Creating Material Prices or Condition Records

This exercise will show how to setup and enter the prices for the products available from your company. This must be done for each product sold by each sales organization and each distribution channel within each sales org. This first example shows how to create prices for the materials that normally, any customer would pay. The first part of this procedure does not take into account any discounts or special considerations made for special customers.

From SAP Easy Access: Logistics -> Sales and distribution -> Master Data -> Conditions -> Create

On this screen, drill down further:

Prices -> Material Price

Click Material with release status, ensure correct sales organization is selected (SO_ _ ), then choose distribution channel. In this example, DI (direct) is done first, followed by WH (wholesale). The procedure is identical for each distribution channel price to be set within each sales organization.

Enter the following:

• Condition:        PR00 (Price)
• Material:        Ore Wagon
• Rate:            $1,000.00

Repeat entries for all other materials available for sale from this sales organization, in this distribution channel. Then click Save. The remaining information available about the material, such as dates valid, units, and descriptions will be added automatically by the system. Now click back.

Change distribution channels for this sales organization (switch to WH in this example). Click Material with release status again and enter the same information changing only the price to the wholesale level.

Repeat the entire process for the RE distribution channel if there are any customers in that channel. For example, an outlet store or an onsite store at any factory or sales office location.

Creating Customer Specific Material Prices

If the company decides to give higher or lower prices to specific customers for any reason, the system needs to be adjusted for these customer specific prices. The system can be configured to accept these prices for any time period specified. This exercise shows how to make such changes to the system to accomplish this task.

From SAP Easy Access: Logistics -> Sales and distribution -> Master data -> Conditions -> Create

On this screen, drill down further:

Prices -> Individual Prices

This procedure is identical to those already performed earlier, except in this case, a customer must now also be selected. Obviously to receive alternative pricing, this customer must already exist in the system. Enter the customer then enter the condition(s), material(s), and rate(s). The valid dates and other information will be automatically entered once enter is selected. At this point, it is possible to alter the valid dates to match the period of the differentiated pricing arrangement. When all prices have been entered and the dates have been set, the information must be saved.

Unless these prices, dates, or other parts of the pricing arrangement change, nothing else must be done in the system. The prices take effect as of the start date and expire, reverting to standard prices, as of the end date; requiring nothing from the user after initial setup.

An example of where this function might be used would be if the company’s largest local customer has been given a discount below the direct price but not quite as low as the wholesales price. This price may have been determined in a contract between this company and the customer. Say the agreement was made for a minimum annual purchase in exchange for the reduced price, this contract will expire in five years, so the valid dates were changed to reflect this.