price issues

[cathy_liang]

Hi experts,

Case: This is a packaging industry scenario. The client just produces his customers' products, e.g. cartons & sell them. In other words, The client has no his own band products. He need to base on his customers' sample to quote. Once his customers accept the quoted price, he starts to produce.

Q1: How to know the estimated cost by using SAP system before offerring selling price? The cost may include cost of raw material, freight cost, and so on. As customers' sample does not exist in SAP system, the client is advised to refer to the similar product in SAP system to quote. However, it seems not so efficient. Any better solutions?

Q2: Similar VPRS, how to capture the estimated freight cost when placing quotation or sales orders in SAP system? Where's the source to store this freight cost?

Q3: If customers' sample exists in SAP system, how to control selling price not lower than a specific lowest profit rate? Or any better solutions? The key point is to ensure selling price not lower than the total cost.

Plz help. Many thanks.

[Lakshmipathi · Accepted solution]

Most probably, the scenario narrated by you where your client's customer are regular customers and placing orders regularly. Also I presume, the cartons would be made of corrugated or made out of some special papers where the dimensions / specs would be the same customer wise.

If my assumption is correct, then I have one proposal. Normally, these regular customers would place orders with fixed dimensions / specs and depending upon the order quantity, your client need to manufacture.

So what you can do is that you create a zee table where you can have some key fields like Customer Code, Carton size, overheads cost etc., To arrive overhead costs, I presume, your client would be making MIGO / MIRO for all purchases to manufacture the packing material, in which case, this field should automatically be updated from material master accounting1 view. So you can fetch this value to this zee table which should run dynamically in background.

Based on the above table, you can also have a report and as and when the client need to submit a quote, this report can be executed and the rates can be quoted based on this report.

thanks

G. Lakshmipathi

[Former Member]

Q1: How to know the estimated cost by using SAP system before offerring selling price? The cost may include cost of raw material, freight cost, and so on. As customers' sample does not exist in SAP system, the client is advised to refer to the similar product in SAP system to quote. However, it seems not so efficient. Any better solutions?

There seems to be no standard method for above requirement.

U can create a Z-table. Put the various factors that play an important role in determining the cost. Then try to calculate costs using the Z table. Ask the business on what logic they calculate costs & code that logic. This will be a seprate development altogether.

The costs calculate from Z-table or by comparing any existing product in SAP should be the VPRS.

Q2: Similar VPRS, how to capture the estimated freight cost when placing quotation or sales orders in SAP system? Where's the source to store this freight cost?

Create a Freight condition type say KF00 & put it in pricing procedure.

The values will be calculate from condition records maintained in VK11

Q3: If customers' sample exists in SAP system, how to control selling price not lower than a specific lowest profit rate? Or any better solutions? The key point is to ensure selling price not lower than the total cost.

Well if u know the Cost price and the selling price at the time of creation of Quotation then there is no problem.

In the Userexit_Save_document_prepare put a code to check if Sales Price (PR00)< Cost price (VPRS) then err. msg "Sales price can not be lesser than cost price" & the Quotation will not save.

[Former Member]

Configure a new pricing procedure as follows:

step 10 PR00

50 Gross Price - sub total B

70 - 200Any applicable discount condition types

210 Total discount amount- Subtotal 5

300 Freight condition (in from column you can give 50- so the frioeght wioll be calculated based on Gross price)

400 Net Value - sub total 4 . calculation type 2

410 Tax conditions

450 Total value - calculation type 4

500 VPRS - sub total B

Credit Price - subtotal A calculation type 4.

You can have the logic in USEREXIT_PRICING_CHECK in userexit MV61AFZA to have the validation of Net Value(subtotal 4) is not less than the price?(subtotal b)

Hope this helps

Regards

Sai

Edited by: Sai on May 14, 2010 10:40 AM