Price change based on pieces

[jayeshgala83]

Hello All

We have below requirement from our business. Just wanted to check if anyone has implemented the same at their end.

At the moment we  are charging 10$ for Part A to the customer.

Once we have delivered the 60,000 pcs to the customer, the price for the new pieces will be 5$ i.e. Amortization cost will be removed from the original price.

users are keeping track of the number of delivered pieces based on Invoices. Is it possible to  setup the condition record where SAP will change the price for the part automatically based on the number of delivered pieces or is there any other solution available to meet the below requirement.

Thanks

Jayesh

[VeselinaPeykova · Accepted solution]

Instead of giving a discount from 10 to 5 after selling 60 000 pc, you can apply a surcharge to add to the base price of 5 another 5 USD, which will be applied for the first 60 000 PC.

And then you can just use the standard condition update functionality with set in the condition record Max.cond.base value = 60 000 PC.

If you really want that this looks like a real discount, then play a bit with statistical conditions.

[jayeshgala83 · Accepted solution]

Thanks Veselina.

Considering I am new in SAP SD domain, your response really helped me but i still have some queries.

What I understand is,

I need to keep the PR00 to 5 and implement other condition type with surcharge of 5. Please advise if my understanding is correct.

At the moment only one price is maintained with PR00 and we have already delivered the few pcs. Is it possible to implement in between?

What happens if we create order for 100 pcs but deliver only 80 pcs. does it consider the actual quantity which is delivered or invoiced?

Thanks.

[VeselinaPeykova · Accepted solution]

Whether you will apply directly the new condition as surcharge or you will have to experiment with additional statistical conditions - this is something you need to discuss with the business.

As for how exactly the condition update works - create a prototype in your sandbox and test end-to-end, this is the best way to learn pricing.

[former_member182378 · Accepted solution]

we have already delivered the few pcs. Is it possible to implement in between?

What happens if we create order for 100 pcs but deliver only 80 pcs. does it consider the actual quantity which is delivered or invoiced?

Jayesh,

These are some good questions. Once you have answers, then please inform.

I think with condition update you need to "adjust" the totaling of 60,000PCS X 5$ minus dollar value of surcharge sold before creation of condition record (with condition update) and input the adjusted value into the new record.

TW

[Former Member]

Hi Jayesh,

I am not sure whether condition update works on sales order quantities. But i can suggest you to create a routine and update it in pricing procedure for alternate calculation type.

S. Satyajit

[jayeshgala83]

I have now realized that we have one more situation here.

For one Customer material number we have 4 different SAP material number. This is because we are shipping the same material to different plants of customer in different packaging.

I assume that condition update will work with only one material in this case. It will not consider the combined value of all these SAP material number.

[former_member182378]

Jayesh,

Condition Update functionality gives business the option to cumulate (keep track of) value or no. of orders for which that particular pricing condition record has been used in your transaction data. And based on that cumulated value, it can do some further actions for example deactivate that condition record when the cumulated value reaches the one maintained in the record by the user/business.

The fields of the condition record can be chosen by business according to their business needs, for example do not create records for customer, material combination but create for customer, material group. Include the 4 material nos. in that material group and you are good to go.

TW

[jayeshgala83]

Thanks TW.

I have just started working in SAP SD since last one year. I have to look into Material Group concept to understand what you mean. It really gives me an idea different scenarios.

Thanks a lot.

[former_member182378]

Jayesh,

Grouping concept is one of the main pillars in SAP for many functionalities pricing, rebates, outputs, account determination etc.

Search for material grouping in material master also look into MM03 all tabs and check the F1 help of fields.

TW

[VeselinaPeykova]

One minor clarification from my side:

Condition update functionality works also for maximum condition base value - e.g discount with calculation type C - quantity and condition update = 'X'.

So if you have set discount for 3 PC as maximum in the record and you have an order for 2 PC, it will be applied for 2 PC. Then you create a second order for 3 PC, the discount will be applied again, because you have 1 PC left, but it will be with the value for 1 PC only (condition base value 1 PC).

The third order with 2 more PC will have K005 determined, but it will be with value 0, because condition base value will be 0 PC.

And you can monitor the cumulated values for a specific condition record directly from VK13.

As TW correctly pointed out, you need to discuss with the business the most appropriate level and criteria for applying your condition to these products, for example it can be on some level of product hierarchy, or material group, or some completely different field.

[jayeshgala83]

Thank you all for the valuable information on this topic. It was really useful.

[former_member182378]

Jayesh,

Search the net for thread, business issues/requirements solved by Condition Update functionality. The objective of getting practical information will help in understanding this functionality better.

With this research you can give business more options & flexibility; on the other side, you can find the best fit solution after hearing the business needs (scenarios).

TW