Query on GTM

[former_member192125]

Hi,

The company I work for has the following requirement

They have back to back contracts.  They enter a sales contract with a customer and source the required material to fulfil the sales contract from a vendor based on an agreed purchase contract price.

However, my company also buys the same  product on a non purchasing contract price from vendors and sells to other customers  using a non sales contract price.

The product is valued at moving average value.

In all cases my company receives the stock into our own warehouse and dispatches the product to the customer from our warehouse.

My company does not want to segregate contract and non contracted stock.  So when the product is receipted into the warehouse it is not segregated. in addition,  when the warehouse is picking for a customer delivery they just pick based on FEFO irrespective if the sales order is based on a contract or not.  However, my company wants to be able to track the margin on the sales for both contract and non contracted sales.  The sales contract margin should be based on the purchase contract price even if non contracted stock was dispatched against the sales order. The problem today is because the stock is valued at moving average and my company doesn't want to have segregate or manage the stock separately the margin is diluted and it is not possible to track.

We have looked at solutions in SAP SD/MM but cannot find a solution which is satisfactory for our business e.g split valuation, condition types etc...

I have read information on SAP Global Trade Management but I cannot determine if it a good fit for the requirement about.  Can anyone assist and indicate if SAP GTM is in fact a good fit for our requirements.

Appreciate any assistance.

Thanks in advance

[Kapil_Dhar]

Hi AWG Development team,

As per My understanding of the issue, You can use GTM (with Sales/Retail pricing).

Apart from the use of GTM in your scenario mentioned above.

With GTM you have an option of using sales/retail pricing, here you can set up a condition record for the purchase contract price and set up a markup on the basis of this mark up the sales price will be calculated.

Also, for the same product with the non-purchasing contract price you can change the value of condition record and still the sales price will be calculated on the basis of the markup.

I believe GTM should be useful.

Regards

Kapil

[former_member218118]

Hi AWG Development team,

Standard SAP GTM operates in the following fashion -

1. If the transaction is a back to back purchase and sales flow, you use a two sided, stock shipment trading contract. Otherwise you use single sided, purchase and sales stock shipment trading contracts and associate them.

2. Here you will have two pricing procedures, one for purchase and one for sales.

3. The basic price for sales or purchase can be both system determined (condition technique) or manual input.

4. The gross purchase price (including expenses, if any) is taken as the base price on which the margin is calculated.

5. The expenses are handled through an adaptation of the vendor billing functionality.

6. There is a profit simulation functionality that calculates the profit based on the prices and the expenses maintained.

You can decide if this suits your requirement.

Regards,

Sreedhar GVS