Retail Pricing

SAP for Retail Community Page - Overview on Retail Pricing

Scenario Description
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 stores in the company. The term "internal vendor" is used for distribution centers
to distinguish them from external vendors.

The SAP Retail system provides a retail pricing sheet which can be used to determine the
retail price for articles. The retail pricing sheet calculates a proposed retail price which can
either be accepted or can be changed. There are a number of different ways in the SAP
system to calculate the proposed retail price. The proposed retail price is always based on the
purchase net/net price. This purchase net/net price is built up from the purchasing pricing
elements or condition types defined to be included in the purchase net/net price. A planned
mark-up is applied to the purchase net/net to calculate the proposed retail price. The planned
mark-up can be set by merchandise category and for exceptions, more specifically by article.

Process Overview - The condition technique is used to determine prices in SAP Retail. It is
based on conditions, which are described by condition types. Information is stored in condition
records and conditions. Access sequences and calculation schemas are also a key part of this
functionality. 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). Background Price
Calculation should be run for mass maintenance of all the articles.

Two Step Pricing

Two step pricing can be used for situations where stock is initially supplied to a Distribution
Centre. Two step pricing works then as follows:

In step one the pricing is carried out for the DC.There will be a purchase net/net which
is based on the supplier list price. A mark-up can be applied for the DC which is based
on the recovery of the DC costs. The calculated price for the DC can be seen as a
transfer price to the stores.
In step two the pricing is carried out for the stores. The basis for the proposed retail
price (purchase net/net) will now be the transfer price which is calculated in step one.

Levels of Pricing
Pricing is to be carried out at two levels:

The first level is at the Distribution channel chain level.

The second level is at site level. The final retail price that is calculated is stored in the
condition type VKP0.

Mark ups maintained at two levels:

For DC: At distribution chain level

For Stores: At article level

Sales Price Calculation

Purchase prices - markup---sales prices. Mark up applied in purchase Price to calculate the
Sales Price

Two Step Pricing

vendor -- DC -- Store-- End consumer vendor to DC is purchase prices DC to store trnsfer
prices then store to end consumer is retail prices
Have you seen the SAP for Retail
Business Process Expert wiki hom
epage on SCN? It is the
central entry point to an elaborate
knowledge repository for SAP for
Retail. It contains not only a wealthy
resource of information provided by
business experts at SAP, but also
contributions from community
members, such as this page, as
well!