Pricing in SRM when coming from Ariba

[Former Member]

Hi All,

We're having an issue at a customer regarding the different ways that Ariba and SRM calculate price formula. Ariba has the ability to show the Unit Price in one UoM, but have the Qty ordered in a different UoM. They utilize a "conversion" factor in order to get the correct Total Price.

As an example I have this data:

From Ariba:

Quantity = 10    (ordering quantity is pallets)

Unit Conversion = 150     (150 Rolls in 1 Pallet)

Price unit quantity = 1

Price = 4.50      (price per Roll)

Unit of Measure = pallet   (ordering UOM)

Price Unit of measure = Roll     (priced by UOM)

The formula for amount is Line Item Amount = Quantity * ( Unit Conversion / price Unit ) * Price

Line Item Amount = 10 * ( 150 /1  ) * 4.50 = 6750

The issue is that when this data gets sent to SRM via OCI, they only send Quantity(10), Price in Price per Roll(4.5), Price Unit Quantity(1), and a Unit of Measure(Pallet).

The equation that the SRM system therefore does is: Line Item Amount = 10 * 4.50 = 45 which is incorrect, as it doesnt recognize that the 4.50 is for a roll, while the 10 is a pallet.

Have any of you worked through something like this in the past? Is there a workaround utilizng mapping tables, or perhaps passing the conversion factor over to SRM?

Regards,

Andrew Bondarev

[jason_boggans · Accepted solution]

Hi Andrew,

The OCI structure is static, if Ariba performs some additional calculations in the Ariba application before it transfers to the SRM structure then why can it not be that only the data be passed to the SRM OCI structure which is expected by the SRM application?

Open Catalog Interface accepts:

NEW_ITEM-UNIT[n] 3 Quantity unit for item quantity
NEW_ITEM-PRICE[n] 15 Price of an item per price unit
NEW_ITEM-PRICEUNIT[n] 5 Price unit of the item (if empty, 1 is used)
NEW_ITEM-QUANTITY[n] 15 Item quantity
NEW_ITEM-CUST_FIELD1[n] 10 User-defined field

NEW_ITEM-CUST_FIELD2[n] 10 User-defined field

NEW_ITEM-CUST_FIELD3[n] 10 User-defined field

NEW_ITEM-CUST_FIELD4[n] 20 User-defined field

NEW_ITEM-CUST_FIELD5[n] 50 User-defined field

Any of these fields are applicable in the scenario, if additional logic is required this can be perhaps passed in the availalbe customer defined fields and a calculation performed in the BBP_CATALOG_TRANSFER Badi to suit the expected result.

In its simpliest form, the OCI structure simply expects that the data transferred from the catalog will match the definition outlined in the OCI Documentation in order for correct translation to the relevant BO fields in SRM_SERVER.

Regards,

Jason

[Former Member · Accepted solution]

Hi Jason,

I think we have two options right now:

1) Pass the conversion factor and base UOM using the user-defined fields. Utlize the BBP_CATALOG_TRANSFER Badi to change the calculation.

or

2) Have Ariba already do the Unit Price conversion for us, meaning instead of them sending $4.50 per roll, they will send $675 Per Pallet, which will make the Unit Price UOM and Qty UOM the same. This way we won't have to change the pricing formula in SRM.

I'm leaning towards the second option because it is simpler from an SRM standpoint.

The customer is only hesitant about this option because they prefer to receive the goods in base UOM (Roll) for receiving standpoint.... but thats a whole other issue...

Thanks!

Andrew