This document summarizes how the COMPUT25 variant program calculates a weighted quantity-based average price. It takes the price, start date, and outputs the average price. The standard function module is ISU_COMPUT25. It provides examples of calculating average price with no price changes, one price change, and two price changes between periods. It also discusses how the average is calculated based on the USERDEF start date or end of billing period.

1. Analysis of Variant COMPUT25
COMPUT25 variant program helps to calculate the weighted quantity based average price.
The input parameters are
QPRICE Price
USERDEF Start date for the calculation of an average (YYYYMMDD)
The Output parameters are
QPRICE Time portion weighted average of all prices in the period
The standard function module for this variant is ISU_COMPUT25
Now let’s try to analyze the effect of using COMPUT25 in a schema.
Standard documentation on the Variant and the line item types generated can be found by
executing TCode EA99.
Functionality
A price is multiplied by a factor. This new price is updated (operand update). Prorations of the
factor are taken into account.
Let’s start by creating a Rate:
For convenience of understanding only two line items.
Facts values:

2. ZQPRICE is a Quantity Based Standard Price
ZAVGPRICE is an Average price Without History.

3. Test Cases:
(A). Average is calculated during the rate period. In
this case, the value of the second operand
(USERDEF) is not included. However, we still need
to define a value for this operand in the facts.
1. No Price Change
Billing Period: From – 01.01.2011 to 30.01.2011
This is in case there is no price change in the current billing period.
Avg. Price = (No. of Days in each weighed time portion * corresponding price in time portion) /
Total no of days in billing period
In this case: Avg Price = (30 * 5) / 30 = 5.
2. One Price Change between the Billing Periods

4. Price Change on 15.01.2011
Prorated periods: 01.01.2011 – 14.01.2011 & 15.01.2011 – 31.01.2011
Avg. Price == ((14 * 5) + (16 * 6)) / 30 == 5.53333333
3. Two Price Changes in the Billing Period
Price Change on 15.01.2011 & 20.01.2011
Prorated periods: 01.01.2011 – 14.01.2011, 15.01.2011 – 19.01.2011, 20.01.2011 – 31.01.2011
Avg. Price == ((14 * 4) + (5 * 6) + (11 * 6)) / 30 == 4.7
(B). Average is calculated during the period
USERDEF, end of billing period. The average
price is calculated by simulating the
corresponding period. The simulation is a
customer-specific simulation. You can use an
IF12 variant to control which schema steps are
executed during the simulation.
1. Two Price Changes in the Billing Period

5. Here we can see that in spite of two price changes in the same billing period system has updated
the Average Price Key for the last prorated time portion only i.e., 20.01.2011 – 31.01.2011.
This is because we have maintained the Variant Control as USERDEF operand, for which value is
maintained as 2011.01.20 (YYYY.MM.DD).So system will consider only those price changes which
happened after the date maintained at USERDEF operand ,in this case i.e., 20.01.2011
Avg. Price = (10 * 5) / 10 = 5
2. Two Price Changes in the Billing Period
In this case, USERDEF has
the value 2011.01.15.
So two price changes fall after this date and within the Billing Period. Therefore the Average Price
Key is updated for the period between 15.01.2011 – 31.01.2011.
Avg Price == ((5*6) + (11*5)) / (5 + 11) == 5.3125
NB : If the checkbox is checked in the Control
option.
An info line is written about the calculation method. The following fields are filled:

6. ZAHL1 : Number of days in the period of average calculation
ZAHL2 : Calculated average price
MASS2 : Unit of measurement for the average price
ZAHL3 : Quantity base of the average price
There are some test cases left like:
• Average Price updating in case of Block & Scale Type Quantity Based Price.
• Average Price Key with History.
These cases will be dealt in future posts.
Hope this helps. ☺
This document is created by Tathagta Chakroborty.He is reachable at tatha.chako119@gmail.com