Sameers Managing Pricing Conditions

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SAMEER\'E PRICING PPT

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Sameers Managing Pricing Conditions

  1. 1.  This session is intended for people with the following profiles: › DSC- Sales Conditions Manager  This session has the following prerequisites: › GAL01 – Introduction to navigation
  2. 2.  At the end of the training session, you will be able to: › Record prices in the system
  3. 3. 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.
  4. 4.  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)
  5. 5.  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)
  6. 6.  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
  7. 7.  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.
  8. 8. 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
  9. 9. 2/6  Access via menu:  Create a condition by selecting the condition type (VK11)
  10. 10. 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)…
  11. 11. 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
  12. 12. 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:
  13. 13. 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
  14. 14.  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…
  15. 15.  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
  16. 16.  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):
  17. 17.  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)
  18. 18.  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
  19. 19.  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. 
  20. 20.  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
  21. 21.  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)
  22. 22.  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
  23. 23. 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
  24. 24. 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
  25. 25.  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
  26. 26.  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
  27. 27.  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
  28. 28. 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
  29. 29. 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
  30. 30.  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
  31. 31.  VK11 / VK31 Create condition records  VK12 / VK32 Modify condition records  VK13 / VK33 Display condition records
  32. 32. Let's use the system!
  33. 33.  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: _____________
  34. 34. Participant Material code Price Validity period Participant 1 20000004 150 From 01.01.2005 to 31.12.2005 Participant 2 20000015 150 From 01.01.2005 to 31.12.2005 Participant 3 20000016 150 From 01.01.2005 to 31.12.2005 Participant 4 20000036 150 From 01.01.2005 to 31.12.2005 Participant 5 20000038 150 From 01.01.2005 to 31.12.2005 Participant 6 20000039 150 From 01.01.2005 to 31.12.2005 Participant 7 20000040 150 From 01.01.2005 to 31.12.2005 Participant 8 20000041 150 From 01.01.2005 to 31.12.2005 Participant 9 20000042 150 From 01.01.2005 to 31.12.2005 Participant 10 20000043 150 From 01.01.2005 to 31.12.2005
  35. 35.  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: _____________
  36. 36. Material Promotional Participant code Customer name price Participant 1 20000004 CUSTOMER USER 1 90 Participant 2 20000015 CUSTOMER USER 2 90 Participant 3 20000016 CUSTOMER USER 3 90 Participant 4 20000036 CUSTOMER USER 4 90 Participant 5 20000038 CUSTOMER USER 5 90 Participant 6 20000039 CUSTOMER USER 6 90 Participant 7 20000040 CUSTOMER USER 7 90 Participant 8 20000041 CUSTOMER USER 8 90 Participant 9 20000042 CUSTOMER USER 9 90 Participant 10 20000043 CUSTOMER USER 10 90

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