Configuring Reverse Pricing Procedure

Applies To:

SAP SD/LE Module

Summary:

Reverse pricing model refers to a model that allows the consumer to establish his/her requirements and offer the same for bid by the seller. Thus rather than seller marketing a product to a buyer, the reverse phenomenon occurs here. Priceline has pioneered this model in the consumer marketplace using airline ticket as the product. This model further reflects the changing power from suppliers to the consumers.
Author: Company:

Anirban Pahari Pricewaterhouse Coopers Private Limited

Created On: 02-April-2013 Author Bio:

Currently SAP SD Consultant at PwC Kolkata having 3 years experience performing business process improvements/business continuity assessment, complex data analysis, SAP SD enterprise structure configuration, Order to Cash sales process, pricing and interfaces. Have held a pivot role as the functional consultant responsible for the SAP sales and distribution addressing client support and development. Primary experience is with manufacturing clients.
What is reverse pricing:

Reverse pricing model refers to a model that allows the consumer to establish his/her requirements and offer the same for bid by the seller. Here the end user will only enter the Final Sale Price/Maximum Retail Price and the system will automatically back calculate the margin, taxes, discounts and freights depending on the business sales cycle process.
Where is it used:

This is basically used in Cement and retail industries where the vendor discounts is altered keeping an eye on the final price and margin.
Mapping the business process in SAP: Configuration Create Condition type V/06 YR00 Initial Price

Can be a copy of K007 but not PR00 as this will capture the 100% value of Initial price from a subtotal. So the Calculation Type needs to be A-Percentage unlike PR00 which has C-Quantity.

ZMRP Max Retail Price

Copy of PR00 Statistical in nature

MWSI Output Tax

Calculation type should be H-percentage included

ZWSI Reverse MWSI

Can be a copy of K007/YR00 (already created) It is a 100% copy of MWSI Statistical in nature

Create Pricing Procedure V/08 Pricing Procedure created - ZREVPR Reverse pricing test

MWSI,YR00 and Copy of MRP is posted against their respective accounts The account key for price and tax are ERL and MWS respectively. Discounts, freights and margins can be included depending on the business requirement. Only thing to be noticed is that Calculation Type H should be used if any calculation is to be done Inclusive in nature.

Master Data Creating Condition Record YR00 Initial Price

100% copy of Subtotal - Price

ZWSI Reverse MWSI

100% -ve copy of MWSI

ZMRP Max Retail Price

MWSI Output Tax (use MWST as reference)

Transactional Data Document Flow

Create Sales Order VA01

Pricing Analysis

Accounting Document