How Do AAIs for Advanced Pricing Work?

 You have only two AAIs to worry about in Advanced Pricing:

• Table 4270 – Price Adjustments

• Table 4280 – Rebates Payable 

Note: Don’t be confused by the table descriptions. 

The following  rules apply, whether or not you use rebates. Just remember, unlike most Distribution AAIs (where the lower number is the Debit and the higher number, the credit), Advanced Pricing AAIs are reversed. If you think of them as you do other AAIs in Distribution, Table 4280 is the Debit and Table 4270 is the Credit.

  Now, here are three simple rules to remember for both World and Enter­priseOne:

1. If Override Price in the Adjustment Definition = Y, Table 4230 (the regular sales order revenue AAI) supplies the credit. You are telling the system that this Adjustment Definition is the price.

2. If Override Price in the Adjustment Definition = N, Table 4270 supplies the credit. You are telling the system that this Adjustment Definition is only an adjustment  to the price; typically a discount or mark-up.

3. If Override Price in the Adjustment Definition = N and Adjustment Control Code = 4 or 5, the adjustment is an accrual and does not impact unit price. Tables 4280 and 4270, respectively, supply the debit and credit.

One corollary: Remember that if you leave the G/L Class Code in the Adjustment Definition blank, Advanced Pricing AAIs (just like all others) will follow the G/L Class Code of the item.By the way, Adjustment Control Codes 4 and 5 are not just for accruals and rebates. You can do things with revenue reclassification using Adjustment Control Code 4 in connection with the 4270/4280 AAIs that your accounting folks can only dream of.