Procedures in Sales Price Calculation

Purpose

This process describes how you can use the sales price calculation function to create sales prices for various articles and organizational levels. These sales prices are posted to the database as condition records when you save the calculations.

Process Flow

  1. Enter the required selection criteria in the selection screen of the sales price calculation function.
  2. The system then performs the following steps for each item:

First, the system analyzes the purchase price determination sequence you have specified on the selection screen. If source determination is defined, for example, the system searches for distribution centers and/or external vendors, taking the Source of supply indicator in the article master record into account.

Then, if the vendor is external, the purchase price is calculated on the basis of a purchase price calculation schema. If the vendor is a distribution center, the system searches for the transfer price that was saved to the conditions.

If no transfer price exists for the distribution center and prices are not being calculated for this distribution center in this run, a price calculation for the distribution center is performed in the background. The value determined in this way is used as the cost price.

First, the system analyzes the sales price determination sequence you specified on the selection screen. The various sales-side factors required are calculated using a sales price calculation schema. The sales price (gross, net) appears in the pricing table in the pricing currency.

See also: Sales Prices (Gross/Net)

If the sales currency and the pricing currency differ, the sales price is converted into the sales currency. If price point rounding is defined, the (converted) sales price is rounded to a price point. This version of the sales price is displayed as the final price. In price point rounding, the new value is adopted and the sales-side factors (such as actual markup) are recalculated. The sales price calculated using the planned markup can be displayed as the planned final price.

See also: Final Price.

The system calculates the margin (gross, net) from the sales price (gross, net) and the purchase price (net/net).

See also: Margin (Gross/Net)

In two-step price calculation for wholesalers, the system also determines the retail price, the actual retail markup and the retail margin (see sample calculation schema WWS002).

The retail price can be automatically printed on delivery notes for articles shipped from the distribution center to the stores. The delivery notes will then show the different articles in the shipment, quantity per article, the retail price for each, and totals. This way the store manager can see at a glance the total expected revenue for the shipment, broken down by article. It also helps the store personnel who must put individual price labels on the articles when stocking the shelves.
  1. You go to the screen containing the pricing table, where the results of the calculations are displayed. You can call up different detail screens (the Purchasing detail screen, the Sales detail screen and so on), for every pricing item.
  2. You can change the data in the fields of the pricing table that are ready for input.

    3. Once you have pressed Enter, a new calculation is performed for each changed item, taking the changed field into account.

  3. You close sales price calculation by saving or by generating a pricing document.

See also: Calculating Sales Prices