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Sales Price Determination

Use

Determining suggested values for sales prices in the sales price calculation function is known as sales price determination. Calculating the margin (gross, net) or the actual markup from the sales and purchase prices is also part of sales price determination.

There are various ways to determine sales prices. You may, for example, want to determine your sales prices using a predetermined planned markup, or based on competitor prices. For this reason, the sales price calculation function in Pricing gives you the same flexibility in determining sales prices as you have in determining purchase prices.

Prerequisites

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

Features

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

Sales price determination types

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

 Sales price determination type Description 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 a specified list field E Absolute price change with reference to a specified list field
• Sales price determination type A

You can perform a markup calculation using sales price determination type A. This involves calculating the sales price from the purchase price using a predetermined planned markup.

In the remaining four sales price calculation types, the sales price is predetermined and the actual markup (or margin) is calculated.

• Sales price determination type B

In sales price determination type B, the sales price of the article on the price determination date is used as the suggested value. This procedure can be used to check the effects 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).

• Purchase price determination type C

In purchase price determination type C, you can determine in the sales price determination sequence that a price assigned to another list field is to be used as the suggested value. This enables you to take account of competitors’ prices in a price calculation, for example.

• Sales price determination type D

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.

The new sales prices are calculated on the basis of the sales prices that belong to the reference field and which are valid on the key date, plus a markup or markdown that you enter. If you do not enter a key date, the price determination date is used.

If you select the standard sales price as a reference field, you can carry out standard price increases or reductions (for seasonal merchandise, for example). In the same way, you can set a percentage price difference to a competitor price.

• Sales price determination type E

Sales price determination type E represents the same procedure as sales price determination type D, with the one difference that, instead of a percentage markup, an absolute markup or markdown is entered. In addition, you must enter a sales currency for the absolute price change. It is important to note here that the currency entered must be identical with the sales currency of the pricing item.

In sales price determination types D and E , it is important to note the following:

If you do not specify a key date, when the standard sales price is determined for seasonal articles, 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

The sales price determination sequences are the second element in flexible sales price determination. Sales price determination sequences 01 to 06 are supplied as standard. You can define further sales price determination sequences in Customizing for Pricing. Here, you define the sequence in which the sales price determination types are to be used in determining sales prices.

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

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

• Steps

Defining steps for each sales price determination sequence allows you to determine the sequence in which the sales price determination types are to be used when determining sales prices. You can also, however, simply enter a single sales price determination type, as shown in the supplied sales price determination sequence 01.

You can display the sales price determination type in the list field VKERA in the pricing table. This enables you to see quickly which sales price determination type was used to find the sales price when you are using multi-level sales price determination sequences. To do this, you need to select an appropriate list variant (see

List Variants).
• Rounding to price points

It is possible to determine for each sales price calculation type whether prices are to be rounded to price points.

• Pricing requirements

You can enter a requirement to exclude certain levels in the sales price determination sequence from sales price determination.

You can define your own Pricing requirements in Customizing for Sales and Distribution under System adjustments.

Activities

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

The system determines the appropriate sales price determination type with the corresponding parameters. The calculated sales price is displayed in the pricing table as a suggested value.

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