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Surcharge

Former Member
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Dear sd Masters  i am asking one question logically pl clarify me

            AMIW AND AMIZ condition types are useful to maintain  minimum sales order value and minimum surcharge value

suppose if minimum  sales order value is 1000 rs then customer order value is 800 rs  here automatically 200 rs surcharge value will be added in invoice

                              this money wont come back to customer so my doubt is in real time business process what customer will think Why i will pay extra 200 rs so i will buy items only . so 800 +200 or some thing  so in this case no need to pay surcharge

here all customers think like this only so pl tell me exact reason adding surcharge  AMIZ

when customer knows these 200 rs extra so he use to add some stock in his sales order right .it is common

so finally my major confusion what  is exact business logic  ?

thanks a lot

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Answers (3)

Answers (3)

Lakshmipathi
Active Contributor
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suppose if minimum  sales order value is 1000 rs then customer order value is 800 rs  here

When you enter into any business, before receiving an order, there would be some terms and conditions under which, you have to execute the order.  One among them could be this minimum order value.  Having said this, if the customer has ordered less than the agreed quantity, still you can charge what has been agreed originally.

Needless to mention, as already indicated by JP, before posting such queries, please search the Google / forum so that you could find many times, such topics were discussed here.

G. Lakshmipathi

jpfriends079
Active Contributor
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I would request you to kindly search before posting such repetitive queries.

Kindly have check on following links for SAP Help & SAP SDN wiki link dated Jan 2012 for your reference/understanding:

- http://help.sap.com/saphelp_46c/helpdata/en/93/7434de546011d1a7020000e829fd11/content.htm

- http://wiki.sdn.sap.com/wiki/display/ERPLO/Pricing+Conditions+AMIW+and+AMIZ

former_member182378
Active Contributor
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Lavanaya,

In J Prakash's post the link help.sap.com/...... is helpful.

A point in that SAP help document is

The minimum order value and the surcharge appear as separate lines in the pricing screen. The minimum value is for information purposes only, and does not affect pricing. 

If you check in the pricing procedure (V/08) and in the sales order, the condition type AMIW is statistical (for information purpose only).

former_member182378
Active Contributor
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n real time business process what customer will think Why i will pay extra 200 rs so i will buy items only . so 800 +200 or some thing  so in this case no need to pay surcharge

Example:

You go to the supermarket. You do some purchasing. You purchase 8KG of rice.

You want this to be home delivered. The home delivery charge is 10USD for 10KG to 15KG of goods.

Thus for 8KG you are paying 10USD.

You are not availing the 2KG of transportation.

This could be because of many reasons, one of them is you only need 8KG of rice and nothing more.

There could be many other examples, just think about it.

Former Member
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Dear T.W

thank you for sharing but in your example 10 usd is fixed before but in my posting 1000 minimum sales order surcharge is based on customer purchasing value

ex minimum order value 1000

           customer stock value 800 then surcharge 200

           if customer stock value 500 rs surcharge 500

            if customer 900 rs of stock then surcharge value 100

pl explain this type of example 

former_member184065
Active Contributor
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Hi Lavanya ,take simple scenario in this case.

Ex:some restauants will transport their  items at minimum order value for customers.

This is mandatory for them.some terms and conditions ,they will transport their items for customers.

Here ,amount and miles is important for them not a quantity based.

you will order 1000 rs from 10 kilometers ,they will tell as we transport our items near by only 5 kilometres.

If customer wants that items,he will ask ,i can pay extra surcharge for that items for transportation.

Please transport that items.Actually ,this is doing in our life in the order of Pizza or Burgers or any thing .

Thanks,

Naren K

Former Member
0 Kudos

Hello Lavanya,

Logic which you are looking for is, that break-even point  is reached only if goods worth 1000 rs is sold. if company bills the customer for anything less than that, they dont make profit/loose money.

I hope this helps.

Regards

Vivek

former_member182378
Active Contributor
0 Kudos

ex minimum order value 1000

           customer stock value 800 then surcharge 200

           if customer stock value 500 rs surcharge 500

            if customer 900 rs of stock then surcharge value 100

In pricing procedure, for condition type AMIZ, in field Caltype is 13.

This routine / code (13) calculates the value of surcharge.

The calculation of surcharge works as follows -

If net value = 800, then surcharge (AMIZ) = AMIW (1000) - 800 = 200

If net value = 500, then surcharge (AMIZ) = AMIW (1000) - 500 = 500

If net value = 900, then surcharge (AMIZ) = AMIW (1000) - 100 = 100

Please try it in IDES, in a sales order change the quantity and see how AMIZ value changes.