Short answer: When actual annual quantity lands outside the EAU tier used in a paghulma sa metal quote, review only the volume-sensitive conversion assumptions. Define the measurement period, qualifying quantities, evidence, and effective date before resetting price. Keep material indexes, drawing or process scope, and freight or Incoterm changes separate. Exceeding a tier does not automatically create a lower price or retroactive credit.
An annual price review should reconcile what the original price tier assumed with what the program actually purchased. It is not a general reopening of every commercial term. Start with the quoted estimated annual usage (EAU), release pattern, production lot assumptions, and tier table. Then compare them with a controlled quantity ledger for the same period and scope.
This review is different from setting an order minimum under the MOQ and blanket order guide, adjusting metal cost under the material escalation guide, changing technical assumptions under the quote revision history guide, or recovering tool cost under the tooling amortization guide.
Keep four commercial tracks separate
| Track | Pagrepaso question | Evidence |
|---|---|---|
| Volume | Did actual qualifying quantity support the conversion-cost tier assumed in the quote? | Tier table, EAU, releases, accepted shipments, invoices, returns, and cutoff rule |
| Materyal index | Did the agreed metal or coating reference move? | Named index, base date, weight basis, yield assumption, and adjustment formula |
| Scope | Did the drawing, process route, inspection, packaging, or service requirement change? | Revision history, approved change notice, revised routing, and cost breakdown |
| Freight and Incoterm | Did delivery responsibility, lane, shipment pattern, duty, or premium freight change? | Incoterm, named place, carrier records, shipment profile, and approved exception |
Do not bury the four tracks in one unexplained unit-price change. If volume misses EAU while material falls, packaging expands, and shipments become smaller, one net percentage cannot be audited. Use the Incoterms and freight risk guide when delivery responsibility or the named place changed.
Define which quantities count
Agree on one quantity event before doing the math. Komon choices are accepted units shipped, accepted units delivered, or accepted units invoiced during the review period. Purchase order date alone may not show production activity. For consigned or tagasuplay-held stock, the parties may instead use consumption or an agreed release event.
A quantity ledger should identify part number, drawing revision, commercial scope, ship date, invoice, accepted quantity, return or credit, and customer location. It must prevent double counting. Set explicit rules for replacements, unpaid samples, validation lots, scrap, rework, and duplicate invoices. Service parts, affiliate purchases, and multiple ship-to locations count together only if the original tier used that aggregated basis.
Keep the period equally precise. State calendar year, fiscal year, program anniversary, or another start and end date. Define how late receipts, early pull-ins, cancellations, returns after cutoff, and orders spanning two periods are handled. The same rule should apply whether actual volume is above or below the quoted tier.
Forecast, blanket PO, and commitment are not the same
A forecast supports capacity and material planning, but it is not automatically a purchase commitment. Forecast horizons often contain a firm window, a flexible window, and nonbinding planning data. Label each segment and identify which one, if any, supports a price tier.
A blanket purchase order may set a ceiling, authorize releases, or reserve commercial terms. Its face value does not necessarily equal purchased annual volume. Count the entire blanket only when the governing documents clearly make that quantity binding and define release, cancellation, and acceptance obligations.
A binding commitment should identify quantity, period, part scope, price basis, release rights, and the consequence of a shortfall or cancellation. Do not infer a generic take-or-pay penalty from an EAU field or forecast. This page does not provide a universal take-or-pay clause; any commitment or remedy requires specific commercial and legal review.
Compare tier-reset mechanisms
| Mechanism | How it works | Main control |
|---|---|---|
| Prospective reset | A revised tier applies to future releases after an agreed review date. | State the effective date, new volume basis, validity period, and Sunod review trigger. |
| Retroactive credit or debit | Past shipments are recalculated against the tier actually achieved. | Use only when the original agreement defines the formula, period, counted units, and settlement route. |
| Carry-forward | Volume above or below plan moves into the Sunod measurement window before a final adjustment. | Cap the carry period and prevent old variance from rolling forward indefinitely. |
| Rebate structure | Invoices use an agreed base tier, with a later rebate after a documented threshold is reached. | Define eligible units, threshold bands, credit timing, expiry, and treatment of returns. |
A prospective reset is easier to administer when demand remains uncertain. Retroactive settlement needs stronger records and clear original language. Carry-forward can absorb seasonality; a rebate can hold invoice pricing steady until attainment is known. Select the mechanism around forecast reliability, record quality, and administrative capacity.
Run the annual review from a controlled baseline
- Freeze the original quote, tier table, EAU, release assumptions, and measurement period.
- Reconcile qualifying units by part, revision, location, shipment, invoice, return, and credit.
- Explain the variance: demand change, launch delay, phaseout, allocation, quality interruption, or schedule change.
- Price the volume effect separately from material, scope, freight, duty, tax, currency, and tooling items.
- Record the chosen mechanism, approval owners, effective date, duration, and Sunod review date.
Use the quote assumptions checklist to rebuild the baseline and the engineering change control guide if the part or process changed during the year. For a cross-tagasuplay view, compare the revised conversion price through the landed cost quote comparison checklist, not unit price alone.
Document the decision without promising an outcome
The review record should show requested change, supporting ledger, disputed quantities, excluded cost tracks, agreed mechanism, and approval status. A volume variance does not guarantee a price decrease, price increase, rebate, debit, or retroactive credit. Tool utilization, setup frequency, labor content, yield, quality controls, and actual production pattern may also affect whether the original tier logic still applies.
This page is a commercial review checklist, not legal, tax, or accounting advice. Contract interpretation, revenue recognition, tax treatment, setoff rights, rebates, and remedies depend on the governing documents and applicable rules.
To request a volume-based review, send the original quote, tier table, EAU, actual accepted quantity ledger, release history, and proposed review date through the kontak page. Use the RFQ form for a prospective quote and identify material-index, scope, tooling, and freight items that must remain outside the volume comparison. Ongoing results can be tracked separately in a tagasuplay performance scorecard.
FAQ
Does exceeding the quoted EAU require a lower paghulma price?
No. It supports a review of volume-sensitive assumptions, but any change depends on the agreed tier logic, qualifying units, production pattern, effective date, and other separated cost drivers.
Can a tagasuplay debit past shipments after an annual volume shortfall?
Not automatically. A retroactive debit needs clear original terms covering the measurement period, counted units, tier formula, evidence, approval, and settlement method.
Does a blanket purchase order count as achieved annual volume?
Not by itself. A blanket may be a ceiling or release framework. Count its full quantity only when the governing documents make that quantity binding for the review period.
What quantities should an annual price review include?
Use the agreed event and scope, such as accepted units shipped under the same part, revision, and commercial basis, with explicit rules for returns, replacements, samples, and cutoff timing.