Applying Order Price Unit in Inventory Management

Objective

After completing this lesson, you will be able to use an order price unit in a GR with reference to a PO

Order Unit and Order Price Unit

In a purchase order, you can specify a purchase order price unit (OPUn) and an order unit (OUn) that are different from each other. The purchase order price unit is valid in connection with the net price and is used as the basis for valuating the goods receipt and for invoice verification. You need to enter the delivered quantity in both units of measure (OUn and OPUn) when the goods are received.

For example, you order 10 frozen geese at a price of EUR 5/kg. In the purchase order, you assume that one goose has an average weight of 4 kg (order value 40 kg * EUR 5). During the goods receipt, you determine that 10 geese weigh a total of 45 kg. For the valuation of the goods receipt and the invoice verification, there is an amount of 45 kg * EUR 5 for the 10 geese.

Note

In the Post Goods Receipt to Purchasing Document app, it is not yet possible to enter the quantity in the purchase order price unit (OPUn). When posting, the system automatically uses the conversion factor between the order unit (OUn) and the order price unit (OPUn) from the purchase order item.

Therefore, you should enter the goods receipt for such purchase orders using the Post Goods Movement app. For this app and the transaction MIGO, you can force the entry of the quantity in the order price unit (OPUn). To do this, you must define that an entry is required for the field GOITEM_BPMNG.

Go to Customizing for Materials Management underInventory Management and Physical InventorySettings for Goods Movements (MIGO)Field Selection for MIGO (OMJX).

How to Enter a GR for a PO with Order Price Unit that Varies from Order Unit

Enter the GR for PO item for Which the PO Price Unit Differs from the Order Unit