Pricing:

Concepts
SAP Business One
Version 10.0

PUBLIC
Objectives

At the end of this topic, you will be able to:

 Describe the concepts behind pricing in SAP Business One:
 Types of prices and discounts
 Items and price lists
 Associating prices with business partners
 Pricing in a document

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Business Scenario

 Your company has multiple price lists which are used for different
groups of customers.
 Some customers receive special prices because of their relationship
with your company
 Customers may also receive discounts based on properties of the
items sold
 Periodically you give discounts on the list price based on volume
purchases or during sales events

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Pricing in Business One

Price Lists

Period and Volume

Discounts

Discount Groups

Special Prices
for BPs

Blanket
Agreements

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Pricing in Business One: Price Lists

The basic way of pricing: Enter prices into price lists and
Price Lists assign the appropriate price list to a business partner.

Period and Volume

Discounts

Discount Groups

Special Prices
for BPs

Blanket
Agreements

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Pricing in Business One: Period and Volume Discounts

Price Lists

Period and Volume Define a discount percentage by date and quantities for a price list.
Discounts Overrides the basic price list assigned to the business partner.

Discount Groups

Special Prices
for BPs

Blanket
Agreements

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Pricing in Business One: Discount Groups

Price Lists

Period and Volume

Discounts

Define discount percentage by items, item group, properties

Discount Groups or manufacturer. Overrides period and volume discounts.

Special Prices
for BPs

Blanket
Agreements

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Pricing in Business One: Special Prices for Business Partners

Price Lists

Period and Volume

Discounts

Discount Groups

Special Prices Determine special prices by item, BP, dates and quantities.
for BPs Overrides all other prices (except for blanket agreements).

Blanket
Agreements

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Pricing in Business One: Blanket Agreements

Price Lists

Period and Volume

Discounts

Discount Groups

Special Prices
for BPs

Blanket Specifies item prices you have negotiated with a business partner.
Agreements Overrides all other prices

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Pricing in Business One

The basic way of pricing: Enter prices into price lists and
Price Lists
assign the appropriate price list to a business partner.

Period and Volume Define discount percentages by date and quantities for a price list.
Discounts Overrides the basic price list assigned to the business partner.

Define discount percentage by items, item group, properties

Discount Groups or manufacturer. Overrides period and volume discounts.

Special Prices Determine special prices by item, BP, dates and quantities.
for BPs Overrides all other prices (except for blanket agreements).

Blanket Specifies item prices you have negotiated with a business

Agreements partner. Overrides all other prices

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Price Lists

The basic way of pricing: Enter prices into price lists and
Price Lists
assign the appropriate price list to a business partner.

 Price lists provide flexibility in pricing

 Price lists are used in both sales and purchasing

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Item Prices
Item Master

Item Number A1001

 Every item in your system is
automatically linked to every price list. Price List Purchase Price List 299.00
 In the Item Master Data window, you
can use a dropdown to view each
price list and assigned price. 599.00
Price List Low Volume
 Two price lists are automatically
maintained by the system: Price List High Volume 499.00

 Last Evaluated Price 799.00

Price List 04
 Last Purchase Price
Price List 05 299.00

Price List 06 349.00

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Price list concept

Item Master Business Partner Master Data

Item Number A1001 C1001

Price List Price List High Volume 499.00 Payment

Terms

Price List Price List High Volume

A price list is assigned to

each business partner.

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Price list concept

Item Master Business Partner Master Data

Item Number A1001 C1001

Price List Price List High Volume 499.00 Payment

Terms

The business partner’s Price List Price List High Volume

price list defaults into the
document header

Document

Business Partner C1001

Item Unit Price

A1001

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Price list concept

Item Master Business Partner Master Data

Item Number A1001 C1001

Price List Price List High Volume 499.00 Payment

Terms

Price List Price List High Volume

Document

C1001
Item Unit Price
A1001 499.00

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Two Fields Controlling Pricing in Rows

 There are two fields controlling pricing in the rows of marketing documents.
 Unit Price field
 Discount % field.

Unit Price Discount % Total

300 10 270

 These two fields work together to give you the total price for the row.
 The system will look for a price and determine if any discounts are to be applied.

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Price Determination in SAP Business One

Document

Unit Price Discount

Item ??? ???
1. Does a valid specific blanket agreement exist for
the item?
2. Does a BP and item-specific special price exist
for the item and unit of measure?

3. Does a discount group exist?

4. Do period and volume discounts for the Price

List exist?

5. Price List

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Price Determination in SAP Business One

Document

Unit Price Discount

Item ??? ???
1. Does a valid specific blanket agreement exist for
the item? NO
2. Does a BP and item-specific special price exist
for the item and unit of measure?

3. Does a discount group exist?

4. Do period and volume discounts for the Price

List exist?

5. Price List

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Price Determination in SAP Business One

Document

Unit Price Discount

Item ??? ???
1. Does a valid specific blanket agreement exist for
the item? NO
2. Does a BP and item-specific special price exist
for the item and unit of measure?
NO
3. Does a discount group exist?

4. Do period and volume discounts for the Price

List exist?

5. Price List

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Price Determination in SAP Business One

Document

Unit Price Discount

Item ??? ???
1. Does a valid specific blanket agreement exist for
the item? NO
2. Does a BP and item-specific special price exist
for the item and unit of measure?
NO
3. Does a discount group exist?
NO
4. Do period and volume discounts for the Price
List exist?

5. Price List

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Price Determination in SAP Business One

Document

Unit Price Discount

Item ??? ???
1. Does a valid specific blanket agreement exist for
the item? NO
2. Does a BP and item-specific special price exist
for the item and unit of measure?
NO
3. Does a discount group exist?
NO
Document
4. Do period and volume discounts for the Price
List exist? NO
Unit Price Discount
Item 479 5. Price List

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Price Source in Documents

Price source field provides

information about the source of a
price or discount on the item row

Need to activate
Price Source in form
settings

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Effective Price Field

Unit Price Discount

Special Prices for BP 270

Discount Group None defined*

Period & Volume Disc 300 20%

Price List Price 300

Unit Price Discount % Total

300 20 240

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Effective Price Field

 When the Lowest Price/ Highest Price

option is selected in the Effective Price
field, the Effective Price Considers All
Price Sources option becomes
available.
 To apply this definition for all business
partners, select the Effective Price
Considers All Price Sources checkbox
on Administration - -> System
Initialization - -> General Settings - ->
Pricing tab.

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Effective Price Field

1. Does a valid specific blanket agreement

exist for the item?
2. Does a BP and item-specific special price
exist for the item and unit of measure?

3. Does a discount group exist?

4. Do period and volume discounts for the

Price List exist?

5. Price List

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Gross Pricing Option

Setting on Company Details: Enable Separate Net and Gross Price Mode

Settings on business partners Price Mode field with dropdown options: Net vs. Gross
and price lists: Assign gross price lists to BPs using gross pricing

Effect in Marketing Documents: Document marked in Price Mode field as Gross

Unit Pricing grayed out, instead use Gross Price fields

Gross Price Discount Gross Price Total

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Summary
Here are some key points:
 There are 5 types of prices: price lists, period and volume discounts, discount groups,
special pricing for business partners and specific blanket agreement prices.
 When you create a document, the system brings in the price list associated with the business
partner. You can change the assigned price list in the document.
 The system proposes a price for each item in the document. The system looks first for the
most specific price and continues until it finds an applicable price. If a discount is found, the
discount must be applied to a price.
 The pricing hierarchy order is: specific blanket agreements, special prices for a business
partner, discount groups, period and volume discounts, price list.
 The Price Source field shows the source of prices on the row.
 You have the option to use the Effective Price setting on the Business Partner Master Data to
have the system search all the possible prices available and always choose the lowest or
highest price.
 There is an option to use gross pricing in addition to net pricing. Both pricelists and business
partners can be set to use gross pricing.
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© 2020 SAP SE or an SAP affiliate company. All rights reserved.

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