Show TOC

 Commodity Pricing Engine: BAdI-Based Formula Handling


Technical Data

Technical Name of Business Function


Available From

Enterprise Business Function

Available From

SAP enhancement package 5 SPS 05 for SAP ERP 6.0

Technical Usage

Central Applications

Application Component




Required Business Function

Logistics, Commodity Pricing Engine in SD and MM (LOG_CPE_SD_MM)

You can use this business function to calculate prices for commodities. Commodity pricing is a calculation that uses price quotations from the stock market (such as those published by Platts, Reuters, and others) to determine the price of a material or product. Commodity pricing is performed with the commodity pricing engine (CPE), based on a set of business rules that decide how price quotation data is used to get the final price for commodities. Commodity pricing contains different methods for determining price quotations, such as fixed price quotations, price quotations for a fixed day, or average price quotations.

The business information about how commodities can be priced is captured using formulas, known as commodity pricing formulas (CPE formulas). The price quotations are stored as master data and are used to evaluate these CPE formulas.

As of SAP enhancement package 6 for SAP ERP 6.0, there is some new functionality available for formula assembly. For more information, see the release note LOG_CPE_FA_FE: CPE: BAdI-Based Formula Handling.


  • You have installed the following components as of the version mentioned:

    Type of Component


    Software Component

    EA-APPL 605 SPS 05

    SAP-APPL 605 SPS 05

  • To use commodity pricing in SD, you have made the necessary settings in Customizing for Sales and Distribution by choosing Start of the navigation path Basic Functions Next navigation step Commodity Pricing End of the navigation path.

    To use commodity pricing in MM, you have made the necessary settings in Customizing for Materials Management by choosing Start of the navigation path Purchasing Next navigation step Commodity Pricing End of the navigation path.


Processing CPE Formula Evaluation with Enhancement Spot ES_CPE_FE

With this Business Function you can process the CPE formula evaluation using Business Add-In (BAdI)-based implementations. This replaces the former concept of user exits from the Internet Pricing Configurator (IPC), which was based on the Virtual Machine Container (VMC) infrastructure and required Java-based code.

You can use these new BAdI implementations delivered by SAP for the CPE formula evaluation. Alternatively, you can copy and adopt these implementations to implement your own partner-specific or customer-specific logic. For more information see: Formula Evaluation.

More Information

For more information about pricing in general, see Commodity Pricing.