This is an optional manual step for handling purchase orders. This calculation is used to achieve better prices when there is a price list or an agreement with quantity intervals. Instead of fetching the prices line per line, the calculation fetches them based on the total order quantity.
By accumulating the quantities over several order lines, a higher volume is used for fetching the price, discount and/or the additional costs, resulting in a better price than when you order the lines separately, one by one.
Prices derived from a purchase order quotation are respected (i.e. are not affected) by this operation.
In order to make the calculation work:
The result might provide a lower price. When you accept the calculated result, all the lines on the purchase order that were considered in the calculation will be updated with the new price, discount, and/or additional cost. The additional cost will be divided among the corresponding lines. The Consolidated check box on the purchase order header will be selected. When printing the purchase reports, a summary line per part will indicate the total accumulated quantity ordered and the corresponding price, discount, and additional cost according the applicable price list or purchase agreement. If the order had already been printed or sent to the supplier, upon updating the lines, a new revision will be created.