IRT320 - Pricing and Promotions

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SAP AG 2003

IRT 320 Preise und AktionenFS310 Inkasso/Exkasso

THE BEST RUN BUSINESSES RUN SAP

© SAP AG 2003

IRT 320Pricing and Promotions

System R/3

2003/Q3 50063445

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Copyright 2003 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in

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without prior notice.

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SAP AG 1999

Required: IRT100 Recommended: IRT310

Participants should have a good

understanding of the areas of

purchasing and/or sales, and ideally also

of customizing.

Course Prerequisites




SAP AG 1999

Participants Project team members

Administration/IT employees

Consultants

Duration: 3 Days

Target Group




© SAP AG IRT320 1-1

SAP AG 2003

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Overview





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This course will prepare you to:

Understand the special features of the condition

technique in SAP Retail

Create a promotion with follow-on activities

Course Goals





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At the conclusion of this course, you will be able to:

Implement the various elements of the conditiontechnique

Use the special features of conditions for sales

and purchase prices

Understand price determination in the system

Plan, create, and perform a promotion, including

all associated follow-on activities

Course Objectives





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Unit 4 Pricing

Unit 5 Promotion

Unit 6 Inventory Management

and Valuation

Unit 1 Course Overview

Unit 2 Elements of the Condition

Technique

Unit 3 Conditions in Purchasing

Preface

Course Content





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Course Overview

Elements of the

Condition Technique

Conditions

in Purchasing

5

Pricing

Promotion

4

2

3

1

6Inventory Management

and Valuation





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Your company has decided to implement SAP

Retail, and you are responsible for maintaining

purchase price conditions, calculating salesprices, and planning promotions.

Main Business Scenario





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Elements of the Condition Technique





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At the conclusion of this unit, you will be able to:

Unit Objectives

Maintain condition records

Use the functions of the calculation schema

Explain the central role of the condition types andtheir control fields

Describe access sequences and their data retentionlevels





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Business Scenario

The condition technique is used to determine

prices in SAP Retail.It is based on conditions, which are described bycondition types. Information is stored in conditionrecords and conditions. Access sequences andcalculation schemas are also a key part of thisfunctionality.





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Course Overview

Elements of theCondition Technique

Conditionsin Purchasing

5

Pricing

Promotion

4

3

1

6Inventory Managementand Valuation

2






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Vendor Vendor Head officeHead office

Purchase Price Conditions

Purchase order

Article R100000Vendor R3000Price USD 1.00Quantity 1000 pc

Final price USD 1,000





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Condition type RA01 =

% discount on gross price

Purchase order

Article R100000Vendor R3000Price USD 1.00Quantity 1000 pcDiscount 2%

Final price USD 980

12

Vendor Vendor Head officeHead office

Purchase Price Conditions





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Customizing settingsCondition Type

• Prices

• Markups/downs

• Freight

• Cash discount

• ...

• ...

• Control data 1

• Group condition

• Change options

.

• Master data

• Scales

• ...

• ...

Condition class

Calculation type

Condition category

Group condition

Group condition routine

Header condition

Amount/percentage

Delete

Valid from

Valid to

Scale basis

Scale type

Scale formula

...

...

Possible settings

Condition Type

Condition types are defined generally using the condition class, and in detail using the condition

category.

The calculation type defines how the system calculates the condition value. A markup or markdowncould be a percentage of the gross price, a fixed amount, or a quantity-dependent amount, for example.

The plus/minus sign indicates whether the condition is treated as a positive or negative amount. Negative

amounts are markdowns, positive amounts are markups.

Scale bases for scales are also dependent on the condition type. Scales can relate to a quantity or a value,

for example.

An access sequence can be assigned to a condition type. The access sequence is a search strategy that

defines the sequence in which the system searches through condition tables looking for relevant entries

for a condition type. In the standard sequence, an access sequence is not assigned to the condition types

for surcharges and discounts (RA00, RA01 and so on), because they are maintained as supplementary

conditions for the gross price (PB00).

You can define your own condition types.





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Price 1 Price 2

Jan. 1 Dec. 31

General conditions

Vendor

Condition group

Article typeIncoterms

Invoicing party

Other

€£

$

July 1

Purch. data in the article

Piece

%

Conditions

USD

Purchasing organization

Site

Maintenanceoption

Time-Dependent Conditions

Conditions in purchasing info records are always time-dependent.

Conditions in purchase orders are not always time-dependent.

Time-dependent conditions can apply to specific sites, or to all sites in a purchasing organization. In addition to time-dependent prices that are valid for specific purchasing data for the article (purchasing

view in article maintenance), time-dependent conditions relating to more general price agreements can

be defined (general conditions).

Time-dependent conditions are limited to a particular validity period.

No subtotals (net price, effective price) are formed for time-dependent conditions.

Valid time-dependent conditions from purchasing info records are used as default values in purchase

orders.





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Purch. order

Article no.

R100000

R100003

R100004

Item

10

20

40

Merch. categ.

R1111

R1112

R1113

Qty

100

50

100

Price

81.00

72.00

63.00

Per PO:20.00 freightsurcharge

Vendor subrange:5% on a total of 500.00

Special discountfor art. R1000041% for purchase

of 10 pieces ormore

Header Conditions, Group Conditions, ItemConditions

Item conditions are conditions that relate to individual articles.

Some standard condition types can only be used as item conditions, others can only be used as header

conditions, and some can be used as both header and item conditions. How a condition type can be usedis controlled using the Header condition and Item condition indicators in Customizing for the condition

type.

Automatic price determination is carried out for header conditions. As a result, you cannot assign an

access sequence to a header condition (unless it is also defined as an item condition), and cannot create

condition records for it.

A condition type can be defined as a group condition in Customizing. A group condition relates to

several items of a document.





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Purchase order

Article

1+ markup

2+ markup

3+ markup

Item

10

20

30

Qty

1

1

1

Price

300.0010.00

100.0010.00

50.0010.00

Header condition

ZB00 Abs. markup 10.00

ZB00 Group condition =

ZB00 abs. markup 10.00

Purchase order

Article

1+ markup

2+ markup

3+ markup

Item

10

20

30

Qty

1

1

1

Price

300.00120.00

100.0040.00

50.0020.00

Header condition

HB00 Header markup 180.00

HB00 Group condition =

180.00 in total1

Header Conditions

Header conditions apply for all items in a document and are automatically applied to all document

items.

A header condition can be a percentage or a fixed amount. If you define a header condition as a percentage markup or markdown, the defined percentage applies automatically for all document items. If

you define a header condition as a fixed amount, the condition value of the header condition can be

assigned for each article, or split up over all items.

The condition value is split up proportionally over the document items if the condition type is defined as

a group condition in Customizing. If the condition type is not defined as a group condition, the condition

value of the header condition is assigned to each item. In this case, the header condition is used to make

data intput easier.

In the standard system, an absolute header condition is appied to the individual items on a value basis.

However, in Customizing you can define that the value is applied on the basis of the weight or volume of

the individual items. The basis for used to apply conditions to items is defined in the Basic formula field

in the calculation schema.





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Article 1

PB00 Gross price

Info record conditions

as of

as of

as of

1 pc

100 pc

900 pc

100.00

99.00

90.00

Condition type PB00

Group cond. =

CustomizingCollective PO

Article

11

Item

1020

Qty

Qty

8040

120

Price

100.00100.00

Collective PO

Article

1

1

Item

10

20

Qty

Qty

80

40

120

Price

99.00

99.00

Store

12

Store

1

2

Group Conditions and Scales

A condition type can be defined as a group condition in Customizing. A group condition is a condition

that relates to several items of a document. In the case of a group condition, the item values (price, order

quantities, weights or volume) of the items in question are added together, and the result is used as thecondition basis. As a result, when calculating scales, more advantageous values can be obtained than

would be the case if items were considered individually. The items are grouped together using the key of

the condition record for the group condition, or a group condition routine assigned to the condition type

in Customizing.

As long as the document has not already been saved or checked, price determination is carried out for

each document item and the condition basis determined. The item values are not cumulated until the

document is saved or checked. The scale amount is then determined on the basis of the cumulated item

values.

On the header condition screen, you can explicitly trigger the determination of the scale amount based on

the cumulated item values by activating the conditions. You can therefore determine the lowest scale

value before saving the document by either activating the condition or checking the document.





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KOMKMANDT KNUMV VKORG VTWEG

IDES 1234 R300 R1 ...

...

KOMP

KPOSN MATNR WERKS WKREG ...

1 2 SO ...20

Technical Information

The item information of the document is stored in internalstructure KOMP.

The header information of the document is stored in internalstructure KOMK.

During internal processing, the header information is stored in the fields of structure KOMK . The fields

in KOMK are called "header fields". The information in KOMK is valid for the whole document.

During purchase order processing, the item information is stored in the fields of structure KOMP. Thesefields are called "item fields". The information in structure KOMP is only valid for a single line.

The pricing components or condition types are either entered manually or calculated using site-specific

formulae. These formulae take account of customers, manufacturing costs, quantity-based discounts, and

so on. This information is stored in the structures KOMK and KOMP.





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Period 1March 1 - March 30

Period 1March 1 - March 30

$ 1000 1.0 - %

$ 2000 2.0 - %$ 3000 3.2 - %

Lower limit: 5.0 - %Upper limit: 0.0 - %

$ 1000 1.0 - %

$ 2000 2.0 - %$ 3000 3.2 - %


Period 2May 1 - May 31

Period 2May 1 - May 31

$ 1000 1.5 - %

$ 2000 2.5 - %$ 3000 4.0 - %


$ 1000 1.5 - %

$ 2000 2.5 - %$ 3000 4.0 - %


Condition type : RA01 Vendor discount %

Purch. organization : R300

Vendor : R3000

Article : R100000

Condition type : RA01 Vendor discount %

Purch. organization : R300

Vendor : R3000

Article : R100000

Level at whichthe conditionis defined

Condition Records





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4321

Condition table A017 (info record with site)

Cond.type

Vendor Article POrg Site . . . Cond. rec. no.

RA01 A 1 R300 R300 1234

Condition table A018 (info record without site)

Cond.type

Vendor Article POrg . . .

RA01 A 1 R300

Cond. rec. no.

4321. . .

Table KONP (item conditions)

Cond. rec.no.

1234

RA01 . . .

Cond. type . . .

RA01 . . .

4,00

Cond. amount

2,00

. . .

. . .

. . .

. . .

Condition Records and Condition Tables

Conditions are stored in the system as condition records.

Condition tables refer to condition records. Condition tables enable you to vary the key of condition

records. Condition tables with the following keys exist, for example

Vendor, article, purchasing organization, info record category

Vendor, article, purchasing organization, site, info record category

Vendor, article, purchasing organization, info record category, order unit

Purchasing document, item, site

Entries in condition tables consist of the key and the data. The data contains the number of the condition

record.

Condition records are stored in the following tables, for example:

KONP (time-dependent item conditions)

KONH (header conditions)

KONM (quantity scales)

KONW (value scales).





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Table 999

Technical view

Selected fields

Purch. organization

Purch. document

With validity

SelectLineTextField nameEVRTN. . .

Activate

Table A999 was activatedReports and screen flaggedfor generation

Field catalog

Order unitCompany codePurch. organization

Purch. document. . .

Condition Table Customizing

You can create your own condition tables. The name of the table must be a number between 501 and

999. If you do not enter a name, the system automatically assigns a sequential number. Before you create

your own condition tables, you should determine the extent to which you can use the standard conditiontables.

If you want to create a new condition table, you must first check whether the fields in the field catalog

meet your requirements. You may have to add fields to the field catalog. You can include any of the

fields of communication structures KOMK, KOMP and KOMG in the field catalog.

If you want to maintain time-dependent conditions, you must define your new condition table as a

condition table with a validity period.

You select the key fields you want to include in your condition table from the list of permitted fields

(fields in the field catalog).

On the Technical view screen, you can modify the layout of the condition maintenance screen using the

fields Line and Text .

Finally, you generate your condition table. When you generate the condition table, it is activated, and the

reports and screens for condition maintenance are flagged for generation.

You should not change the standard condition tables.





SAP AG 2003

Cond.type . . .FromDescription Man. Statto

10 1 RA01 . . .3% discount on gross price

1 1 PB00 . . .Gross price

31 1 FRA1 . . .20Freight % X

... ... ... . . ....... ...

20 0 . . .Net value incl. discount

10 9 ZA01 . . .3% markup on gross price X

3 0 . . .Gross value

40 0 . . .Effective price

35 1 SKTO . . .20Cash discount X

Step Counter

Calculation Schema

The calculation schema is used in price determination. It groups together all condition types that are

involved in price determination.

The calculation schema defines: which condition types are allowed

for which condition types conditions can be automatically adopted ('Man.' indicator)

which condition types are used to calculate net prices ('Stat' indicator)

the sequence in which the condition types are used when calculating net and effective prices

the condition types for which subtotals are calculated

what requirements must be met to ensure a certain condition type is considered

In addition, the reference level 'From' for percentage conditions is defined in the calculation schema. The

reference level 'From' can be combined with a reference level 'To'.





SAP AG 2003

Step Cntr CTyp From To Mdt

1 10 PB00

Man. Stat P SubTo Accrls

X 1

Reqt. .

Basis for percentagemarkup/markdown

Automat. determin./manual maintenance

Obligatory

Statististical

Print indicator

Interim storage of

cond. values

Requirement

Transaction keyfor accountdetermination

Calculation Schema Customizing

The calculation schema defines:

which condition types are to be taken into consideration and in which sequence (Step and Cntr )

the basis on which percentage markups and markdowns are to be made ( From and (optional) To) whether conditions for a condition type are to be determined automatically or must be entered

manually ( Man.)

whether a condition type is mandatory ( Mdt )

whether the condition is to be taken into consideration when net prices are calculated (Stat )

whether condition lines are to be printed, and if so, how ( P )

whether, and in what form, condition values or subtotals are to be stored for further processing

(SubTo)

in what circumstances access to a particular condition type is excluded ( Reqm)

which alternative formulae are to be used to calculate the condition value ( AltCty)

which alternative formulae are to be used to calculate the condition basis ( AltCBV )

which transaction key is used to find the G/L account for a condition type that is relevant for accruals

( Accrls or AcctKey), when purchase accounts handling is active





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Calculation Schema: Schema Determination

Schemagr Vendor

Vend

Cakulationschema

RMISR0

Cakulationschema

RMISR0

Purch.order

POrg R300Vendor R3000

Vendor R3000Vendor R3000

Pur. OrgR300

Pur. OrgR300

Schema gr.Pur. Org

R001

Schema gr.Pur. Org

R001

Schema gr.Vendor

R1

Schema gr.Vendor

R1

You can define the determination of calculation schemas for standard purchase orders, stock transport

orders, market price determination in vendor evaluations, and service processing.

You have the following options when assigning schemas for standard purchase orders: You can assign a calculation schema that is generally valid (such as RMISR0)

You can make the assignment of a calculation schema dependent on a schema group for one or more

purchasing organizations and/or a schema group for one or more vendors.

The schema group enables you to group together purchasing organizations or vendors that you want to

assign the same calculation schema to. Schema groups are defined in Customizing. Purchasing

organizations are also assigned to schema groups in Customizing, while vendors are assigned to a

schema in the vendor master.

For stock transport orders, the schema assignment is dependent on the purchasing organization, the

document type, and/or the supplying plant. For market price determination in the vendor evaluation,

schema determination is dependent on the purchasing organization. For service processing, the

calculation schema is dependent on the document type. Here, for each document type, the same

calculation schema must be used for the documents RFQ/quotation (AN), purchase requisition (NB), and purchase order (NB).





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Group Conditions and Print Indicators

Purch.order

Art. 1 1 pc 90 USD

Art. 2 1 pc 10 USD

Surcharge

50 USD

Schema RMISR0

CTyp .... PrintingPB00 ... XZB00 .... ?Print indicator = X Print indicator = S

Article 11 pcSurchargeNet value

90.0045.00

135.00

Article 21 pcSurchargeNet value

10.005.00

15.00

Article 11 pc

Article 21 pc

90.00

10.00

SurchargeTotal value

50.00150.00

The print indicator in the calculation schema controls the output of the condition line in document

output, for example, when printing the purchase order.

From Release 4.0A, for more specific definition, print indicators A, B, C, and D are available for printing condition lines as totals, and a, b, c, and d for printing condition lines at item level.

A condition line is not printed (print indicator _)

A condition line is printed (print indicator A or a)

A condition line is printed if the condition value is not equal to zero (print indicator B or b)

A condition line is printed if the condition value is not the same as the condition value of the previous

line (print indicator C or c)

A condition line is printed if the condition value is not equal to zero and not the same as the condition

value of the previous line (print indicator C or c)

The print indicators are explained in the field documentation.





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Calculation schema RMISR0

Step

1

...

Counter

1

C.Typ

PB00Condition type PB00

Condition classCalculation typeCalculation schema: RM0002...

Purchasing view

Valid

C.TypPB00RB00RA01

Cond. value...

Suggest additionalconditions

Calculation schema: RM0002

Step11010...

Counter 113

Condition TypePB00RB00RA01

fromto

01.01.31.12.

PC %

Conditions

$

PC %

Conditions

$

Calculation Schema for Condition Type PB00

ArticleArticle

A calculation schema for supplementary conditions must be assigned to condition type PB00 (or another,

comparable condition type for the gross price). Usually, schema RM0002 is used.

Condition types for this 'supplementary calculation schema' are surcharges and discounts (RA00, RA01and so on) and freight conditions (FRA1, FRB1 and so on), which can be valid for specific articles.

The calculation schema for supplementary conditions defines the list of condition types that the system

proposes when you choose the Suggest supplementary conditions function when maintaining conditions

in the Purchasing view of the article or quotation/outline agreement items.

This assignment simplifies the entry of surcharges and discounts and so on based on the article or

quotation/outline agreement item.

Supplementary conditions have the same validity period as the main condition.

An access sequence is not usually assigned to the condition types of the additional condition schema,

because they are always maintained in connection with the gross price.

The calculation schema assigned to the standard purchase order and the calculation schema for

supplementary conditions should be structured in the same way.





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PricePricePB00PB00

Discount %Discount %

Discount/weightDiscount/weightRA04RA04

Condition type

RA01RA01

Search conditionrecord for vendor

Allfresh and

article Banana

C a l c u l a t i o

n s c h e m a

C a l c u l a t i o

n s c h e m a

Condition record for tab. 002Condition record for tab. 002

22

4%

2%

3%

5%

John

Roberts

Allfresh

Miller

Bath

Fashion

Fruit

Fashion

Condition record for tab. 001Condition record for tab. 001

2%1%3%2%

1

AllfreshRobertsRudezSmith

ApplesPeachesOrangesCherries

A c c e s s s

e q u e n c e s

A c c e s s s e q u e n c e s

Accesssequence

1. Vendor/article

RA01

2.Vendor/merch. category

2.Vendor/merch. category

specific

general

Access Sequences





SAP AG 2003

Access sequence

0006 Vendor discount

Accesses

No.

102030

. . .

Tab.

456944

Description

Condition group of the vendor Vendor subrangeVendor

Requirement

000

excl.

Fields

Condition

EKORG

LIFNR

Doc. structure

KOMK

KOMK

Doc.field

EKORG

LIFNR

Direct value source

Access Sequence Customizing

An access sequence can be assigned to a condition type.

The access sequence is a search strategy that defines the sequence in which the system searches through

condition tables looking for relevant entries for a condition type. The sequence in which data isaccessed is defined by the sequence of condition tables in the access sequence.

The 'Exclusive' indicator is used to define that the serch for further valid entries in (other) condition

tables is terminated if the access was successful and a relevant entry was found.

The requirement routines control the circumstances in which the system searches through certain

condition tables for relevant entries. Some condition tables are only accessed if the document item meets

certain criteria.

If you want to maintain a condition type with a validity period (for example condition type PB00), an

access sequence must be assigned to it.

An access sequence cannot be assigned to a header condition.

If you create a new access sequence or change an existing one, you must generate the new access so that

the new or changed access sequence is available in the productive system.





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Data Retention Levels of Conditions

Scope of table

Performance

Data maintenance

ArticleSite

It is usual to retain data for conditions at site/article level. As most retailers have a large number of

articles in their assortments, and also have many sites, condition tables become increasingly large. As the

table sizes increase, the performance of the system can decrease as the tables are accessed. This can leadto performance problems in the whole productive system (invoicing, POS outbound and so on).

Even though retention of data at site/article level is favored by many, it is not absolutely essential. As a

result, where possible, data should be retained at a higher level.





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Alternative Data Retention Levels

Sales organization /

article

Customer price list /article

Site price list /article

Purch. organization /

article

Reference

purch. organization /

article

In Customizing, you can assign a reference purchasing organization to a purchasing organization. As a

result, a purchasing organization can access the conditions and contracts of this reference purchasing

organization.





SAP AG 2003

Conditions are agreements relating to prices,

surcharges, discounts and so on. Conditions aredefined by condition types and are stored in thesystem as condition records.

The access sequence is a search strategy thatdefines the sequence in which the systemsearches for condition records for a conditiontype.

A calculation schema groups together allcondition types that are involved in price

determination.

Summary





Elements of the Condition Technique Exercises

Unit: Elements of the Condition Technique

At the conclusion of this exercise, you will be able to:

• Differentiate between and create header, group, and item

conditions

• Define condition types as group conditions

• Understand and use the main control parameters for condition

types and calculation schemas

• Understand calculation schema determination

• Create condition types and calculation schemas

• Analyze and understand price determination, taking account ofseveral condition tables, validity periods, and scales

Conditions can relate to a single item in a purchasing document,

several items (group condition), or all items (header conditions).Header and group conditions can be divided among the individual

items proportionally. When you create a purchase order in

Purchasing, the system determines the calculation schema andcarries out price determination for the condition types contained

in the calculation schema. This process takes account of scaled

conditions and different periods of validity.





1 Display various condition types in Customizing and create your own calculation schemas.

1-1 Display the Customizing settings for the following condition types and find the

control parameters specified:

Condition

Type

Condition

Class

Calculation

Rule

Condition

Category

+/-

.

PB00

RA00

RB00

RC00

RL01

FRB1

SKTO

1-2 Display the control parameters for calculation schema RMISR0 and determine the

sequence of discount condition types:

Condition Type Step Counter

RB00

RC00

RA00

RA01

HB01

RL01

RGR0

1-3 Create a new calculation schema ZISR## with the description “Purchasing document

IRT320-##” by copying standard calculation schema RMISR0, including all dependententries. (Note: During copying, the system displays the message “You should use the

counter only for manual item conditions” a number of times. Confirm this warning

each time by pressing Enter .)





2 Assign your calculation schema ZISR## to your organizational levels as appropriate.

2-1 Create a new vendor schema group 20+## (for example, 23 for group 03) with the

description “Schema group IRT320-##” by copying the standard schema group.

Save your schema group.

2-2 Now define schema determination by assigning your calculation schema ZISR## toPOrg schema group R001 and your vendor schema group 20+##.

Save this assignment.

2-3 Assign your schema group 20+## to vendor TS3## by changing the purchasing data ofthe vendor master record for company code R300 and purchasing organization R300.

Save this assignment.

2-4 You also want calculation schema ZISR## to be valid for vendors TS1## and TS2##.

Therefore, assign your vendor schema group 20+## (from exercise 2-1) to these

vendors as well by changing the purchasing data of the vendor master record for purchasing organization R300.





3 Look at the settings for the access sequence that is assigned to condition type RL01.

3-1 How many accesses does the access sequence contain?

................................................................................................................

3-2 Which tables are searched for valid condition records?

................................................................................................................

3-3 Which fields in the document structure and table determine the search for a validcondition record in access 30?

1..............................................................................................................

2...............................................................................................................

3-4 How would you go about creating a new access sequence?

1..............................................................................................................

2...............................................................................................................

3...............................................................................................................

4................................................................................................................

3-5 Do all condition types refer to an access sequence?Give reasons for your answer:

..................................................................................................................

...................................................................................................................

...................................................................................................................

4 Create a condition type that fulfills the following prerequisites:

4-1 A general surcharge is due for all purchase orders for vendor TS3##. This surcharge is

scaled according to the total value of the purchase order.

The surcharge applies for all articles supplied by the vendor, and is to be divided

among the individual order items proportionally.

A suitable condition type does not exist for this condition. Before you define a new

condition type, consider:

On which factors does the condition (e.g. vendor, article)

________________________________________________________

Which condition class should be assigned to the new condition type?

________________________________________________________





Which calculation type should you use for the new condition type? ________________________________________________________

How can you make sure that your condition type is interpreted as a surcharge?

________________________________________________________

How do you ensure that the surcharge amount is split among the items? ________________________________________________________

What scale basis should you choose?

________________________________________________________Choose scale type B.

4-2 Define the new condition type; Use the key ZS## and the description “Surcharge

IRT320-##”. Use the standard condition type RL01 as a reference.

4-3 Change your calculation schema ZISR## by adding your new condition type ZS## as a

further surcharge. You should assign your condition type to the same step as all othersurcharges and discounts, and have it as the last condition type at this level. Use

standard condition type RL01 as a reference.

(Note: Confirm the message “You should use the counter only for manual itemconditions” by pressing Enter .)

4-4 At what level/counter are the surcharges/discounts included in the calculation schema?

___________________________________________________________

The condition values for your condition type ZS## should be printed item-by-item(procedure up to now). What print indicator do you have to set to achieve this?

___________________________________________________________

Save your changes.





Introductory sheet for the solutions

The Solutions are based on the following assumptions:

• You are on the SAP Retail initial screen (transaction W10T). You

should enter this transaction as the start menu in your user parameters.:

System User profile Own data,

on the 'Defaults' view, enter ‘W10T’ as the StartMenu.

• If the term Retailing is written before a path, you are in the SAP Retailing menu, the SAP Retail application menu (transaction

W10M).

You get here from SAP Easy Access SAP Retail by choosing

Logistics Retailing

• If the term IMG is written before a path, you are in theImplementation Guide of the R/3 System, where you can make

Customizing settings.You get here from SAP Easy Access SAP Retail by choosing

Tools AcceleratedSAP Customizing Edit project Display

SAP Reference IMG (F5)

or the transaction

NSPRO F5





Elements of the Condition Technique Solutions

Unit: Elements of the Condition Technique

1-1 Menu path:

IMG: Materials Management Purchasing Conditions Define Price

Determination Process Define Condition Types Define Condition Type

Button: Choose

Condition

Type

Condition

Class

Calculation

Type

Condition

Category

+/-

.

PB00 B C H positive

RA00 A A -- negative

RB00 A B -- negative

RC00 A C -- negative

RL01 A A -- negative

FRB1 A B B positive

SKTO A A E positive

1-2 Menu path:


Determination Process Define Calculation Schema

Select calculation schema; Double click on Control data





Condition Type Step Counter

RB00 110 1

RC00 110 2

RA00 110 3

RA01 110 4

HB01 110 10

RL01 110 11

RGR0 110 13

RGR0 110 13

1-3 Menu path:



Select calculation schema;

Edit → Copy As…

Enter name and description of the new calculation schema





2-1 Menu path:


Determination Process Define Schema Group Schema Groups: Vendor

Button: Choose

Select Standard procedure vendor

Edit Copy As…

Enter vendor schema group and description

2-2 Menu path:


Determination Process Define Schema Determination Determine Calculation

Schema for Standard Purchase Orders

Button: Choose

Button: New Entries

Schema gr. POrg Schema gr. Vnd Schema Description

R001 20+## ZISR## Purch. doc.

group 20+##

2-3 Menu path:

Retailing Master data Vendor data Edit Vendors Vendor Change

Purchasing (Immed.)

Vendor TS3##

Purch. organization R300Select Purchasing data

Subscreen Conditions

Field Schema group, vendor: 20+##

2-4 See 2-3

3 Menu path:

IMG: Materials Management Purchasing Conditions Define Price Determination

Process Define Condition Types

Condition type: RL01 Vendor Discount %

Access sequence: 0006 Vendor Discount

3-1 Menu path:


Determination Process Define Access Sequences

Confirm messageSelect access sequence 0006, double-click on Accesses

3 accesses





3-2

AcN

o.

Tab. Description Requirem

nt

Exclusiv

e

10 45 Condition group of the vendor x

20 69 Vendor subrange x

30 44 Vendor x

3-3 Table 44: EKORG and LIFNR

Document structure KOMK: EKORG and LIFNR

3-4 1. Check whether a suitable access sequence already exists, which can be enhanced or

changed → Copy this access sequence

2. Insert a new access or delete accesses that are not required and assign to the relevant

database table.

3. Assign the fields of the communication structure to the fields in the table4. Assign the new access sequence to the relevant condition type.

3-5 No, not all condition types refer to an access sequence. The deciding factor is whether

conditions with their own validity period can be created for the condition type.

Exceptions are, for example, article-specific discounts and surcharges. The validity of

these always depends on the validity of the gross price of the article.

4-1 As the surcharge is to apply to all articles from the vendor, it only depends on the

purchasing organization and vendor.

Condition class A (surcharges and discounts) and calculation type B (= fixed amount)should be assigned to the new condition type.

You use sign A (= “positive”) to define that the condition type is interpreted as a

surcharge.

If you select the group condition indicator, the surcharge amount is split proportionallyamong the document items.

The scale basis should be B (= value scale), the check value = A and the scale type B

or blank.

4-2 Menu path:


Determination Process Define Condition Types Define Condition Type

Button: Choose





4-3 Menu path:



Select calculation schema; Double click on Control data

4-4 Surcharges and discounts are sorted at level 110 in the calculation schema.

Insert your new condition type ZS## at level 110 with the counter 18.

By selecting print indicator X, you define that the condition values are printed item-

by-item (procedure up to now).





SAP AG 2003

Conditions in Purchasing





SAP AG 2003


Conditions in Purchasing

Explain price determination for a purchase order

Apply pallet discounts and free-goods discounts





SAP AG 2003

You agree on a new type of condition and itssettlement, with your vendor. Once you haveentered your conditions for the vendor, youwant to use the new purchase price.

Business Scenario





SAP AG 2003

Course Overview

Conditionsin Purchasing

5

Pricing

Promotion

4

2

1

6Inventory Managementand Valuation3


Elements of theCondition Technique





SAP AG 2003

Conditions

Condition maintenance in the purchasingview of article maintenance

SiteSite Vendor Vendor

Condition Maintenance





SAP AG 2003

Purchase order

POrg R300Vendor R3000

Article R100000Order quantity 1000 pcPrice/pc 10

Purchase order

Vendor Vendor SiteSite

Condition Maintenance





SAP AG 2003

Calculation Schema

RMISR0

Step

1...

. . .C.Typ

PB00

Condition type: PB00

Access sequence: 0002...

Access sequence: 0002

Condition tables:

1. Site info record (excl.)2. Article info record (excl.)....

Purch.order

POrg R300Vendor: A

For site R301Article 1

5 pieces

Condition tableSite info recordno record available

Condition tableArticle info recordArticle 1 10.00as of 500 pc 9.50

50,00

Price Determination Overview

When you create a purchase order, the system searches through purchasing info records, purchasing

documents, and general conditions for valid conditions and adopts these as default values in the new

document. Prices are determined in several steps:

First, the schema assignment is used to determine the relevant calculation schema

The system searches for condition records for all the condition types listed in the calculation schema,

providing an access sequence is assigned to the condition type

The system searches for condition records in the order defined in the access sequence

The search is complete when the system has found a valid condition record

Article-specific surcharges and discounts are usually defined as supplementary conditions for the

gross price (PB00). An access sequence is not assigned to additional conditions in Customizing for the

condition type. Separate price determination is not carried out for additional conditions - they are

determined using the condition record for the gross price.





SAP AG 2003

Validity Periods and Pricing Date

Gross price PB00

1.01. - 31.03. 9.50

1.04. - 30.06. 9.80

1.07. - 30.09. 9.00

1.11. - 31.12.10.00

Purchasing viewPurchasing view

Price control

1 = Order date 2 = Delivery date 3 = Current date

Current date: 1.07.

Order date: 30.06.Delivery date: 3.10.

Price: 9.00

Current date: 1.07.


Price: 10.00

Current date: 1.07.


Price: 9.80

Purch. order 3Purch. order 2Purch. order 1

Time-dependent conditions are always restricted to a validity period defined by a start date and end date.

If you do not enter a validity period, the system proposed a period. In Customizing, you can control the

period proposed by the system. When you create a purchase order, the pricing date determines which validity period the system uses. In

the standard system, the pricing date is the same as the document date of the purchase order. However,

you can select the delivery date, goods receipt, or a manually entered date instead of the document date.

You can define a default value for the pricing date category in the vendor master or the purchasing view

of the article or enter a specific pricing date on the purchase order initial screen.

The proposed pricing date category or the pricing date can be changed at PO item level. However, if you

change the date, price determination is not carried out automatically. It must be triggered manually on

the conditions screen.

If you select the delivery date for price determination, the delivery date of the first schedule line is used

for items with several delivery dates (schedule lines).





SAP AG 2003

Pallet discounts

Pallet discount Surcharge for incomplete pallet

Free goods

Inclusive bonus quantity

Exclusive bonus quantity

Retail-Specific Conditions





SAP AG 2003

Pallet Surcharge

Surcharge for

incomplete pallet

Pallet discount

Discount

for each full pallet Article 1

Article 1

Article 1

Article 1

Article 1

Article 1

Article 1

Article 1

Article 1

Article 1

$5 discount

for each fullpallet

$5 discount

for each fullpallet

$20 surchargefor each

incomplete

pallet

$20 surchargefor each

incomplete

pallet

Pallet-Specific Conditions

A pallet discount is granted even if the pallet contains several different articles. These articles must

always have the same base unit of measure and alternative unit of measure. The pallet discount can then

be split over the individual articles. The same applies for a surcharge for an incomplete pallet.





SAP AG 2003

Calculation schemaStep

20

24

26

...

Cntr

0

0

0

CTyp

LP00

LP01

. . . ReqtDescription

Net value incl.discount

Pallet discount

Surcharge forincomplete pallet

AltCty

22

24

AltCBV

*Quantity (whole number)FORM FRM_KOND_BASIS_022....ENDFORM.

*Quantity = 1 if incompletepalletFORM FRM_KOND_BASIS_024....ENDFORM.

Palletdiscount5.00 /1 pallet

1 pallet = 10 cartons

Surcharge forincomplete pallet20.00 /1 pallet

100,00

Pallet Discount/Surcharge for Incomplete Pallet(LP00/LP01)

Condition type LP00 allows you to define discount conditions that are only taken into consideration if

the unit of measure is a whole number (pallet or carton, for example). The unit of measure is assigned to

the condition type. This condition type must be included in the calculation schema and assigned to basisformula 22. Basis formula 22 checks whether the purchase order quantity is a whole number, and the

condition type is only taken into consideration if it is a whole number.

Condition type LP01 enables you to define surcharges that are only taken into consideration if the pallet

is incomplete. The unit of measure (pallet, for example) is assigned to the condition type. This condition

type must be included in the calculation schema and assigned to basis formula 24. Basis formula 24

checks the purchase order quantity and rounds it to value of a unit of measure that is assigned to the

condition type.

In the case of mixed pallets, you can use condition types LP02 (mixed pallet discount) and LP03

(surcharge for incomplete mixed pallet). Both are defined as group conditions and therefore allow you to

cumulate the quantities of the individual items. Scale formula 23 is assigned to condition type LP03.

This formula eliminates the numbers in front of the decimal point and checks the decimal places.





SAP AG 2003

Purchase order Purchase order Company

Invoice

Company

Invoice

Company

Purchase order MMM

10 pieces10 pieces

DeliveryDelivery

10 pieces10 pieces

InvoiceInvoiceCompany

Invoice

Company

Invoice

Company

Invoicex y z

8 pieces8 pieces

Free-Goods Discount: Inclusive Bonus Quantity

Free-goods discount are discounts in kind given on merchandise and are part of the price agreements

made for an article.

With inclusive bonus quantities, the ordering party only pays for a part of the quantity of goods ordered.The remaining quantity is free. Inclusive bonuses are also referred to as inclusive discounts in kind,

meaning that a part of the quantity ordered is given as a free-goods discount (at no charge).

As an example: If you order 10 bottles, the vendor gives you 1 bottle free. 10 are delivered, and you are

only billed for 9. In this case, you take the free-goods discount into account when you order this article

from this vendor.

For the free-goods discount to be taken into consideration in the purchase order, you must define that the

free goods are allowed for the vendor and the article in question.





SAP AG 2003

Purchase order Purchase order Company

Invoice

Company

Invoice

Company

Purchase order MMM

DeliveryDelivery

4 packets +1 coffeemachine

4 packets +1 coffeemachine

InvoiceInvoiceCompany

Invoice

Company

Invoice

Company

Invoicex y z

4 packets4 packets 4 packets4 packets

C o f f e e

C o f f e e

C o f f e e

C o f f e e

+++

C o f f e e

C o f f e e

Free-Goods Discount: Exclusive Quantity

With exclusive bonus quantities, the ordering party is charged for the merchandise ordered but receives

additional goods free of charge. Exclusive bonus quantities are often referred to as exclusive discounts in

kind, meaning that a certain quantity is granted as a discount in kind over and above the quantity orderedin the purchase order. You receive more than you ordered, with no charge being made for the extra

quantity.

As an example: If you order 10 bottles, the vendor gives you 1 bottle free. 10 are ordered, but 11 are

delivered. You are only invoiced for 10.

With exclusive bonus quantities, the article you receive free can be the same as the article ordered, or a

different article.





SAP AG 2003

Table 05 no record availableTable 10 access successful

Schema NR0001

10 1 NR00 Free goods.

Access seq. Valid from Valid to

Condition type NR00

Access seq. NR00

Access:10 05 Vend./Article/POrg/Site

Access:20 10 Vend./Article/POrg

Condition records

R3002 R100014 R300 ... ... ... ...

Purchase order

1

2

Doc. type : NB

Purch. org. : R300Purch.group : R30

Vendor : R3002

Main item R100014

Sub-item U

Qual.f. disc.in kind X

Qual.f. disc.in kind X

Vendor Vendor

ArticleArticle

Free Goods: Control

Prerequisites for determining free-goods discounts in Purchasing:

Article and vendor must be flagged as qualifying for free-goods discounts.

The free-goods discount schema of the business transaction is determined from the purchasingorganization schema group and vendor schema group.

The condition types of the free-goods discount are listed in the condition types.





SAP AG 2003

You are now able to:

Conditions in Purchasing: Unit Summary

Explain price determination for a purchase order

Apply pallet discounts and free-goods discounts





Conditions in Purchasing Exercises

Unit: Conditions in Purchasing


1. Understand price determination for a purchase order

2. Create pallet discounts and free-goods discounts

3.

You agree on a new type of condition and its settlement with yourvendor. Once you have entered your new conditions, you want to

calculate a new purchase price.

1 In article maintenance, you want to maintain new conditions.

1-1 Maintain the Purchasing view for your new article TA13##:

Purchasing organization: R300

Vendor: TS3##

Planned delivery time: 10 days

Purchasing group: R 30 Minimum order quantity: 10 pieces

Gross price: 285.00 USD as of 1 piece

275.00 USD as of 50 pieces250.00 USD as of 250 pieces

Discount on net price: 1% for purchase of 1 piece or more

2.5% for purchase of 50 pieces or moreFreight surcharge: 50.00 USD

The conditions are to be valid until the end of the following year.

Save your entries.

1-2 What condition types do you use?

Condition Condition Type

Gross price

% discount on net price

Absolute freight surcharge





1-3 Vendor TS3## also grants a scaled discount on all articles for a limited period (vendorrebate):

-3% for a condition value over 10,000.00 USD



This discount is limited for a period of four weeks, starting from today.

Maintain the vendor discount for purchasing organization R300.

Save your entries.

2 Check the conditions in a purchase order

2-1 Create a purchase order:

Vendor: TS3##


Purchasing group: R30Delivery date: in 2 weeks (applies to both items)

Item 1: Order 50 pieces of article TA13## for site T1## .


Do you have to enter a net price? _________________________

2-2 Check the conditions for both items and determine the amounts/percentages for both

items:

Item 10 Item 20

Gross price (per piece)

% discount on net price

Vendor discount

Net price (per piece)

Freight surcharge

Cash discount

Effective price (per piece)

Save your purchase order.

2-3 Why are different prices and different vendor rebates determined?

_________________________________________________





2-4 What setting do you have to make in Customizing to ensure that the individual itemsare cumulated, meaning that other prices and discounts can be obtained?

_________________________________________________

2-5 In addition, your vendor TS3# grants you a pallet discount of 20.00 USD for each

complete pallet. If the pallet quantity is incomplete, a surcharge of 10.00 USD is due.

Maintain conditions for this.

2-6 Now create a new purchase order:

Vendor: TS3##


Purchasing group: R30

Delivery date: in 2 weeks (applies to both items)



Which pallet conditions does the system use?

_________________________________________________


3 You have negotiated a new agreement with vendor TS1##.

3-1 Now maintain the Purchasing view of article TA13## for vendor TS1## .

Vendor: TS1##

Article: TA13##


Planned delivery time: 10 days


Purchase price: 290.00 USD

Save your entries.





3-2 You negotiated the following surcharge with your vendor.

Maintain the conditions of vendor TS1## for your new condition type ZS## (see

exercises for unit Element of the Condition Technique 4-2).

-30.00 USD up to a total purchase order value of 5,000.00 USD

-20.00 USD up to a total purchase order value of 8,000.00 USD

-10.00 USD up to a total purchase order value of 20,000.00 USDIf the total purchase order value is greater than 20,000.00 USD, the surcharge does not

apply.

The surcharge applies until the end of the following year.

What menu option do you use?

___________________________________________________________

Save your entries.

3-3 Create a purchase order with the following data:Vendor: TS1##


Purchasing group: R30 Delivery date: in 4 weeks (applies to both items)

Site: T1## (applies to both items)

Article 1 TA13## 10 piece

Article 2 TA05## 38 pieces

Go to the header conditions screen and check:

The total net value of the purchase order ______________________

The gross price per piece ______________________

The surcharge for the whole purchase order ______________________

Go back to the item overview screen.

What net price was calculated for both articles? ___________

Use the condition details screens for both items to check the proportional distributionof the surcharge.

What is the surcharge for item 10 ? _________________

What is the surcharge for item 20 ? _________________






4 You want to maintain a free-goods discount for your article in the form of an exclusive bonusquantity.

4-1 In the Purchasing view of vendor TS3##, check if the indicator that controls whether

the vendor can grant free goods is selected.

4-2 In the Basic Data view of article TA13## maintain the indicator that controls whether

the article is eligible for discount in kind for Purchasing and Sales.

4-3 Assign the free-goods calculation schema NR0001 to your vendor schema group ##.

4-4 Create an exclusive bonus quantity for your article.

Article: TA13##

Vendor: TS3##


Key combination: Info record per order unit Info record category: 0

Order unit: Piece

Maintain your free goods discount NR00 as exclusive bonus quantity so that, with anorder quantity of 1000 pieces or more, one piece of article TA20## is delivered for

each 100 pieces of article TA13##. Set the calculation to “Unit reference”.

Save the free-goods discount.

4-5 Create a new purchase order for 999 pieces of article TA13##:

Vendor: TS3##


Delivery date: in 2 weeks

Site: T1##

What happens?

___________________________________________________________

___________________________________________________________

Change the order quantity to 1,000 pieces. What happens?

______________________________________________________________________

________________________________________________

What is the price of exclusive bonus article TA20## ? ____________________






4-6 This setting is needed for the next unit:

Maintain a purchase price of 0.80 USD for Article TA14## and Vendor TS1##.

5 In some cases, several conditions apply for the same item.

In these cases, you can use the condition exclusion procedure to define which condition should be selected.

5-1 Vendor TS1## delivers articles TA01##, TA03## and TA04## at the followingconditions, valid for an unlimited period:

For all three articles, create conditions for vendor TS1## and purchasing organization

R300.

5-1-1 Article TA01##

Gross price: 1.0 USDDiscount RA01 3%


Gross price: 60 USD

Discount RB00: 2 USD as of 2 car

5 USD as of 100 car


Gross price: 31 USD

5-2 Vendor TS1## informs you that you will be granted a general discount of 5% for anunlimited period.

Create the vendor discount for condition type RL01.

5-3 This vendor discount only applies to articles that do not have an article-specificdiscount.

Define two condition exclusion groups: AG## with the description Article group ##

and LG## with the description Vendor group ##.

Save these condition exclusion groups.





5-4 Assign discount condition types RA01 and RB00 to condition exclusion group AG##.

Assign condition type RL01 to condition type group LG##.

Save these assignments.

5-5 Assign condition exclusion groups AG## and LG## and a suitable condition exclusion

procedure to calculation schema ZISR##.

5-5-1 Which condition exclusion procedure do you choose?

___________________________________________________

5-5-2 Pay attention to the condition exclusion group sequence. In what order mustyou enter the condition exclusion groups?

___________________________________________________

5-6 Create a purchase order with the following data:

Vendor: TS1##


Delivery date: In four weeks (for all items)Site T1## (for all items)

Order 100 car each of articles TA01##, TA03## and TA04##.

Go to the individual PO items and look at price determination.

How are the net prices determined for the following articles?

5-6-1 Article TA01## ________________________________________________________________

________________________________________________________________

__________________________________


________________________________________________________________

________________________________________________________________

__________________________________


________________________________________________________________

________________________________________________________________ __________________________________





Conditions in Purchasing Solutions

Unit: Conditions in Purchasing

.

The solutions are based on the following assumptions:

• You are on the SAP Retail initial screen (transaction W10T). You

should enter this transaction as the start menu in your user parameters.:

System User profile Own data, on the 'Defaults' view, enter ‘W10T’ as the StartMenu.


W10M).You get here from SAP Easy Access SAP Retail by choosing

Logistics Retailing

• If the term IMG is written before a path, you are in the

Implementation Guide of the R/3 System, where you can makeCustomizing settings.

You get here from SAP Easy Access SAP Retail by choosing

Tools AcceleratedSAP IMG Edit project Goto SAP

Reference IMG (F5)

or the transaction

/NSPRO F5

1-1 Retailing: Master data Article data Article Change

1-2 Gross price PB00

% discount on net price RA00

Absolute freight surcharge FRB1 or FRB2

1-3 Retailing: Master Data Conditions/Arrangements Condition: Purchasing Discounts/Surcharges By Vendor

Cursor in row POrg/Vendor

Button: [Create]

2-1 Retailing: Purchasing Purchase order Purchase order Create Vendor

known

You do not have to enter a gross price.





2-2

Item 10 Item 20

Gross price for 1 piece 275.00 USD 250.00 USD

% discount on net price 2,5% 2,5%

Vendor discount 3% 5%

Net price for 1 piece 259.88 USD 231.25 USD

Freight surcharge 50.00 USD 50.00 USD

Cash discount -- --

Effective price for 1

piece

260.88 USD 231.36 USD

2-3 Because of the scales, several prices and discounts are used for each PO item.

2-4 The conditions must be flagged as a group condition.

2-5 Retailing: Master Data Conditions/Arrangements Conditions: Purchasing

Discounts/Surcharges By Vendor Create

Choose Edit Scope All possibilities to display all possible conditions.


known

Item 10: LP01; surcharge 10.00 USD

Item 20: LP00; discount 20.00 USD per pallet


3-2 Retailing: Master Data Conditions/Arrangements Purchasing Conditions

Discounts/Surcharges For Vendor

Create-{}-






known

Total value of the purchase order: 8,876.00 USD

Gross price per piece: 290.00 USD / 157.00 USD

Surcharge for whole purchase order: 10.00 USD

Net price per article: 290.33 USD / 157.18 USDSurcharge for item 10: 3.27 USD

Surcharge for item 20: 6.73 USD

4-1 Retailing: Master data Vendor data Edit vendors Vendor Change

Central


4-3 IMG: Materials Management Purchasing Free Goods Define and Assign Free Goods Schema Determine Free Goods Schema

4-4 Retailing: Master data Conditions/arrangements Conditions: Purchasing

Free goods Create

Free goods discount type NR00

Button: [Key Combination info record per order unit]

Button: [Execute]

Button: [Exclusive bonus quantity]


known

Message: Minimum quantity for free goods not reached.

The free goods discount is taken into consideration, the free goods article is displayed

in the item overview.

The exclusive bonus article is free of charge.


Purchasing view


5-2 Retailing: Master Data Conditions/Arrangements Purchasing Conditions

Discounts/Surcharges For Vendor Create





5-3 IMG: Materials Management Purchasing Conditions Define Price

Determination Process Define Condition Exclusion Condition Exclusion

Groups

5-4 Assignment of Condition Exclusion <–> Condition Types

5-5 Assignment of Condition Exclusion <-> Calculation Schema

Calculation schema ZISR##

5-5-1 SNo. = 1

Condition exclusion procedure D (exclusive)

Sequence AG##, LG##


known

Item Conditions

In the first two items, RL01 is determined but not used, in the third item RL01 is used,as there is no article-specific discount.





SAP AG 2003

Sales price calculations

Price points

Additionals

Price lists

Price determination sequences

Functions for maintaining competitor prices

Market-basket price calculations

Pricing documents

Pricing worklist function

Contents:

Pricing





SAP AG 2003


Pricing: Unit Objectives (1)

Calculate sales prices, taking into account various

retail and cost conditions

Explain the differences between one-step and two-

step calculations

Use price points

Include material and handling costs for additionals

in price calculations

Explain how the pricing table is structured and

define list variants





SAP AG 2003


Pricing: Unit Objectives (2)

Explain the functions for price lists, pricingdocuments and the pricing worklist

Name the price determination types and sequences in

both Purchasing and Sales

Enter competitor prices, define pricing strategies and

perform sales price calculations based on these

Explain the market-basket pricing functionality

Sell seasonal goods at reduced prices in line with a

predefined plan in markdown planning





SAP AG 2003

Course Overview

Conditions

in Purchasing

5

Pricing

Promotion2

3

1

6Inventory Management

and Valuation

4


Elements of the

Condition Technique





SAP AG 2003

You have maintained prices and conditions for a

new vendor, and you now want to calculate sales

prices based on these prices and conditions.Additionally, you want to enter competitor pricing

information, and perform a market-basket analysis.

Pricing: Business Scenario





SAP AG 2003

Calculate sales prices for different articles andorganizational levels in a single procedure

Use two-step price calculations

Describe the procedure and control parameters

for calculating sales prices

At the conclusion of this topic, you will be able to:

Sales Price Calculations: Objectives





SAP AG 2003

Planned or

actual markup

Purchase price Sales price

3

221

Basic Functions in Sales Price Calculations





SAP AG 2003

per per

merchandisemerchandise

categorycategory

Planned markupPlanned markup

per distribution

chain

per distributionper distribution

chainchain per price listper price listper price list

valid from - to valid from - to

Planned Markups

Markup calculations are one way of determining a suggested value for the sales price. Planned

markups can be stored in the system for markup calculations.

Planned markups are added to the (net/net) purchase price. They reflect both the profit that a

company aims to make by selling certain articles and general cost components.

Usually, you would define a planned percentage markup for a combination of sales organization,

distribution channel and merchandise category. In wholesale, planned markups can also be defined

for different price lists. As planned markups are condition types, you can also define them for other

organizational levels, such as for individual articles.





SAP AG 2003

any

combination

Sales price

calculation

Selecting

articles

Vendor sub-range

Article

Vendor

Merchandise category

Season

Selecting

organizational levels

Price list

Distribution chain

Site

Site group

Sales Price Calculations: Selection

Sales price maintenance allows you to maintain the final sales prices for an article in a store or a

particular group of stores, or to maintain transfer prices in a warehouse or distribution center.

Purchase prices and predefined markups form the basis for calculating these sales prices. You canmaintain sales prices for an individual article or for a group of articles (mass maintenance). The prices

are always stored at article and site/distribution chain or price list level.

The selection options for articles are:

Article number (variant) from/to


Vendor or vendor sub-range

Season

The following organizational levels can be selected:

Distribution chain

Site group

Site

Price list





SAP AG 2003

Pricing table

Article

or

Site Vendor PP Planned markup Actual markup Gross SP Margin

List fieldsList fields

List groupList group

Fixed part

Header

Site

or

Article

List variantsList variants

Sales Price Calculations: Display

In the initial screen for sales price calculations, you can select how they should be displayed. This

display is determined by list group and list variant.

The list group controls which data is displayed in the header and which in the fixed part of the pricingtable.

List variants are used for individually designing the list screen in which the calculation is performed

(pricing table).

You can use list variants to define which list fields should appear in the pricing table.

The list variant determines which table columns appear in the list screen and in what order they are

displayed. The column number defines the sequence of the columns in the table.

You can also add your own texts to the predefined list fields in the pricing table for sales price

calculations. These texts are used as titles for the columns in the table.





SAP AG 2003

Calculation Schema

Document creation

Pricing currency

...

Organizational

level

Pricing typePricing type

Sales Price Calculations: Control Parameters

The pricing type controls (among other things) which sales price calculation schema is to be used for the

different distribution chains.

The pricing type also controls: whether pricing documents are to be created,

whether, if the purchase price of an article changes, the sales price or the markup remain the same,

which currency is to be used for the conversion,

and which conversion rate is to be used to convert foreign currencies.





SAP AG 2003

Control parametersControl parameters

Sales price calculation schema WWS001

Article 4711 Quantity: 100 PC

C.Type Description Amount Currency Unit of Condition Currency

measure value

EKNN Cost price9.009.00 USD PC 900 USD

(net/net)

AUFS Markup 10 % 90 USD

. . .

Net value 990 USD

MWST

Gross value 990 USD

Org. ... Pur. price Sls price Sls price Pricing Final price Sales

Level (net/net) (net) (gross) currency currency

List field EKPNN VKPNE VKPBR KWAER ENDPR VWAER

Value 9.00 9.90 9.90 USD 9.99 USD

1 2 3

4

Retroactive

adjustment

Sales Price Calculations: Procedure

The starting point is the (net/net) purchase price that is determined during purchase price determination

and transported to the schema via condition type EKNN (see red arrow 1 in slide diagram).

In Customizing for Pricing (Control Data for Pricing Table and Data Backup), you define how the listfields of the pricing table are filled using pricing data from the sales price calculation schema. The data

transport can take place either via a subtotal or via a condition type from the schema.

The actual markup in the pricing table is linked to the condition types AUFS and AUFX via a subtotal

(compare supplied sample calculation schema WWS001). These refer to the purchase price displayed

above them in the pricing table.

The (net) sales price and the (gross) sales price are also connected via subtotals from the schema. The

main difference between the gross and net sales prices is the inclusion of taxes in the gross sales price.

The prices are transported to the list fields as shown by arrows 2 and 3 (see slide diagram).

If rounding to price points has been defined, the sales price determined using the schema is rounded

(arrow 4 in slide diagram) and the calculation is adjusted to reflect the rounded final price.





SAP AG 2003

Org. Pur.Price Sls Price Sls Price P ricing Final price Sales

level (net/net) (net) (gross) currency currency

List field EKPNN VKPNE VKPBR KWAER ENDPR VWAER

Value 9.00 9.99 9.99 USD 9.99 USD

Database

Cond. type Value Currency Price unit Unit of meas.

VKP0 9.99 USD 1 pc

Sales Price Calculations: Saving Calculations

When the calculation is saved, the value of the ENDPR list field is written to the database as a condition

record.

You should make all the settings for saving the data under Control Data for the Pricing Table and Data Backup in Customizing for Pricing.

You define the condition type to which the data is to be saved in the ENDPR list field in the Control

Data for Sales Price Calculation Schema and List Field view. In the Assignment of Pricing Tables view,

you can define which condition tables are to be used for storing the condition records for the various

pricing levels (distribution chain, site, price list).





SAP AG 2003

Purchase price USD 1.00

Sales prices USD 1.19

Purchase price determination - usually

performed using a purchase price

calculation schemasuch as RMISR0

Sales price determination

using a sales price calculation

schema such as

WWS001

StoreStore

Consumer Consumer

Vendor Vendor

One-Step Calculations

If sites are to be supplied directly by vendors, a sales price calculation method known as "one-step

calculation" is used.

It is also possible to perform the sales price calculation based on the desired sales price. In this case, thesystem automatically calculates various factors, such as the margin.

The actual margin determined can also be overwritten.





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Vendor Vendor

StoreStore

Consumer Consumer

Distribution center Distribution center

With temporary storage in the database


Purchase price

determination using

calculation schema (suchas VKP002) for sales price

determination

Transfer price

USD 1.00

Saved to

database

Two-Step Price Calculations (1)

The RMISR0 calculation schema is supplied.

The various factors that influence sales are calculated using the calculation schema.

For example: if the price is calculated using a planned markup, the sales price is determined on the basisof the purchase price and the planned markup. The subtotal "S" is assigned to the effective value in

purchase price calculation schema RMISR0 that is determined automatically in the condition type

EKNN. The condition type EKNN is used as a receipt condition in sales price calculation schema

WWS001.





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Vendor Vendor

StoreStore

Consumer Consumer

Internal comparison

Simultaneous calculation for DC and store


Transfer price

USD 1.00







SAP AG 2003


Transfer price USD 1.00

Vendor Vendor

Consumer Consumer


Transfer price is

determined in

background

Generates calculation in background

Transfer

Calculation just for store supplied


When you are calculating prices for a store that is supplied internally, but not for the distribution center

(or the distribution center, distribution chain or the relevant price list), and there is no sales price in the

system for the distribution center, a calculation for the distribution center is generated in the background.The issue price that is determined in this way is used for the calculation for the store.





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Make and use the settings required for roundingto price points - that is, for rounding to

"psychological" prices


Price Points: Topic Objectives





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Define Price Point GroupsDefine Price Point Groups

Rounding rule 30 %

Price point ranges

first last price

price price difference

0.29 9.99 0.10

10.99 99.99 1.00

109.99 999.99 10.0012.99

13.69

13.99

rounding up

Article -> Merch. cat.Sales organization

Distribution channel

Site group

Site

Price list

Rounding to Price Points

A price point interval is defined using two adjacent price points. The value of the rounding rule is a

percentage that defines which part of an interval is to be rounded up.

This part starts at a lower level and ends at the upper interval limit of the price point interval. Rounding = 0% means that the whole interval is rounded down,

Rounding = 100% means that it is always rounded up.





SAP AG 2003

Take account of material and handling costs for additionals when determining sales prices


Additionals: Objectives





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C&A Regular Ticket C&A Reduction Ticket

Composition of goods

and care instructionsThe trademark of Marks & Spencer

An additional is an article with its

own master record and is

assigned to an article for sale for

presentation and sales purposes.

Additionals

Because the number of additionals assigned to an article can differ, it is hard to take account of

additionals when calculating prices.

Material and handling costs for the various additionals of an article are mapped using the usual conditiontypes.

The condition types for material and handling costs are used only once in a purchase price calculation

schema.





SAP AG 2003

Additionals in Purchase Price Determination

.... Unit of measure Additionals Procedure.... ....

.... PC Price ticket Attached in store.... ....

....Usage indicator

for promotions Invoice recipientPrice calculation

control.... ....

Retailer Material and handling

costs.... ....always use....

ArticleArticle

Additional

data





SAP AG 2003

Additionals in Purchase Price Determination

Material costs

Condition type KAD0

Handling costs

Condition type KAD1

Purchase price

calculation schema

Requirement 64Requirement 63

Special requirements are used to define that an article can have several additionals. These requirements

analyze the article master data and determine whether additionals are taken into account during price

determination, and if so, how (requirement 63 and 64).





SAP AG 2003

Vendor

Distribution chain

Site

Price list

Site price list

Site groups

Vendor / Purchasing organization

Vendor / purchasing organization

/site

Distribution chain

Site

Price list

Site price list

Site

Purch.

price

Sales

price

Data retention levelsOrganizational levels

Sales

price

calculation

Sales Price Calculations: Data Retention

Sales prices can be calculated individually for various sites and distribution chains, based on the

organizational structure of the company.

Note: If the sales price calculation is performed for the "site group" organizational level, the data isstored at the "site" level, which in turn affects performance.





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Explain the possibilities for and advantages ofusing price lists to calculate sales prices


Price Lists: Topic Objectives





SAP AG 2003

Distribution chain

self service

warehouses

Store 11

Store 1 Store 2

Store 14

Store 7Store 6

Store 12 Store 13

Store 5Store 3

Store 8 Store 9

Store 4

Store 10

Store 15

Price list 1 Price list 2

Article 1 1.99 USDArticle 1 1.99 USD Article 1 1.69 USDArticle 1 1.69 USD

Site Price Lists

Sales prices can be calculated individually for various sites and distribution chains, based on the

organizational structure of the company.

Example for the motivation for using site price lists:If only two prices are to be used for the stores of a distribution chain, you can maintain a sales price at

distribution chain level for the larger group, however you then still need to create the same site-specific

sales price for the stores in the second group. Among other things, this had a negative effect on system

performance.

Sales prices at price list level are used in the wholesale business. These price lists are assigned to

customers in their sales area data and allow customers to be grouped according to sales price. Because of

this setup, the sales prices at price list level have higher priority than sales prices at distribution chain

level. These wholesale price lists are similar to the site price lists used to group the sites of a distribution

chain for pricing purposes. The sales prices at site price list level are therefore ranked between sales

prices at distribution chain and site level in terms of priority.





SAP AG 2003

Lemonade: 0.89

Butter: 1.99

Perfume 79.90

Lemonade: 0.99

MMM

MMM

MMM

Dist. Chain R300/R1Dist. Chain R300/R1

Price list type:Price list type:

"Economy""Economy"

SiteSitePerfume 89.90Price list type:Price list type:

"Luxury""Luxury"

Butter: 1.99

Perfume 89.90

Lemonade: 0.89

Beverages

Cosmetics

Site Price Lists: Example

Site price lists are assigned (optionally) to sites in the merchandise category data of the site master. This

means that the sites are grouped according to merchandise category. This means that a site may be in

different (sales price) groups for different merchandise categories.





SAP AG 2003

Sales price

calculation

Article 11.99

1.95

1.69

B1 : Luxury

B9 : Economy

Sales prices in the

site price lists

B2 : Expensive

Beverages

Site Price Lists: Calculation





SAP AG 2003

Article 1: 1.99

2.09B1

B9

B2 Article 1: 1.99

Article 1: 1.69

Price assignment

B1

Beverages B9

B2

Change in

assignment2

Change to

calculation1

Site

Site

Beverages

Site Price Lists: Price Changes





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Pricing for

article/site

Article

Sales organization

Distribution channel

Price listPrice list typesPrice list types

•• KeysKeys

•• DescriptionDescription

A071: Site level

A006: Site price list level

A073: Distribution chain level

Controlling theControlling the distdist. chain. chain

Permitted pricing level:

- price lists only

1 Sites only

2 Price lists and sites

Price list typeCondition type VKP0

Dist. chain pricing level

Site Price Lists: Control

Site price lists are maintained in the same way as price lists for customers in Customizing for Sales and

Distribution.

Sales price lists are calculated in the same way as price lists for customers (in conjunction with adistribution chain) in the sales price calculation function.

Note:

Sales prices may also change due to changes to the site price list in the site master data.





SAP AG 2003

Use different determination sequences to createflexible purchase and sales price determination

functions


Price Determination Sequences: Topic Objectives





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Purchase price

determination

types

Price determinationusing standard

schema

determination

Price determination

using a special

schema

Price determinationusing a customer-

defined function

module

Interactive entry

Determination using

the components of a

sales set

Vendor mixed

price

B

A E

D

C

F

Purchase Price Determination Types

In the sales price calculation function, the sales price for an article is calculated based on a purchase

price that represents the average procurement costs of an article for the relevant organizational level.

This price is known as the net/net purchase price (EKNN), or simply as the purchase price. There areseveral different procedures available for determining the purchase price, which use certain article

characteristics, particular features of procurement and the structure of the sales price calculation process.

The basic elements of the purchase price determination function are the purchase price determination

types defined by SAP.

In the purchase price determination sequence that must be entered in the initial screen of the sales price

calculation function, you define the purchase price determination types that are to be used in determining

the purchase price, together with the associated parameter values and the sequence in which the purchase

price determination types are to be used.





SAP AG 2003

BasisPurchase price

determination type

Purchase price

determination

sequence

Combination

Sales price calculation

Entry in selection screen

Customizing

Purchase Price Determination

The purchase price determination sequences form the second element in the flexible structure of the

purchase price determination function. They are defined in Customizing for Pricing. You enter steps todefine a sequence in which the purchase price determination types are to be used to determine the

purchase price, in the same way that you define access sequences for conditions.





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Purchase price

determination type

E

Requirement 1:

"Sales sets only"

Purchase price

determination sequence

02

Comp1: Costs 5.00 USD

Comp2: Costs 10.00 USD

Purchase price

Comp 1: 1 PC

Comp 2: 2 PC

Set 1

Purchasing view - Set 1

Article master record

Vendor: ---


Purchase Price Determination - Sales Set

Purchase price determination type E is used for calculating prices for structured articles, such as sales

sets, which are made up of several components. In such cases, the purchase price for each of the

components is determined, and the purchase price for the structure article is calculated by adding the prices for the correct quantities of these components together.





SAP AG 2003

Vend.1

Vend. 2

PP = 4.00 USD

PP = 5.00 USD

Sls

set

Problem: no purchase price

for the set

Solution:First step: purchase price calculation at component level

Second step: purchase price of the sales set = purchase price of the components

Sham-

poo

Sham-

poo

Condi-

tioner

Condi-

tioner

Purchase Price Determination for Sales Sets





SAP AG 2003

Purchasing view - bananas

article master record

Vendor: ---


Purchase price

determination type

F

Requirement 2:

"Perishables in DC

only"

Purchase price

determination sequence 03

Vendor 1: 1.00 USD

Vendor 2: 2.00 USD

Purchase price

Purchase Price Determination - Mixed Price

If an article is procured from several vendors at different purchase prices for a certain period of time, you

can use purchase price determination type F to calculate the average purchase price for the article. Here,

you can enter weighting factors for vendors according to the planned procurement quantities, forexample.





SAP AG 2003

Vendor A Vendor B Vendor C

1.20 USD

per piece

1.25 USD

per piece

1.45 USD

for 2 pieces

Purchase price = 0.98 USD per piece

Vendor Mixed Price (Perishables)

PurchPurch. price. price

determinationdetermination





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Sales Price

Determination

Types

Calculate salesprice using planned

markup

Adopt current sales

price, adjust margin

Adopt sales price

from list field

Percentage price

change for list field

Absolute price

change for list field

B

E

D

C

A

Sales Price Determination Types

As well as defining the sales prices themselves, determining the margin (gross/net) or the actual markup

from the sales and purchase prices are key steps in the sales price calculation process. Depending on

whether the margin or the sales price is to be supplied, and how they are to be determined, you can usedifferent procedures to perform the calculation. For this reason, a flexible structure for determining the

sales price and margin (similar to that used in Purchasing) has been implemented.





SAP AG 2003

Basis

Sales price

determination type

Sales price

determination sequence

Combination


Entry in selection screen

Customizing

Sales Price Determination Sequences





SAP AG 2003


sequence

01 SP from planned markup

02 adopt current sales price


types

A: from planned markup

B: current sales price

E: absolute price change

Predefined by SAP


Step 1

Step 1

Round to price points?

Sales Price Determination

Customizing: User-defined sales price determination sequences

Combination of sales price determination types

Determining the sequences in steps Specifying additional parameters for each individual step

(list field, flag for rounding to price points)

Sales price calculations:

Entering the sales price determination sequence in the selection screen





SAP AG 2003

Use the competitor prices stored in the system todefine sales prices


Competitor Prices: Topic Objectives





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Competitor 1

Competitor 2

Competitor 3

Competitor

group 1

Competitor

group 2

Merch. cat.:

Food

Competitor

group 1

Competitor

group 2

Merch. cat.:

Food

Merch. cat.:

Food

Merch. cat.:

Food

n:m

SiteSite SiteSite

Competitor

group 1

Competitor

group 1

Competitor

group 3

Competitors

Every competitor must have a customer master.

Each one of the competitor's stores that does its own pricing should have its own customer master

record. If a competitor operates with the same prices in the whole of Germany, only one customermaster record is required for the enterprise.

The competitor is modeled as a customer, with an account number that is flagged as a "competitor

account group".

The classification system can be used to group competitors in competitor groups. You can then enter

these competitor groups in the merchandise category data for the store.





SAP AG 2003

Taken into account in sales

price calculation schema

Pricing table

list field

Controlling the

sales price

calculation

Sales price determination type C

with special list field

Condition type

VKPM

Determine different

competitors

Requirement "85"

Use the suggested

price as

the sales price

Determine the

suggested price

Pricing strategy

(site/merchandise category)

Competitor Prices

Condition type VKPM is supplied for using competitor prices in the sales price calculation function.

This condition type allows as many competitor prices as desired to be determined for an article using the

sales price calculation schema. In order to do this, requirement 85 must be assigned to the condition typefor the competitor prices in the sales price calculation schema. Sales price calculation schema WWS003

is supplied as an example of this.

The pricing strategies are used to determine the suggested price in the sales price calculation function.





SAP AG 2003

Using requirements to exclude articles (for example, just for

articles that have the "- = no competition" indicator as their

competitor characterization)

Competitor characterization -: no competition

C: strong competition

ArticleArticle

Sales View

Competitor Price Shopping

The "competitor characterization" field in the sales view of the article master is used to define how much

pressure an article is under from competitors. When calculating sales prices, you can use this field to

control how the suggested price is to be adopted as the final price.





SAP AG 2003


• Competitor prices

important factors• Absolute margin

• Markup

per article

Market-basket price calculation

New characteristics:

Aggregation of articles/sites

for

• Analysis

• Simulation

• Calculation

• Price activation

ArticleArticle

ArticleArticle

Market-Basket Price Calculations

The market-basket price calculation function is an enhancement to the sales price calculation function,

which allows you to determine sales quantity figures to be used in calculating sales and gross margin

figures. You can perform these calculations for a group of articles - known as a 'market-basket' - and agroup of sites. The sales and gross margin key figures determined on this level are cumulated for each

article and for the whole market basket. As this function is integrated with the sales price calculation

function, you can calculate sales prices as usual and use the market-basket price calculation function as

an additional planning and analysis tool.





SAP AG 2003

Market-basket analysis

Effect of suggested price changes on margins

Display of sales key figures (such as average weekly sales

quantity)

Determination of special key figures (sales, gross margin,

changes in sales, changes in the gross margin)

Market-Basket Price Calculations





SAP AG 2003

Market-Basket Analysis

Key figures

Sales key figures (such as average weekly sales figures)

Purchase price (calculated price, moving average price)

Total value based on purchase prices

Current sales price

Gross margin

New sales price

Total value of the market-basket

Effect (on margins, sales, profit)

Competitor information

Sales prices





SAP AG 2003

Article (article description, merchandise category, and so

on), sales unit

Purchase price (calculated price or moving average

price)

Average sales quantity (sales key figures)

Total value based on purchase prices

Calculated sales price (calculation using planned

markup, competitor)

Sales price based on cost-oriented price calculation

Final price (in manual price changes)

Margin

Total sales and gross margin

Current sales price + total sales/gross margin

Changes to total sales/gross margin

Market-Basket Price Calculations - Basic List





SAP AG 2003

Step 1

Step 2

Create market-basket

price calculation Enter competitor prices

Competitor prices

Determine sales

key figures

Processing

Step 3 Information

structure

New sales priceStep 4

Calculate prices

Market-Basket Price Calculations - Scenario

The sales quantities can be determined individually from the data in the Retail Information System, for

example, by entering a customer-specific function module. SAP supplies a number of function modules

(such as function module WV_EXAMPLE_MBC_01) as examples for creating customer-specificfunction modules.





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Markdown Planning: Topic Objectives


Explain the basic markdown planning terms used in SAPRetail

Explain the basic functionalities and goals of markdown

planning

Create a markdown plan





SAP AG 2003

Markdown Planning: Definition

Definition of planned price reductions (or increases) for

articles on sale within a specified period. The markdown plan

can also contain the planned sales quantities and values.

A sales price calculation can be carried out to create valid

conditions from the planned prices.





SAP AG 2003

Markdown Planning: Steps in the Process

Markdown rule

••

80%50%

•

30%

Rel. price

Planning markdowns

Analysis of sales

Price activation

Sale of articles

Adjustment of

markdown

planning if required

100%•

Time

Pricing strategies are used to control the sale of seasonal goods. The purpose of markdowns is usually to

increase the sales of an article.

The aim of markdown planning is to finish the season with as little stock as possible while minimizinglosses by reducing prices (or in some cases, increasing prices).

You can use a markdown plan to plan and make price changes for certain goods.

Once you have defined your markdown strategy, you can compare the actual results with the planned

results at regular intervals to monitor the efficiency of your strategy. When you monitor your markdown

plan, you can make changes at any time to react to an unexpected increase or drop in sales.





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Markdown Planning: Overview

Markdown

plan

ItemsItems

Price phasesPrice phases

Distributionchain

Distribution

chain

SiteSite

Article

detailed data

Article

detailed data

Header Header

Markdown typeMarkdown type

Selection optionsSelection options

Markdown ruleMarkdown rule

You must first choose a markdown type for the markdown plan. The markdown type is used to

determine the markdown rule, which contains details of the individual price phases.

In the markdown plan, each article is displayed in a separate line. For each article, you enter the planned sales quantity and the initial sales price.

The price phases for the individual articles contain additional information such as the planned sales

quantity, the sales price per price phase, the planned sales values, and the margins.





SAP AG 2003

Markdown plan

Markdown type

Key

Control data

Number range

Reference for sales

price determination

Markdown Planning: Markdown Type

When you create a markdown plan, you need to enter a markdown type.

From the markdown type, the system proposes certain settings, which reduces the amount of data you

have to enter. If a reference distribution distribution chain or reference site is not preset, the system does not propose

any sales prices.





SAP AG 2003

Markdown Planning: Price History

Markdown ruleMarkdown rule

Days SPChng Sls%

0 100 50

90 75 30120 50 15

Markdown planMarkdown plan

Markdown plan:

Valid from:

0815 Summer season 2001

01. March 2001

Article Planned sales qty SPCValid from Markd% Active

4711

4711

4711

4711

Men's suit, black

Men's suit, black

Men's suit, black

Men's suit, black

1000

500

300

150

496,-

496,-

372,-

248,-

01.03.01

01.03.01

30.05.01

29.06.01

025

50

X

4712

4712

4712

4712

Ladies' blouse, size 38




200

75

75

20

150,-

150,-

135,-

75,-

01.03.01

01.03.01

30.06.01

29.07.01

0

10

50

X

X

Margin

44,4

50,3

33,7

0,5

37,4

44,0

25,4-12,0

Current dist. chain

SOrg R300 Retail USA

DChnl R1 SB Store

The markdown rules define:

- The period between the markdowns

- The percentage of the orignal price at which the goods are to be sold in the various price phases- The total sales in percent that you expect per price phase

For the men's suit in the above example, the markdown rule means: .

- The item is offered for sale for the first time on March 1, 2001.

- Within the first 90 days, you expect to sell 50% of your stock at the full price.

- You then reduce the price of the item to 75% of its original price, and expect to sell 30% of your

stock in this period.

- One month later, you reduce the price further by 25%, to half the item's original price, and plan

15% of sales in this period.





SAP AG 2003

Save information on sales price calculations in apricing document


Pricing Documents: Topic Objectives





SAP AG 2003

Contain all the information about a saved salesprice calculation

Validity period

Creation date

Change date

User (created by, changed by)

Automatic or manual generation

Pricing Documents





SAP AG 2003

Advantages

Documentation of sales price calculations

Control of pricing documents (price dumping)

Creating and saving sales price calculations /

release strategy

Prerequisite for

Pricing worklist

Canceling sales prices

Euro conversion

Pricing Documents





SAP AG 2003

Generate a pricing worklist that allows you to flagsales price condition records for processing later


Pricing Worklist: Topic Objectives





SAP AG 2003

Pricing Worklist: Process

PricingPricing

worklistworklist

120

100

140

80

200

Time

Purchase price/conditions

Article/vendor

200

Article/vendor

- Regular vendor

- Source of supply

Site

Sales price ?

The sales prices calculated in retail pricing are usually based on the purchase price. The purchase price is

determined using the purchase price calculation schema from the condition types that affect calculation,

for example, the basic purchase price and vendor discounts. Other parameters that affect price calculation include the indicators Regular vendor and Source of

supply in the article master. These are evaluated when the source of supply is being established.

If the purchase price changes or if the parameters for supply source determination are modified, it is

necessary to check the calculated sales prices with regard to the new margin.

The pricing worklist function determines all the price calculations affected by pricing-relevant parameter

changes.





SAP AG 2003

Modified

conditions

Pricing Worklist: Technical Information

Change

to

conditions WIND

Worklist of

modified conditions

S111

Document indexes

Save

SP calc.

Pricing

worklist

Comparison

T6I2A

T6I1

T6I1

BAdI

BAdI

Filter

Pricingdocuments

The entries in tables S111 and WIND are controlled using filters. These filters are maintained in

Customizing. T6I2A determines the scope of changes for direct entry into the worklist. T6I1 contains

the conditions that are to be checked for changes. You can also insert additional BAdIs, which limit the selection further by, for example, excluding certain

article types.

The pricing worklist function creates a list of the new price calculations in the form of pricing documents

(pricing worklist). All calculations affected by the changes and the validity periods of modified

calculations are taken into account. The entries in S111 are compared with those in WIND using the

field 'VARKEY'.





SAP AG 2003

Create pricing documents with document index

Activate direct entry for creating the worklist

Control automatic document adjustment

for external procurement

for internal procurement

Define scope of change

(check default values)

Define filter values for changes to conditions using

BAdI WIND_UPDATE

Define filter values for document index creation

using

BAdI SPC_DOCINDEX_CONTROL

(when saving pricing documents)

Pricing Worklist: Prerequisites





SAP AG 2003

Calculate sales prices, taking into accountvarious retail and cost conditions

Explain the differences between one-step and

two-step calculations

Use price points

Take account of material and handling costs for

additionals when determining sales prices

Explain how the pricing table is structured and

define list variants


Pricing: Unit Summary (1)





SAP AG 2003


Explain the functions of price lists, pricingdocuments and the pricing worklist

Name the price determination types and

sequences in both Purchasing and Sales

Enter competitor prices, define pricing strategies

and perform sales price calculations based on

these

Explain what the market-basket pricing function

does

Use markdown planning to sell seasonal goods at

reduced prices in line with a predefined plan

Pricing: Unit Summary (2)





Pricing Exercises

Unit: Pricing


• Calculate sales prices, taking into account various purchasing

and sales conditions, as well as understand the different purchasing and sales price determination sequences.

• Perform one-step and two-step calculations

• Define price points, list fields and list variants

• Enter competitor prices, define pricing strategies and perform

sales price calculations based on these

• Perform a market-basket price calculation

• Create a markdown plan

• Explain the functions of price lists, pricing documents and the pricing worklist

1.

1 Assign planned markups to your distribution chains.

1-1 The following planned markups are maintained for the distribution chain for the

distribution center R300/R5 and store distribution chain R300/R1:

Distribution chain of distribution center: 10%

Store distribution chain: 30%

Display the planned markups in the system and search for the corresponding entries for

merchandise category TMC2## of your article TA14##.

2 Definition and assignment of a price point group.

2-1 Define a price point group EPGR## and give it the description “ Price point group ## ”.

The currency is USD; the rounding rule is to be 50%.

Save your entries.





2-2 Assign the following price point areas to your price point group EPGR##:

First price Last price Increment

0,09 9,99 0,10

10,99 99,99 1,00

109,99 999,99 10,00

Save your entries.

2-3 Now assign your price point group to the merchandise category of your article TA14##

and to your store distribution chain R300/R1.

Sales organization: R300

Distribution channel: R1

Merchandise category: TMC2## Price point currency: USD

Price point type: 01 (final price)

Price point group: EPGR##

Save your entries.

3 One-step calculation

3-1 Create a price calculation for article TA14##.

Article: TA14##


Distribution channel: R1 and R5

Which vendors are found for distribution chains R300/R1 and R5? ___________________________________________________________

Why were these vendors determined? ___________________________________________________________

Does the final price for the stores differ from that for the distribution centers and if so,

how? ___________________________________________________________

Save your calculation.





4 Calculate your article prices taking account of additionals

4-1 You want to take into account the costs of additionals for your article TA05## when

determining the purchase price. To do this, you assign additionals TA40## and

TA41## to article TA05## in the first step. Set the control indicator for the calculation

to make sure that the material and handling costs are taken into account in thecalculation. Use the additionals procedure 0004 and sales unit PC.

Save your entries.

4-2 In the next step, you create condition records (condition type KAD0 and KAD1) for the

additionals.

Additionals: TA40##

Material costs: 0.07 USD

Handling costs: 0.10 USD

Additionals TA41##

Material costs: 0.05 USD

Handling costs: 0.10 USD

4-3 Before you create a calculation for your article TA05##, check whether condition typesKAD0 and KAD1 exist in your calculation schema ZISR##.

4-4 Create a calculation:

Article: TA05##



Use the analysis to check which conditions are used.

DO NOT save your calculation

5 Two-step price calculation

5-1 Change the article master for your article TA05## to enable you to perform a two-step

calculation for the same distribution chains.

Which changes to the article master are required?

___________________________________________________________





5-2 Create a calculation for your distribution center.

Article: R300


Which price has been calculated?

_____________________________________________________Do not save your calculation.

5-3 Create a calculation for your store.

Article: TA05##

Sales organization: 300


Which price has been used as the purchase price?

_____________________________________________________

Why was this price determined? _____________________________________________________


5-4 Calculate the price for your distribution center and your store.

Article: TA05##



Change the distribution center purchase price to 300.00 USD.What happens when you change the purchase price manually?

_____________________________________________________

Which sales price was found for the distribution center? _____________________________________________________


5-5 Now calculate the sales price for your store only.

Article: TA05##



Which price has been used as the purchase price?

_____________________________________________________

Do not save your calculation.





5-6 Finally, create a calculation for your distribution center and your store.

Article: TA05##



Which price has been used as the purchase price for the store? _____________________________________________________


6 Price calculation for a sales set

6-1 Now, you want to determine the price of a sales set based on the purchase price of thecomponents.

Which purchase price determination sequence supports this calculation?

___________________________________________________________

6-2 Check this purchase price determination sequence in Customizing.

What does this purchase price determination sequence imply?

___________________________________________________________

6-3 Now calculate the price for your set using the two-step method.

Article (Set): TA18##



Which vendor was found? ___________________________________________________________

Which purchase price was determined?

___________________________________________________________

Why could no vendor or purchase price be determined?

___________________________________________________________





7 Price calculation for perishables

7-1 Perform a calculation for your perishable article TA19##. Note that this perishablearticle is supplied by several vendors at different prices.

Article (perishables) TA19##


Distribution channel (DC): R5

Which purchase price determination sequence do you use? ___________________________________________________________

7-2 Check this purchase price determination sequence in Customizing.

What does this purchase price determination sequence imply?

___________________________________________________________

Why could no vendor or purchase price be found? ___________________________________________________________

Change the proportions for various vendors. How does this change affect the purchase

price? ___________________________________________________________

8 You make Customizing settings so that you can calculate sales prices on the basis of competitor

prices.

8-1 Define price entry type PA## with the description “ Price entry type IRT320-##” by

copying price entry type 0001.

Save your entries.

8-2 Next, enter a new pricing strategy ##+40 (group number + 40) by copying existing

pricing strategy 01 and call it “IRT320-##; 10% above the cheapest”.

Change the pricing strategy to ensure that the suggested price is 10% above the

cheapest price.

Ensure that the sales prices are rounded to price points.

8-3 Copy the list variant R1 to create a new list variant ##+20 (group number + 20) and

call it “ List variant IRT 320-##”.

8-4 Copy the pricing procedure WWS004 to create a new pricing procedure ZMBW##

with the description “Competitor IRT 320-##”. Check whether condition type VKPMexists in the pricing schema, and if so, whether requirement 85 is assigned to it.





8-5 Create a new pricing type MB## as a copy of the pricing type US04 and give it thedescription “Competitor 320-##”. Change the control data for the pricing procedure in

accordance with 8-4.

8-6 Now assign your new pricing type MB## to your distribution chain (store)

R300/##+70 (group number + 70).

8-7 Make the settings for each pricing table list field and your pricing procedure

ZMBW##. To do this, copy all the entries from the pricing procedure WWS004.

Make sure that transfer type A is set for the VORPR list field.

8-8 Assign the relevant condition tables to the different pricing levels for the appropriate

condition types of your pricing procedure ZMBW##. To do this, copy all the entriesfrom the pricing procedure WWS004.

9 Calculate your prices on the basis of competitor prices.

9-1 Create a competitor class MBWK## with the description “Competitor class IRT320-

##.”

Class: MBWK##

Class type: 011

Save your entries.

9-2 Assign your competitors TC70##, TC71##, and TC72## to your new competitor class

MBWK##.

Save your entries.

9-3 Now maintain your competitor pricing data at store/merchandise category level.

Store: 1##

Merchandise category: TMC1##

Pricing strategy: ##+40

Class type: 11

Competitor group: WK##

9-4 Create the following price entry list.

Price entry type: ##

Competitor group: WK##


Distribution channel (store): #+70

Store: 1##





TC70## TC71## TC72##

TA15## 185,33 195,25 179,21

TA16## 325,66 315,50 329,33

TA17## 379,15 364,35 359,75

Activate the prices and save your entries.

9-5 Create a calculation, taking into account the competitor prices you have entered.


Distribution channel (store): ##+70

Store: 1##

Article: A15##, TA16##, TA17##

Purchase price determination sequence: 1

Sales price determination sequence: 1

List variant: ##+20


10 You want to perform a market-basket price calculation.

10-1 To do this, you need to define a market-basket pricing type ZK## by copying market-

basket pricing type WKUS. Name your market-basket pricing type Market-basket

IRT 320-## and use your own list variant.

10-2 Create the market-basket price calculation:

Description: Market-basket price calc. IRT320-##

Market-basket pricing type: ZK##

Article: TA15##, TA16##, TA17##


Distribution channel: ## +70

Site: T1##





11 You want to create a markdown plan

11-1 Markdown type MDT

Sales organization R300

Distribution channel R1

Site T1##

Article R100033

Valid from 1. of next month

11-2 Give the plan the number AP## and the description “T-shirt markdown group##”.

11-3 Enter the following planned sales quantities:

Variant Planned sales qty

red, small 750

red, medium 900

blue, small 1500

white, small 1800

11-4 Go to detailed planning.

What are the final prices together with their validity periods and the planned salesquantity for the blue t-shirt, size small?

Valid from

Final price in USD Planned sales qty

11-5 Why can you not change the sales prices of the individual variants here?

_________________________________________________

_________________________________________________

Save the markdown plan.

Go to change mode for the markdown plan.

11-6 Go to detailed planing and select the first and second price phases for generic article

R100033.





Pricing: Solutions

Unit: Pricing

Introduction to solutions


• You are on the SAP Retail initial screen (transaction W10T). Youshould enter this transaction as the start menu in your user

parameters.:



W10M).You get here from SAP Easy Access SAP Retail by choosing

Logistics Retailing

• If the term IMG is written before a path, you are in the

Implementation Guide of the R/3 System, where you can make

Customizing settings.You get here from SAP Easy Access SAP Retail by choosing


Reference IMG (F5)

or the transaction / NSPRO F5

1-1 Retailing: Master data Pricing Conditions Planned markup Distribution

chain Display

2-1 IMG: Logistics - General Retail Pricing Sales Price Calculation Price Point

Group Define Price Point Group and Assign Price Point Ranges

2-2 Button: [New Entries]

Select price point group; double-click on “Assign Price Point Ranges”

2-3 IMG: Logistics - General Retail Pricing Sales Price Calculation Price Point

Group Assign Price Point Group to Organizational Level/Merchandise Group





3-1 Retailing: Master data Pricing Price calculation Create

The same vendor was found for both distribution chains.

The settings for supply source determination mean that both the distribution centersand the stores are supplied directly from the external vendor.

The prices differ due to the different planned markups and to price point rounding at

store level.


From the basic data view for the article, branch to the additional data and to the

additionals tabstrip for assigning the additionals to the article.

4-2 Retailing: Master data Conditions/arrangements Conditions: Purchasing

Other Create

4-3 IMG: Materials Management Purchasing Conditions Define Price

Determination Define Calculation Schema



Set source of supply in the Logistics Store View to value 2 or 4 (procurement via DC)


Different prices depending on the vendor: 149.47 USD, 159.32 USD

5-3 See above. Price: 149.47 USD, 159.32 USDThe issue price for the distribution center is calculated in the background.

5-4 The basic purchase price in the store changes in the same way.

285.32 USD, 300.32 USD, see above

5-5 285.32 USD, 300.32 USD, see above

5-6 149.47 USD, 159.32 USD, see above

6-1 Purchase price determination sequence 02





6-2 IMG: Logistics - General Retail Pricing Sales Price Calculation Maintain

Purchase Price Determination Sequence

Purchase price determination sequence 02 means that SP determination is performed

first using the schema in accordance with standard schema determination, and then,

when no purchase price is found, purchase price determination is performed using the

components of the set.


Neither vendor nor purchase price is displayed.

No purchase price exists for the set article, the price is determined by adding together

the prices of the components, which can even be procured from different vendors.


Purchase price determination sequence 03

7-2 IMG: Logistics - General

Retail Pricing Sales Price Calculation Maintain Purchase Price Determination Sequence

Purchase price determination sequence 03 means that, first, a vendor mixed price is

determined, providing that the article concerned is a perishable article in a distributioncenter. If no price is found here, the purchase price is determined according to the

standard.

The price is determined based on the purchase price for the different vendors.

The net/net purchase price changes according to the proportions involved.

8-1 IMG: Logistics - General Retail Pricing Competitor Prices Maintain Price

Entry Types

8-2 IMG: Logistics - General Retail Pricing Competitor Prices Maintain Pricing

Strategies

End rule B, Percentage Rate 10%

8-3 IMG: Logistics - General Retail Pricing Sales Price Calculation Define List

Variant and Assign Items





8-4 IMG: Sales & Distribution Basic Functions Pricing Pricing Control

Define and Assign Pricing Procedures

Cursor on “Maintain pricing procedures”

Button: [Choose]

8-5 IMG: Logistics - General Retail Pricing Sales Price Calculation Maintain

Pricing Type

8-6 IMG: Logistics - General Retail Pricing Sales Price Calculation Assign

Pricing Type /Reference Site to Organizational Level

8-7 IMG: Logistics - General Retail Pricing Sales Price Calculation Control

Data for Pricing Table and Data Backup

Place cursor on “Control per Sales Price Calculation Schema and List Field”

Button: [Choose]

8-8 IMG: Logistics - General Retail Pricing Sales Price Calculation Control

Data for Pricing Table and Data Backup

Cursor on “Assignment of Condition Tables”

Button: [Choose]

9-1 Retailing: Master data Classification system, Retail Class Create

9-2 Retailing: Master data Edit customers Grouping ClassificationClassification Assign Objects/Classes to Class

Button: [Only New Assignments]

Radio button: Customer

Button: [Enter]

9-3 Retailing: Master data Site data Site Change

Button: [Merchandise categories]

9-4 Retailing: Master data Pricing Conditions Price entry Create


10-1 IMG: Logistics - General Retail Pricing Market-Basket Pricing Maintain

Market-Basket Pricing Type

10-2 Retailing: Master data Pricing Market-basket price calculation Create





11-1 Retailing: Master data Season Markdown Plan Create

11-2 Maintain the planned quantities for the relevant variant.

11-3 [Detailed Planning] tab

Valid from

Final price in USD

without with

PPA PPA

Planned sales qty

1. of next month 14.99 14.99 975

90 days later 11.24 10.99 375

Another 30 days later 7.50 7.49 150

11-4 This depends on the pricing profile maintained in the basic data for the article. There

are three options:- Price of variants always the same as price of header article

– System proposes price of header article as price of variants

– Variants calculated differently without header article price being proposed

11-5 In the relevant line, set the flag in the first column

11-6 [Activ. sales prices] button

11-7 Confirm the dialog box, if one appears

11-8 Retailing: Master data Pricing Conditions Price overview

11-9 All the prices that are valid in the selected period are displayed.

11-10 See above





SAP AG 2003

Contents:

Types of inventory management

Valuation procedures

Sales price valuation

Revaluation

Split valuation

Inventory Management and Valuation





SAP AG 2003

Inventory Management and Valuation: Objectives

Explain the difference between the various kinds of

inventory management

Explain the controls for value-based inventory

management and revaluation

At the conclusion of this unit, you will be

able to:





SAP AG 2003

Inventory Management and Valuation: BusinessScenario

Your company has decided to carry out inventory

management at value-only level for certainmerchandise categories. However, in some

cases you want to allow exceptions to this rule.

As your company is running more and more

promotions, you want to split your stock up into

standard stock and promotional stock and

valuate it accordingly.





SAP AG 2003


Course Overview

Conditions

in Purchasing

Pricing

Inventory Management

and Valuation

4

2

3

1

6

Promotion5Elements of the

Condition Technique





SAP AG 2003

Inventory Management:Types of Inventory Management

Inventory Management Updating

Quantity and value basisQuantity and value basis

Quantity basisQuantity basis

Value basisValue basis

None of the aboveNone of the above

Stock quantityStock quantity

No updatingNo updating

Stock value

(Stock quantity)

Stock value

(Stock quantity)

Stock quantity

Stock value

G/L accounts Financial

and Cost Accounting

Stock quantity

Stock value

G/L accounts Financial

and Cost Accounting

Goods movement

Article typeArticle type

If inventory management for an article is carried out on a quantity and value basis, the stock quantity,

stock value, and G/L accounts in Finanical Accounting and Cost Accounting are usually updated.

If inventory management is on a quantity basis only, no accounting data can be maintained in the articlemaster record. When a goods movement is posted, only the stock quantities are updated. The stock

value, article, and G/L accounts in Financial Accounting and Cost Accounting are not updated.

If inventory management is on a value basis only, quantity information may be available. The sales

value must be managed for these articles. A valuation at purchase price and sales price is carried out for

each goods movement. As a result, stores can avoid inventory management on an article basis, for

example.





SAP AG 2003

Inventory Management: Special Article Categories

Inventory

Management

Generic article

Variant 002Variant 001

Structured articles

Empties

Generic articles

Logistics variants

Variant

Unit of measure

Component

Component

A generic article has a number of variants with different colors or sizes for example. It is possible to

process these variants directly in goods movements.

The use of logistics variants enables you to manage the stock of an article in a distribution center withdifferent logistics units of measure. The various units of measure for an article are created as logistics

variants of a generic article.

Structured articles consist of a header article and a bill of materials containing the components. Sets,

prepacks, and displays are examples of structured articles. In Inventory Management, it is possible to

split the header article into its components or to form a header article from its components.

Empties components can be assigned to a full product in a bill of material (BOM). In certain processes,

the system automatically includes the empties components for the full product.





SAP AG 2003

Inventory Management: On a Value Basis

Merchandise category:

Fruit

Hierarchy article:

Perishables


article: Fruit

Group

article:

Tropical fruits

Group

article:

Nuts

Qty & value basis:

Coconuts

Qty & value basis:

Apples, pears

Store004

Store 002

Store 003

Store 003 Store 003

Store 001 Store 002

SiteSite

- SP valuation active

- Value-only article

created and assigned

- Profile for inventory

management on val.basis

- Sales price conditions

When inventory management is carried out on a purely value basis, goods movements are not posted on

a quantity and value basis. Values, and not quantities, are updated for a value-only article. The system

determines the value-only article for which the data is posted using value-only article determination. The value-only article can be automatically created for each merchandise category.

To obtain a greater level of detail within a merchandise category for value-based inventory management,

several group articles can be created for the merchandise category. It is also possible to post individual

articles on a quantity and value basis in one of these merchandise categories, for example if the article is

expensive.

A hierarchy article can be created for a node of the merchandise category hierarchy. This then includes

all merchandise categories below this level in the hierarchy.

If a store decides to carry out merchandise-category-independent inventory management, it must decide

the level in the hierarchy at which this is to take place. If this is not done, nonsensical sales figures will

result, particularly in statistics used to compare stores.





SAP AG 2003

Value-Based Inventory Management: Profiles

R1100 Groceries

R1120 Perishables

R1121 FruitR1122 Vegetables

Apples Pears Hazelnuts Walnuts Coconuts Kiwis Bananas

Profile f. valueProfile f. value--basedbased IM:IM:

0001 on article basis0001 on article basis

SiteSite

Prerequisites for inventory management on a value basis:

- Sales price valuation is activated for the site in question.

- The value-only articles have been created.- The profiles have been created and assigned to the sites.

- Exceptions are defined in site maintenance, if required.

The eight profiles in the standard system cannot be changed.

Each of these profiles can be copied (if you do this, use a customer name space).

The value-only article flag can be selected or deselected in the copy. As a result, each value-only article

can be used at any level of the hierarchy.





SAP AG 2003


R1100 Groceries

R1120 Perishables

R1121 FruitR1122 VegetablesMerchMerch. cat. article:. cat. article:

FruitFruit

Apple Pears Hazelnuts Walnuts Coconuts Kiwis Bananas


00030003 merchmerch. cat. article. cat. article

SiteSite





SAP AG 2003


SiteSite

R1100 Groceries

R1120 Perishables

R1121 Fruit R1122 Vegetables

Perishables hierarchy articlePerishables hierarchy article



00050005 Hierarchy article levelHierarchy article level





SAP AG 2003


R1100 Groceries

R1120 Perishables

R1121 Fruit



00040004 MerchMerch. cat. article. cat. article

with exceptionswith exceptions

MerchMerch. cat. article:. cat. article:

FruitFruit

Group article

Tropical fruits

SiteSite





SAP AG 2003

Physical inventory

Goods movement

M

39 ,9 0

49 2 1 117 2

X X LY e l l o w 2 0 ,-

Pricechange

M

3 9 ,9 0 4 9 2 1 1 1 7 2

X X L B l u e 2 0

, -

Valuation

Company

Invoice

Company

Invoice

Company

Invoicex y z

Company

Invoice

Company

Invoice

Company

Purch.order MMM

Invoice

verification

Activities Relevant for Valuation

Article valuation is not a separate area as most of the functions are carried out automatically. Depending

on the organization, the activities that are performed manually are part of the areas of inventory

management, invoice verification, or accounting. Valuation creates a link between Logistics and FI by accessing and updating G/L accounts.

The value of the article stock is calculated using the simple formula:

Stock value = Stock quantity * Article price.

Therefore, the stock value changes if the stock quantity or the article price changes.

The calculation can be based on the purchase price and the sales price (in pricing and valuation, the sales

price is sometimes referred to as the ‘retail price’.

Both the determination of the lowest value and the LIFO valuation support SAP Retail Valuation for

balance sheets.





SAP AG 2003

Moving average priceMoving average priceMoving average price

11

Initial

situation

Goods receipt

Quantity 100

Value 150.00

ArticleArticle 47114711

SiteSite 00010001

Price controlPrice control VV

Total stock 100

Total value 100.00

MA price 1

Total stock 200

Total value 250.00

MA price 1.25

Standard priceStandard price

ArticleArticle 47124712

SiteSite 00010001

Price controlPrice control SS

Total stock 100

Total value 100.00

Standard price 1

Total stock 200Total value 200.00

Standard price 1

Price difference 50.00

22

Valuation: Valuation Procedures

The type of price control used for an article is defined in the Accounting view when the master record is

created.

In the case of the moving average price, all receipts are posted with the receipt value. As a result, the price in the article master record is always adjusted in line with the cost price. The price displayed in the

article master is rounded up/down. The exact price (stock value / stock quantity) is always used for the

valuation of goods movements. Price differences only occur in exceptional cases.

In the procedure using the standard price, all goods movements are valuated using the standard price.

If deviations occur, they are posted to the price difference account.





SAP AG 2003

Text

Purchase pricePurchase price

Article master 4711Article master 4711Total qtyTotal qty 100100

Total valueTotal value 95.0095.00

Total sales priceTotal sales price valval.. 129.00129.00

Gross PPrice 1.00

Discount -5% 0.95

Text

Sales priceSales price

calculationcalculation

Net PP 0.95

Markup +18% 1.12

AST +15% 1.29

TextArticle 4711

Quantity 100Goods receipt

ConditionsConditions

ArticleArticle

Valuation: Sales Value

In the article master, the sales value can be based on the current stock quantity, if you make the

appropriate setting for the valuation area.

The system automatically updates the sales value when goods movements occur. At goods receipt, the sales value is taken from the purchase order, determined by the system, or entered

manually. The system can determine the sales value if sales price conditions are maintained for the

article. You can create or update these conditions using the sales price calculation.

You can use the information system to analyze the information relating to the sales values for stocks and

goods movements.

The following indicators must be maintained accordingly in the site master data:

- Sales price valuation

- Revaluation profile

- Profile for inventory management on a value basis





SAP AG 2003

Valuation: Sales Price Change

Moving ave. price 5.00

Cost value 500.00

Sales price 8.00

Sales value 800.00

Site 0001

Article 4711

Site 0001

Article 4711


Cost value 400.00

Sales price 8.00

Sales value 800.00

new price 8.00new price 8.00

Qty 100


Cost value 500.00

Sales price 10.00

Sales value 1000.00

100.00

Stock

FIFI

Affecting margins Not affecting marginsNot affecting margins

A sales price change that affects margins has no effect in FI as the valuation price of the article remains

unchanged.

Alternatively, you can make a sales price change that does not affect margins. Here, the valuation priceof the article is changed in such a way that the margin remains constant.

In doing this, you create an accounting document and post data to the relevant stock account.

It is also possible to change the valuation price only. This is usually done at the end of the year when

balance sheets are created.

In Customizing, you can define reasons for revaluation.





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Revaluation profile

Stock counting

•Count affected articles

before revaluation?

Promotion valuation

•Valuate total stock

during promotion

period with promotion

sales price?

Local markdowns

•Carry out (automatic)

revaluation after

local markdown?

X

X

X

Not affecting margins

•Value should not

affect margins?

X

SiteSite

Valuation: Revaluation Profiles

Valuation profiles result from a combination of the four flags shown in the slide.

All 16 profiles are supplied.

Stock countingIf you select this indicator, the articles affected must be counted before revaluation if inventory

management is carried out on a quantity and value article basis. If inventory management uses a value-

only article, quantity counting is mandatory, which is why this indicator only relates to inventory

management on a quantity and value basis.

Promotion valuation

This indicator only applies if you do not use split valuation in promotions.

If you select this indicator, the total stock of the articles involved in the promotion are valuated at the

promotion sales price during the period of the promotion. This means that a revaluation takes place at the

start of the promotion so that a promotion price is used, and a revaluation back to the standard sales price

takes place at the end of the promotion period.

Local markdowns are price changes in individual sites that are not entered in the sales price conditions of

the central SAP System.If you select this indicator, you can then carry out a revaluation following a local markdown.

Revaluation can take place online or automatically in POS inbound processing.





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StandardStandard

Retail valuationRetail valuation

categorycategory

Valuation: Split Valuation

0001 Origin

Source

Switzerland

Italy

Own

External

RNormal

RAktion

0002

R300

Local Global

Valuation areaValuation areaValuation area Valuation categoryValuation categoryValuation category Valuation typeValuation typeValuation type

Retail

SiteSiteSiteStandard

Retail valuation

category

Standard

Retail valuation

category

If split valuation is active, stocks of an article can be valuated separately. If you want to carry out split

valuation for an article, you enter a valuation category in the accounting data of the article. This defines

which valuation types can be specified. A valuation type characterizes one of the possible types of stock for a certain valuation category. Default

valuation types can be defined for a valuation category. This affects the valuation type that is to be

entered in a purchase order.

When setting up valuation categories and valuation types, you first define them as global, that is to say,

independent of a valuation area.

You then assign the valuation categories to valuation areas. As a result, category-specific data (in

particular the valuation types assigned to the category) are valid locally.

Local valuation categories and types can be changed.

When you assign a valuation category to an organizational unit, all valuation types that are globally

active for the valuation category are automatically assigned to this organizational unit.





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Valuation: Split Valuation in Retail

Stock for Stock for

valuationvaluation

typetype

Site 0001

Article 4711

Quantity 1000

RAKTIONQuantity 300

RNORMALQuantity 700

Valuation area 0001

Article 4711

Valuation category R

Quantity 1000Moving ave. price 5.40

Valuation type

RNORMAL

Quantity 700

MvgAve. price 6.00

Valuation type

RAKTION

Quantity 300

MvgAve. price 4

Stor. loc. 0001

Article 4711

Quantity 1000

SiteSiteSite

Storage locationStorage locationStorage location

Split valuation enables you to manage different parts of the stock of an article at different prices. In SAP

Retail this is used to differentiate between promotion stock and standard stock. This function can be used

for both distribution centers and stores. Each valuation type has its own valuation record, which contains the valuation price and other control

information. In addition, for each storage location, different parts of stock are managed using the

relevant valuation type.

If split valuation is active, it is necessary to state which part of stock is affected by the relevant

transaction for each goods movement.





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Summary

You can valuate your stock using the purchase

price and sales price.

You can use valuation profiles for each site todefine the level at which you want to manage

inventory.

Above article level, you can only manage stock

on a value basis.

Stocks valuated at sales prices can be

revaluated in part or full.

This is controlled by revaluation profiles, which

you must assign to your sites.

You can use split valuation in SAP Retail todifferentiate between standard stock and

promotion stock.





Inventory Management and Valuation: Exercises

Unit: Inventory Management and Valuation

Topic: Stock Revaluation


• Explain the effects of a change to the retail price on the stockmanaged on value-only articles.

Your store manages stock for the perishables merchandisecategory on a value-only basis at merchandise category articlelevel.

1-1 Before carrying out the revaluation, check the relevant settings for the store.

1-1-1 Which profile for value-only inventory management is assigned to store T2##?

_________________________________________________

1-1-2 Which valuation profile is entered, and what effect does this profile have if thesales price is changed? _________________________________________________

_________________________________________________

_________________________________________________

1-1-3 How is inventory management carried out in merchandise category

R1121 Perishables? _________________________________________________





1-2 What is the procedure for articles for which stock is managed on aquantity and value basis?

_______________________________________________________

_______________________________________________________

_______________________________________________________

1-3 For store T2##, find out the value of the stock managed on a value-only basis formerchandise category R1121.Stock:_________________________________________________

1-4 Change the value of the stock by increasing the retail price.

1-4-1 In the price calculation, increase the retail prices (= current price) for articles TA22## and TA09## by 0.50 USD.

Article TA22##, TA09## Sales organization R300 Distribution channel R1 List group B

1-4-2 Have the sales price change affect stock.

Count quantity TA22## 100 pc

Count quantity TA09## 100 lb

1-4-3 How has the stock value changed?

New stock:____________________________________________





Inventory Management and Valuation: Solutions

Unit: Inventory Management and Valuation

Topic: Stock Revaluation


• You are on the SAP Retail initial screen (transaction W10T). Youshould enter this transaction as the start menu in your user parameters.:


• If the term Retailing is written before a path, you are in the SAP Retailing menu, the SAP Retail application menu (transactionW10M).

You get here from SAP Easy Access SAP Retail by choosing Logistics Retailing

• If the term IMG is written before a path, you are in theImplementation Guide of the R/3 System, where you can makeCustomizing settings.You get here from SAP Easy Access SAP Retail by choosing


Reference IMG (F5)

or the transaction / NSPRO F5

1-1 Prerequisites

1-1-1 Value-Based Inventory Management

Retailing: Master data Site data Site Change

Site T2##

IM Profile 0002

1-1-2 Revaluation profile

tabstrip Valuation/Inv. Mgmnt

Revalua. profile 5

When you change sales prices, you must count the stock before carrying out therevaluation. A sales price revaluation is carried out for local markdowns. The changesshould affect the margins.

1-1-3 Merchandise category R1121

Button Merchandise categories

Column M Indicator: selected (merchandise category-based)





1-2 Article-based inventory management

In article-based inventory management, the quantity is recorded and updated in thesystem, so a stock count is not required before the stock revaluation.

1-3 Stock of merchandise category R1121 in T2##

Retailing: Merchandise logistics Inventory management Environment Stock

→ Value-only article

Field name or data type Values

Merchandise category R1121

Site T2##

The current value should be $596.

1-4 Stock change

1-4-1 New sales prices

Retailing: Master data Pricing Price calculation Create


Article TA22##, TA09##

Purchasing organization R300

Distribution channel R1

List group B

Save the changes.

1-4-2 To affect stock

Retailing: Master data Pricing Environment Value assignment

Valuation at retail List display of retail price changes

Retailing: Master data Pricing Environment Value assignment

Valuation at retail Partial revaluation at retail






Site T2##

Reasn R001


Quantity in entry TA22## 100 pc

Quantity in entry TA09## 100 lb

1-4-3 New stock value

Retail: Merchandise logistics Inventory management Environment

Stock → Value-only article


Merchandise category R1121

Site T2##

New value: $696.





SAP AG 2003

MAP Functions I

Authorizations

Advanced processes Document management system

Clear user guide

Different planning currencies

DM EUR

USDDifferent planning key figures

157 005

398

The Merchandise and Assortment Planning (MAP) component in SAP Retail offers the following

functions of a flexible planning system:

A graphical network plan provides a clear user guide. You can use MAP to create planning data and map entire planning processes to your system.

MAP is linked to SAP's Document Management System allowing you to store Office documents and

graphics for reference purposes.

Authorization objects ensure that only certain associates have access to the planning system.

Planning data can be created in different planning currencies.

SAP provides a large number of predefined planning key figures that you can use in MAP.





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MAP Functions II

Time-based granularity

Advanced hierarchies

Value - quantity conversion

Plan versions

A

B

4 0

5 0

6 0

7 0

8 0

9 0

J a n F e b r . M ä r z A p r i l

Flexible entry screens

UMS WE UMS-WE

1000 500 500

2000 1400 6003000 2000 1000

UM 1 000

W E 800

(U M -W E ) / U M 0 ,2

010203040

Plan Actual

The Merchandise and Assortment Planning (MAP) component in SAP Retail offers the following

functions of a flexible planning system:

Using plan versions enables you to manage different data records for different planning types of planning in the system.

Planning can be done at different levels (planning characteristics) in complex planning hierarchies.

Data is stored at the lowest possible planning level so that data consistency is guaranteed when data

is aggregated or disaggregated between different planning levels.

MAP allows you to create planning data on a value-basis or quantity-basis or convert values to

quantity.

The total planning you create in your system can be adjusted on a time-basis and allocated to different

time periods.

You can configure your entry screens so that they match your requirements. You can, alternatively,

integrate Microsoft Excel in your SAP application.





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Course Objectives


Configure the correct Customizing settings for

Merchandise and Assortment Planning (MAP)

Recognize the links and relations between the

individual MAP components

Use MAP in business processes

Create your own planning scenarios using MAP

and run the resulting planning processes





SAP AG 2003

SAP Performance Map

SAP Service Marketplace under SAPNet alias performancemap

Released for for customers and partners (free of charge)

Central point of access for performance-related topics

Divided up in line with the mySAP.com components (containscore and industry-specific areas, plus cross-component andtechnical blocks)

Gives recommendations and suggestions, detailedinformation, documents and links, and a direct link to relevantnotes and collective notes in OSS

Continually updated and enhanced (history)

Available in English (some notes and detailed documentationare also translated into other languages).

You can find the SAP Service Marketplace under the alias performancemap by entering the following

address: http://service.sap.com/performancemap





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SAP Best Practices for mySAP Retail ...

...Offer you "Best Practice" configuration of mySAP Retail

in a number of versions for the following sectors:

• Fashion (including apparel, textiles, footwear) *

• Food (discounters, supermarkets, hypermarkets, convenience stores) *

• Wholesale (technical wholesale, mail order, Internet) **

• Hardlines (specialists in building materials, electrical items, toys, and

so on) **

...Are an implementation tool combining AcceleratedSAP

(ASAP) and Preconfigured Systems (PCS), are free of

charge and can be installed in a day.

* already available ** planned

For more information on SAP Best Practices for mySAP Retail, see service.sap.com –> Industry

Solutions -> Retail on the SAP Service Marketplace.




SAP Best Practices for mySAP Retail ...

...Provide help in every mySAP Retail implementation

... The preconfigured development client reduces the project

runtime. ... Allow early prototyping in the implementation, which reduces

problems later thanks to a system-based discussion in the

Blueprint Workshops.

... Contain detailed documentation of the preconfigured processes

including full integration with AcceleratedSAP.

Enable you to set up a pared-down, functioning system in a short

period of time and test live operations.

IRT320 - Pricing and Promotions

Documents

Transcript of IRT320 - Pricing and Promotions