Reverse Pricing Procedure.pdf

September 10, 2017 | Author: panirbanonline3426 | Category: Sales, Business Process, Retail, Sap Se, Supply Chain
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Short Description

Reverse pricing model refers to a model that allows the consumer to establish his/her requirements and offer the same fo...

Description

Configuring Reverse Pricing Procedure 

Applies To:

SAP SD/LE Module 

Summary:

Reverse pricing model refers to a model that allows the consumer to establish his/her requirements and offer the same for bid by the seller. Thus rather than seller marketing a product to a buyer, the reverse phenomenon occurs here. Priceline has pioneered this model in the consumer marketplace using airline ticket as the product. This model further reflects the changing power from suppliers to the consumers. Author:

Anirban Pahari

Company:

Pricewaterhouse Coopers Private Limited

Created On: 02-April-2013 

Author Bio:

Currently SAP SD Consultant at PwC Kolkata having 3 years experience performing business process improvements/business continuity assessment, complex data analysis, SAP SD enterprise structure configuration, Order to Cash sales process, pricing and interfaces. Have held a pivot role as the functional consultant responsible for the SAP sales and distribution addressing client support and development. Primary experience is with manufacturing clients. 

What is reverse pricing:

Reverse pricing model refers to a model that allows the consumer to establish his/her requirements and offer the same for bid by the seller. Here the end user will only enter the Final Sale Price/Maximum Retail Price and the system will automatically back calculate the margin, taxes, discounts and freights depending on the business sales cycle process. 

Where is it used:

This is basically used in Cement and retail industries where the vendor discounts is altered keeping an eye on the final price and margin. 

Mapping the business process in SAP: 

Configuration 

Create Condition type – V/06 

YR00 – Initial Price



Can be a copy of K007 but not PR00 as this will capture the 100% value of Initial price from a subtotal. So the “Calculation Type” needs to be “A-Percentage” unlike PR00 which has “C-Quantity”.



ZMRP – Max Retail Price



Copy of PR00



Statistical in nature



MWSI – Output Tax



Calculation type should be “H-percentage included”



ZWSI – Reverse MWSI



Can be a copy of K007/YR00 (already created)



It is a 100% copy of MWSI



Statistical in nature





Create Pricing Procedure – V/08 

Pricing Procedure created - ZREVPR – Reverse pricing test



MWSI,YR00 and Copy of MRP is posted against their respective accounts



The account key for price and tax are ERL and MWS respectively.



Discounts, freights and margins can be included depending on the business requirement.



Only thing to be noticed is that “Calculation Type” H should be used if any calculation is to be done “Inclusive in nature”.

Master Data 

Creating Condition Record 

YR00 – Initial Price



100% copy of Subtotal - Price



ZWSI – Reverse MWSI



100% -ve copy of MWSI



ZMRP – Max Retail Price



MWSI – Output Tax (use MWST as reference)

o

Transactional Data 

Document Flow



Create Sales Order – VA01



Pricing Analysis



Accounting Document

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