Need to capture frequent fluctuations in pricing

[Former Member]

Hi SAP Gurus,

Our client has a requirement wherein customer A gives them a letter of credit along with the purchase order to trigger the sale. What happens next is that customer A will buy from them at different times and will use a blanket Sales Order to cover those sales. Problem is that the price of the material that they are selling fluctuates frequently and the selling price will be different each time customer A buys. How can the pricing be captured in SD? What function can we use and how will it be configured? Will they always have to create adjustments in the billing to cover this requirement?

From how our client explained it, it looks like they require the function of IS-Oil and Gas "Formula and Average Pricing" but is only using ECC5.0 and does not have IS-Oil and Gas. Is there a work around solution in standard SD that can fix this?

Hope to hear from you soon!

Thanks in advance!

[Former Member]

Hello PJ,

I think that the client should not use a "blanket Sales order". The customer of the client should use a PO (blanket PO) and issue a release order each time they desire a purchase. The Release order can be used to generate a PO/line item which can create a Sales order. Using this process, the customer of the client will get the price determined at the time of "PO release".

If the customer of the client requires a periodic shipment, with releases planned in advance, a Scheduling Agreement might also be considered.

Best regards,

John