Create / Change / Display Sales Price Calculation

SAP Optimization

VKP5 - VKP1 - VKP8

October 2009

Developed by the UFA Learning & Developments Team

This Quick Reference Guide is designed to get you started in using the indicated transactions and is not meant to take place of a full instructional user manual or classroom training. Record of Change Date
MM/DD/YY

Reason For Change

Draft For Distribution

Version
Draft 1.0

Name
Richard Crabbe Richard Crabbe

Sign off

10/16/09 10/22/09

Aneet Brar

Table of Contents
INTRODUCTION................................................................................................. 3 TRIGGER ................................................................................................................. 3 T-CODE .................................................................................................................. 3 CREATE / CHANGE / DISPLAY A NEW SALES PRICE ......................................... 4 PRICE CALCULATION - VKP5 - VKP1 VKP8 ................................................................. 4 REVIEW HOW PURCHASE PRICE WAS DETERMINED ......................................................... 11 REVIEW HOW SALES PRICE WAS DETERMINED............................................................... 12 CHANGE A SET OF PRICE CALCULATION VALUES BY A CONSISTENT AMOUNT ............................ 15 POST THE NEW PRICE CALCULATION............................................................................. 17

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

2 of 18

Introduction Trigger
Within SAP, you set you sales price using the Price Calculation functionality. When executing the price calculation you have various options on how to: - determine the purchase price - determine the sale price - what fields are displayed To create a new sales price that is valid on a specific date, use VKP5 Create Price Calculation To change an existing sales price that is already valid, use VKP1 Change Price Calculation To display a sales price calculation use VKP8 Display Price Calculation

T-Code
VKP1 Change Price Calculation VKP5 Create Price Calculation VKP8 Display Price Calculation

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

3 of 18

Create / Change / Display a New Sales Price Price Calculation - VKP5 - VKP1 VKP8
Step 1: Enter Transaction Code VKP5 or VKP1 or VKP8 Click or press Enter

The following screen is displayed:

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

4 of 18

Step 2:

Complete the following fields:

Click for a list of options Not all fields are mandatory Pricing Levels: These criteria define the different pricing levels for which you want to create / change / display a price calculation Article - The article(s) for which you want to create / change / display the sales price Sales - 1000 = UFA Organization Distribution - 10 = UFA Retail Channel Site Group - If you want to set site specific pricing, then you select sites either by a site group or a specific site - A site group is a grouping of similar sites, when searching for a site group use class type 30 Site - Enter the sites if site specific pricing is required Price List - Sites can also be assigned to a zone - The price list functionality is used to specify the zones Validity - The start date of the sales price (from) - This will default to tomorrows date Validity (to) - The end date of the sales price

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

5 of 18

Article Selection Criteria: These criteria allow you to further limit the pricing levels for which you want to create / change / display a price calculation Merchandise Category Vendor (Internal Procurement) Vendor (External Procurement) Vendor Sub range Season Season Year Restrictions: Pricing levels - VKP5 Create Price Calculation without - If checked then a price calculation will only be executed where the general sales article does not have a sales price already price only Pricing levels - VKP1 Change Price Calculation with specific - If checked then a price calculation will only be executed where a sales price sales price already exists for the specified pricing levels only Allows you to select all articles within a merchandizing category The internal vendor defines a distribution centre or warehouses

The external vendor defines the primary vendor for external procurement For example if you want to review all articles supplied by a specific vendor then you would use this field. A vendors product offerings can be divided into sub-ranges. You can limit the price calculation to a specific vendor sub range. The season that an article has been assigned to The season year that the article is first sold.

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

6 of 18

Pricing Procedure: The sale price is calculated for an article based on the Purchasing Price that represents the average procurement costs of the article for the pricing level for which the sales price is to be calculated. This price is called the net / net purchase price or simply the purchase price. Determining suggested values for sales prices in the price calculation is known as sales price determination. Purchase - Purchase Price Determination Sequence for UFA this will Price Determ. always be U1. Seq - This field determines how the purchase price is to be determined. U1 defines that the purchase price will be determined. - The choices are: 01 The pricing procedure that would be used when create a purchase order is used to determine the purchase price. 02 Same as 01 above. If method 01 fails to find a price the purchase price of the components of the article are determined and these are added to together 03 If the article is sold by multiple vendors then the average purchase price is determined. You can use weighting factors based on planned procurement quantities. If an average price is not found then method 01 is used. 04 this allows you to enter the purchase price directly into the price calculation screen 05 A specific price procedure is defined. If the specific price schema fails to find a price then Method 01 is used. 06 Allows you to define your own mechanism to define how the purchase price is determined. 07 Method 03, then Method 02 08 Same as Method 01 At UFA U1 is U1 A specific price procedure is used to determine the used. You can purchase price. set the system to default U1, - The specific pricing procedure sets the purchase price based on the Moving Average Price. by setting the If a site is not specified then the Moving Average Price will be for parameter ID the Distribution Centre 1100 EVM = U1 If a site is specified then the Moving Average Price will be for the specified site.

Contd on next page Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

7 of 18

Contd from previous page Sales Price - Calculating the margin (gross / net) or the actual mark-up from Determination the sales and purchase price is also part of the sales price Seq determination. There are various ways to determine the sales price. The options are: 01 Calculate the sales price from the planned markup. The Note: planned markup is maintain by merchandizing category in If you have condition ZAMG selected Sales 02 Adopt the current sales price and adjust the margins Price Determination 03 Adopt the sales price from another field in the price Sequence 04 calculation, for example you take into account a competitors or 05 you will price that you keep track of and maintain in the system be asked to 04 Allows you to set the sales price based on a percentage enter the change of a reference field. For example if the reference field is percentage the initial price this can be used to reduce the price for seasonal change or the articles) absolute value / 05 As above, but you set an absolute change instead of a currency change percentage change after executing 06 Method 02, if sales price cannot be found then use method this transaction 01. At UFA option 02 is usually selected. You can set the system to default 02, by setting the parameter ID EVV = 02

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

8 of 18

Display Options: These options define how the price calculation results are displayed List Group - This controls what data is displayed at the header and the item level - The choices are: A - The material data (for example, the material description) is displayed in the header section of the pricing table. The selected organizational levels are displayed as pricing items in the table. If several materials have been selected, a screen appears for every material B- The pricing level data appears in the header section of the pricing table. The selected materials are displayed as pricing items in the table - For every pricing level selected, a screen appears. List - This controls which fields are displayed at the item level. Variant

Step 3:

Click Execute

Step 4:

If you have selected Sales Price Determination Sequence 04 or 05 you will be asked to enter the percentage change or the absolute value / currency change.

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

9 of 18

The following screen is displayed:

Depending on the list variant that has been selected the following fields may be displayed: Distr. - Pricing Level / Organization Level Uni - Sales Unit of Measure. All sales prices refer to the sales Unit of Measure. Vendor - Primary / default vendor for the article DCrcy - Purchase Order Currency Basic PP - Basic Purchase Price. As we are setting the Basic Purchase Price to the Retail MAC then this will also be the sames as the Net / Net Local - Local Currency. This is the currency of the organization level defined in the Ditr. Column Pl Ven Net - Planned Vendor Net. This is no longer used. Pl Log C - Planned Logistics Costs. This is no longer used. NRC nt/nt - Net Retail Cost. This is starting point that the system used to determine the sales price Pl mg (%) - Planned Margin Percentage. Retail Planned Margin / 100 - Retail Planned Margin Marg % - Markup Amount / Gross Sales Price MrkUp (Amt) - Sales Price Net Retail Cost Final Pr. - Sales Price FinalPrOld - Old Sales Price Mrg%OldRet - Margin % using Old Sales Price Old NRC - Old Net Retail Cost Old Mg (%) - Markup Up Amount based on Old Net Retail Cost / Gross Sales Price Initial Price - Initial Price Sug Price. - Suggested Price

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

10 of 18

Review How Purchase Price Was Determined

Step 1: Click

The following screen is displayed

The conditions displayed are: PB00 = Gross Price - This represents the purchase price from the vendor - This is the purchase price that will be used when a purchase order is created - It does not necessarily include all costs to purchase the article. ZRMC = Retail MAC - This represents the landed cost at the DC (or site if you are working with site specific sales prices)

Step 2:

Click

to return to the previous screen

The following screen is displayed:

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

11 of 18

Review How Sales Price Was Determined

Step 1: Click

The following screen is displayed:

The conditions displayed are: ZALU = VKP Lubricants Markup ZAMG = Retail Plnd Margin EKNN = Net / Net AUFX = Retail Margin - The planned marked up for the lubricant articles - The planned retail margin by merchandizing category. - This value is copied from the purchase price and is equal to the Retail MAC. - The calculated retail margin using the Net / Net and Sales Price condition values. (Sales Price Net/Net ) / Net/Net - Used for capture any rounding differences. Contd on next page

DIFF = Rounding Off

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

12 of 18

Contd from previous page VKP0 = Sales Price - This is sales price that the system is suggesting. How this value is determined is dependent on the sales price determination sequence selected on the initial price. For example if you selected: 01 The sales price is the calculated from the net / net price and the planned margin 02 The sales price is the current sales price in the system. The margin as been adjusted in this case. - This is the current sales price - This is the initial sales price. This will be the Original Price; if the Original Sales Price is not specified then this will be the Sales Price; if the Sales Price is not specified it will be the calculated Retail Price. This is one of the reference fields that can be used to determine the new sales price if you have selected sales price determination sequence 03 or 04. - Replacement Cost This is equal to (Sales Price Net Repl Cost) / Sales Price

VKP1 = Original Sales Price ZAIV = Initial Sales Price

ZARC ZAOM

Net Repl Cost Old Margin%

Step 2:

Click

to return to the previous screen

The following screen is displayed:

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

13 of 18

To move the columns across the screen you can use

Based on the List Group you can use to move between the different groupings. If you choose List Group: 1. Then you will move between articles 2. Then you will move between organization levels

The text below will shows the user which grouping of the total groupings that is being viewed:

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

14 of 18

Change a set of price calculation values by a consistent amount

Step 1: Select the check box to the left of the price calculation lines that you wish to change

Not all fields can be changed Step 2: Click

If the field can be changed, the following screen is displayed:

If the field is a: Percentage - You will be prompted to enter the new percentage value Value - You will be prompted to enter a new value, a percentage change, or an absolute change: Enter the value

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

15 of 18

Step 3:

Click Copy

Note: Once the changes have been applied then the defined rounding rule will be applied. The rounding rule defines how the price is to be rounded, for example to nearest 99 cent value. The new margin calculations will be based on the rounded value.

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

16 of 18

Post the new price calculation

Step 1: Select the line items that you want to save using the check box to the left

Step 2:

To review which conditions will be updated click

The following screen is displayed:

Click on the various tabs to review: Organization Displays the organization levels, the reference site and purchasing information Sales Price Displays sales pricing information including: Current price Associated validity period (current price) Key combination that would is to maintain the current price New price Associated validity period (new price) Key combination used to maintain the new price The displays the list of conditions that will be updated on posting the pricing calculations.

Update

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

17 of 18

Step 3:

Click Save

The pricing document will be saved in release status (Status = C) and any prices will be updated To save the price calculation without posting updates the pricing conditions then select Menu Option: Pricing Table > Create Pricing Document.

This will save the pricing document in an unreleased status. (Status A). Use transaction VKP7 to display the document, or VKP6 to change and release the pricing document.

Create / Change / Display Sales Price Calculation VKP5/VKP1/VKP8 - v1.0

18 of 18