Calculation of Retro Price Changes

1) Calculation of retro price changes (with back dated effect) price changes, from given date and its effects at respective period to debit and credit side, to customers and suppliers as well. 1 st level understanding: R etroactive Billing allows you to change billing amounts retroactively in the event o f a price renegotiation. R etroactive Billing is a common business pro cess in some industries, especially the automotive industry, whereby a custo mer requests changes to the amounts charged on already invoiced orders and receives credits or additional invoices. Order Management provides a quer y to identify order lines that have previously been invoiced that may be subject to such retro billing, a simple approval mechanism, and then t he automatic generation of credit memos (and o ccasionally invoices). Periodically, the price of an item on a sales agreement or purchase order will be changed, for example, a co mmodity will sharply increase or decrease in price. The customer will issue an amendment to t he sales agreement or purchase order. If the pr ice change is retroactive, shipment quantities are identifi ed that o ccurred during the retroactive billing period, and t he additional charges or credits are calculated and sent to the customer for billing. Query:- You change your stock index in daily basis or what duration and How? If yes y Tell me the procedure through which you do? Are you having two d ifferent departments for paying and receiving? If yes y How do you adjust index rate in both side? How do you adjust inventory? y Through manual JV or cost adjustment. 2) T axes are not updating for ISO T ransactions. 1 st level understanding: Shipping transaction setup need to check whether correctly configured or not. Need to understand the transaction flow of I SO, (at the time of ISO transaction which tax category is attached to t he items).

Calculation of Retro Price Changes

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