Purchase Price Determination 

Use

Calculating a sales price for an article is based on a Purchasing price that represents the average procurement costs of the article for the organizational level for which the sales price is to be calculated. This price is called the net/net purchase price, or simply the purchase price.

Determining the purchase price in the sales price calculation function is known as purchase price determination. A number of different procedures can be used in purchase price determination. These are related to particular article characteristics, particular features of procurement and the business processes for sales price calculations.

You can use the purchase price determination types and purchase price determination sequences to structure purchase price determination to suit your company's requirements.

Prerequisites

You can define your own purchase price determination sequences in Customizing for Pricing in addition to those supplied. See below for further details.

Features

The purchase price determination types and the purchase price determination sequences are the basic elements of purchase price determination.

Purchase price determination types

The purchase price determination types are different procedures for determining purchase prices. The following purchase price determination types are defined by SAP.

Purchase price determination type

Description

A

Purchase price determination with schema as per standard schema determination

B

Purchase price determination with a specified special schema

C

Purchase price determination using a customer-defined function module

D

Interactive entry

E

Purchase price determination using article components (sales set)

F

Vendor mixed price

Purchase price determination type A is linked either to supply source determination or to a source of supply check for a specified vendor. You can specify whether source determination is to be carried out with or without notification of errors.

Standard schema determination is used to find the correct schema for purchase price determination. This determines the relevant purchase price calculation schema for external vendors and the relevant calculation schema for price determination for internal vendors (distribution centers). The purchase price is then calculated using the schema determined.

For further information, see Supply Source Determination.

In purchase price determination type B, you can use a special schema (application M or V) that has been specifically designed for sales price calculations. You need to enter this special schema, together with the application, in Customizing for Pricing when determining the purchase price determination sequence.

If you keep this special schema simple, performance for price determination also improves considerably.

For example, the special schema could contain just one condition type, which represents the moving average price, or it could contain the purchase price that was calculated and saved in a previous sales price calculation. It makes sense to use the latter procedure for those articles whose purchase price will not change over a longer period of time, for example.

You use purchase price determination type C to take special company-specific requirements into account by using function modules you have developed yourself.

You need to enter these function modules in Customizing for Pricing when you determine the purchase price determination sequence.

In purchase price determination type D, you can enter the purchase price of the article directly in the pricing table. This makes sense in cases where you want to specify the purchase price or where there are no entries for the purchase price in the system as yet, but the purchase price can still be estimated.

You can use purchase price determination type E to calculate prices for structured articles, that is, for articles that, like sales sets, are made up of several components. In such cases, the purchase price of each component is determined, and the purchase price of the structured article is obtained by adding the purchase prices of the components together, taking into account the number of pieces of each.

If the article is sold at different prices by different vendors, you can use purchase price determination type F to determine the average purchase price of the article. You can enter weighting factors for the vendors, for example on the basis of the planned procurement quantities, on a separate screen.

Purchase price determination sequences

The sales price determination sequences are the second element in flexible purchase price determination. Purchase price determination sequences 01 to 07 are supplied as standard. You can define further purchase price determination sequences in Customizing for Pricing. Here, you define the sequence in which the purchase price determination types are to be used in determining purchase prices.

In the selection screen for sales price calculations, you need to select one of the purchase price determination sequences defined in Customizing.

It is important to remember the following points when defining purchase price determination sequences in Customizing:

You can enter steps - in the same way as you do for access sequences for conditions - for a purchase price determination sequence to define the sequence in which the purchase price determination types are called up during purchase price determination. You can also, however, simply enter a single purchase price determination type, as is shown in the supplied purchase price determination sequence 01.

If you use an appropriate list variant, you can display the purchase price determination type in the list field EKERA in the pricing table. This enables you to see quickly which purchase price determination type was used to find the purchase price when you are using multi-level purchase price determination sequences.

You have to specify the relevant parameters for each purchase price determination type, such as the source of supply determination type or the special schema with its appropriate application.

You can enter pricing requirements to exclude certain steps (certain purchase price determination types) from purchase price determination.

For example, pricing requirement 01 in purchase price determination sequence 02 specifies that the second step of purchase price determination is only to be performed for articles with article category 10 (sales set).

You can define Pricing requirements in Customizing for Sales and Distribution, under System adjustment, in the same way as you defined the requirements for price determination.

Activities

In the selection screen for sales price calculation, select the purchase price determination sequence required.

The system determines the appropriate purchase price determination type and the assigned calculation schema, source of supply, and so on. The values determined are displayed in the pricing table.

You can also enter (and interactively change) the purchase price determination sequence in the EKERV list field of the pricing table. If changes are made, the system performs the calculation again.

See also:

Using the Condition Technique in Calculations and Price Determination