Performing Sales Pricing and Creating a Sales Order

You want to use the planned costs of a project to establish a sales price. As project manager, you need to know how to link a sales order item with a customer project.

Sales pricing is a Project System function that enables users to determine the price for the work performed based on the project’s planning data. You can store various cost estimates and process them at a later stage.

You can store sales pricing data as an SD quotation and create multiple quotations if required. The standard system specifically uses document type AP to automatically generate quotations from sales pricing.

As an alternative, you can transfer sales pricing data to a billing plan in the project so that you can use it for revenue planning.

You can perform sales pricing using one of the following methods:

• When you create a project as a result of a customer inquiry and you want to calculate a sales price for the project, you access sales pricing by choosing Accounting→Project System→Financials→Plan Data→Sales Pricing. The system determines the sales price based on either planned costs (totals records) or the data from Easy Cost Planning.

• If you want to perform sales pricing for projects for which there is no customer inquiry, you access sales pricing in the Project Builder. The system determines the sales price exclusively on the basis of the data obtained from Easy Cost Planning.

  Note

  Sales pricing takes into account all planned costs below the billing element assigned through the customer inquiry, but only as far as lower-level billing elements. Costs below WBS element F-120##.1.2 are not taken into consideration.To plan these costs, general costs activity 0005 is used and assigned directly to WBS element F-120##.1.1 (German company). An invoice from company code 1710 (US) is assigned to this cost activity when the project is executed.

Sales Pricing Views

To link the customer inquiry in SD to the Project System, you need to assign one or more inquiry items to a WBS element (billing element or account assignment element). The inquiry supplies the SD data required for sales pricing.

The system uses the dynamic item processor (DIP) to summarize the costs planned in the WBS element in dynamic items. The system takes into account the conditions and prices stored in SD when valuing dynamic items.

The sales pricing function contains the following views:

• Sales price basis view:

  The sales price basis view shows costs from the service order or project as summarized using the DIP. Summarized planned costs, called dynamic items, make up the items in the sales price basis. Here, you determine whether the system needs to copy all, some, or none of the planned costs summarized as dynamic items to quotation creation or sales pricing. The sales price basis view is an internal view to dynamically process sales pricing data. In this view, planned costs of the project are structured hierarchically based on characteristics. You can make changes interactively at any hierarchy level, which later affects the quotation.

  For example, you can exclude individual items in the quotation or manually change the values of individual items.

• Sales price view:

  The sales price view shows the sales price basis items combined by the SD item and sorted. The system calculates the prices for items using SD pricing. In the sales price view, you can edit line items or header items in the sales pricing using SD conditions. Changes in header items are automatically passed to line items. The sales price view is the external view of the quotation. You can also make changes in this view.

  For example, you can change conditions for individual items within the quotation.

All of the condition types that are possible in pricing are determined in the pricing procedure. In the pricing procedure, you can also specify the terms under which the individual conditions need to be taken into account.

You can also stipulate the sequence in which the conditions are set in the business document.

Pricing Procedure

The pricing procedure allows you to create any interim gross and net totals. You can flag condition types in the pricing procedure as statistical.

The DIP is a tool that the system uses to summarize data on dynamic items during resource-related quotation creation and billing (for example, line items that arise through the posting of goods movements, completion confirmations, or surcharges). You make further entries according to use. The DIP profile controls how the system summarizes data on dynamic items.

You can use the DIP profile to create quotations and billing (both resource-related and flat rate).

You assign the DIP profile in the service order header or sales order item. You can enter the default profile when making Customizing settings for service order types or sales document item types.

Dynamic Item Processor: Conversion

The actual values of the project are converted to material masters for the SD follow-up documents. You perform conversion using characteristics (for example, cost element) and characteristic values (for example, cost elements 400000...410000), which are combined to form sets (for example, cost element group CO-PC-MAT).

You can use the DIP profile to create quotations and perform billing. You decide the type of sales documents to generate (quotation, billing request, or credit memo request) for each use. You can also specify if the system needs to perform a warranty check during billing. You must enter all other data when you create a document.

Characteristics relevant to the determination of dynamic items are fixed for each use. Various characteristic attributes are defined, as well as the way in which they are presented during the processing of billing requests. You can define your own characteristics and enter values for these characteristics using customer exit AD010003.

Sources define the data you use to determine dynamic items (for example, the actual costs of line items or totals records, planned costs, and so on). You can also select the characteristic values from which dynamic items need to be determined (exclusion of other characteristic values from billing). Selection is performed using the sets that are determined for this purpose. You can define your own sources using customer exit AD010005.

You can define the service materials that are determined from characteristic values for billing request items or quotations. Enter the selection criteria in the form of sets.

Part of revenue planning is the assignment of a sales order item to a WBS element. You must select the operative indicator billing element for the WBS element before you can assign a sales item to the WBS. By assigning sales order items to WBS elements you can process and analyze the sales revenue on the WBS element.

In the forklift project, two companies are responsible for executing the project: The German company in company code 1010 and the US daughter company in company code 1710. Germany is responsible for selling the forklift prototype to the external customer. The customer is billed using a milestone billing plan. In support of this project, US supplies Germany with engineering services. Engineering services are identified for WBS F-120##.1.2.

The US company creates a sales order for the German company and assigns the document item to billing element F-120##.1.2.

The US company bills its services to the German company on a resource-related basis. A billing request is created in the system through resource-related billing. This request results in revenues for the US company.

Now you accept the offer that has been provided by sales pricing, and you can create the sales document, generating planned revenues on the WBS element.