corporate enterprise system pricing administration - bpona · corporate enterprise system pricing...

Corporate Enterprise System

Pricing Administration - BPONA

Student Guide

sd010-00.doc


Acknowledgments

This manual is based on SAP® R/3 System Release 3.1h.

Confidentiality This document is intended for use by Armstrong only.

Trademarks SAP is a registered trademark of SAP AG.

Windows is a trademark of Microsoft Corporation.

Course ID: sd010 Revision Date: July 14, 1998 Version: 2.0 BPONA

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Table of Contents

Preface................................................................ ix About this Guide .......................................................... ix Course Prerequisites..................................................... ix Conventions Used in This Guide .................................. x

Introduction........................................................ xi Course Purpose and Objectives.................................... xi A Word About This Course ......................................... xi

1— Overview........................................................... 1-1 Objectives...................................................................1-1 CES Pricing................................................................1-2 CES Automatic Pricing ..............................................1-3 Pricing Procedure .......................................................1-3 Pricing Procedure in Action ......................................1-5 Maintaining the Pricing Procedure ............................1-6 Pricing Administration ...............................................1-7 Review........................................................................1-9 Answers....................................................................1-10

2— CES Pricing for BPONA .................................. 2-1 Objectives...................................................................2-1 BPO Pricing Procedures.............................................2-2 CES Pricing Functionality..........................................2-3 Summarized Condition Types....................................2-4 Price is Right Interface.............................................2-20 Review......................................................................2-21 Answers....................................................................2-22

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3— Processing Pricing Master Data..................... 3-1 Objectives...................................................................3-1 Related Pricing Master Data Setup ............................3-2 CES Considerations ...................................................3-3

Maintaining Pricing Master Data on the Customer Master ..................................................3-4

Maintaining Pricing Master Data on the Material Master ....................................................3-6

Review........................................................................3-9 Answers....................................................................3-10

4—Processing Pricing Condition Records .......... 4-1 Objectives...................................................................4-1 More About Condition Records .................................4-2 Maintaining Condition Records .................................4-3 Creating a Condition Record......................................4-4 Changing a Condition Record....................................4-5 Applying a Global Price Increase or Decrease ..........4-5 Copying Condition Records from Customer(s) .........4-6 Deleting Condition Records.......................................4-6 CES Considerations ...................................................4-7

Creating a Condition Record................................4-8

Creating a ZBGS (Grid Structure Discount) Condition Record ...............................................4-10

Creating a Condition Record with Scales...........4-12

Changing a Condition Record ............................4-14

Applying a Global Price Increase or Decrease .............................................................4-16

Review......................................................................4-19 Answers....................................................................4-20

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5— BPO Special Pricing ........................................ 5-1 Objectives...................................................................5-1 Special Pricing Considerations ..................................5-2 ZVSPR Table Maintenance........................................5-3 Special Pricing Types.................................................5-4 Special Pricing Condition Records ............................5-5 Quantity Limits ..........................................................5-7 CES Considerations ...................................................5-8

Maintaining ZVSPR Special Pricing Table..........5-9

Creating a ZBQT (AB Job Quantity) Condition Record ...............................................5-11

Review......................................................................5-13 Answers....................................................................5-14

6—Applying a Manual Price to a Sales Order...... 6-1 Objectives...................................................................6-1 Maintaining Pricing on Sales Orders .........................6-2 Applying a Manual Price to a Sales Order.................6-3 CES Considerations ...................................................6-4

Entering a Manual Surcharge at the Header Level.....................................................................6-5

Entering a Manual Price or Discount at the Item Level ............................................................6-7

Review........................................................................6-9 Answers....................................................................6-10

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7—Monitoring Automatic Pricing on Sales Orders .............................................................. 7-1 Objectives...................................................................7-1 Customer Price Queries..............................................7-2 Analyzing the Pricing Procedure ...............................7-3 CES Considerations ...................................................7-4

Performing a Price Query for a Customer’s AB Ceiling Structure Price...................................7-5

Displaying the Allowable and Used Quantities for a Special Job Price ........................7-7

Analyzing Automatic Pricing on a Sales Order...................................................................7-10

Review......................................................................7-13 Answers....................................................................7-14

8—Review and Evaluation..................................... 8-1 Review of Course Objectives.....................................8-1 Course Evaluation ......................................................8-1

A—Appendix A .......................................................A-1 Practice Exercises...................................................... A-1

B—Appendix B: Pricing Procedure - BPO US Commercial......................................................B-1 BPO U.S. Commercial Price Procedure

Requirements (BPUCPR).................................... B-3

vi


C—Appendix C: Pricing Procedure - BPO US Residential .......................................................C-1 BPO U.S. Residential Price Procedure

Requirements (BPURPR).................................... C-3

D—Appendix D: Pricing Procedure - BPO Canada Commercial........................................D-1 BPO Canada Commercial Price Procedure

Requirements (BPUCPR)....................................D-3

E—Appendix E: Pricing Procedure - BPO Canada Residential .........................................E-1 BPO Canada Residential Price Procedure

Requirements (BPCRPR).................................... E-3

F—Appendix F: Pricing Procedure - BPO US Export............................................................... F-1 BPO U.S. Export Price Procedure Requirements

(BPUEPR) ............................................................F-3

G—Appendix G: Pricing Procedure - BPO US Inter-Company................................................ G-1 BPO U.S. Inter-Company Price Procedure

Requirements (BPUIPR) .....................................G-3

H—Appendix H: Pricing Procedure - WAVE U.S. Inter-Company.........................................H-1 WAVE U.S. Intercompany Price Procedure

Requirements (BPWIPR) ....................................H-3

vii


Notes

viii


Preface

About This Guide This student guide is intended to supplement instructor-led training for Armstrong’s Corporate Enterprise System (CES). It is meant for you to use as a workbook during class and as a ready reference for use on the job. These materials are not designed for self-study, nor do they replace or replicate SAP R/3 on-line help and documentation.

This guide is composed of several sections, each of which addresses a particular CES application or task. Each newly introduced section builds on the previous sections. Ample space is included for note-taking during class.

Course Prerequisites A basic understanding of the Windows™ environment is a prerequisite for this course. It is assumed that you can use a mouse, are familiar with basic Windows elements such as the title bar, menu bar, and scroll bars, and can select menu options and applications. It is also assumed that you have attended the Corporate Enterprise System Basic Navigation course.

ix


Conventions Used in This Guide The following table provides a preview of the graphical images included in this guide.

Convention Description

Identifies a menu path

XXXX Identifies a transaction code

= “XXXXX”

Identifies a screen

Identifies sample data for the required fields

Identifies the button(s) to select to advance to a new screen

Identifies useful “tips” tip

Identifies important information note

Identifies practice exercises practice

x


Introduction

Course Purpose and Objectives This course is intended to build upon your knowledge of CES’s Sales and Distribution system. More specifically, you will learn how to establish pricing master data and analyze pricing on sales orders in the CES system.

Through your participation in this course, you will be able to ...

• Explain CES pricing terminology

• Explain features of BPONA pricing that will be used in CES

• Establish pricing master data in CES

• Process BPONA condition records

• Apply a manual price, charge, or discount to a sales order

• Monitor automatic pricing on sales orders

A Word About This Course Since this student guide is intended for various audiences (CSRs, pricing administrators, warehouse personnel, and financial personnel), individual sections will be more relevant to certain audiences than to others. However, it is beneficial for all groups to be exposed to the entire course to gain an appreciation of Pricing interdependencies and to understand the entire process.

xi


Notes

xii


1 Overview

Objectives At the completion of this section, you should be able to ...

• Explain features of CES pricing on sales orders and invoices

• Define such CES pricing terminology as a pricing procedure, condition types, and condition records

• Explain the roles of pricing administrators and CSRs within pricing administration

Overview sd010-01.doc 1-1


CES Pricing Pricing for sales orders in CES will occur automatically, provided that certain set-up activities have occurred. Specifically, pricing administrators will establish the “master data” for pricing to allow automatic pricing application on sales orders.

CES Pricing will be calculated on two occasions. First, pricing is determined at order entry using order date or scheduled ship date, order quantity, special price lists, and prices that are in effect for that date and that specific customer. Pricing is also determined again at invoice time for some conditions, using the same pricing elements.


PricingAdministration


Applying a Manual PriceApplying a Manual Price

Processing Condition Records


Processing Pricing Master Data


CES Pricing for BPONACES Pricing for BPONA

Monitoring Automatic Pricingon Sales Orders

Monitoring Automatic Pricingon Sales Orders

Applying at theItem Level

Applying at theHeader Level

BPO Special PricingBPO Special Pricing

Applying a Manual Price

1-2 Overview


CES Automatic Pricing In CES, automatic pricing works as follows: During sales order entry, the system considers information such as the list price of a material, customer specific prices, any special discounts or marketing strategies, material or customer group combinations, and sales taxes. CES also considers freight charges and any surcharges that may apply to the customer or material. The system considers this information by accessing established “condition records” (which contain data for actual prices, discounts, surcharges, etc.), and calculates the price based on the summation of the values in the condition records.

The final calculated price for the customer is then applied to the sales order and invoice. This entire process of searching for valid condition records is termed the “condition technique”.

Pricing Procedure The Pricing Procedure is the “roadmap” that CES uses to determine the price of a sales order. A pricing procedure defines which condition types are available and in what sequence CES should take these conditions into account. For example, BPO US Commercial has an established pricing procedure of “BPUCPR”. The components that make up the “pricing procedure” are listed as follows:

• Condition types -- Codes that represent different kinds of prices. For example, the condition type “ZBGN” represents a grid national price, while condition type “ZBAJ” represents a special job price

• Access sequences -- State the criteria for creating data records and also define the order in which the condition records for a condition type are searched. For example, for the condition type “ZBAJ” the access sequence is:

• Sales Org/Dist channel/Special price number/Material

• Sales Org/Dist channel/Special price number/Product hierarchy business unit/Commodity line

Each of these criteria is known as a condition table.

Overview 1-3


• Condition records -- A data record that specifies a rate for prices, discounts, rebates, and taxes. For example, a condition record for “ZBAS” may be 2.50 USD per 10 FT2; or a condition record for condition type “ZBGS” may be 38%. Condition records can only be created based on criteria defined against the condition type (i.e., the access sequence).


Overview



Processing Condition RecordsProcessing Condition Records

BPO Special PricingBPO Special Pricing

Processing Pricing Master DataProcessing Pricing Master Data

CES Pricing for BPONACES Pricing for BPONA

Monitoring Automatic Pricing on Sales Orders


Applying a Manual PriceApplying a Manual Price

Pricing administrators create the condition records in master data setup. Any future development needs to be mapped in the pricing procedure such that the appropriate condition types and access sequences are defined. This ensures correct data entry and document processing. Customer master information such as the sales organization, distribution channel, and customer price procedure are used to determine which price procedure is invoked for a particular order.

1-4 Overview


Pricing Procedure in Action In the example below, CES takes the first condition type (ZBAS) in the sample pricing procedure and begins to search for a valid condition record. Once a condition record is found with a “ZBAS” code, the procedure will begin to search for the second condition type of “ZBAJ”. The condition types are listed in the order in which they need to be pulled in. Rules can be defined for the priority of some condition types over others. Each condition type has its own access sequence.

Once all the items are entered, and all manual surcharges and discounts are applied at the item and header level on the sales order, the system displays the net value of the order. It is at this stage that if customer specific prices apply to an item, the system can finalize the total.

Reviewing the pricing procedure in progress as shown below will help all CSRs understand the process in the event that an error occurs. We will consider more results of the pricing procedure in this guide’s Monitoring Automatic Pricing on Sales Orders section.


ZBAS Access Sequence

1) SalesOrg/DC/PrGrp/SlsGrp/Matl2) SalesOrg/DC/PrGrp/SlsGrp/prodhier.

business unit/prodhier. comm line

Pricing Procedure BUPCPR

SalesOrganization

CustomerPrice Procedure

The pricing procedure pricing procedure controls the order in which theconditions appear in the sales document

Using the condition types in the pricingprocedure, the access sequencesprovide a strategy for searching for

relevant condition records

Condition Type ZBAS

Condition Type ZBAJ

Condition Type ZBSC

Condition Record 1

Condition Record 2

Condition Record 3

Condition Record 4

DistributionChannel

Pricing Procedure in Action

Overview

Overview 1-5


Maintaining the Pricing Procedure The pricing administrator for each country, along with the CES pricing analyst will have the responsibility for maintaining the pricing procedure to reflect realistic pricing requirements for each country. If changes or upgrades are necessary, the country pricing administrator will contact the CES pricing analyst to request the upgrades.

The country pricing administrators will be responsible for creating and maintaining the condition records.

1-6 Overview


Pricing Administration Pricing Administration involves multiple activities that must be established in order that pricing on sales orders and invoices are calculated correctly. All parties involved in pricing administration must be aware of the basic terminology and features of CES pricing for North America. In addition, pricing administrators must understand and establish pricing master data to reflect current business requirements. CSRs must be able to apply a manual price, discount, or surcharge to a sales order and must be aware of the pricing procedure process in the event of an error. All these activities will be addressed as a separate section in today’s class.


Overview



BPO Special Pricing


CES Pricing for BPONA



Overview 1-7


Notes

1-8 Overview


Review 1. What is a pricing procedure?

2. What is a condition record?

3. How is it that pricing master data is established in CES?

4. What roles do pricing administrators and CSRs play in pricing administration?

Challenge:

1. What is the difference between a condition type and a condition record?

Overview 1-9


Answers 1. What is a pricing procedure?

A pricing procedure defines what condition types will be used and in what sequence the system will access the condition types.

2. What is a condition record? A condition record is actual customer and/or material pricing data such as prices, discounts, rebates, and taxes.

3. How is it that pricing master data is established in CES? Condition records are created based on current pricing requirements. There are also fields on the customer and material master records which impact pricing that must be established.

4. What roles do pricing administrators and CSRs play in pricing administration? Pricing administrators create and maintain pricing master data; CSRs ensure that pricing is applied accurately to sales orders and in certain cases, apply manual prices, discounts, or surcharges to sales orders.

Challenge:

1. What is the difference between a condition type and a condition record? A condition type is the “label” for the condition record. The condition record holds the actual pricing data.

1-10 Overview


2 CES Pricing for BPONA


• List the BPO price procedures

• Explain the one difference between CES Pricing and your current pricing system

• Explain the different ways condition records are applied to sales orders

• Explain the philosophy of separating the condition records from the Price is Right interface to run at various frequencies


Course Objectives

At the end of this course, you should be able to

Explain CES pricing terminology Explain features of BPONA pricing Create and maintain pricing master data in CESProcess BPONA condition recordsApply a manual price, charge, or discount to a sales orderMonitor automatic pricing on sales orders

CES Pricing for BPONA sd010-02.doc 2-1


BPO Price Procedures Pricing procedures are generally defined at the sales organization or country level. The can also be set up to accommodate separate business functions (i.e., sales orders and returns).

For BPO, we have defined the following price procedures:

• BPO US Commercial (BPUCPR)

• BPO US Residential (BPURPR)

• BPO Canada Commercial (BPCCPR)

• BPO Canada Residential (BPCRRR)

• BPO Export (BPUEPR)

• BPO Intercompany (BPUIPR)

• WAVE Intercompany (BPWIPR)

2-2 CES Pricing for BPONA


CES Pricing Functionality CES pricing is set up differently than your current system. Below is a summary of the functionality that CES pricing offers:

• Pricing will occur automatically at order entry and at invoicing. Some conditions will not be re-priced at invoicing (i.e., job pricing)

• Manual pricing for an order item will always be allowed. Text is added to the modified order for audit trail purposes

• Manual net prices override all other prices • Pricing will automatically be updated upon saving a

document when quantities are added, decreased, or deleted. The same holds true when items are added or deleted from an order

• CES will use the product hierarchy from the material master data for grouping materials together for pricing purposes. For example, a certain group of grid products can receive the same discount off the national grid price (This will be covered in the next section).

• Some pricing for BPO US will be maintained in the Price is Right system and interfaced into CES automatically

• Jobs will be maintained in the HEAT system and passed through the Price is Right automated interface as well

• The Price is Right system will still be available as a tool for price inquiries; however, some prices will only be maintained in CES (i.e., RDC price lists)

CES Pricing for BPONA 2-3


Summarized Condition Types Condition types, which represent the different types of condition records, can be applied at the item, group, or header level of a sales order. Condition types are also defined as automatic or manual. This section presents a summary of the available condition types and their intended uses for the BPO price procedures.

Automatic vs. Manual Condition Types

CES applies Automatic condition types during automatic pricing at order entry and at invoicing, if specified. Notice that automatic prices can be applied at the item or group level.

CSRs apply Manual condition types during sales order entry or in change mode. Specific procedures for applying a manual price will be reviewed in a further section of this course. Notice that manual prices can also be applied at the header or item level.

Manual header pricing condition types are distributed proportionately to all the items (for statistical purposes only), but the header charge will print on the invoice as one charge.



BPO US Commercial

1. Sales organizations will be BPO US (BP01) and WAVE (GR01)

2. Distribution channel will be “CD” (Contractor/Distributor)

3. BPO Commercial price procedure will be retrieved based on sales organization, distribution channel, and customer price procedure from the customer master

4. Price retrieval is based on scheduled ship date. Special prices (jobs) will not be recalculated during invoicing

5. Commercial pricing requires prior set-up of certain fields on the customer and material masters (specifics will be covered in the next chapter)

6. The Rate Management System (RMS) interface will be used to apply freight-related charges and accruals

7. Ceiling AB structure pricing will be stored at the C group level. Job pricing for ceilings will also be at the C group level. Ceiling special items will be stored at the material level

8. Grid AB structure pricing will have two components: Grid national price at the material level as a net price, and at the G group level as a discount off the grid national price. Grid special items will be stored at the material level

9. The special job price and the allowable quantity limit will be maintained as separate condition types. The quantity limit condition type will be set up as a surcharge of zero with a maximum allowable quantity. There will be exception programming to link the two condition types together during price application



Manual Condition Types for BPO US Commercial

PN00 Net price override

ZB03 Pallet height charge

ZB04 Pallet size charge

ZB16 Miscellaneous order charge

ZB18 Empty space charge

ZBRC Restocking charge

ZFRA Freight accrual

ZH10 Total freight

ZXTS Waive transship charge

ZXSC Waive set up charge

ZXVF Waive freight charge

Automated Condition Types for BPO US Commercial

ZTOP Terms of payment based on product (CES)

ZBGN Grid National price (PIR)

ZBGJ Grid job price discount (PIR)

ZBGS Grid structure price discount (PIR)

ZBAS Ceiling/wall structure price (PIR)

ZBAJ Ceiling/wall job price (PIR)

ZBOD Odd lot price (CES)

ZBSA Strategic account price (PIR)

EDI1 Customer expected price (EDI input)

ZBTS Transship charge (CES)

ZBJS Job setup charge (PIR)

ZBSC Setup charge (PIR)

ZB01 ADF allowance - negative (RMS)

ZB02 ADF allowance - back out positive (RMS)

ZB07 Ceiling/wall stop-off charge (RMS access charge)

ZB08 Grid stop-off charge (RMS access charge)



Automated Condition Types for BPO US Commercial (cont.)

ZB09 Ceiling/wall LTL charge (RMS access charge)

ZB10 Grid LTL charge (RMS access charge)

ZB11 UPS charge (RMS access charge)

ZB13 Air freight charge (RMS access charge)

ZF02 Minimum freight charge (RMS)

ZF04 Freight allowance (RMS)

ZF05 Freight add-on factor (RMS)

ZF06 Package freight charge (RMS)

ZF12 Sat/Sun Delivery Charge (RMS)

ZF13 Holiday Delivery Charge (RMS)

ZBFA Freight allowance - customer pickup (CES)

ZBV1 Air freight handling (CES)


ZBV3 LTL handling charge (CES)


ZBVU UPS handling charge (CES)

ZK02 Minimum freight accrual (RMS)

ZK04 Freight allowance accrual (RMS)

ZK05 Add on factor accrual (RMS)

ZK06 Package freight charge accrual (RMS)

ZK11 Union driver accrual (RMS)

ZK12 Saturday/Sunday delivery accrual (RMS)

ZK13 Holiday delivery accrual (RMS)

ZK15 Fuel surcharge accrual (RMS)

ZK16 Toll charge accrual (RMS)

ZK17 Stop-off accrual (RMS)

ZCCC Debit/credit window (CES)

ZKTD Cash discount - Credit (CES)

ZKTL Cash discount - Claim (CES)

ZKTR Cash discount - Return (CES)



UTXJ US tax jurisdiction (AVP)

ZBQT Job quantity limit (PIR)

SKTO Cash discount (CES)

SKTC Cash discount accrual (CES)

ZIC3 COGS - Return order (CES)

ZIC1 3rd party standard cost (CES)

VPRS Standard cost (CES)



BPO US Residential

1. Sales organizations will be BPO US (BP01) and WAVE (GR01)

2. Distribution channel will identify wholesalers (WH) and direct bill customers (RT)

3. BPO US Residential price procedure will be retrieved based on sales organization, distribution channel, and customer price procedure from the customer master

4. Residential price retrieval is based on order date for ceilings, and scheduled ship date for grid products. Special net pricing (SPR’s) will not be recalculated at invoicing time

5. Residential pricing requires prior set up of certain fields on the customer and material masters (Specifics will be covered in the next chapter)

6. Residential ceiling structure pricing is currently based on the volume of the customer’s order. We will use scale pricing by SVU’s (Surface Volume Units) to determine part truck versus full truck pricing. The threshold for a full truck is 18 SVUs

7. Grid structure pricing is based on a weight scale. Prices are maintained for 0 - 10,000 pounds, 10,000 - 20,000 pounds, and over 20,000 pounds (East Region only)

8. The Rate Management System (RMS) interface will be used to apply freight-related charges and accruals

Manual Condition Types for BPO US Residential



ZB04 Pallet size charge


ZH10 Total freight charge


ZFRA Manual frt. accrual



Automated Condition Types for BPO US Residential


ZBRS Ceiling structure price (PIR)

ZBPC SPR Special price discount (ceiling/wall) (PIR)

ZBRG Grid structure price (PIR)

ZBPG SPR Special price discount (grid) (PIR)

ZBRD Direct Bill Customer Price (CES)

ZBRR RDC customer price

ZBSP SPR special price (PIR)

ZBSG SPR grid special price (PIR)

EDI1 Customer expected price (EDI)










ZK11 Union driver accrual (RMS)










UTXJ US tax jurisdiction (AVP)



Automated Condition Types for BPO US Residential (cont.)


ZKTC Cash discount accrual (CES)




BPO Canada Commercial

1. Sales organization will be BPO Canada (BP02)

2. Distribution channel will be “CD” (Contractor/Distributor)

3. BPO Canada price procedure will be based on sales organization, distribution channel, and customer price procedure from the customer master

4. BPO Canada commercial price retrieval is based on scheduled ship date. Special prices (jobs) will not be recalculated at invoicing time

5. BPO Canada commercial pricing requires prior set up of certain information on the customer and material masters (Specifics will be covered in the next chapter)

6. The Rate Management System (RMS) will be used to apply freight-related charges and accruals

7. Canadian Grid National Pricing is not split into Eastern and Western regions

8. There are three sales regions defined: Eastern (200); Central (201); and Western (204).

9. There are currently 10 ceiling price zones (metros). The geographic pricing structure for grid will use the same zones defined for ceilings. Sales group will be used to store the price zone

10. All of the condition records will be maintained directly in CES; they will not be part of the Price is Right automated interface. There is potential to incorporate pricing into the HEAT and Price is Right system at a future date



11. Canada does not currently price at the group level. They anticipate using the US-defined pricing group in the product hierarchy field in the material master in CES

12. Job pricing will be set up both at the material and product price group level

13. The special job price and the allowable quantity limit will be maintained as separate condition types. The quantity limit condition type will be set up as a surcharge of zero with a maximum allowable quantity. There will be exception programming to link the two condition types together during price application

Manual Condition Types for BPO Canada Commercial




ZBRC Restocking charge

ZH10 Total freight charge

ZH17 Handling fee

ZH15 Warehouse charge



ZXTS Waive transship charge

ZXSC Waive set up charge

ZXVF Waive freight charge



Automated Condition Types for BPO Canada Commercial


ZBGN Grid National price (CES)

ZBGJ Grid job price discount (CES)

ZBGS Grid structure price discount (CES)

ZBAS Structured price (CES)

ZBAD Structured discount (CES)

ZBAJ AB job price (CES)

ZBOD Odd lot price (CES)

ZBTS Transship charge (CES)

ZBSC Setup charge (CES)

ZB09 Ceiling/wall LTL charge (RMS access charge)

ZB11 UPS charge (RMS access charge)

ZB13 Air freight charge (RMS access charge)






ZF17 Stopoff charge (RMS)

ZF08 Unloading charge (RMS)

ZF12 Saturday/Sunday delivery charge (RMS)

ZF13 Holiday delivery charge (RMS)





ZBVU UPS handling charge (CES)







ZK08 Unloading accrual (RMS)










ZTJD Canadian tax jurisdiction (AVP)

ZCJ1 GST (CES)

ZCJ2 PST (CES)

ZBQT Job quantity limit (PIR)








BPO Canada Residential

1. Sales organization will be BPO Canada (BP02)

2. Distribution channel will be “WH” (Wholesaler)

3. BPO Canadian residential price procedure will be retrieved based on sales organization, distribution channel, and customer price procedure from the customer master

4. Price retrieval is based on scheduled ship date

5. Residential pricing requires prior set up of certain information on the customer and material master

6. The Rate Management System (RMS) will be used to apply freight-related charges and accruals

7. The customer price group will contain the price zone for residential pricing. There are 5 pricing zones for wholesalers

8. There are two sales regions: East and West

9. Special pricing for Canadian residential products (SPR’s) will use an allowable quantity limitation, similar to commercial job pricing

10. Structure pricing for ceilings and grid will be stored as a net price at the material level

Manual Condition Types for BPO Canada Residential


ZH10 Total freight


ZFRA Manual freight accrual



Automated Condition Types for BPO Canada Residential


ZBCS Structure price (CES) ZBCJ Special job price (CES) ZF02 Minimum freight charge (RMS) ZF04 Freight allowance (RMS) ZF05 Freight add-on factor (RMS) ZF06 Package freight charge (RMS) ZB10 Grid LTL charge (RMS access charge) ZK02 Minimum freight accrual (RMS) ZK04 Freight allowance accrual (RMS) ZK05 Add on factor accrual (RMS) ZK06 Package freight charge accrual (RMS) ZK08 Unloading accrual (RMS) ZK12 Saturday/Sunday delivery accrual (RMS) ZK13 Holiday delivery accrual (RMS) ZK15 Fuel surcharge accrual (RMS) ZK16 Toll charge accrual (RMS) ZK17 Stop-off accrual (RMS) ZCCC Debit/credit window (CES) ZKTD Cash discount - Credit (CES) ZKTL Cash discount - Claim (CES) ZKTR Cash discount - Return (CES) ZTJD Canadian tax jurisdiction (CES) ZCJ1 GST (CES) ZCJ2 PST (CES)

ZBCQ Job quantity (CES) SKTO Cash discount (CES) SKTC Cash discount accrual (CES) ZIC3 COGS - Return order (CES) ZIC1 3rd party standard cost (CES) VPRS Standard cost (CES)



BPO Export

1. Sales organization will be BPO US (BP01) 2. Distribution channel will be “CD” (Contractor/Distributor) 3. Export price procedure will be invoked based on sales

organization, distribution channel, and customer price procedure (E) in the customer master

4. Export price retrieval is based on the scheduled ship date 5. Automated pricing can be set up at the customer level or the

sold-to country level. Prices are at the material level 6. Freight charges and accruals will be applied manually 7. Export pricing requires the prior set up of certain information on

the customer and material masters

Manual Condition Types for BPO Export


ZB24 Transship charge

ZM19 Setup charge

ZB16 Miscellaneous charge

ZB20 Inland freight charge

ZB21 Packing fee

ZB22 Forwarding fee

ZB23 Hand load fee


Automated Condition Types for BPO Export

ZTOP Terms of payment (CES)

ZBEP Export price (CES)


ZK02 Freight accrual (RMS)

ZCCC Debit/credit window

ZKTD Cash discount - Credit

ZKTL Cash discount - Claim

ZKTR Cash discount - Return








BPO Intercompany

1. Sales organization will be BPO US (BP01)

2. Distribution channel will be “IC” (Intercompany)

3. Intercompany price procedure will be invoked based on sales organization, distribution channel, and customer price procedure (I) on the customer master

4. Intercompany pricing is based on scheduled ship date

5. Intercompany pricing is contingent upon prior set up of certain information on the customer and material masters

Manual Condition Types for BPO Intercompany

ZH00 Total freight


Automated Condition Types for BPO Intercompany

ZBIC Inter-company price (CES)




ZIC2 COGS intercompany standard cost accrual (CES)



WAVE Intercompany

1. Sales organization will be GR01 (WAVE)

2. Distribution channel will be “IC” (Intercompany)

3. Intercompany price procedure will be invoked based on sales organization, distribution channel, and customer price procedure (W) on the customer master

4. Intercompany pricing is based on scheduled ship date

5. Intercompany pricing is contingent upon prior set up of certain information on the customer and material masters

6. The intercompany price for sales of grid products from WAVE to BPO U.S. will be based on the standard cost of the material.

Manual Condition Types for WAVE Intercompany

ZH00 Total freight


Automated Condition Types for WAVE Intercompany

ZWIC WAVE InterCo (US) (CES)

ZB25 WAVE IC (Dummy) (CES)

ZCCC Debit/Credit window (CES)


ZIC2 IC COGS accrual (CES)

VPRS Standard cost price (CES)



Price is Right Interface The automated interface for passing pricing information from the Price is Right system to CES will contain the following price condition records:

These will be set up on an as requested basis:

• ZBAS - Commercial ceilings/walls structured pricing (by group)

• ZBGN - Commercial Grid National Prices (by material) • ZBGS - Commercial Grid Structure price discounts (by

group) • ZBRS - Residential ceilings/walls structured pricing (by

material) • ZBRG - Residential grid structured pricing (by material) • ZBSA - Commercial Strategic Account pricing (by material) • ZBSC - Commercial set up charges (by material)

These will be set up on a daily basis (multiple times per day):

• ZBAJ - Commercial job pricing (by material) • ZBAJ - Commercial ceilings/walls job pricing (by group) • ZBGJ - Commercial grid job price discounts (by group) • ZBJS - Commercial job set up charges (by material) • ZBQT - Commercial job allowable quantities (by material) • ZBQT - Commercial job allowable quantities (by group) • ZBSP - Residential grid SPR pricing (by material) • ZBSG - Residential grid SPR pricing (by material) • ZBPC - Residential ceilings/walls SPR discount (by material

price group) • ZBPG - Residential gird SPR discount (by material price group)

This will be set up on a daily basis (once a day):

• ZVSPR - Special Price Name Table—contains active job, SPR, and strategic account numbers, as well as the corresponding customer and description



Review 1. List the BPO price procedures.

2. Explain one difference between CES Pricing and your current pricing system.

3. Explain the different ways condition records are applied to sales orders.

4. List three types of pricing that will be included in the automated interface from Price is Right.

5. Why are some of the condition records in the Price is Right interface set up on an “as requested” basis?



Answers 1. List the BPO price procedures.

BPO US Commercial BPO US Residential BPO Canada Commercial BPO Canada Residential BPO Export BPO Intercompany WAVE Intercompany

2. Explain one difference between CES Pricing and your current pricing system. Pricing will immediately be updated upon saving a document, when material quantities are added, decreased, or deleted.

3. Explain the different ways condition records are applied to sales orders. Condition records can be applied at the header, item, or group level: Item condition types can be applied automatically or manually. Header condition types are applied manually.

4. List three types of pricing that will be included in the automated interface from Price is Right. AB Grid National Pricing AB Commercial Strategic Account Pricing RB Ceilings Structured Pricing



5. Why are some of the condition records in the Price is Right interface set up on an “as requested” basis? They relate to structure pricing, which doesn’t change very often, usually only once or twice yearly



Notes



3 Processing Pricing Master Data


• Explain the three main locations pricing master data is maintained

• Maintain customer master pricing data

• Maintain material master pricing data


Analyzing Automatic Pricing

You can double-click onthis record to display the access sequence

detail

You can double-click onthis record to display the access sequence

detailCondition Analysis

Pricing: Procedure BPUCPR

Condition type Note

ZBAS (Ceiling structureprice) Condition record found

PN00 (Net Price) Manual condition


Processing Pricing Master Data sd010-03.doc 3-1


Related Pricing Master Data Setup As mentioned, condition records are a type of master data necessary for pricing. Customer and material master data also impact the condition technique. Pricing administrators will maintain customer and material master fields to ensure that the pricing procedure reflects appropriate business relationships.

Customer Master Data contains the following pricing related fields: • Price group - group of customers for the purposes of pricing • Tax classification - tax liability of the customer • Customer pricing procedure - pricing procedure assigned to

the customer • Sales office - contains the sales region for RB pricing (US) • Sales group - contains the metro code or the Canadian price

zone for AB pricing • Price list type - determines whether the East or the West grid

national price list is retrieved (for BPO US). Canada has one price list type (GC)

Material Master Data contains the following pricing related fields: • Tax classification - indicates to what extent the material is

liable for sales taxes • Material pricing group - used to determine Terms and

differentiate between ceilings, walls, and grid • Product Hierarchy - division, marketing unit, brand, product

line, commodity line used in pricing for AB products • Units of measure


Review


3-2 Processing Pricing Master Data


CES Considerations

The following pages outline the screen procedures for the following tasks:

• Maintaining Pricing Master Data on the Customer Master

• Maintaining Pricing Master Data on the Material Master

The procedures include the menu path, field entries, and action steps for the CES transactions.

Processing Pricing Master Data 3-3


Maintaining Pricing Master Data on the Customer Master

Logistics > Sales/distribution > Master data

Business partners > Sold-to party > Change>Change Centrally

Change Customer: Initial Screen

1 Enter the following field(s): (see tip) • Customer • Sales organization = “BP01” • Distribution channel = “CD” • Division = “00”

2 Click on the following indicators under the Sales area data box: • Sales • Billing

Change Customer: Sales

1 Verify/edit the following field(s): • Cust. pric. proc. = (see note) • Sales office = (see note)

• Sales group = (see note) • Price group = (see note) • Price list type = “GE” - Grid East

“GW” - Grid West “GC” - Grid Canada

Change Customer: Sales

1 Select to advance to the next screen

note • Cust. pric. proc.:

“A” - Standard “E” - Export “I” - Intercompany “W” - WAVE IC

• Sales office: “164” - Eastern (BPO US) “165” - Southern (BPO US) “166” - Central (BPO US) “167” - Western (BPO US) “200” - East (Can) “201” - Central (Can) “204” - West (Can)

• Sales group: A drop down display shows applicable sales groups for the particular sales office linked to this customer. The metro code for “CD” is populated distribution channel only. (Continued on next page)

tip • If customer account number is

unknown for Customer, select a matchcode and enter the beginning characters of the customer’s name in the search term field -OR- Enter “=D.XXX” where XXXX is the customer’s name

• Sales organization: “BP01” BPO US “BP02” BPO Canada “GR01” WAVE

• Distribution channel: “CD” Contractor/Distrib. “WH” Wholesaler “IC” Inter/Intra Co “RT” Retail

XD02



Maintaining Pricing Master Data on the Customer Master (continued)

Change Customer: Billing

1 Verify/edit the following field(s):

• Tax classification = “1” if liable for taxes “0” if tax exempt

• Payment terms = default ceiling terms • Incoterms = default freight terms

Change Customer: Initial Screen

Changes have been made

practice

Exercise 1, Appendix A

note (cont from prev page) • Price group:

BPO Canada: “DS” - Distributor “CT” - Contractor “DL” - Dealer “W1” - Wholesaler Zone 1 “W2” - Wholesaler Zone 2 “W3” - Wholesaler Zone 3 “W4” - Wholesaler Zone 4 “W5” - Cameron Ashley BPO US: “DS” - Distributor “CT” - Contractor “SA” - Strategic Account “RD” - Retail Distrib. Center “WH” - Wholesaler “DB” - Direct Bill



Maintaining Pricing Master Data on the Material Master

Logistics > Sales/distribution > Master data

Products > Material > Other material > Change Change centrally

Change Material: Initial Screen

1 Enter the following field(s): • Material = “BP755B”

Select View(s)

1 Click on the following indicator: • Sales: sales organization data

OrganizationalLevels

Organizational levels

1 Enter the following field(s): • Plant • Sales org. = “BP01" • Distr. channel = “CD”

MM02



Maintaining Pricing Master Data on the Material Master (continued)

Change Material: Sales: sales organization data

1 Verify/edit the following fields under Grouping Terms Box: • Material pricing grp = material group in which

the same pricing conditions can be applied (see note)

• Product hierarchy = business unit and commodity line which are used for pricing products as a group (see note)

2 Verify the following field under General Data: • Base Unit of Measure = shipping unit of

measure (see tip)

3 Scroll the screen to the Tax data box

4 Verify/edit the following field: • Tax classification = (see note)

note • Material pricing grp:

“C1” - Ceiling “G1” - Grid “W2” - Walls

tip • To view other units of

measure and conversion factors, click on

Change Material: Initial Screen

Material XXXXXXXX changed

note • Product Hierarchy consists of:

Division: “B1” (BPONA) Business unit: “C1” (ceilings) “W1” (walls) “G1” (grid) Brand: “000” (BPO placeholder) Product line: “000” (BPO placeholder) Commodity line: contains the BPO pricing group number (4 positions)

note • All Canadian materials are

fully taxable • Tax classification codes:

“0” = Non-taxable “1” = Taxable

practice

Exercise 2, Appendix A



Notes


Pricing Administration -: BPONA

Review 1. Where is pricing master data maintained?

2. What are the fields on the customer master that impact pricing?

3. What are the fields on the material master that impact pricing?



Answers 1. Where is pricing master data maintained?

Condition records Customer master Material master

2. What are the fields on the customer master that impact pricing? Price group Customer pricing procedure Tax classification Sales office Sales group Price list type

3. What are the fields on the material master that impact pricing? Tax classification Material price group Product hierarchy Units of measure


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