Introduction

This document describes the RRP calculation functionality available on the purchase order. The RRP calculations uses the overhead matrix for fetching the freight and customs percentages.

Scenarios

The functionality covers the following scenarios:

• Creating RRP recommendations based on the current purchasing scenario.
• Adjust the calculation components to reflect the RRP price.
• Implement the calculated RRP prices with a specific starting date.
• Creating RRP calculations for all purchase order lines at once.

Prerequisites

For the RRP calculations to have overhead costs included, it is required that the "Overhead Matrix" is set up with a scenario covering the country of origin, transport method and destination location. The freight % and customs % will be fetched from this combination. If the customs % value is not relevant for the landed cost calculation on the purchase order, the "Customs Method" field should be set to "Not included". This allows for a customs % to be set and included in the RRP calculation only.

It is also required to enable the relevant markets for RRP price calculation. This is done in "Countries/Regions", and here also the RRP currency code is connected to the market itself.

The RRP profit % value is set on the vendor card, on the "Invoicing" tab.  

Walk through

Follow the instructions below to use the functionality in a very optimal way.

1. Start by opening up a purchase order of choice.
2. Make sure that one or several purchase order lines are added to the purchase order.
3. Locate the last column "RRP Calculations" to the right. When no calculations exists, this column is empty.
4. Click on the blank column value to open up the page for the RRP calculations.
5. Click on the button "Calculate" to generate RRP prices.
6. Done!

A line will be created for each market with the currency code attached. The "Direct Unit Cost" from the purchase order line will be re-calculated to LCY and put in the "Direct Unit Cost" field. On top of this, the "Freight %" and "Customs %" will be fetched from the settings in the "Overhead Matrix", the "Profit %" will be fetched from the vendor card and the "Starting Date" will be equal to the "Expected Receipt Date" on the purchase order line. This will all result in an "Estimated RRP Price" which will be transformed into a "Calculated RRP Price" based on the price conversion rules as part of the Pricat functionality.

From the "RRP Calculations" page the following related pages are available through a direct link:

• Overhead Matrix
• Markets / Countries
• Price Conversion Rules

By using the "Create RRP Calculations" button directly on the purchase order subpage (Functions menu), auto-generated RRP calculations can be created for all purchase order lines on the current purchase order with one single button click.