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How to configure Price Conditions in SAP Sourcing (Part II)

This is the continuation of the first part where I focused on what kind of price conditions attributes. This edition, part 2, focusses on the configuration.

Price Condition in doc types

Price conditions are supported within integrated documents; please make sure that the system property is_sapint_installed is set to TRUE. Before using conditions within an RFx or Agreement (master or sub agreement) conditions needs to be assigned to a doc type. One or many conditions can be assigned to a doc type, but at least one condition of type Prices should be assigned as this is required in ERP to create a purchase order or an outline agreement.

 Price Conditions assigned to an RFx document type


Price conditions assigned to an RFx document type

The purpose of this configuration step is to reduce the number of available price conditions within a document which is similar to a calculation schema in ERP. When creating an outline agreement in ERP a user needs to enter first a vendor, purchasing organization and group (among others). With this information the system determines the correct pricing schema, thus when navigating to enter price information the user will only be able to select conditions valid for that schema. The doc type in SAP Sourcing tries to mirros an ERP calculation schema. If this is not possible or if generic conditions are used, there is a fall-back strategy using a mapping table in ERP. It is important to understand that when publishing a Master Agreement to ERP only the values of a condition (e.g. price 98.76 USD), but not the configuration of it. Thus it is important that the condition IDs between SAP Sourcing and ERP are in sync – or correctly mapped. The ERP mapping table allows that for example a SAP Sourcing condition ID PBXX will be mapped to the ERP condition PB99 etc. and all calculations in ERP will use the ID PB99. This mapping can be configured at the ERP IMG ‘Integration with Other SAP Components SAP Sourcing Assign Condition Types’.

Map SAP Sourcing price condition to ERP condition type

   Map SAP Sourcing price condition to ERP condition type

Users from different purchasing departments might use different types and thus different conditions. By having different document types in SAP Sourcing the system can be configured that users only see conditions which are relevant for them. When creating a marketing contract different conditions will be used compared to a 3rd Party contract etc. For example a total of 30 conditions are created in the system, but only six conditions are assigned to the document type ‘Marketing’. A user creating a document using this doc type ‘Marketing’ can select only up to these six conditions, but not more.


How do Price Conditions flow from an RFx to a Master Agreement and/or ERP?

For the configuration of price conditions and document types it is important to understand how the data is transferred from document to document, for example from an RFx award to a master agreement. In an RFx three price conditions PB00 (Gross Price), RB00 (Rebate) and FR00 (Freight) are used. These  conditions are valid for all (material) line items and suppliers can respond to them. From the RFx award a master agreement (the MA document type has the conditions PB00, RB00 and FR11) should be created. In this example only the data for PB00 and RB00 will be successfully transferred from the award to the MA, as the condition for the freight FR00 does not exist in the MA doc type.

Price conditions are not supported within auctions, in case an auction gets created from an RFx only the price (condition of with condition class = Prices) is transferred to the auction and the same from an auction to a master agreement.

On the other hand when transferring an RFx award or MA to ERP the earlier mentioned mapping table can be used to allow that for example the data of condition FR00 in SAP Sourcing will be transferred to FR11 in ERP.


Pricing Structures/Pricing Models

SAP Sourcing has the pricing structures Unit Price, Unit Price Components and Tiered Pricing, further Formula Pricing within RFx. This provides a lot of flexibility to the users, but with the introduction of price conditions there is an overlap between the different models. For example using the Unit Price structure together with multiple Price Conditions is kind of the same like Unit Price Components (UPC), on the other hand price conditions allow using scales which is similar to Tiered Pricing. When publishing a Master Agreement using UPC only the sum of all components will be transferred to ERP versus with the Unit Price structure using price conditions all information will be transferred. It is recommended to use the Unit Price Model for integrated documents and there are some restrictions within RFx that for example with Tiered Pricing and Unit Price Components supports only a single price condition.

 The different Pricing Models in SAP Sourcing

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