Articles can be procured for stores using direct delivery from an external vendor or using a logistics process with several steps. In a procurement process with several steps, the articles from the vendor are sent first to an upstream organizational unit (a distribution center, for example), from where they are forwarded to other stores in the company or to franchisees. The term "internal vendor" is used for distribution centers to distinguish them from external vendors.

You can perform a single-step or two-step sales price calculation, depending on whether a single-step or two-step logistics process is to be used.

The following graphics clarify the difference between the single-step and two-step logistics process for procuring articles, as well as the resulting single-step and two-step price calculations.

Single-step price calculation is performed when a store procures articles directly from a vendor, that is, if there is no upstream organizational unit assigned to the store. Calculating sales prices for the stores is based on the purchase price for external vendors.

The following graphic shows an example of a one-step calculation for stores. Stores can have different purchase prices, for example, if they each have different store-dependent basic purchase prices or negotiated vendor discounts.

Two-step calculation is performed, for example, for stores that are supplied by a distribution center (internal vendor). Calculating sales prices for the stores is based on the transfer price for distribution centers (preceding organizational unit).

This process begins after you have entered the appropriate selection criteria in the selection screen for sales price calculations and released the data.

As well as the articles for which you want to calculate sales prices, you have, for example, entered a distribution center and a store supplied by this distribution center.

2. The transfer price that is determined for the distribution center is displayed as a sales price in the Final price list field in the pricing item of the distribution center.

3. The system uses the store purchase price determined in this way to calculate the sales price for the store.

4. You can change the data in the fields of the pricing table that are ready for input, that is, you can perform a simultaneous calculation for the distribution center (distribution center distribution chain or price list) and the store (store distribution chain or site price list). A comparison of the two pricing items is performed:

• If you change the sales price/DC transfer price, the price calculation for the store is adjusted accordingly. The system uses the new transfer price in purchase price determination for the store to do this.
• If you change the transfer price in the pricing item of the store, the pricing item for the distribution center is adjusted accordingly.

5. Save the sales price calculation.

Saving the sales price calculation posts the prices determined to the database as condition records. There, they are saved in condition tables.