Retail Pricing
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Created by Amit Shivhare, last modified by Lisa Jones Bock on Nov 04, 2009
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SAP for Retail Community Page - Overview on Retail Pricing
Scenario Description
In a procurement process with several steps, the articles from the vendor are sent first to an upstream organizational unit (a distribution center,
for example), from where they are forwarded to stores in the company. The term "internal vendor" is used for distribution centers to distinguish
them from external vendors.
The SAP Retail system provides a retail pricing sheet which can be used to determine the retail price for articles. The retail pricing sheet
calculates a proposed retail price which can either be accepted or can be changed. There are a number of different ways in the SAP system to
calculate the proposed retail price. The proposed retail price is always based on the purchase net/net price. This purchase net/net price is built
up from the purchasing pricing elements or condition types defined to be included in the purchase net/net price. A planned mark-up is applied to
the purchase net/net to calculate the proposed retail price. The planned mark-up can be set by merchandise category and for exceptions, more
specifically by article.
Process Overview - The condition technique is used to determine prices in SAP Retail. It is based on conditions, which are described by
condition types. Information is stored in condition records and conditions. Access sequences and calculation schemas are also a key part of this
functionality. Two-step calculation is performed, for example, for stores that are supplied by a distribution center (internal vendor). Calculating
sales prices for the stores is based on the transfer price for distribution centers (preceding organizational unit). Background Price Calculation
should be run for mass maintenance of all the articles.
Two Step Pricing
Two step pricing can be used for situations where stock is initially supplied to a Distribution Centre. Two step pricing works then as follows:
In step one the pricing is carried out for the [Link] will be a purchase net/net which is based on the supplier list price. A mark-up can be
applied for the DC which is based on the recovery of the DC costs. The calculated price for the DC can be seen as a transfer price to the
stores.
In step two the pricing is carried out for the stores. The basis for the proposed retail price (purchase net/net) will now be the transfer price which
is calculated in step one.
Levels of Pricing
Pricing is to be carried out at two levels:
The first level is at the Distribution channel chain level.
The second level is at site level. The final retail price that is calculated is stored in the condition type VKP0.
Mark ups maintained at two levels:
For DC: At distribution chain level
For Stores: At article level
Sales Price Calculation
Purchase prices - markup---sales prices. Mark up applied in purchase Price to calculate the Sales Price
Two Step Pricing
vendor -- DC -- Store-- End consumer vendor to DC is purchase prices DC to store trnsfer prices then store to end consumer is retail prices
Have you seen the SAP for Retail Business Process Expert wiki homepage on SCN? It is the central entry point to an elaborate knowledge
repository for SAP for Retail. It contains not only a wealthy resource of information provided by business experts at SAP, but also contributions
from community members, such as this page, as well!
