Pricing

[Former Member]

I know this is a very basic question but then i needed some clarity on this :

On what basis do we define a new pricing procedure ?

Is it based on the Country to accomodate specific tax condition types ?If this is the case then will we not be creating many pricing procedures depending on the scenarios ?

is there any standard practise which defines the appropriate creation of pricing procedures?

What is the impact on system performance by creating too many pricing procedures ?

Regards

AK

[Former Member]

Hi all,

I have a question and I am new in this forum.

Does someone know something about exception pricing in SAP vs. Pricing according to pricing group.

I am looking for an improvement in exception pricing meaning a price release process for prices which are not in the price group. I have the problem of too many blocked orders.

If someon has some experience in that field I would appreciate your help.

I am also very experienced in pricing issues and can help with other questions.

Thx and best regards,

Chris

[Former Member]

HI Anil,

On what basis do we define a new pricing procedure ?

Ans:The basic reason why we define multiple pricing procedures is when we need to do different revenue account postings.

For example: I have a condition typr for Base price called PR00. I am selling a product to a normal customer and an Export customer. In this case, I want the price in PR00 to go to G/L 1 for normal customer and G/L 2 for export customer. This is one of the basic reasons why we have different pricing procedures. Also in Exports we dont calculate taxes while in domestic sales we calculate taxes. We can achieve all this through one single pricing procedure also. But we will have to write a lot of formulae.

Is it based on the Country to accomodate specific tax condition types ?If this is the case then will we not be creating many pricing

Ans: Partially correct. As the country changes, the tax structure also changes.

For Ex: If you are selling from India to US and Europe, then you dont need multiple pricing procedures. You can have one single Exports pricing proc. But if your company operates separately from US and Europe then you will need separate PPs.

procedures depending on the scenarios ?

Ans: Yes. For normal domestic sales you will have a pricing procedure. For Sample sales you will need a separate pricing procedure if the total amount should go to Business promotion G/L, For returns you will have another pricing procedure if returns price is going to another G/L, etc

is there any standard practise which defines the appropriate creation of pricing procedures?

It is recommended to copy RVAA01 which is a standard pricing procedure. You can also create without copying starting from scratch

What is the impact on system performance by creating too many pricing procedures ?

Impact would be that if there are too many pricing procedures which are not required with multiple condition types and access sequence, then the user will have to maintain plenty of condition records which will be confusing and causes errors. Also the more the data the lesser could be system performance if I am not wrong.

Let me know if you have any other questions.

Regards,

Rohan Gudavalli

[Former Member]

the qn. was good and the answer by Chris was superb

Edited by: MSyamala on Aug 22, 2011 8:05 PM

[Former Member]

1. Depends on business requirment, like B2C sales one pri.pro, 3rd party sales one pri.pro, & standard sales one pri.pro, so on.

2. Yes, depends on sales org not country specific. each sales org will have as many pri.pro as above.

3. No, there will not any profamance impact on no. of pri.pro.

[od_manikandan]

Dear Mr Anil Kumar,

On what basis do we define a new pricing procedure ?

Pricing procedure is defined based the tax combination of all types of sales transactions in the company.

Is it based on the Country to accomodate specific tax condition types ?If this is the case then will we not be creating many pricing procedures depending on the scenarios ?

Normally consultants will create different pricing procedure, depends upon the ED and Tax portion.

is there any standard practise which defines the appropriate creation of pricing procedures?

Before defining Pricing procedure, you can list all the sales order types with all the ED and Tax portions.

You can create a basic pricing procedure which has all the ED and Tax portions.

Then list all the condition type and condition access for that type.

Try to use the same pricing procedure for some other common sales price condition with the use of access sequence.

What is the impact on system performance by creating too many pricing procedures ?

Different pricing procedure can be helpful to find the transaction type.

U can create Pricing procedure for

1. Normal sales process

2. Sales return

3. Free sample

4. SEZ/ Excise exemption sale

5. Stock transfer

6. Export

7. Depot sales

Regards,

Mani

[Former Member]

On what basis do we define a new pricing procedure ?

Based on your business requirements.

Is it based on the Country to accomodate specific tax condition types ?If this is the case then will we not be creating many pricing procedures depending on the scenarios ?

Based on your business requirements.

is there any standard practise which defines the appropriate creation of pricing procedures?

Yes go to spro sales and distribution/basic function/pricing/pricing control/define and assign pricing procedure then you can reference SAP existing standard ones.

What is the impact on system performance by creating too many pricing procedures ?

No impact