Pricing: New Functions in Retail


As a result of requirements from the retail sector (SAP Retail), Release 4.0A includes the following new functions:

Of these, the following were not included in SAP Retail Release 1.2B:

General retail pricing

You calculate prices, based on the purchase price, a planned markup you establish, and other parameters. You can calculate both retail and wholesale prices. Price point rounding is optional. You can calculate prices for different store chains (for example, upscale and discount stores). You can search the database for new materials which have not yet been priced and then perform calculations. Prices are downloaded to the store POS systems on the specified validity date via POS outbound processing. When the validity end date is reached (for example, for promotions), material prices are automatically reset to the normal price.

One-step and two-step calculation options

One-step calculation takes the purchase price from the vendor and calculates the store retail price from this. Two-step calculation first takes the purchase price from the vendor and calculates the distribution center price, then calculates the store retail price as well as the wholesale customer price from the distribution center price.

Calculation simulation

The pricing screen is interactive, so you can modify the parameters see the results. For example, you can increase or decrease the margin and see the impact on the retail price immediately. If you don't like the result, you can modify the parameters again and resimulate. You can do this as many times as you want.

Storage of calculations in pricing documents

You can store pricing calculations in pricing documents. The pricing document includes not only the pricing parameters, but also the name of the person who made the change and the date when it was made. This provides you with an audit trail.

Calculations for plant groups

Instead of calculating prices for each individual plant separately, you can group plants together and do pricing for all the plants at once. (These are logical groupings, and plants may belong to different distribution channels.) Since calculated prices are based on purchase prices, it makes sense that all the plants in the group have the same vendor and the same delivered price for the material being priced.

Cancellation of prices already posted

You can cancel price changes which have already been posted, provided that pricing calculation was saved in a pricing document. You can also undo a cancellation by saving the cancelled changes again. However, if another price change has already overridden the change you want to cancel, you can no longer do the cancellation.

Integration of markdown planning

Planned markdowns are created with the Season component. When a markdown date is reached, the system passes markdown information to Pricing so that prices are automatically recalculated. The new prices are automatically downloaded to the store POS system via the POS interface.

Support for generic materials and variants

Variants of a generic material can either automatically inherit the price of the generic material or have their own prices calculated separately. For generic materials involved in promotions, you can determine whether all or only some variants are to have the new promotion price.

Download of zero prices

Pricing supports zero prices. This is used primarily for materials which are "free with purchase."

Pricing worklists

You can search the database for any calculations which involve a change in the cost of the goods (for example, discounts, vendor price changes or freight costs). These calculations are then stored as a pricing worklist. You can select and recalculate pricing for individual items items on the worklist. (In order to use this function, pricing documents and document indexes must always be created.)

Quantity conversion (purchase-to-retail price)

You can change the unit of measure on the pricing screen and the price will be recalculated automatically. For example, you may purchase cans of soft drinks by the case but want to reprice them individually for resale. Also, if you enter a unit of measure that is different from the purchasing unit of measure, you can change the purchase price. If you enter the same unit as the purchasing unit of measure, then the purchase price cannot be changed.

Support for the European currency changeover (EURO)

SAP Retail recognizes the Euro as a valid currency and will do calculations in that currency. For example, you can store your purchase price in the local currency and calculate the retail price in Euro.

During the transition period when both the existing and new currencies are to be printed on labels, you can specify which of the two is the actual sales price (which is rounded, if applicable) and which price is for information only (not rounded). Since both prices must be equivalent, they cannot both be rounded. Both prices are stored in R/3.

Workflow automatically issues a message to the responsible person when the beginning of the transition period approaches so that he or she can process the material groups. After the final changeover takes place, only the Euro price is used.

This reduces the maintenance involved in switching to the new currency.

Sales conditions overview

This screen displays all change pricing changes that were made to a material and the date on which it occurred.

Change system parameters in customizing

Refer to the IMG under Pricing