Overcome Rounding Issues When Dealing with Mark-up Pricing in SD
- by Anton Karnaukhov, Senior IT Manager, Pacific Coast Companies, Inc.
- September 29, 2009
Standard SAP sales and distribution (SD) pricing functionality can be quite tricky to configure in typical cost plus mark-up scenarios. Take a close look at all the necessary logic within the condition technique and ABAP pricing routines to take full control of the way SD calculates mark-ups on sales documents.
Cost plus mark-up is one of the most common pricing strategies used by companies across a wide range of industries. This pricing strategy requires the maintenance of two key pricing condition types in the SAP system — cost of the material and mark-up percentage. The cost condition type is then marked up by the percentage value of the mark-up condition type to determine the customer price on a sales document.
In today's economy, many companies find it useful to use mark-up sales pricing to keep up with the rapid changes in external costs. This is especially true when it comes to distribution and retail industries. The standard SAP system provides a number of alternatives within sales and distribution (SD) pricing configuration to model a mark-up pricing scenario. However, many companies that attempt to implement such configuration often find themselves dealing with rounding issues. Specifically, standard SAP functionality calculates the mark-up based on the value, and not the amount/rate of the condition type to which the mark-up refers. Although in some situations this is the desirable outcome, more often than not, companies want to avoid such a system response because it results in inconsistencies between the per-unit price and the net value of the sales or billing document.
My example scenario of a rounding issue will help you overcome this problem. The example will lead you through the steps of using user exists and manipulating SAP standard behavior in pricing.
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