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

S
Create the condition
record

DSC
Enter the
Order
SOT

Prepare the/
Packing/
Shipping

SHI

Invoice

Note The definition of a common price structure for the
[P] Purchasing [S] Sales
[M] Manufacturing [F] Finance
sector will enable to read and understand the prices
[SM] Stock management [C] Controlling
by using a shared vocabulary. Furthermore, as the
DSC Sales conditions SOT Person responsible for price is determined prior to the sales order and cannot
manager taking sales orders be changed, the application of the pricing procedure
will be more rigorous.

 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)

 Pricing procedure

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

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

1 + 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.)

4 + 5 = 6. Customer sales price before tax In SAP
7: +Taxes

8: - VAT exemption certificate

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

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

 The various conditions available for managing prices in the system:

Header/ Header/
Condition Description Man. Condition Description Man.
Item Item
ZINT Basic selling price Interco I ZWTA Wire transfer X H/I
ZPR0 Basic selling price I ZSO1 Mold setup I
ZPRP Package Price I ZSO2 AMO setup I
ZSS2 Billing samples FP X I
ZSO3 Small order charge I
ZSA1 Amortization charge I
Small order charge
Amortization. interest ZDSO X I
ZSA2 I discount
charge
ZBO1 Rebate based on volume I
ZDA1 Mold amortization I
ZBO2 Rebate based on TO I
ZDLA Blanket order disc. I
EDI1 Cust expected price X I
ZDSH Ship to location discount I
ZSS1 Service Sales X I UTXJ Tax Jurisdiction Code I
ZCMD Commercial discount I LCFR License - France I
ZSD2 Originating charge I MWST Output Tax I
ZSF1 Inland freight X H JR1 Tax Jur Code Level 1 X I
ZSF2 Inland freight I JR2 Tax Jur Code Level 2 X I
ZSF5 Freight Insurance X H JR3 Tax Jur Code Level 3 X I
ZSC1 Shipment Combination X H ZDA2 Mold Advance I
ZSC2 Expedite X H GRWR Value for customs
ZSC3 Order Combination X H
VPRS Cost
ZSC4 Customer Pick-Up X H
ZCOM Commission I
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.

1/6

 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

2/6

 Access via menu:

 Create a condition by selecting the condition type (VK11)

3/6

First you must choose the condition type to enter…

• Click the button of possible entries
in order to choose the appropriate
3 condition type
• Choose from the list a condition
starting with the letter "Z": ZPRO
1 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
2 • Confirm the chosen condition type
to continue data entry (see next
page)…

4/6

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:

1. Choose the key combination by
clicking one of the buttons
1 2. Confirm your choice to go to the
next screen for entering the
condition (see next page)
2

Key combination Meaning
The condition record will specify the sales area, the customer and
SalesOrg. the material for which the condition will be applied by the system
/DistrChan/Division/Customer/Mat/Currency using a specified currency (specific price for a customer for
example)
The condition record will specify the sales area, the customer, end
SalesOrg. /DistrChan/Division/Customer/End
customer and the material for which the condition will be applied
Customer/Mat
by the system (specific price for an end customer for example)
The condition record will specify the sales area, the customer and
SalesOrg. /DistrChan/Division/Customer/Mat the material for which the condition will be applied by the system
(specific price for a customer for example)
The condition record will specify the sales area and the price
SalesOrg. Comm/ DistrChan/Division/Price
group and the material for which the condition will be applied by
grp/Material
the system
The condition record will specify the sales area and the material
SalesOrg. Comm/ DistrChan/Division/Material
for which the condition will be applied by the system

5/6

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.
1. Enter the material number for which
entered in the system
8 2. Enter the material price
7 3. Press the "Enter" key to see the valu
default by the system
SAMEER
4. Check the units: here the price is ind
Dollars for one thousand items
5. Enter the validity period for this price
system proposes the current date, up

1 2 5
4
6 1. Repeat these operations on the following lines for other
material if necessary
2. See next page for pricing scales
3. Save the condition record(s) to obtain the following
confirmation message:

6/6

1. Click the "Scales" bu
To enter scales…
condition record
2. Enter the scale thresh
price associated with
screen displayed by th
3. Click "Save" to create
with its scale and obta
confirmation message
SAMEER
1

3

2

 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….

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)…

1

2
3

How to define the limit quantity for these condition types…

4

2

1. on the main entry screen, select a line
1
2. click on "Goto>Additional data"
3. Enter the maximum number of items for which 3
this condition is applied. Once this number has
been reached, the condition will no longer be
applied by the system.
4. Save

 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

1

2

1

2 3

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

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

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)

7
1
2

1. Specify the VAT code applied to the 5
material (specified in the record for each 3 4 6
material)
2. Choose the VAT code associated with
the case entered (see Accounting for
details on those codes)
3. Save

 VK11 / VK31 Create condition records
 VK12 / VK32 Modify condition records
 VK13 / VK33 Display condition records

 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: _____________

Material Promotional
Participant code Customer name price

Participant 1 20000004 CUSTOMER USER 1 90

Sameers Managing Pricing Conditions

Sameers Managing Pricing Conditions

Recomendados

Recomendados

Mais conteúdo relacionado

Destaque

Destaque (20)

Sameers Managing Pricing Conditions