Standard Pricing Procedure

Following is the link to the Standard Pricing Procedure used in SAP, just check out if you have worked on each condition type and do you understand the formulas attached to each condition type.

http://spreadsheets.google.com/pub?key=phixAHJ6iFNOBn91F1vkFHg .

In addition to this we tend to lack concept and fall apart when we go into detail. Do we really know how pricing works: Let us discuss the following points, each one of them, just to know do we understand the concept used behind pricing in SAP:

1 What is the concept behind condition technique, why do we have a determination concept, what benefit do we get using this concept?

2 Why do we determine pricing be assigning it to the Sales Area , OR type and CPP

3 Can one pricing procedure control the pricing of an entire enterprise , if yes/no why ?

These are just the basic conceptual questions which many of us might be knowing, but whats more important here is how we express , do we know how to express what we know , if u do pl let all of us know through your comments.

Availability Check

Availability Check

AC is determined by checking group and checking rule

Checking Group = A check+ Total Sales + Total Dlv Requirement + Block QtyRq + No Check + Accum
Av Check is defined in MRP3 in Material Master (Discussed below)
Total Sales = Single Records or Total Records per day or Total records per week
Total Dlv Rqs = Single Records or Total Records per day or Total records per week
Block QtyRq = This block is used if several users are able to process the material simultaneously in different transactions without blocking each other.
No Check = This indicator switches off the availability check according to ATP logic for the checking group concerned

Schedule Line and Requirement Type is determined by Item category and MRP Type

Following are the relevant fields required from Material Master to run Availability Check.

MRP1

MRP Type –PD

VB - We have to define, re-order point, safety stock etc. In manual reorder point, you must define the reorder point (and eventually the safety stock) according to your criteria. For automatic, these values are estimated by SAP as a function of the forecast (coming from historical data), so the base-quantities for the calculation of the reorder are not fixed but dynamic.

Lot Size – 10

MRP 3

Strategy Group-

10 – Make to Stock
20 – Make to Order
70 – Planning at Assembly Level
30 – Production only with Sales order (Demand Management entry ignored during MRP run)

Availability Check

1 Daily Requirement
2 Individual Requirement
3 Rep- Lead Time
4 Current Stock
KP No Check

Sales/General Plant

A/Check Availability check field (on the MRP screen and the Sales: General/Plant screen) so that you can perform an availability check with replenishment lead times (01 in the standard system).Item category group (for example, NORM) on the Sales organization screen