SAP Billing Vs Pricing

[Former Member]

Hi

We are evaluating third part pricing and biling tool. Can anyone help me understand the following.

1.What is differnce between between Pricing & Billing in SAP world.

2. What are the avaiable tool provide by SAP for Pricing and Billing.

3. Since SAP ECC-SD-Pricing, what business requirement would required third pary pricing tool.

thanks

[Former Member]

Hi,

> 1.What is difference between Pricing & Billing in SAP world.

Pricing: is done in both sales order and billing. Pricing in SAP is a sequence of calculation of base price, discount, surcharge and taxes to give a net value per quantity as well as the total quantities for a line item in the sales order or billing and to give the total net value per document. Pricing is integral part of sales order or billing.

Billing: is actualy a document which has pricing in it. Billing can be an invoice to the customer, credit note, a debit note, returns credit etc... It will have different pricing for each document based on the scenarios.

> 2. What are the available tool provide by SAP for Pricing and Billing

There is no tool as such provided by SAP for pricing or Billing. Instead we can call it technique by which pricing can be carried out in SAP. It is called a condition technique. Condition technique helps in determining the right price according to the validity of price, quantity, % etc.... The manual intervention by using this technique (which is required to be used) can be very minimal.

The billing documents are preconfigured in SAP which can be used without much difficulty. A few modifications may be required which can be achieved by customization of SAP to your requirement.

> 3. Since SAP ECC-SD-Pricing, what business requirement would required third party pricing tool.

The business requirement that I can think of which would require third party tool may be for

a. Tax Calculation - Taxware (in US for example)

b. Freight Price Calculation

Otherwise, I have not come across any other scenario where external tool is used to determine the prices. May be some one can correct me.

Hope my explanation helps.

Thanks

Mukund S

[Former Member]

Thanks Mukund for answer.

I am hearing about third pary bold on tool e.g Vendavo. I am trying to understand what addditional functionality Venddo brings that SAP core module does not have

Thanks again.

[Former Member]

Hi,

Not sure, but may be this link can help you.

http://ecohub.sdn.sap.com/irj/ecohub/solutions/priceandmargin

Thanks

Mukund S

[Former Member]

Hi

One of the major thing that products like Vendavo does that standard SAP cannot do ( that is why SAP started a joint marketing agreement with Vendavo) is price planning and optimization. While SAP is really good in determining pricing for transactions like orders invoices and promotions and such, it has nothing when it comes to answering questions like what would happen if I increase /decrease my prices by 10%? How much would I lose becasue some customers would go to the competition vs how much would I get because my sales order values goes up or vice versa.