supply source determination

[Former Member]

what is meaning of supply source determination, how it works purchase price determinations sequence used in the calculation of sales price, Please explain me what is source determination and purchase price dterminatiion type whcih are used in sales price calculation.

[former_member189773]

Hi Madhuri,

Supply source determination helps you to determine the vendor for article to be procured in simple terms. Whenever a PO is generated from a PR, the system checks which vendor it should pick for the particular article. You can maintain it in the article master as to whether you need a standard method of raising Po to vendor or is it a stock transfer from the DC or combination of both (general data of artice master for various options in the system).

If it is going to be procurement from external vendor, the system picks the regular vendor maintained for the article. else it selects vendor for whom the PIR is maintained at the latest. Once it selects the vendor, it picks the net price maintained for the article by that vendor and creates a PO to the vendor with the price.

use MM43 to view articles, ME13 to view the PIR for article. you can also view PIR in article master.

Hope this answers your questions.

Thanks,

R.Vikram

[Former Member]

Hi Madhuri,

The sales price calculation function contains three subfunctions:

1. Determining the purchase price (purchase price determination)

2. Determining the sales price (sales price determination)

3. Determining the margin, or the actual markup

So your question is about the first step i.e Purchase Price Determination

To determine the sales price of an article which is determined based on the purchase price of the articles ( markup), the purchase price of the article needs to be determined first.

Supply Source Determination

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An article in a store can be procured from a DC or from a vendor. This is differentiated by using the "Supply source" which is in the Article Master - Store (or DC) view ( Field Name: MARC-BWSCL).

So when you enter a sales organisation and distribution channel in the VKP5 screen for Sales price calculation, the supply source needs to be found out first to find who is the supplier. The site for determining the supply source is based on the reference site that is assigned for every distribution chain ( Sales org + Dist Channel) and the Sales OrgDist ChannelPrice List

This configuration of assigning the reference site to the dist chain is in

Logistics general -> Retail Pricing ->Sales Price Calculation ->Assign Pricing Type/Reference Site to Organisation level

So once the reference site is determined the supply source of the article can be determined from that store. Then once it is done using the source determination of checking the

1. source list for the store/DC,

2. Supply Region

3. Regular vendor

etc then vendor will be identified ( the sequence may not be correct). Please refer to the below link for more detail on the source determination.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/32/fa424287cf9923e10000000a155106/frameset.htm

Once this is done, now we know the cost of the article ( PB00) but we need to find the purchace schema.

The standard purchase price determination sequence is based on the Vendor Schema Group + Purchase Organisation ( Porg Schema group ) if its an external vendor else the STO schema will be determined. Once the Net purchase price is determined through the purchase price, this is used for determination of the sales price using the another process of sales price determination sequence.

Hope this clarifies your query.

Regards

Prabhu