CRM7 Price Management

SAP CRM 7.0Detailed View

SAP CRM 7.0 – Sales

Price Management

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1. Overview2. Features in Detail3. Further Information

Content

What is Price Management?

Price Management enables companies to plan, execute, and track pricing strategies

Focus areas:Strategic pricing to compete and win in a marketCampaign-based pricing to develop and grow market segmentsCustomer negotiated pricing to win, grow, and retain customers

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Why is SAP better?

SAP’s application platform provides one Pricing Engine that:

Runs pricing for 1000s of customers across industriesRuns consistent pricing for their sales people, call center, Web shop, and partner channelSupports the full range from simple product/service pricing to complex Trade Promotion Management or Package pricing

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One Pricing Engine used in all SAP Applications

Future ApplicationPlatform Products

SAP ERPE-Commerce

SAP forAutomotive

SAP SRMSourcing

SAP CRMSales

SAP CRME-Commerce

SAP CRMInteraction Center

PricingEngine

SAP CRMOn-Demand

SAP CRMMobile Sales

SAP CRMService

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Content

Pricing Example

OrderCustomer: Miller

Product Quantity

M328 10 pc

$9301 pc$93Net Value for Item

1 pc

1 kg

1 pc

1 pc

1 pc

per

$970$97Final Amount

$+ 40$+ 2 Shipment Costs

$- 50$- 5Product Discount

$- 20%- 2Customer Discount

$1,000$100Gross

$1,000$100Material Price

CurrValueUnitRateCondition

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Pricing Execution – Features

Item level pricingManual changes on item and header levelDifferent calculation typesScales with different scale basesTwo-dimensional scalesValidity periods Condition exclusionCurrency conversionQuantity and unit of measurement conversionFormulas for more complex pricingFree goodsPrice change approval

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When setting up pricing, the system uses a method to determine prices from the information stored in the condition records.

Pricing Execution – Special Functions

Condition exclusionIn pricing, more than one condition record may apply to a particular item at any one time. You can use the condition exclusion process to compare possible conditions to determine such things as the best price for a customer.

Variant conditionsVariant conditions can be used to influence the price of a configurable material, depending onthe characteristic values assigned.

Group conditionsYou want some conditions to be used as the basis for determining scale values from several items. For example, materials have been assigned to a material pricing group, and you want a quantity-based discount to be assigned to these materials. You want the quantity scale to be read cumulatively, with the cumulated quantity of all materials in the sales order that are assigned to this material pricing group.

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How Pricing Works

When setting up pricing, the system uses a method to determine prices from the information stored in the condition records.

Pricing is based on the following elements:Condition typesPricing proceduresAccess sequencesCondition tables

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Condition Types

Value from Amount

- 1 %- 2 %- 4%

Amount

$1 per 1 kg

FreightKF00

Calculation type: PercentageScale base type: Value scale

Calculation type: Amount/weight

$100$1,000

$10,000

Discount %K007

The condition type defines the characteristics and attributes of a condition.

You can define a condition type for every type of price, surcharge, or discount that occurs in your business transactions.

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Groups of Conditions

Prices Discounts/Surcharges

For example: Material priceCustomer-specificPrice list

Freight

For example:Incoterms,part 1Incoterms,parts 1+2

For example:DeparturecountryExport

Conditions

Taxes

For example:By customerBy materialBy price group

You can determine conditions at any level you require:

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Pricing Procedure

The pricing procedure defines which condition types are permitted and in which sequence.

It also defines:Which subtotals are shown on the pricing screens If a condition type is mandatoryIf a condition type is statisticalIf a condition can be entered only manuallyFormulas for calculating pricesThe basis on which the system calculates pricesWhich requirements must be met for a specific condition type to be taken into consideration

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Pricing Procedure Determination

Sales organization

Sales organization

Distribution channel

Distribution channel

DivisionDivision Documentpricing

procedure

Customerpricing

procedure

Pricing procedure

Transactiontype

Customermaster data

Organizational context Process Customergroup

Determines

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Access Sequence

Access sequence K027:

1. Customer-specific discountCondition table: customer/sales organization

2. Discount for price groupCondition table: price group/sales organization

3. General discount for the sales organizationCondition table: sales organization

Condition type K027:

An access sequence is a search strategy that the system uses to search for valid data for a specific condition table. It consists of one or more accesses.

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Condition Technique

Access sequenceCondition tables1. Access: customer/material2. Access: material

ZPR0

Scale

From 1 PC:100 EUR per PCFrom 50 PC:95 EUR per PC

PR00 95 EUR/PCK007 -2%

Pricing procedure

1. Price PR00

2. Customer discount K027

3. Promotion discount KA00

ZPREU

Condition type

Access sequence ZPR0

PR00

Condition records

Valid record not available

Valid record available

for PR00

TransactionProduct A 55 PC

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Service Oriented Architecture (SOA): Price Services

Price Master Data Management

Update Sales Price SpecificationSales Price Specification


Read Sales Price SpecificationSales Price Specification


Find Sales Price Specification by ElementsSales Price Specification


Create Sales Price Specification as BulkSales Price Specification


Create Sales Price SpecificationSales Price Specification


Confirm Sales Price Specification as BulkSales Price Specification


Change Sales Price Specification as BulkSales Price Specification


Cancel Sales Price Specification as BulkSales Price Specification


Cancel Sales Price SpecificationSales Price Specification

Process ComponentService NameBusiness Object

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Content

Differences ERP SD vs. Pricing with IPC

Functional Differences/Migration Considerationshelp.sap.com > CRM > Components & Functions > Basic Functions > Pricing > Differences in Pricing in CRM and R/3

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Further Information

SAP CRM - Roll-Out Maphttps://portal.wdf.sap.corp/go/crm-rollout-map

SAP CRM - Ramp-Up Knowledge Transfer (RKT)http://service.sap.com/rkt-crm

SAP CRM – Demo Portalhttp://crmportal.wdf.sap.corp:1080

SAP CRM – WiKihttps://wiki.wdf.sap.corp/display/SAPCRMHub/Home

SAP CRM - Help Portalhttp://help.sap.com/crm

SAP Public Webhttp://www.sap.com/crm

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Documents

CRM7 Price Management