente