Pricing: Sales Price Determination 

When calculating sales prices, you determine not only the sales price but also the margin (gross/net) and the actual markup from the sales and purchase price. A number of different methods are used for price calculation, depending on whether you want to specify the margin or the sales price (and in the latter case, how you determine the sales price). For this reason, sales price and margin determination are as flexible as purchase price determination (see Pricing: Purchase Price Determination).

Sales price determination types

The sales price determination types provided by SAP are fixed methods for determining the default data for calculation.

A Calculate sales price from planned markup

B Adopt current sales price, adjust margin

C Adopt sales price from list field

D Price change in percent with reference to the list field

E Absolute price change with reference to the list field

You list the sales price determination types that are to be used for calculating sales prices in the sales price determination sequence (Customizing for Pricing). It is possible to determine for each sales price calculation type whether prices are to be rounded to price points.

Sales price determination type A is a normal markup calculation, in which the sales price is calculated from the purchase price using a predefined planned markup. In all the other determination types, the price is predefined and the margin is calculated.

In sales price determination type B, the sales price of the article on the price determination date is used as the default value. This procedure can be used to check the effect of purchase price condition changes on the profitability of an article if the sales price is to remain fixed (in line with the competition, for example).

In price determination type C, you can determine (in the sales price determination sequence - see below) that the default value is adopted from the price assigned to a different list field (see Pricing: List Fields and List Variants in Sales Price Calculations) This enables you to take account of competitorsí prices in a price calculation, for example. You make the necessary settings, adapted to the requirements of your company, in the sales price calculation schema.

With sales price determination type D, you can carry out percentage price changes on the basis of the list field (reference field) entered in the sales price determination sequence. If you reference a standard sales price, you can carry out standard sales price increases or reduction for seasonal merchandise. With this sales price determination type, you can also specify a percentage difference between your price and a competitorís price. The new sales prices are calculated on the basis of the sales prices which belong to the list field entered and which are valid on the key date, plus a markup or markdown that you enter. You can enter a key date. If you do not, the system uses the price determination date.

The difference between sales price determination type E and sales determination type D is that, for type E, you enter a an absolute figure for the markup or markdown, rather than a percentage. In addition, you must enter a sales currency for the absolute price change. You can only change a price by an absolute figure if the sales currency of the price calculation item is the same as the currency you enter.

 

In relation to the standard sales price for seasonal merchandise, if you do not specify a key date in sales price determination types D and E, the system will use the sales prices valid at the start of the season for the sales price changes. If no sales price conditions exist at the start of the season, then the first sales prices valid in the season will be used.

Sales price determination sequences

In the sales price determination sequence, which must be entered as the sales price calculation method on the selection screen for sales price calculations, a number of levels are used to define the priorities for the sales price calculation types and their parameters. You can enter a condition to exclude certain levels in the sales price determination sequence from sales price determination. You can use a suitable list variant in the pricing table to display the sales price determination type used for sales-side calculation.