Market-Basket Price Calculation - Processes 

Purpose

This process describes how you perform a market-basket price calculation for a group of articles and sites. This process allows you to change sales prices, sales and gross margin figures for the articles in the market-basket, while simulating the effects of these changes on the total gross revenue from the market-basket.

Process Flow

  1. Create a market-basket price calculation for a market-basket and for a group of sites.

    2. A market-basket pricing item is made up of a combination of article and site.

    For further information, see: Creating Market-Basket Price Calculations

  2. When you execute the selection, the system performs the following steps for each market-basket pricing item:
    1. Determining the expected sales quantity

      2. The customer-specific function module entered in the market-basket pricing type is used for determining the expected sales quantity. You also use this function module to set the period indicator for the market-basket price calculation.

      The expected sales quantity is used provisionally in the Corrected sales quantity field. This field is later used for calculating the sales and gross margin figures.

    2. Performing sales price calculations

      3. The prices used in the market-basket price calculation, such as purchase price (net/net), planned price, suggested price and final price, are determined in this step.

    3. Calculating market-basket price calculation data, such as, for example:

This is calculated by multiplying the corrected sales quantity by the net/net purchase price of the article.

This is calculated by multiplying the corrected sales quantity by the final price of the article.

The gross margin for an article is:

(Net sales price x corrected sales quantity) - (net/net purchase price x corrected sales quantity)

These are calculated in the same way as the sales and the gross margin, using the current final price.
    1. The values determined are aggregated:

The user can also perform sales quantity determination and sales price calculations in steps during a market-basket price calculation. You can perform steps that have not yet been performed in the change mode.
  1. The basic list for market-basket price calculations appears. The aggregated data for the article is displayed here.
  2. You can simulate the effects of price changes on the profitability of individual articles or on the market-basket as a whole within the sales price calculation by changing the data in the fields that are ready for input, such as Corrected sales quantity, Final price, Sales and Gross margin.
  3. You can branch to the sales price calculation function to change the sales price for an article in the market-basket, using the additional fields in the pricing table, such as Margin, Purchase price and Actual markup. Here, you can also have the data from the market-basket price calculation transferred to sales price determination.
  4. You want to finish the market-basket price calculation. You have the following options:

You can activate the sales prices for the released market-basket price calculation in the background using the Price activation function.

When you activate the market-basket price calculation, the sales prices that were created during the calculation are stored as condition records in the database.

Results

The data for market-basket price calculations is stored in two documents. Standard pricing documents are generated for the sales price calculation data. These documents cannot, however, be changed in pricing document processing. Additional market-basket price calculation data, such as sales quantities or reference plant relationships, is saved in a special market-basket pricing document.

The status of the market-basket pricing document depends on which steps were carried out and how the market-basket price calculation was closed.