Right Solution, Right Time, Right Price Pricing / Discount Conditions

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Transcript of Right Solution, Right Time, Right Price Pricing / Discount Conditions

  • Slide 1
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  • Right Solution, Right Time, Right Price Pricing / Discount Conditions
  • Slide 3
  • Business Process Workshop The objectives of the Pricing and Discount workshop is to: Provide an overview of the Pricing and Discount Condition Business Processes Demonstrate how SAP will be used to manage these processes. 1
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  • Agenda Topics: I.Overview II.Pricing Conditions III.Discount Conditions IV.Manual Conditions V.Reporting VI.References 2
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  • I. Pricing and Discount Conditions - Overview 3
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  • Pricing is a broad term to describe the calculation of prices and costs. Conditions represent a set of circumstances that apply when a price is calculated. The variable factors here the customer, the material, the quantity, and the date determine the final price the customer gets. The information about each of these can be stored in the system as master data. This master data is stored in the form of condition records. 4
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  • Condition Records Condition records allow you to store and retrieve pricing data in the system. All the pricing elements of daily business the prices, discounts, freight charges, commissions, etc that you want to use must be stored in the system as condition records. You can define as many condition records as you want for the different pricing elements for any validity period. These records are stored in SAP as master data and are retrieved when processing a sales document. Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy. These three master data records are critical to sales order processing: Customer Master Material Master Pricing/Discount Conditions All pricing and discount condition records will have validity dates. All validity dates will default from todays date to 12/31/9999. (Note: This process is under review and may change after implementation). 5
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  • Condition Types Pricing is carried out automatically based on predefined prices, discounts, and surcharges. Prices can be manually overridden on the sales order (when applicable). Conditions Price List Material Price Customer/Material Price List Material Price Customer/Material Prices Customer/Material Pricing Group 3 rd Party Commissions (Statistical) Sales Area/Material Price Group Customer/Material Pricing Group 3 rd Party Commissions (Statistical) Sales Area/Material Price Group Discounts/surcharges 6
  • Slide 9
  • Condition Types Some definitions to get us started.. Prices are the base from which the net price is calculated. Discounts are the reductions that can be applied to your price. Surcharges are additional prices added to your final price. Statistical conditions are used to track pricing within a sales document without affecting the net price of the order or sales document. 7
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  • Creating Price/Discount Conditions Since condition records are considered master data, that is where youll find it in SAP. Most condition records are created by following the menu path: Logistics Master Data Conditions There are two places in master data where condition records can be created, changed and displayed. 18
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  • Pricing and Discount conditions can be created, changed and displayed in SAP in two different modules: VK31 Logistics Master Data Conditions Create VK11 Logistics Master Data Conditions Select using condition type Create 9
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  • Todays Presentation will primarily use VK11. VK11 Logistics Master Data Conditions Select using condition type Create 10
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  • Pricing and Discount conditions are organized into a sequence called a pricing procedure. During sales order processing, the pricing procedure determines the kinds of pricing elements you can use and in which sequence they are processed to arrive at a final price. The sequence of Yaskawas standard pricing procedure follow in this order: Material Price (PR00 or PRRP) Customer/Material Price Price List Type Material Customer/Material Price Group Discount (K030) Sales Area/Material Price Group Discount (Z030) Manual Discounts (PN00, RA00) Commissions Accrual (ZCOM) Manual Freight Conditions (ZPPA, ZCOD) Sales Taxes (XR1-4) Determining Price through the Pricing Procedure 11
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  • Determining Price through the Pricing Procedure In SAP, the system checks for the most specific condition record first (customer/material price). After this process, other discounts can be applied to the sales document. The system looks for the most specific pricing element (such as customer/material price of PR00) and works downward to the most general (customer/material price group discount K030). Then manual conditions can be added such as RA00, freight, taxes, etc. 12
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  • Exclusion Indicator The system can exclude condition types and records so that they are not taken into account during pricing in sales documents. If a condition record has exclusion marked, no additional pricing or discount conditions will be applied to calculate the final price. Here the customer has a customer/material price for the item. Since the exclusion indicator is marked, once the system reaches this price, it will stop looking for additional PR00 conditions to apply to this material. Additional manual discounts can still be taken off of this designated, net price. 13
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  • II. Pricing Conditions 14
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  • Pricing Condition Record Condition Type: PR00 Condition types determines selling price of materials Automatically copied into Sales Order. Mandatory condition that must be established to Process sales documents. Pricing Master Records are located in condition types in Sales and Distribution. Material Price (known as List Price in BOSS) is no longer maintained in the Material Master Record. Without this condition, an error will occur in your sales document and require to be established before proceeding. 15
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  • There are 3 types of scenarios (key combination) that fall under PR00: Customer/Material Price Price List Type Material Price Pricing Condition PR00 16
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  • Condition where a specific material price is designated for a specific customer. Also known as a Net price. The customer will receive this pricing whenever the material is ordered. Validity dates can be added to the pricing so it can be reviewed monthly, annually, etc. Customer/Material Price (PR00) 17
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  • Customer/Material Price (PR00) This condition can be used when a specific price has been designated for a specific material. Sales organization and distribution channel must be specified for this condition. Before creating this type of condition, check the customer master to verify the distribution channel the customer belongs to. 18
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  • Creating Customer/Material Price (PR00) Enter PR00 as the condition type and hit enter. In the key combination, click on the Customer/Material button. Click on the green arrow to proceed. Initial Screen 19
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  • Creating Customer/Material Price (PR00) Enter 0010 in Sales Organization. Enter the appropriate distribution channel. Use the match code button to search from a list. Enter the customer number. Use the match code button to search from a list. 20
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  • Creating Customer/Material Price (PR00) Enter the material number. Use the match code button to search from a list. Hit the Tab button. Enter the rate or price for the material. Hit enter. Enter validity dates and check the exclusion indicator box with an X. Exclusion Indicator 21
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  • Creating Customer/Material Price (PR00) The exclusion indicator prevent further customer discounts to be taken on the actual material price. However, manual discounts such as RA00 and PN00 can override the PR00 Customer/Material Price. (More discussion on this later). Once these steps are followed, you can click the orange disk icon to save your condition. 22
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  • Condition where multiple customers share the same designated price for a specific material or several materials. All customers need to have the same price list type designated on their customer master record to receive this pricing. Price List Type (PR00) 23
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  • Price List Type (PR00) The customer master designates that the customer will receive the price list type condition. This is designated at the price list type field on the customer master by 01. It can be deactivated on sales orders and line items. 24
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  • Price List Type (PR00) Currently, we have one scenario within where this is condition is used: Honda. Affiliates of Honda can order material from at the price we sell to Honda, provided they have the price list designated on their customer master. 25
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  • Price List Type (PR00) Affiliates of Honda can order material from at the price we sell to Honda, provided they have the price list designated on their customer master. In this example, there are several materials in this one price list. 26
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  • Condition where a specific material price is designated regardless of which customers order the material. In BOSS, it is a list price. The standard price of a material is no longer attached to the Mater