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PO price changes

Former Member
0 Kudos
164

Hi Experts,

My final Product "A" price is 300$ and has BOM components "A1" price 200$, "A2" price 100$. I had created Sub Contracting PO for final product A..it's price 300$ is automatically came from Purchase Info Record.

Later my customer wants to add one more component in BOM , Let say "A3" and its price 50$. So i changed the existing BOM to add this "A3" component and then i entered in ME22N , there the new component "A3" is added in the BOM. But the Final product "A" price 300$ is not changed.

We added new component A3 ..so A3's price 50$ also reflecting in PO net price.But its still showing $300 only. Can you please help me out. Why New components price is not updated in PO net price? What i need to do?

Thanks

Silviya

Accepted Solutions (0)

Answers (6)

Answers (6)

Former Member
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Hi,

PO price will not change as it is picking price of finished goods (Header material) for which standard cost is run considering only two raw materials ,i.e. A1 & A2.

Cost of A3 will show in PPV account, which i guess is right practice. There is deviation with respect to what your organisation has originally thought of and a new product is added.

So, don't wory on why PO price is not changing. I suggest you check this scenario with variance perspective.

Ideally, this kind of scenario happens when a company enters into a subcontracting scenario and the process is not stabilized. Addition and deletion of material do happen from BOM. But standard cost will remain same for that month. So any additional cost will be treated as unplanned and will go to PPV account.

Next month, before doing anything, change BOM, update info record and run new standard cost for finished goods. Then create a new PO. This will take care of any variance and eventually your process will stabilized.

I hope above explanation helps.

Regards

Pragnesh

Former Member
0 Kudos

Hi,

Generally in the subcontracting PO there is no link of the raw material price and the final product price.

Actually subcontracting means your sending A1, A2 and A3 raw material to supplier and he will develop the final product A using all those raw materials. So Supplier will charge the making price of the final product. So you need to maintain that price only in the Subcontracting PIR.

Regards

Karthick

Former Member
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Hi,

Just go to me22n,

1.In header data remove purchase organisation , purchasing grp & company code check & enter the same.

2. Item overview: remove info record, check

Check & save

Since u have changed your BOM, for that the earlier info record was there so system picks older one, now u try above steps

Your changes will be updated

Reagrds

Pandari

dipak_kumar3
Active Contributor
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Just have a look whether you created a sub contracting info record or a normail PIR.

Former Member
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Yes..it's a Sub contracting PIR..But still net price is not getting updated..Please help me.

Thanks,

Silviya

raviraj_sharma
Active Contributor
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System does not Validate the charges for subcontracting services VS the cost of the Raw Material components.

Subcontracting charges in your Info record may have been mantained earlier of might have been updated by the last PO.

Former Member
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HI

po pick up price from inforecord , so first make chnges in inforecord, in inforecord click on condition maintained chnges,

Vipin