Pricing Calculation Doubt

[Former Member]

Hello All,

How a pricing procedure works i mean

Pricing Procedure PR001

Product price

Base price

Freight

Gross Price (Base price + Freight)

Discounts

Discount 1

Discount 2

Total Discounts

Price after the Discounts (Gross Price + Total Discounts)

Surcharges

Surcharges

Surcharge 2

Surcharge 3

Total Surcharges

Price after the surcharges (Price after Discounts + Total Surcharges)

Net Price

VAT

Please explain me that is my under standing is right, and I have a question in all the situations we are adding the subtotals how does system know whether it is plus or minus.

And how thins are calculated here and one more thing is when I am checking here in the system condition have a mark of statistical also included in the sub total of the Discount. So that means the condition in statistical will have the effect to the total of the discounts.

Can any one please explain me the how a price is calculated and why do we need to have statistical conditions and what is the importance of it.

Thanks in Advance

[Former Member]

Hi Rani,

A subtotal is usually addition of all condition types in the steps specified between the from and to column of the procedure. If any value has to be deducted it is specified in the condition type. Check the condition type screen (V/06) which has a field Plus/Minus.

A condition type marked as statistical is used only for reference purpsose and the value against the condition type would not have an impact in the calculation. Cost, customer expected price are a few which would be marked as statistical.

Regards

Nadarajah Pratheb

[Former Member]

Based on the condition types system will understand whether the subtotal is + or - because all the condition types are mentioned with a plus/minus in their definition so all surcharges will be +ve and all discounts will be -ve.

Statistical condition types like SKTO, VPRS etc. can be information purpose or will be activated later in document processing. VPRS is used for calculating profit margin. SKTO is the condition type that will pick up percentages from the payment term and activate in accounting document.

Hope I was able to explain you what you wanted.

Regards

AK

Reward points if helpful

[Former Member]

Hello Ayub,

yes you are right for some discounts it is like plus or minus in the condition in this how the condtion will be treated. and when we put all the discounts one place and try to calculate sub total for this how it will be happen.

Regards,

Rani