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Market-Basket Pricing Use The market-basket pricing function is an enhancement to the sales price calculation function that enables you to use sales figures to calculate sales volume and gross margin figures. You perform these calculations for a group of articles - known as a market-basket - and a group of sites. The sales volume and gross margin figures that are determined at article/site level are cumulated both for each article and for the market-basket as a whole. The integration of this function with the sales price calculation function allows you to calculate sales prices as normal and thus to use market-basket pricing as a additional planning and analysis tool.

Prerequisites The following settings for market-basket pricing must be maintained in Customizing for Pricing.

Number ranges Number ranges must be defined for the market-basket pricing documents. The number ranges 01 (internal number assignment) and AA (external number assignment) are supplied as standard. You can also create your own number ranges.

Market-basket pricing type In the market-basket pricing type, you define the following parameters for market-basket price calculations:

the sales and purchase price determination sequences that are to be used for the sales price calculation

the list group and list variant in which the sales price calculation is displayed

number ranges for the market-basket pricing documents (as above)

selection variants for determining the sales quantity (optional) (see below)

the function module for determining sales quantities (see below)

Function module for determining sales quantities Customer-specific sales quantities can be determined from data in the Retail Information System by entering a customer-defined function module. You can use the function modules supplied by SAP ( WV_EXAMPLE_MBC_01, for example), as references when creating your own function modules.

Selection variants for determining sales quantities The selection variants define which information structures and fields are to be used for selecting the sales quantity figures. Selection variant 01 is supplied as standard. You can also create your own selection variants.

Example Market-basket pricing is useful when, for example, you want to take competitor prices into account when calculating your own sales prices. If a particular total profitability has been predefined for a market-basket in which certain articles are under a lot of pressure from competitors, you can reduce the gross margin of the articles that are under pressure by increasing the gross margin of the other articles in the basket. See also: Market-Basket Pricing - Processes .

Market-Basket Price Calculations - Procedure Use This process describes how you perform a market-basket price calculation for a group of articles and sites. This process allows you to change sales prices, sales and gross margin figures for the articles in the market-basket, while simulating the effects of these changes on the total gross revenue from the market-basket.

Procedure 1. Create a market-basket price calculation for a market-basket and for a group of sites. 2. A market-basket pricing item is made up of a combination of article and site.

For further information, see: Creating Market-Basket Price Calculations 3. When you execute the selection, the system performs the following steps for each market-basket pricing item: 1. Determining the expected sales quantity 2. The customer-specific function module entered in the market-basket pricing type is used for determining the expected sales quantity. You also use this function module to set the period indicator for the market-basket price calculation.

The expected sales quantity is used provisionally in the Corrected sales quantity field. This field is later used for calculating the sales and gross margin figures. 3. Performing sales price calculations 4. The prices used in the market-basket price calculation, such as purchase price (net/net), planned price, suggested price and final price, are determined in this step. 5. Calculating market-basket price calculation data, such as, for example:

Purchase value This is calculated by multiplying the corrected sales quantity by the net/net purchase price of the article.

Sales This is calculated by multiplying the corrected sales quantity by the final price of the article.

Gross margin The gross margin for an article is: (Net sales price x corrected sales quantity) - (net/net purchase price x corrected sales quantity)

Current sales and current gross margin These are calculated in the same way as the sales and the gross margin, using the current final price.

Changes in sales and margin 1. The values determined are aggregated:

per article by adding all the plants together

for the whole market-basket by adding all the articles together

Note The user can also perform sales quantity determination and sales price calculations in steps during a market-basket price calculation. You can perform steps that have not yet been performed in the change mode.

1. The basic list for market-basket price calculations appears. The aggregated data for the article is displayed here. 2. You can simulate the effects of price changes on the profitability of individual articles or on the market-basket as a whole within the sales price calculation by changing the data in the fields that are ready for input, such as Corrected sales quantity , Final price , Sales and Gross

margin.

3. You can branch to the sales price calculation function to change the sales price for an article in the market-basket, using the additional fields in the pricing table, such as Margin, Purchase price and Actual markup. Here, you can also have the data from the market-basket price calculation transferred to sales price determination.

4. You want to finish the market-basket price calculation. You have the following options:

To save the market-basket price calculation (without activating the sales prices)

To release the market-basket price calculation for automatic price activation (without activating the sales prices) You can activate the sales prices for the released market-basket price calculation in the background using thePrice activation function.

Activating prices When you activate the market-basket price calculation, the sales prices that were created during the calculation are stored as condition records in the database. In addition to the standard process (as described) there are five other, variable fields available to you for market-basket price calculation, that you can fill and control using the Business Add-In (BAdI) MBP_ADD_LIST_FIELDS. By doing this you can transfer additional prices, for example, the sales prices (gross) from sales price calculation. Alternatively, you can calculate additional values from the multiplication of expected or corrected sales quantities with prices. It is also possible to have differences in prices or values. Using the BAdI, you also control whether the variable fields are displayed and whether they are ready for input. You must also determine how entries in the variable fields should be dealt with. If, for example, you have entered the sales price (gross) in a variable field and any change is made, the sales price calculation must be adjusted accordingly.

Result The data for market-basket price calculations is stored in two documents. Standard pricing documents are generated for the sales price calculation data. These documents cannot, however, be changed in pricing document processing. Additional market-basket price calculation data, such as sales quantities or reference plant relationships, is saved in a special market-basket pricing document.

Note The status of the market-basket pricing document depends on which steps were carried out and how the market-basket price calculation was closed.

Creating Market-Basket Price Calculations Procedure

1. Choose Master data Pricing Market-basket price calculation Create . 2. The screen for market-basket price calculations is displayed . 3. Enter the required data on the selection screen.

The selection screen has four main areas in which data can be entered:

Control parameters for market-basket price calculations

A market-basket pricing type must be entered with which you want to create a market-basket calculation. The pricing type defined in Customizing contains all the key control parameters required for the market-basket price calculation. These include the number ranges and the purchase price and sales price determination sequence. The validity period entered is used for the sales price calculation and therefore also for the conditions records to be created for the sales prices. You can also enter the number of the market-basket calculation and the short text subsequently on the basic list.

Selection options on articles and sites In addition to the selection criteria that are also used in sales price calculations, you can also enter a reference market-basket price calculation from which the system uses the articles and sites.

Level on which prices are activated

If you activate prices on the price list or distribution chain level, this usually leads to a significant improvement in the performance of the programs for calculating sales prices and creating condition records. You should therefore check if you can activate prices on one of these two levels when you create a market-basket price calculation for a large number of articles and sites.

Information on reference sites

You can use reference sites to improve the performance of market-basket price calculations or to make sure that the sites contained in a market-basket price calculation are all treated in exactly the same way. You can enter separate reference sites for sales price calculations and for determining the anticipated sales quantities. You have the following options:

You can enter a reference site for the sales price calculation. This site is valid for all other sites selected.

You can make a default assignment when selecting distribution chains and site groups. The reference site in each case is used as the reference site for calculating the sales price.

You can adopt the reference site assignments from the reference market-basket price calculation.

You can set the "Call up view for reference site assignment before start" indicator. This calls up the screen for assigning referencing sites before the program is run.

Caution The individual elements in the selection screen enable a large number of possible combinations. You should, however, be aware that some combinations are not allowed. For example:

If you activate prices at price list level, it does not make any sense to assign any reference sites.

If you activate prices at distribution chain level, it does not make any sense to assign any further sites.

Neither does it make sense to enter a specific reference site while at the same time setting the indicator for assigning the default reference site.

If you choose a combination that is not allowed, an error message is displayed. 1. Choose Execute .

Note If you set the indicator that calls up the screen for assigning referencing sites before the program is run, a dialog box is displayed in which you can enter reference site assignments.

Results The basic list screen for market-basket price calculations is displayed . You can then go to the site details screen and to the sales price calculation function. You can change the market-basket items in the basic list and on the details screens. See also: The Market-Basket Price Calculation Process

1. Market-basket price calc.: expected sales quantity

Forecast value in market-basket price calculations that is determined by the program and represents the sales quantity of a material.

The forecast value is a unit of time in the validity period of a market-basket price calculation and is shown by the period indicator.

Use

The expected sales quantity is used provisionally in place of the corrected expected sales quantity.

The expected sales quantities of a material for the different plants are accumulated to form the total expected sales quantity for that material.

Determining the expected sales quantity

The expected sales quantity is determined using the function module for determining the sales quantity that is entered in the market-basket price calculation type assigned to the market-basket price calculation.

The expected sales quantity is usually based on previous actual sales quantities, which can, for example, be taken from the Retail Information System. These previous quantities are then used to calculate a forecast value, which could, for example, be a mean value.

The function module is also used to set the period indicator.

2. Market-basket price calc.: corrected (expected) sales qty

A user-defined forecast value in market-basket price calculations for the sales quantity of a material.

The forecast value refers to a unit of time (shown by the period indicator) in the validity area of the market-basket price calculation.

Use

The corrected expected sales quantity is an entry field that allows corrections to be made to the forecast value determined by the program ( expected sales quantity). Corrections may, for example, be required if irregularities in the planning period (weekends with public

holidays, typical vacation periods) are not taken into account in the forecast model.

When a market-basket price calculation is created, the field for the corrected expected sales quantity already contains the expected sales quantity.

The corrected expected sales quantity is used as the relevant forecast value for calculating the purchasing, sales and gross revenue values.

3. Sales Pricing: Purchase Price (Net/Net)

Price used in sales price calculations to represent the average procurement costs for a material in a particular organizational level.

The (net/net) purchase price is determined in sales price determination in accordance with the purchase price determination sequence entered.

Use

The (net/net) purchase price forms the basis for sales-side calculations in the sales price calculation function.

It is entered in the pricing table in the list field "EKPNN".

Dependencies

The margin (net) and the margin (gross) are calculated from the sales price (net) and sales price (gross) plus the purchase price (net/net).

4. Market-basket price calc.: purch. value of corrected sls qty

In market-basket price calculation, this is the total value of the corrected sales quantity of a material, valued at the purchase price (net/net) .

The total value at the purchase price is also known as the sales input.

Use

In addition to the the purchasing values for the corrected sales quantity per material and plant, cumulated purchasing values are also calculated:

Purchasing value per material (for possible different sales units), by adding together the purchasing values of the plants (with the relevant sales unit)

Purchasing value of the total

market-basket, by adding the cumulated purchasing values of the materials

Dependencies

The gross revenue of the corrected sales quantity is calculated from the difference between the sales price (without tax) and the purchasing value.

5. Sales Pricing: Suggested Price

Price used in sales price calculation as a suggestion for the final price.

Use

In sales price calculation, the suggested price is of particular significance in connection with competitor prices. Appropriate Customizing settings allow the suggested price to be derived from the competitor prices using a pricing strategy.

Display in sales price calculation

The suggested price is displayed in the "VORPR" list field in the pricing table.

Dependencies

To enable data transfer from competitor prices, you must enter transfer type 'A' for list field "VORPR". This is done in Pricing Customizing under " Control Data for Pricing Table and Data Backup" in subsection "Control for sales price calculation schema and list field" in group box "Data transport from price calculation schema to list field".

6. Sales price calculation: Plnd SP with price point rounding

Price that results from a markup calculation ( sales price determination type "A") in the sales price calculation function if rounding to price points is used.

Use

The planned sales price with price point rounding is purely for information in the sales price calculation function. It is used for comparison with the planned sales price without rounding to price points or with the final price determined using a different method, such as derivation from competitor prices, determination or as a result of user changes during processing.

Display in the sales price calculation function

The planned sales price with rounding to price points is displayed in the "PENDR" list field of the pricing table.

Dependencies

The price point group that is valid for a pricing item is defined in Customizing for Pricing.

Click here to call up Customizing.

7. Final price

This is the final sales price that was determined in the sales price calculation function.

In store distribution chains in which prices are calculated for selling goods to consumers, the final price includes all the taxes the goods incur (value-added tax, excise, and so on). In wholesale and distribution center distribution chains, for which a transfer price for downstream logistics units is determined, the final price does not include taxes.

Use

The final price is determined in the sales price calculation function of Retail Pricing using the (gross) sales price (for store distribution chains), or the (net) sales price (wholesale and distribution center distribution chains) with optional price point rounding.

Display in the sales price calculation function

The final price is displayed in the "ENDPR" list field.

Dependencies

When you save the sales price calculation, the final price is transferred to the condition. You make the settings necessary for saving the condition within the condition technique under Sales Price Calculation in Customizing for Pricing.

Click here to call up Customizing.

8. Sales price (net)

Sales price of a material without the taxes incurred by that material.

Use

The (net) sales is calculated in sales price calculations in Pricing using the sales price calculation schema. In wholesale and distribution center distribution chains, it is the starting point for rounding to price points.

Display in the sale price calculation function

The sales price (net) appears in the list field "VKPNE" of the pricing table.

Dependencies

The margin (net) is calculated from the (net) sales price and the purchase price (net/net).

9. MB pr. calc.: bus.vol.(val.) for corr. sls qty and fin. pr.

In market-basket price calculations, this is the total value of the corrected sales quantity of a material, valuated at the sales price ( final price).

Use

In addition to the purchasing values for the corrected sales quantity per material and plant, cumulated sales values are also calculated:

Sales values per material (and for possible different sales units), calculated by adding together the sales values of the plants (with the relevant sales unit)

Sales value of the whole market-basket, calculated by adding the cumulated sales values of the materials

Dependencies

Percentage changes in sales are calculated from the sales values and the current sales values.

10. MB price calc.: gross rev. (val.) for corr. sales quantity

In market-basket price calculations, this is the difference between the calculated sales price (net) and the purchasing value of the corrected sales quantity of a material.

The calculated sales price (net) represents the total value when the material is valuated at the sales price (net).

Use

In addition to the gross revenue values for the corrected sales quantity for each material and plant, cumulated gross revenue values are also calculated:

Gross revenue value per material (and for possible different sales units) by adding the gross revenue values of the plants (with the relevant sales unit)

Gross revenue value of the whole market-basket by adding the cumulated gross revenue value of the materials.

Dependencies

An absolute change in gross revenue and a percentage change in gross revenue are calculated from the gross revenue and the current gross revenue.

11. Margin (net) in sales price calculation

Key figure that describes a (net) sales price.

The margin expresses those pricing components of the (net) sales price that do not come from the (net/net) purchase price (handling costs, additional markups, profit), as a percentage of the (net) sales price. In cases where the (net) sales price has no pricing components, the margin (net) shows the share of profit in the (net) sales price.

Use

The system uses the sales price (net) (determined using the sales price determination function) and the purchase price (net/net) (determined using the purchase price determination function) in the following formula to calculate the (net) margin in the sales price calculation function of Pricing:

Margin (net) =

(sales price (net) - purchase price (net/net)) / Sales price (net)

* 100

Display in the sales price calculation function

The margin (net) is displayed in the "SPANE" list field of the pricing table.

12. Current Final Price

Final sales price that was determined using the price determination function; this means that this price is valid in the master conditions on the pricing date.

Use

The current final price is displayed for information next to the newly-calculated sales price in the sales price calculation function and in certain applications that call up the sales price calculation function externally. It also has certain functional meanings in the sales price calculation function, being used in conjunction with particular sales price determination types or particular filter functions ("Pricing levels without general sales price only" indicator and "Pricing levels with specific sales prices only").

Display in the sales price calcuation function

The current final price is displayed in the "ENDPA" list field of the pricing table.

Dependencies

Depending on whether the final price includes taxes (store distribution chains) or not (wholesale and distribution center distribution chains) , it is used to calculate either the (net) sales price or the current (gross) sales price from the relationship between the sales price (gross) and the sales price (net) (not displayed in the pricing table). The current final price and the calculated current sales price (gross) or the current sales price (net) are used to calculate the current margin (gross) and the current margin (net).

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