The “PQDS” or Price Quantity Discount System allows you to adjust the target cost calculation used by the purchasing system based on the quantity or value of the purchase order line item being placed. The PQDS system allows you to add an additional discount or surcharge to the purchase order price based on the records that have been entered into the Quantity and Value Adjustment Files.
PQDS information is automatically used to adjust the purchase order prices that come from an Inventory Default Cost or QVL record. Whether or not the PQDS adjustments are used for a Special or Contract Cost depends on how the PQDS flag has been set in the Special or Contract Cost records. If the PQDS flag in the record in the Special Pricing file is set to Y, the system will adjust the cost specified in the record based on the PQDS information. If the PQDS flag in the record is set to N, the system will not adjust the Special Cost using the PQDS information.
There are two different types of PQDS information used by the Purchasing System. These are:
• Purchasing Quantity Discounts (stored in the Qadjust File).
• Purchasing Value Discounts (stored in the Vadjust File).
Purchasing Quantity Adjustments
Purchasing Quantity Adjustments are used to add an additional discount or surcharge to the target cost calculated by the system for a specific vendor and item combination based on the quantity of the item that is being ordered on the PO line. Purchasing Quantity Discounts can be specified at the Vendor, the Vendor/Product Line, the Vendor/Class, or at the Vendor/Product Line/Class Level. When PQDS records are checked, the system uses the Vendor from the PO being input, the Product Line that the inventory item is assigned to, and the Class from the QVL record for the vendor item combination being processed (if there is a record for the combination in the QVL file) or the Class from the inventory record for the item (if no QVL record exists).
Each Purchasing Quantity Adjustment record must store a valid Vendor, Quantity and Factor. In addition, a product line and a class can optionally be specified in the record – to allow adjustments to be based on the Product Line or the Class the Item is assigned to. Advanced options also allow you to handle class exceptions – which are described later in this document.
The StreamV Purchasing system will use the most specific record that has been entered into the Qadjust file for the purchase order line that is being entered. It does this by checking for the PQDS Quantity Adjustment records in the following sequence and by using the first valid record that is found in the Qadjust file for the PO line that is being processed.
Sequence used when selecting Purchasing Quantity Adjustments.
• Vendor/Prodline/Class/Qty
• Vendor/Class/Qty
• Vendor/Prodline/Qty
• Vendor/Qty
Once the system has located a qualifying Quantity Adjustment record, it adjusts the price for the PO Line based on the factor that is stored in the Qadjust record. This factor can be used to reduce or discount the price or it can be used to add a surcharge (or increase the price), based on the quantity in the line.
Purchasing Value Adjustments
Purchasing Value Adjustments are used to add an additional discount or surcharge to the target cost calculated by the system for a specific vendor and item combination based on the extended value (quantity * PO price) of the item that is being ordered on the PO line. Purchasing Value Discounts can be specified at the Vendor, the Vendor/Product Line, the Vendor/Class, or at the Vendor/Product Line/Class Level. When PQDS records are checked, the system uses the Vendor from the PO being input, the Product Line that the inventory item is assigned to, and the Class from the QVL record for the vendor item combination being processed (if there is a record for the combination in the QVL file) or the Class from the inventory record for the item (if no QVL record exists).
Each Purchasing Value Adjustment record must store a valid Vendor, Value and Factor. In addition, a product line and a class can optionally be specified in the record – to allow adjustments to be based on the Product Line or the Class the Item is assigned to. Advanced options also allow you to handle class exceptions – which are described later in this section.
The StreamV Purchasing system will use the most specific record that has been entered into the Qadjust file for the purchase order line that is being entered. It does this by checking for the PQDS Quantity Adjustment records in the following sequence and by using the first valid record that is found in the Qadjust file for the PO line that is being processed.
Sequence used when selecting Purchasing Value Adjustments
• Vendor/Prodline/Class/Value
• Vendor/Class/Value
• Vendor/Prodline/Value
• Vendor/Value
Once the system has located a qualifying Quantity Adjustment record, it adjusts the price for the PO Line based on the factor that is stored in the Qadjust record. This factor can be used to reduce or discount the price or it can be used to add a surcharge (or increase the price), based on the quantity in the line.