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pricing procedures

A pricing procedure determines which condition types are to be calculated and in which order. The choice of which pricing procedure the system accesses for transfer pricing is determined by the

transfer price variant.

Example

Step C.type Name From step

10 TP01 Transfer price (fixed)

20 TPBA Material price (Mat. ledger)

30 TP02 Markup (percentage) 20

In the above example, the system first finds a fixed price. If it cannot find one, it reads the profit center price from the material ledger. The markup is then calculated on the basis of this profit center price.

It is also possible to calculate another value on the basis of this markup by defining a subtotal line without a condition type. This line must contain the steps that are to be added together and can then be used for other calculations.

Recommendation

If you define a pricing procedure, this should only contain the condition types which you actually use. Otherwise, the system has to access the condition unnecessarily.

Creating Pricing Procedures

1. Choose Create in the left-hand screen area. In the right-hand screen area, enter a key of up to six characters and a description.
2. Specify the condition types to be used. Set the order of your processing by choosing the fields level and counter.If you want a line in the pricing procedure to refer to several other steps, you can set this by chooing the fields From stepand To step.
3. Save your pricing procedure

Standard Settings

Several pricing procedures are delivered with the standard system. You can assign any of these to transfer price variants. These standardpricing procedures normally meet the requirements of transfer pricing. The following pricing procedures are delivered with the standard system: TP0001 Fixed transfer price

Step
Condition type
Name


010 TP01 Transfer price fixed

TP0002 Transferprices - percentage

A percentage mark-up is made to the profit center price from the material ledger.

Step
Condition type
....
Name From To


010 TP01 Material price

020 TP02 Mark-up percentage..010 010

  • TP0003 Plan procedure costing
A percentage mark-up is made on the price from the material cost estimate
Step
Condition type
Name From To


010 TPB2 Costing price

020 TP02 Mark-up percentage 010 010