###### Product Information

# Commodity Pricing Engine (CPE) – Term

# CPE Term

## CPE Term in a document:

- Is a depending object of a CPE Formula and calculated independently from other terms
- Define
- If fixed prices are used or price quotations
- Which price quotations and currency data are used
- How the periods for price quotations (QP) and currency exchange rate (CP) are dynamically determined
- With rules for currency conversion, quantity conversion and rounding
- How to compare the minimum and maximum prices (caps and floor)
- How to apply a relative or an absolute surcharge
- How to define and exercise price fixation option
- How to use DCS based price quotation including futures

- Is the result(s) of this calculation(term result):
- Term Rate or Term Value
- Term Status
- Used Quantity
- Price Fixation Option Exist
- Price Fixation status

### The input data can be as follows:

- Predefined in customizing and defaulted in documents
- Manually entered in CPE Formula in documents

## Components in a Term

## Term Values

This section shows the following:

**Term Status:**Whether the term is provisional, final, evaluated successfully, in error, etc. There are various status which lets you see if there is any error or information.**Blocking Reason:**Why is the term provisional or in error can be seen from this status. It has 3 values i.e. Missing Currency Exchange rate, Missing Price Quotation and Provisional Price**Term Rate:**This is the weighted average rate calculated from Fixed Price of some quantity and Provisional Price of Remaining unfixed quantity.**Commodity Quantity:**This is the converted quantity in Commodity UoM**Calculated Quotation:**Final Quotation price calculated**Total Surcharge:**As the name suggests, this is the calculated total surcharge. In the image above this is added to the Calculated Quotation (since no price fixation is done) which results in the Term Rate seen.**Term Key:**This represents a term set up in the customizing which is fetched for evaluation. This term key disappears if any change is done in the term or anything inside the term.

## Price Fixation

This section defines the price fixation option setting, what are its components and finally what all fixations have been done by the user. We will discuss this in detail later.

## Term Settings

Term Setting basically lists out all the major components of a term by keys which are detailed in other sections of a term.

We can see in the image above that most of them are rules. These rules will be discussed in detail later but one thing should always be kept in mind that each rule has an underlying CPE routine which serves a purpose. Rules can be created by the user as per his convenience which uses a routine but the routines are SAP delivered.

**Term Group:**Terms can be grouped together to belong to a logical set. This group of terms can be used to calculate the final formula value.**Calculation Type:**Defines the term type, which determines how the term rate is calculated.*Term Rate Leading: All values are converted into the format of the formula rate.**Quotation Rate Leading: All values are converted into the format of the quotation rate***Calculation Rule:**Calculation rules are used to calculate a commodity rate from several quotations, such as to obtain the average commodity rate in a given period. The result (such as the average, highest, or lowest commodity rate) depends on the calculation routine used. You can define an upper and a lower limit. In the case of a calculation result that lies beyond these limits, the result is set to the corresponding limit.**Prov. Term No.**: Identifies a referenced provisional term. When a corresponding provisional term is given, and the evaluation of the original non-provisional term is incomplete, then the commodity pricing engine (CPE) uses the rate of the provisional term to calculate the formula.

## Quotations

This shows the Quotation Rule used, the reference date for quotations fetched and the quotations fetched.

## Quotations: Period and Details

This shows the Period Determination Rule used to derive quotations and how to evaluate the final result out of multiple quotations.

## Exchange Rates

This shows the Reference date for fetching exchange rates and the exchange rates fetched. It also shows the Exchange rate type, From currency and To currency.

## Exchange Rates: Period and Details

This shows the Period Determination Rule used to derive exchange rates and how to evaluate the final result out of multiple rates. The overall idea here is the same as **Quotations: Period and Details**

## Term Surcharge

This section shows how the surcharge is calculated if it is applicable.

- Surcharge Rule: It defines the rule for calculation of surcharge which could be addition, multiplication, etc.
- Surcharge Routine: It defines the variable on which the factor would be used
- Absolute Surcharge: It is a fixed value independent of any factor, rule or routine
- Factor: What is the surcharge factor

The above example uses surcharge of 0.5 per cent on Quotation. It means that the Surcharge would be 0.5 per cent of Quotation Price. So, the factor defined is 100.5/100 which is 0.5 per cent and as per the routine, it is multiplied with a quotation to get the Total Surcharge.

This was all about the Term. There are some parts left for detail and would be covered in other blogs.

Hello,

Is it possible to copy CPE Pricing formula from one condition type to another?

We would like to take reference just of the formula, not condition value. As initial condition will have price fixation, and second condition needs to continue changing based on quatation values.

Thank you,

Ausra