Enter Quotation Pricing for a Set of Contract Terms

This activity is only applicable to contracts where the Contract Pricing Basis is Product Pricing. See Enter General Details for a Sales or Purchase Contract.

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

  1. Open the Sales Contract or Purchase Contract.
  2. Expand the required set of contract terms.
  3. Select the Quotation Pricing node.
  4. If the currency used to enter the quotation pricing is different to that set for the contract terms, select the Pricing Currency from the currencies defined in the Currency/Exchange Editor.
  5. Select the default Unit for quotation pricing (QP) lines created for QP headers with the Weighting Type set to Quantity. Select from the Mass units defined in the Unit Conversion Editor.
  6. Enter QP headers:
    1. Right-click in the Quotation Pricing Header table and select New from the menu.

      QP headers can be set up for each invoice type that is selected on the Contractual Invoice Types node. Multiple QP headers can be configured for an invoice type if Maximum Iterations is greater than 1 for that invoice type on the Contractual Invoice Types node.

    2. Select the required Quotation Pricing Type from the list of contractual invoice types.
    3. Complete the following fields.
      • Pricing Method
      • Weighting Type
      • Weighting Reference
      • Pricing Decimals
      • Price Approved

      Note: See Quotation Pricing Headers and Lines for descriptions of these and the following fields.

    4. Select whether to Force QP Header.
    5. If the QP header is Provisional, and the pricing method is Average, Highest or Lowest, select whether to Include Forward Curve Prices in invoice calculations.
  7. Define QP lines for each QP header:

    Note: One QP line is added by default for each header.

    1. To add another QP line, right-click in the Quotation Pricing table and select New from the menu.
    2. To create optional QP lines, right-click a QP line for a final QP header and select New Optional QP from the menu. See Quotation Pricing Certainty for information about optional QP lines. For scale pricing,
    3. To change the default QP line in a group of optional QP lines, right-click a QP line and select Set As Default QP from the menu.

      Note: The default QP line is in bold and at the top of the group of optional QP lines. Optional QP lines can be deleted. If only one QP line remains in the group, the bolding is removed.

    4. Enter the Spot Pricing Date if required.
    5. Select the Pricing Method.
    6. If the Pricing Method is Average, Highest or Lowest, complete the following fields.
      • Price Series
      • Quotation Period
    7. If the Pricing Method is Average, select whether to use Daily Pricing.
    8. If the Pricing Method is Fixed Unit Price, enter the Price Value.
    9. Complete the remaining fields as required.
      • Floor
      • Cap
      • Fixed Price Charge
      • Decimal Places
      • Price Currency
      • Price UOM
      • Adjust To 3rd Wednesday
      • Declare By
      • Weighting Value (% or Quantity)
      • Quantity UOM
      • Use All Fixed Weight
      • Applicable To Quantity Of Invoice
      • Invoice Iteration
      • Exchange Rate Source
      • Exchange Rate Method
      • Allow Incomplete Period to Invoice Date
      • Planned Hedge Date
    10. To override exchange rates from the applicable exchange rate source, see Enter Fixed Exchange Rates.
    11. To reorder the QP lines, right-click a QP line and select Move Up or Move Down from the menu.
  8. Click Save.

    Note: If the error "Contract Terms: Quotation pricing does not contain left over amount (0%)." displays, it means that 100% of the pricing has not been defined; that is, not all the mass has been considered.