Two-Step Calculation for Stores 

Use

External vendors sometimes supply stores directly. However, it is often the case that the vendor first delivers the goods to a company distribution center, and the articles are then forwarded from the company distribution center to the company stores, or to franchisees.

A two-step calculation process exists for calculating sales prices to mirror this two-step logistics process. In this, the purchase price of the stores is based on the transfer price of the distribution center.

See also: Two-Step Pricing - Procedures.

Prerequisites

In order to be able to carry out two-step price calculations in the Pricing function, you need to make the following settings in the article master data, the master data of the supplying distribution center and the master data of the receiving store:

Here, you need to set the Source of supply indicator to show that a stock transfer is to take place. You can either set this indicator in the Basic data view or set it for individual stores and distribution centers in the Logistics store and Logistics DC views.

In the master data of the supplying distribution center, you must define the supply relationship by specifying the distribution chain via which the distribution center delivers to the store. To do this, enter the relevant distribution chain under Distribution chains for site.

If you want to calculate prices at distribution chain level, make sure that the settings described above are made for the reference distribution center of the distribution center distribution chain or the reference store of the store distribution chain. The same applies to calculations for site price lists.

By making similar settings in the article and site master, you can also carry out two-step price calculation for deliveries between distribution centers, or even perform multi-step price calculation.

Features

Two-step price calculation is performed in conjunction with sales price determination type A. For further information, see Purchase Price Determination.

In two-step price calculations for distribution centers and the stores they supply in the sales price calculation function, there is a row in the pricing table for the distribution center along with rows for its associated stores. Changes to data in a distribution center row directly affect calculations for its associated stores.

You can perform two-step calculation for the usual organizational levels:

For distribution chains and (site) price lists, the price calculation is based on the reference site maintained in Customizing.

Determining the transfer price for the distribution center

When using the system to determine the transfer price for the distribution center or the purchase price for the store, you need to note the following:

The priority sequence for different organizational levels defined in the access sequence for the distribution center sales price is observed. There is a general rule that the sales price for a specific organizational level has a higher priority (for example, site-specific sales prices have a higher priority than sales prices for the distribution chain).

You can display information on where the transfer price for internally-supplied stores comes from in the Procurement group box on the Item details screen in the screen containing the pricing table.