Friday, September 7, 2007

Pricing - Alternate Calculation type, Alt Condition base value and Requirements

The alternate condition base value (Alt CBV) is used as the calculation basis only, while the alternate calculation is used to modify the final value.

For example, imagine you have a condition type ZPR1, with a condition record maintained (master data) for $10. Now, condition ZPR2 also exists lower in the schema, but with a rate of 10%. The standard calculation would result in a final value of $11.

The alternate base value could say, “don’t use $10 as the basis — use the original price PR00 only, which was $9.” Then, the final value would be $10 + (10% of $9) = $10.9.

The alternate calculation routine says, “ignore the 10% altogether. Instead, use an externally calculated 20%.” Then, you end up with a final value of $10 + (20% of $10) = $12.

Put them both together, and you could end up with $10 + (20% of $9) = $11.8.

Alternative Calculation Type:

Normally if you want to calculate a value you have to use a calculation type for determining the value. This calculation type is either addition, subtraction or multiplication. Similarly SAP also has got a default calculation type in the control data of the condition type. There you have the options of either Qty based , Fixed Amount Based or Percentage based.

Here suppose if you define your condition type that calculates the base price of a material on Qty based. Then the calculation will be done based on the quantity of the material. If the customer orders 10 Nos and you have maintained a unit price of $10,- for each material then the value determined is $100,-. Similarly if the discount condition type , you maintain the calculation type as %. This means if you maintain the value of 10% in the condition record. Then this percentage is taken as the calculation type and the condition value is determined.

In some cases you have to forego the default calculation types and use the customer specific method for calculating a value. For ex if you are calculating the Freight charges for a Material . it depends on so many criteria like, the weight, volume and also the minimum amount etc etc, in those cases, you forego the default value and then use the alternative calculation type in calculating the condition value against the particular condition.

Alternative Condition Base value :

If you have to calculate any value then you have to have a base value for it. For ex if you want to calculate the discount of 10 % for a material then you have to have a base value on which this 10% is calculated. Normally you take the condition value of the base price of the material to calculate the value.

Now you don’t want to take the base value and take other values as base value which are derived on some formula. So you create a routine which will do the mathematical operations in the routine and derive you a value which is now used as the base value for calculating the condition value for a particular condition type.

Requirement:
A factor in the condition technique that restricts access to a condition table. The system only accesses a condition table to determine the price if the requirement specified has been met.

Example:
The system uses an access sequence to determine the price of a material. One of the accesses in the sequence contains the requirement “in foreign currency.” The system only uses the table behind this access if the sales order for which the price must be calculated is in a foreign currency.

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