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.
Key Concept

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.

Anton Karnaukhov

Anton Karnaukhov is a senior IT manager at Pacific Coast Companies, Inc., in Sacramento, California. He earned an MBA degree at Heriot-Watt University and a BS/BA degree with a specialization in computer information systems at Western Carolina University. Anton has more than eight years of SAP implementation and development experience focusing on business intelligence and logistics modules in the manufacturing and resale industries.

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