Configure Price Strategy – Pricing Exclusion
SAP Business ByDesign offers flexible pricing strategy through business configuration activity Configure Price Strategy, with 1902 release the new feature Pricing Exclusion in Configure Price Strategy will empowers companies to build more flexible price strategy and realize there unique business scenarios.
The SAP Business ByDesign solution allows customers to exclude price components like Discount, Surcharge, Freight conditionally based on existence of certain price components like Price, Discount, Surcharge, Freight.
As per the business strategy most companies offer discount on their products to increase sale and be competitive. Company would offer discounts due to various reasons, few of them are mentioned below.
- Once the product reaches the growth phase and enters maturity phase, marketing department of companies plan promotional activities to push the sales
- Festival seasons
- Clearance of stock during year end
Most companies offer special predefined discount based on various parameters such as customer (bulk or frequent buyer), material, region etc.
So during promotional duration it is important from business end to make sure both the normal discounts and promotional discount are not being applied as that would lead to loss for the company, instead the best out of the two discount should be applied.
Using the Configure Price Strategy – Pricing Exclusion functionality customer could meet the above business requirement.
Customers can choose to exclude price conditions like Discount, Surcharge, Freight based on existence of any price condition Price, Discount, Surcharge, Freight.
Note: Prices cannot be excluded since system determines the most specific price based on existing price master data and rest of the other prices are excluded for more details please refer to help documentation of “Configure Price Strategy”. Example: in system if there is Base Price and Customer Specific Price maintained for a given product, then Base Price is excluded and Customer Specific Price is picked by system (out of many prices for given product most specific price is determined).
- User want the existence of specific price component to exclude another specific price components.
- Existence of Price to exclude Discount / Freight / Surcharge
- Existence of one Discount to exclude another Discount / Freight / Surcharge
- Existence of Freight to exclude another Freight / Discount / Surcharge
- Existence of Surcharge to exclude another Surcharge / Discount / Freight
- Example use cases:
- User want the “Customer Specific Products Price” excludes the ” Customer Specific Discount Products”.
- User want the “Customer Specific Discount Products” excludes the “Customer Specific Discount Product Category”.
- User want the “Customer Specific Products Price” excludes the “Customer Specific Discount Products”.
- User want the “Customer Specific Products Price” excludes the “Surcharge” and “Freight”.
- Note: User can create many combinations of exclusions using the above price components (Price, Discount, Freight and Surcharge), even the Custom Price Lists, Discount Lists, Surcharges and Freights can be part of exclusion rule.
Steps to Create and Use Pricing Exclusion:
Example Functional Usecase: Discount list that can be configured with a given priority
Discount list that can be configured with a given priority. Ex. g. a client specific discount that overwrites an All clients' discount (now the system behavior is to sum up all discounts)
In case if customer has maintained multiple discounts in the system , current system behavior is to apply all discounts ( Additive / Cumulative )
Customer would like to exclude one Discount over the other Discount during creation / update of transaction document.
Existing Example Discount Master data:
Customer Specific Discount => 10 % for Account MC9785
Sales Organization Specific Discount => 5 % for Product MCF-0001
Default system behavior is that all both discounts gets applied, example 5 % + 10 % => totally 15 % discount
User wants to exclude Sales Organization discount ( 5% ), in-case if Customer Specific discount ( 10 % ) is picked.
Finally only 10% discount is applied.
Note: Pricing Exclusion can exclude any of the price component like Price , Discount , Freight and Surcharge.