For Constructions industry, most of the contracts with the end customers require to recognize costs as soon as possible and to charge those costs onto their customer. This also serves a cashflow requirement to recover costs as soon as possible. The end customer also audits the client system and reviews all costings and sales price calculations. The sales mark-up on cost must be based on actual purchase costs, not standard cost.

Currently, the standard system only calculates a percentage mark-up on standard cost.

For ex. in the specific scenario for stocked items when using item requirements (YES) and item consumption (YES), even though the item is configured with Sales price model = Charges percentage and a percentage is specified => the item sales price is not being recalculated based on the Purchase Unit price value, when:

1. Purchase price setup at item level is changed on the purchase order
2. Purchase price is determined by a Trade Agreement at item level
3. Purchase price is manually entered on the purchase order