Two-Step Pricing - Procedures

Purpose
Articles can be procured for stores using direct delivery from an external vendor or using a logistics
process with several steps. In a procurement process with several steps, the articles from the
vendor are sent first to an upstream organizational unit (a distribution center, for example), from
where they are forwarded to other stores in the company or to franchisees. The term "internal
vendor" is used for distribution centers to distinguish them from external vendors.
You can perform a single-step or two-step sales price calculation, depending on whether a single-
step or two-step logistics process is to be used.
The following graphics clarify the difference between the single-step and two-step logistics process
for procuring articles, as well as the resulting single-step and two-step price calculations.
Single-step sales price calculation
Single-step price calculation is performed when a store procures articles directly from a vendor, that
is, if there is no upstream organizational unit assigned to the store. Calculating sales prices for the
stores is based on the purchase price for external vendors.
The following graphic shows an example of a one-step calculation for stores. Stores can have
different purchase prices, for example, if they each have different store-dependent basic purchase
prices or negotiated vendor discounts.

Two-step price calculation

Two-step calculation is performed, for example, for stores that are supplied by a distribution center
(internal vendor). Calculating sales prices for the stores is based on the transfer price for
distribution centers (preceding organizational unit).
The following graphic shows an example of a two-step calculation for stores. In the first step, the
distribution center transfer prices are calculated for different distribution chains. In the second step,
the sales prices for the stores are calculated, based on the transfer price of the distribution center.
 You can also carry out two-step price calculation for deliveries between distribution centers, or even
perform multi-step price calculation.
See also:
Two-Step Calculation for Stores.
The process described below shows which activities are performed by the system during two-step
price calculation once the data has been released in the selection screen for sales price
calculations.
Prerequisites
This process begins after you have entered the appropriate selection criteria in the selection screen
for sales price calculations and released the data.
As well as the articles for which you want to calculate sales prices, you have, for example, entered
a distribution center and a store supplied by this distribution center.
Process flow
 The system determines the transfer price for the distribution center based on the sales price from
the external vendor.
2. The transfer price that is determined for the distribution center is displayed as a sales price in
the Final price list field in the pricing item of the distribution center.
The sales price or distribution center transfer price is also the purchase price for the store, and is
therefore displayed in the Basic purchase price list field in the store. The distribution center is
entered in the Vendor list field.
The purchase price (net/net) for the store is calculated using the calculation schema for price
determination. This calculation schema may contain other conditions (store-dependent discounts,
for example) as well as the transfer price for the distribution center. The purchase price (net/net) is
different from the basic purchase price in this case.
3. The system uses the store purchase price determined in this way to calculate the sales price
for the store.
The sales price is calculated using the sales price calculation schema. This contains sales
information such as markups, taxes and so on.
4. You can change the data in the fields of the pricing table that are ready for input, that is, you
can perform a simultaneous calculation for the distribution center (distribution center
 distribution chain or price list) and the store (store distribution chain or site price list). A
comparison of the two pricing items is performed:
o If you change the sales price/DC transfer price, the price calculation for the store is
adjusted accordingly. The system uses the new transfer price in purchase price
determination for the store to do this.
o If you change the transfer price in the pricing item of the store, the pricing item for the
distribution center is adjusted accordingly.
5. Save the sales price calculation.
Results
Saving the sales price calculation posts the prices determined to the database as condition records.
There, they are saved in condition tables.

 Re: Two Step Pricing in ISR Transaction steps and Configuration steps
Kanica Kohli May 22, 2009 5:34 AM (in response to Bobby Bobby)
Currently Being Moderated
Sales Org : Z100
Dist Channel : D1 (retail), D2 (wholesale)

Step 1 : Extend the store to the Wholesale Sales Area. Extend the Customer view of the Store to the Wholesale Distribution
channel.
Step 2 : Assign supplying DC to the Store.
Step 3 : Logistic General à Retail Pricing à Sales Price Calculation à Maintain Pricing Type. Assign a Pricing Procedure for
retail. This pricing procedure will be used to calculate Retail Price at DC and Store.
Step 4 : Logistic General à Retail Pricing à Sales Price Calculation à Assign Pricing Type/Reference Site to Organizational
Level. Make Entries for both Wholesale & Retail Distribution chains
Step 5: Logistic General à Retail Pricing à Sales Price Calculation à Maintain Purchase Price Determination Sequence
Step 6 : Logistic General à Retail Pricing à Sales Price Calculation à Maintain Sales Price Determination Sequence
Step 7 : Logistic General à Retail Pricing à Sales Price Calculation à Define List Variant and Assign Items. Defines the layout of
Transaction VKP5
Step 8 : Logistic General à Retail Pricing à Sales Price Calculation à Control Data for Pricing Table and Data Backup. This
defines in which field the data is transferred after calculation from the calculation schema.
Step 9 : Sales & Distribution à Basic Functions à Pricing à Pricing Control à Define & Assign Pricing Procedure
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 Re: Two Step Pricing in ISR Transaction steps and Configuration steps
Bobby Bobby May 28, 2009 1:52 PM (in response to Kanica Kohli)
Currently Being Moderated
Hi Kanica,
Thanx for sending information, I am familiar with 1 Step, 2 Step confuses me, couple of questions:

1. What price is calculated first, is it between DC and Vendor, if 100 usd is purchase price, from external vendor , it
calculates Sales price which is transfer price.
What is the standard pricing procedure which calculates Sales Price at DC, Is it WWS001 or something else.

2. In the second step , is the purchase price which is transfer price from DC, plus mark up and sales price, at which stores
sells to store, then what us Standard pricing procedure , here is VKP001 or something else, because the Transfer price of DC,
should go an reside as Purchase price in the VKP001 pricing procedure and then mark up and then sales price.

3. What would be Purcahse price determination type,its sequence and sales price determination type and its sequence.

5. Wholesales mentioned in your mail is confusing me, am I correct saying wholesale , here you are mentioning to DC
 distribution Chain.

Regards
Bob
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 Re: Two Step Pricing in ISR Transaction steps and Configuration steps
Kanica Kohli May 29, 2009 5:46 AM (in response to Bobby Bobby)
Currently Being Moderated
Hi Bob,

Yes, whosale in my terms means DC distribution chain.

Now 2 step pricing invloves 4 pricing schemes.

Retail Distribution chain :

RVA001 ( for DC transfer prics)

WWS001 ( For Retail sales price at store )

DC distrubution chain

RMISRO ( Landed cost at DC )

WWS001 ( Retail sales Price at DC )
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 Re: Two Step Pricing in ISR Transaction steps and Configuration steps
Andreas Lueckler May 25, 2009 1:37 PM (in response to Bobby Bobby)
Currently Being Moderated
2 step price calculation is part of the SAP for Retail standard course IRT320 and is covered with several exercises. Please
attend this class in order to understand the set up.