price determination

[Former Member]

HI all,

How is price determined for a particular material. Generally a material's cost is determined from costing and what about the profit?

In order to sell any material a certain profit has to be added to the costing.

Where can this profit be added to the material.

In MTO process can we do this at quotation level i.e add certain condition type as profit in pricing procedure and add it to the costing (VPRS ).

At the end when the quotation is accepted the price in the quotation has to be copied to sales order.

Can this process be mapped in pricing procedure or there is any standard process for doing this.

regards,

uday

[moazzam_ali · Accepted solution]

Dear Uday

Yes you are right. Cost price is fetched from material master. You can add some fix percentage in cost price to get profit margin. Normally profit margin is your net price minus cost but if you want something like if cost price is 100 and you want to calculate sale price from this and management gives you a formula to add 20% of cost price then

Cost Price VPRS               = 100

Percentage addition           =   20

Selling Price                       = 120

For this create a condition type condition class B and calculation type A. Maintain condition record for this as 20 and add it in next step to your VPRS and dont forget to make it staic. In from add VPRS step number. This will calculate 20% of VPRS. In next step add these two and do your rest of calculation.

Please test and let me know if you need more assistance.

Thanks

[Former Member · Accepted solution]

Hi Ali,

Thanks for your reply.

The pricing procedure you have mentioned is ok but this calculation of selling price i do it in quotation.

When i have to create sales order with reference to this quotation.The material price will be copying from quotation to sales order.

So i don't maintain any condition records for the for the material price in sales order.

Now how can i change the price in sales order since there is no condition record maintained for the material.

Also how can this pricing procedure would be like.

regards,

udai

[moazzam_ali · Accepted solution]

Dear uday

Why dont you use same pricing procedure for quotation and sale order. In this case you will need to just copy pricing from quotation to sale order. Make setting to determine pricing procedure for both documents. Its ok if you dont maintain condition record for selling price. In your scenario no need of condition record and you can calculate selling price very easily.

Thanks

[jpfriends079]

Uday

MTO process

If you are talking about MTO, then condition type EK01/EK02 is used for costing.

For more information, you can refer following link from SAP Help:

- Revenue Planning

Thanks, JP

[siva_vasireddy2]

Hi,

   you can do the same   by Adding profit margin in the pricing procedure with Alt calculation type as- 11

please refer the standard pricing procedure RVAA01

siva