Coordinate Price Element Specifications

Objective

After completing this lesson, you will be able to create price determination logics using the Manage Price Element Specifications app

Coordinate Price Element Specifications

Our current step in the process takes us to Unit 8: Implementing Price Element Specification in SAP Price Calculation.

In the previous unit, Lisa selected a price model and populated the lookup table based on Bob’s business requirements. Her next step is to define the price calculation logic using the Manage Price Element Specifications app.

In our next lesson, we’ll select the logical price calculation components to orchestrate logical operations into sequences that match our price calculation requirements.

The Price Element Specifications app is designed to create pricing logics that help businesses manage their pricing strategies more effectively. Price element specification logics are algorithms or rules that determine the price of a product or service. These involve various factors such as base price, discounts, promotions, dynamic pricing based on supply and demand, profit margins, and more. For example, an Ecommerce company will use a logic that automatically lowers the price of a product if a competitor offers the same product at a discount. Another could be a hotel that raises room prices during peak season and lowers them during off-peak season.

Price determination logics are organized in a tree logic diagram. The tree breaks down the price element specification into smaller components and sorts them in a logical or hierarchical order that results in a total price. One component may be a price for a service, while another component is calculating costs for the consumption of that service.

Manage Price Element Specifications Price Logic Tree 

Let’s see how this works by opening the Price Element Specifications app to create a pricing logic for a quantity discount.

Select the video below to use the Price Element Specifications app!

The Manage Price Elements Specifications app presents other tabs for configuring price elements.

The tab, Custom Output Attributes, defines pricing conditions that are mapped to pricing conditions found in backend systems, such as SAP S/4HANA.

The tab, Rounding, configures how SAP Price Calculation rounds monetary amounts calculated by the price element. There are two options for rounding:

  • Precision: Either the precision of the currency can be applied, or you can select any precision from 0 to 6 decimals.
  • Rounding Rule: Select whether to round up, down or commercially. Values of 5 and above are rounded up, values of 4 and below are rounded down.

Finally, the tab Administrative Data displays information regarding object creation, including the creator, and dates and times of changes and the creator.

Summary

With a better understanding of how Price Element Specifications play a role in streamlining the price calculation process, Lisa will move on to creating pricing schemes, the product of SAP Price Calculation, the subject of our next unit.

Create Price Element Specifications

Exercise Objective

After completing this exercise, you will be able to create Price Element Specifications in SAP Price Calculation in which you will specify the price calculation logic.

Business Scenario

After creating a table to store your prices in, you need to implement the price calculation logic. This will be done in a Price Element Specification. You need to set up a calculation logic to calculate prices for prints the customers create. Additionally, you need to provide a logic to calculate the recurring fee, which will be charged to the customers on a monthly basis.

Task 1: Create a new Price Element Specification to calculate prices for customer prints called "BR468_##_LT_PRT_PRC" (replace ## with your group number). Configure it so that it reads the price from the table you defined in the previous exercise. Also, make sure that the system provides an error in case no price was found. When the system tries to read from the table with a rate element value, which is not associated to usage fees, the system should just skip the calculation without raising an error.

Steps

  1. Log on to SAP Price Calculation.

  2. Create a new price element specification using the following data:

    Price Element Specification

    CodeDescription
    BR468_##_LT_PRT_PRCLogic to calculate prices for prints of group ##

    Replace ## with your group number.

    1. Choose the tile called Manage Price Element Specifications.

    2. Choose Create on the top-right corner of the screen. A new pane opens.

    3. For the code, enter the value from the table, Price Element Specification.

    4. For the description, enter the value from the table, Price Element Specification.

  3. Create a new pricing tree component.

    1. From the drop-down list called Component, choose the component String Comparison.

    2. For the Compared String, choose the field rateElement.

    3. For the Operator, choose Starts with.

    4. Set the checkbox, Match Case, as you prefer. Deactivating it makes the comparison more robust for case typos.

    5. As the comparison value, enter BR468_##_RE_PRT. Note that here the last part of the rate element name is skipped. This results in a match for both usage Rate Elements (BR468_##_RE_PRT_PRM and BR468_##_RE_PRT_STD). Replace ## with your group number.

  4. In lines two and four of your tree logic, create the following new components:

    Add New Components to Lines Two and Four of the Tree Logic

    LineComponent
    TwoTable Look-up
    FourSkip Price Element

    1. In line two, of your tree logic, choose Table Look-up from the table above.

    2. In line four of your tree logic, choose Skip Price Element from the table above.

  5. Select the table, BR468_##_LT_PRT_PRC, and enter the values from the following table:

    BR468_##_LT_PRT_PRC

    Input FieldsProperty
    marketIdmarketId
    productCodeproductCode
    rateElementrateElement

    Replace ## with your group number.

    1. In the section, Input Fields, assign the value marketId to Property from the table above.

    2. In the section, Input Fields, assign the value productcode to Property from the table above.

    3. In the section, Input Fields, assign the value rateElement to Property from the table above.

  6. In lines three and five of your tree logic, create the following new components:

    Add New Components to Lines Three and Five of the Tree Logic

    LineComponent
    ThreeCalculate Price Element
    FiveCancel Calculation

    1. In line three of your tree logic, choose Calculate Price Element from the table above.

    2. In line five of your tree logic, choose Cancel Calculation from the table above.

  7. Add the following values to the component and create using the following table:

    Price Condition

    Price ConditionScale Value and QuantityRatio
    PriceQuantity 

    1. For the Price Condition, choose Price from the table above.

    2. For the Scale Value and Quantity, choose Quantity from the table above.

    3. Leave the Ratio field empty.

    4. Choose Create.

Task 1: Create a New Price Element Specification for Calculating Discounts

Business Example

Task 2: Create a new Price Element Specification for calculating discounts to your usage fees called "BR468_##_PES_PRT_DSC" (replace ## with your group number). Configure it so that the discount is only calculated when a value is provided in the discount field. Otherwise, the calculation logic needs to be skipped.

Steps

  1. Log on to SAP Price Calculation.

  2. Create a new price element specification using the following data:

    Price Element Specification

    CodeDescription
    BR468_##_PES_PRT_DSCLogic to calculate the discount for prints of group ##

    Replace ## with your group number.

    1. Choose the tile called Manage Price Element Specifications.

    2. Choose Create on the top-right corner of the screen. A new pane opens.

    3. For the code, enter the value from the table, Price Element Specification.

    4. For the description, enter the value from the table, Price Element Specification.

  3. Create a new pricing tree component.

    1. From the Pricing Tree tab, choose New Component.

    2. From the drop-down list, Component , choose Availability Check.

    3. For the Value , choose Reference Price.

  4. In lines two and four of your tree logic, create the following new components:

    Add New Components to Lines Two and Four of the Tree Logic

    LineComponent
    TwoAvailability Check
    FourSkip Price Element
    ValueDiscount

    1. In line two of your tree logic, choose Availability Check from the table above.

    2. In four of your tree logic, choose Skip Price Element from the table above.

    3. In the Value section of your tree logic, choose Discount from the table above.

  5. In lines three and five of your tree logic, create the following new components:

    Add New Components to Lines Three and Five of the Tree Logic

    LineComponent
    ThreeCalculate Price Element
    FiveSkip Price Element

    1. In line three of your tree logic, choose Calculate Price Element from the table above.

    2. In line five of your tree logic, choose Skip Price Element from the table above.

  6. Add the following values to the component and create using the following table:

    Price Condition

    Price ConditionScale Value and QuantityRatio
    DiscountQuantity 

    1. For the Price Condition, choose Discount from the table above.

    2. For the Scale Value and Quantity, choose Quantity from the table above.

    3. Leave the Ratio field empty.

  7. Choose the Overridable Fields tab.

    1. Choose Create above the table with the overridable fields (not on the bottom right of your screen). A new empty line is created.

    2. For the field, choose Discount.

    3. Choose Create from the bottom-right of your screen.

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