sameers managing pricing conditions

This session is intended for people with the following profiles:› DSC- Sales Conditions Manager

This session has the following prerequisites:› GAL01 – Introduction to navigation

At the end of the training session, you will be able to:› Record prices in the system

[P] Purchasing

[M] Manufacturing

[SM] Stock management

[S] Sales

[F] Finance

[C] Controlling

S

Sales conditions manager

DSC Person responsible for taking sales orders

SOT

The definition of a common price structure for the sector will enable to read and understand the prices by using a shared vocabulary. Furthermore, as the price is determined prior to the sales order and cannot be changed, the application of the pricing procedure will be more rigorous.

The definition of a common price structure for the sector will enable to read and understand the prices by using a shared vocabulary. Furthermore, as the price is determined prior to the sales order and cannot be changed, the application of the pricing procedure will be more rigorous.

Note

Enter theOrder

Enter theOrder

InvoiceInvoice

Prepare the/Packing/Shipping

Prepare the/Packing/Shipping

SOT

SHI

Create the condition record

Create the condition record

DSC

The conditions are the circumstances that are applied when a price is calculated. For example, a customer orders a given quantity of a product on a given day. The variable factors (in this case, the customer, the product, the quantity ordered, the date) determine the sales price calculated for the customer. Information concerning each of these factors can be entered in the system as master data. This master data will be saved as condition records.

All the records used to calculate the final price in an order make up the calculation procedure (see next page)

4 + 5 = 6. Customer sales price before tax4 + 5 = 6. Customer sales price before tax

7: +Taxes7: +Taxes

6 + 7 - 8 = 9. Customer sales price, tax included6 + 7 - 8 = 9. Customer sales price, tax included

8: - VAT exemption certificate8: - VAT exemption certificate

1 + 2 + 3 = 4. Base sales price1 + 2 + 3 = 4. Base sales price

5: Discounts and extra expenses – Adjustments to the sales price to appear separately on the invoice. (Shipping expenses, transportation, penalty for small orders/ Discount for large quantities ordered, decoration or special handling charges, Amortization, etc.)

5: Discounts and extra expenses – Adjustments to the sales price to appear separately on the invoice. (Shipping expenses, transportation, penalty for small orders/ Discount for large quantities ordered, decoration or special handling charges, Amortization, etc.)

1. Standard price (cost) of the factory, development, or finance

1. Standard price (cost) of the factory, development, or finance

2: - Shipping, decoration and other expenses (do not appear on the invoice)

2: - Shipping, decoration and other expenses (do not appear on the invoice)

3: - Profit margin3: - Profit margin

When the invoice is created:10. Calculation of commission for agents11. Provision for end-of-year discount (rebate)

When the invoice is created:10. Calculation of commission for agents11. Provision for end-of-year discount (rebate)

Pricing procedure

Offline

In SAP

The various conditions available for managing prices in the system:

Condition Description Man.Header/Item

ZWTA Wire transfer X H/I

ZSO1 Mold setup I

ZSO2 AMO setup I

ZSO3 Small order charge I

ZDSOSmall order charge

discountX I

ZBO1 Rebate based on volume I

ZBO2 Rebate based on TO I

EDI1 Cust expected price X I

UTXJ Tax Jurisdiction Code I

LCFR License - France I

MWST Output Tax I

JR1 Tax Jur Code Level 1 X I



ZDA2 Mold Advance I

GRWR Value for customs

VPRS Cost

ZCOM Commission I

Condition Description Man.Header/Item

ZINT Basic selling price Interco I

ZPR0 Basic selling price I

ZPRP Package Price I

ZSS2 Billing samples FP X I

ZSA1 Amortization charge I

ZSA2Amortization. interest

charge I

ZDA1 Mold amortization I

ZDLA Blanket order disc. I

ZDSH Ship to location discount I

ZSS1 Service Sales X I

ZCMD Commercial discount I

ZSD2 Originating charge I

ZSF1 Inland freight X H

ZSF2 Inland freight I

ZSF5 Freight Insurance X H

ZSC1 Shipment Combination X H

ZSC2 Expedite X H

ZSC3 Order Combination X H

ZSC4 Customer Pick-Up X H

ZSC5 PO Changes X H

ZSP1 Packing charge I

ZSP2 Pallet charge I

The standard cost is determined by the factory, the Development or the Finance Department before being provided to the sales office to be used as a basis for the final pricing and being entered in the system

The sales office works with Development, Purchasing, and Finance to determine all the factors that may impact the final price of the material (cost )

The sales office determines the margin to be applied to each finished product

The base sales price is entered manually in the system by the sales office and may be updated periodically

The sales price is always associated with a finished product Any other increase or decrease used to attain the final price is

done manually when entering the sales order by manually applying the discount or surcharge conditions

This document shows how to enter a condition record before the order. The use of manual conditions when entering a sales order is described in the document on entering orders.

What information do I need to create a condition record?› The condition type to be entered (base price,

shipping expenses, etc.)› The circumstances in which this condition will

be applied by the system (key combination such as "Sales org../DistrChan/Division/Customer/Material" for example)

› The amount to be used in this case for this condition

› The validity period for the condition

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Access via menu:

Create a condition by selecting the condition type (VK11)

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First you must choose the condition type to enter…

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1. Click the button of possible entries in order to choose the appropriate condition type

2. Choose from the list a condition starting with the letter "Z": ZPRO Sales price for example. Double click on this line to confirm your choice and automatically fill this value in the fields in the main screen

3. Confirm the chosen condition type to continue data entry (see next page)…

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1. Choose the key combination by clicking one of the buttons

2. Confirm your choice to go to the next screen for entering the condition (see next page)

After choosing the condition type, you must define in which cases the price that will be entered will be applied. This is done by choosing a combination of keys:

Key combination Meaning

SalesOrg. /DistrChan/Division/Customer/Mat/Currency

The condition record will specify the sales area, the customer and the material for which the condition will be applied by the system

using a specified currency (specific price for a customer for example)

SalesOrg. /DistrChan/Division/Customer/End Customer/Mat

The condition record will specify the sales area, the customer, end customer and the material for which the condition will be applied by the system (specific price for an end customer for example)

SalesOrg. /DistrChan/Division/Customer/MatThe condition record will specify the sales area, the customer and the material for which the condition will be applied by the system

(specific price for a customer for example)

SalesOrg. Comm/ DistrChan/Division/Price grp/Material

The condition record will specify the sales area and the price group and the material for which the condition will be applied by

the system

SalesOrg. Comm/ DistrChan/Division/MaterialThe condition record will specify the sales area and the material

for which the condition will be applied by the system

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1. Enter the material number for which the price must be entered in the system

2. Enter the material price

3. Press the "Enter" key to see the values proposed by default by the system

4. Check the units: here the price is indicated in US Dollars for one thousand items

5. Enter the validity period for this price. By default the system proposes the current date, up to 31.12.9999.

The number of fields to be entered in the condition record screen depends on the key combination chosen previously.

In this case, the "Sales org./DistrChan/Division/Material" combination was chosen; this is identical to assigning a price to a material in the system.

6. Repeat these operations on the following lines for other material if necessary

7. See next page for pricing scales

8. Save the condition record(s) to obtain the following confirmation message:

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SAMEER

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To enter scales…

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1. Click the "Scales" button before saving the condition record

2. Enter the scale thresholds as well as the price associated with each level on the screen displayed by the system

3. Click "Save" to create the condition record with its scale and obtain the following confirmation message…

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SAMEER

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The mode for entering the various condition types does not change

Only the available key combinations vary with the condition type.

After having seen how to enter a base price for a material, the following pages review the rules to apply for entering other condition types…

This condition type is used to save the prices applied between companies in the group

Two key combinations are possible: › Sales

org./DistrChan/Customer/Receipt/Material› Sales org./DistrChan/Customer/Material

It is entered like a ZPR0 with an amount for 1000 pc

This condition type is used to record a package price The ZPRP condition must be entered for the following key combination (only one is possible): Sales

org./Distribution Chan/Division/Order reason/Customer/Material The reason for the order to be used is "109 Package price" This is a fixed amount (no unit to be specified) It must be applied once only. To do this, you must fill in the following additional data (enter 1 in the

"Max.number.of.orders" field):

This condition type is used to perform occasional sales promotions

It must be entered for a customer/material pair with a fixed amount (key combination: Sales org./DistrChan/Division/Customer/Material)

It must be applied once only (same procedure as for ZPRP)

The condition type ZSD2 is used to allocated origination costs for a material to the customer

It is only used for a customer's first order and therefore must be applied once only (same procedure as for ZPRP and ZCMD)

It must be entered for a customer material pair with a fixed amount: the system only proposes one key combination and does not allow you to enter a unit for the amount specified

Condition ZSF1 is used when the customer wants to have the shipping expenses appear separately on the invoice.

Condition ZSF5 is used in the same case, but for shipping insurance expenses. › Both these conditions are entered manually in the sales order.

Condition ZSF2 is used when the customer wants to see price separately from transport costs . The condition is expressed as a quantity (1000 pc).

ZSC1: Shipment Combination › Moving product from 1 plant to another so that two pick-up points are not needed by the customer.

All product is made available, regardless of where it is produced, at one pick-up point. ZSC2: Expedite

› Moving product up on a manufacturing line so that it is available earlier then the standard lead-time.

ZSC3: Order Combination › Customer orders less than minimum on more than 1 item in an effort to reduce pricing by

combining order quantities. Flat fee for this now to be charged. ZSC4: Customer Pick-Up

› If customer is arranging pick-up by the carrier and the inventory sits here for longer than the agreed upon date, a one-time charge is given to the customer on that order.

ZSC5: PO Changes› Any change to an existing PO, requiring additional processing of the order.

Condition ZSS1 is added manually to a service sales order in order to fill in the amount of the transaction for a miscellaneous sale.

The order taker must then enter a total amount valid for the entire invoice (as opposed to a price per pc).

Condition ZSS1 and ZSS2 are also used to invoice samples :› Condition ZSS1 is used to invoice samples without final

codification.› Condition ZSS2 is used to invoice samples on finished product or

semi-finished product (with final codification).

Reference : CNX_TR_VS_SA06_Sample management_v1

Conditions ZSP1 and ZSP2 are intended for entering packing expenses.

These condition types are entered for a customer material pair (key combination "Sales Org./ Distribution Chan/Division/Customer/Mat")

The amount entered is expressed in items and may have a limited validity period› ZSP1 : condition record created on finished product› ZSP2 : condition record created on packaging

material (pallet)

Condition types ZSA1, ZSA2, ZDA1 and ZDA2 are used to pass along charges or discounts for amortization to the customer

Condition ZDA1 is provided automatically by the condition record performed for ZDA2.

They must be entered for a customer material pair: the system only proposes one key combination

They are expressed by an amount for 1000 pc with a validity period or a limited validity quantity

They cannot be changed in the sales order

The screens when creating a record for these conditions….

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1. Only one combination is proposed

2. The price is systematically entered for 1000 pc

3. You must specify a valid-to date (see next page for a validity for a limited quantity)…

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How to define the limit quantity for these condition types…

11. on the main entry screen, select a line

2. click on "Goto>Additional data"

3. Enter the maximum number of items for which this condition is applied. Once this number has been reached, the condition will no longer be applied by the system.

4. Save

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These condition types are used to apply an additional charge to orders for small quantities They must be entered for a sales area and a product hierarchy:

› Sales org./DistChan./Division/Prod.Hier.)› Sales org./DistChan./Division/Sold-to party/Proc.Hier.› Sales org./Distr. Chl/Division/Customer/Material

They must be applied above a certain quantity: use the scale function to specify the quantity below which it must be applied to the order (see the screen shot)

It may be canceled by using the ZDSO condition when entering the sales order

This condition type is used to apply a ship-to-stock discount to a distributor

It is used when an authorized Distributor orders product for shipment into their warehouse stock.

Expressed in percent of Basic selling price.

It must be entered for a sales area and a specific ship-to:› Sales org./DistChan./Division/Sold-to party/Ship-

to

This condition type is used to automatically determine the amount of commissions to be paid to each agent

It can be recorded for one agent or for an agent/customer pair

The record is expressed as a percentage This condition is statistical only and

therefore enters in final price calculation. It allows the system to automatically manage commissions

1. In order for the ZCOM condition to be taken into account by the system, the commissioned agent must be assigned in the sold-to party customer records concerned

2. Choose the key combination to be used (in general an agent (vendor) and customer (sold-to party) pair

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1. Specify the SAP number of the commissioned agent assigned in the customer master record of the sold-to party

2. Specify the number of the sold-to party

3. The amount is expressed as a percentage (this is a commission)

4. Save

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This condition type is used to enter the various VAT rates in the system.

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1. Always select the key combination "Export taxes"

2. Enter the country of origin

3. Enter the country of destination

4. Specify whether this is a customer subject to VAT (inside or outside the EEC, specified in each customer master record)

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3 4 55. Specify the VAT code applied to the material (specified in the record for each material)

6. Choose the VAT code associated with the case entered (see Accounting for details on those codes)

7. Save

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VK11 / VK31 Create condition records

VK12 / VK32 Modify condition records

VK13 / VK33 Display condition records

Let's use the system!

A new material is available for sale; you were sent the sales price of the material and must enter it in the system...

Review of key points: › Use condition type ZPR0› Use the key combination for defining prices for a material

Steps: › Access the transaction: VK11 - Create› Carry out the exercise following the steps as described in

the course › For this exercise, use the data provided in the Excel

spreadsheet › Note the number of the document you have created (if

applicable): Document number: _____________

Participant Material code Price Validity period

Participant 1 20000004 150 From 01.01.2005 to 31.12.2005










It has been decided to offer an exceptional sales discount to your customer. You are asked to make sure this discount is applied automatically by the system when the next order is entered

Review of key points: › Use condition type ZCMD

Steps: › Access the transaction: VK11 - Create› Carry out the exercise following the steps as described in

the course › For this exercise, use the data provided in the Excel

spreadsheet › Note the number of the document you have created (if

applicable): Document number: _____________

ParticipantMaterial

code Customer name Promotional

price

Participant 1 20000004 CUSTOMER USER 1 90










sameers managing pricing conditions

Documents

customer sales price

sales orders

sales office

final price

base price

base sales price5

p purchasings sales

dsc sales conditions