Determining Different Pricing Options

Objective

After completing this lesson, you will be able to discover the guided selling advantages and functionality of the Intelligent Sales Add feature to better understand the overall selling process.

Pricing

You can offer competitive pricing to your customers when working with sales quotes and sales orders.  Your administrator has preconfigured product price lists.  You can manually apply discounts and miscellaneous surcharges to sales quotes and orders.

Here’s an overview of the pricing types:

Different pricing options: Stand alone and ERP/CRM external pricing using predefined integration in order to be consistent across all customer interactions.

Key Differentiators

Standard integration for pricing and currency conversion rates with ERP and CRM.

Benefits:

  • Consistent pricing across all customer interactions
  • Low maintenance cost using standard pricing integration with ERP and CRM

Main Price elements

  • List Price
  • Discount

Additional price elements

  • Surcharge
  • Freight
  • Cost Estimate

Flexible pricing decisions can be made in SAP Sales Cloud. Price lists and discounts lists can be created or uploaded for standalone internal pricing. Or external pricing can be leveraged from a SAP ERP or CRM system. As a basic rule, pricing depends on the relevant price master data, which derives mainly from a price list that determines a mandatory list price. It also derives from several optional discount lists, which determine the discounts. Other price elements such as freight, or surcharge are essential for the total value calculation. Price master data is maintained in the Products work center. SAP Sales Cloud contains a predefined set of price elements, some of them can be activated in the scoping of the Business Configuration and Fine-tuning.

Internal Pricing

SAP Sales Cloud provides various internal price elements in the sales quotes and sales orders. From the Products tab of table view of the sales quote or sales order, the most important price information is displayed and can be easily overwritten depending on how your solution is configured.  

Price Lists with Internal Pricing

Click on each Customer icon on the right to get a better picture.

Creating an Internal Price List

Now, I’ll show you to create an internal price list in the SAP Sales Cloud System.

External Pricing

When the Sales Quote or Order is created in SAP Sales Cloud, a pricing request is sent to the SAP On-Premise system. The system returns a price calculation to the quote or order, which finalizes the document's creation and passes back to the ERP On-Premise System. 

Pricing is called remotely in the execution system. The detailed price information is stored in the SAP Sales Cloud container for external pricing. Selected prices are adjusted in the SAP Sales Cloud quote/order. The quote is finally transferred to the execution system Role based authorization levels for external pricing. 

Other option:  

Your administrator has correctly set-up external pricing. You create a quote, request the pricing from the external system by clicking Actions -> Request Pricing. Similarly, you can use the action Simulate to retrieve external pricing for a sales order. 

The external system then simulates a complete document, and you receive the results in your quote or order. 

In the solution, you can adapt the following header hidden fields and make them visible for external pricing: 

  • Pricing Status - Only a successfully calculated quote can be submitted. 
  • Pricing Date - A hidden field, also available in internal pricing. 
  • Pricing Procedure 
  • Total (Gross) 

On the detailed tab of the sales quote Products tab, the following fields are displayed: 

  • Product Pricing - Displays the pricing overview for the selected Product. 
  • Total Pricing - Displays the pricing overview for the complete sales quote. 
  • Adjusted Item Price - Considers item and header price elements 
  • Adjusted Item Value - Considers item and header price element times requested quantity. 

Difference Between Internal and External Pricing

The main difference between internal and external pricing is where the pricing conditions are created. With internal pricing, the price list it is derived from conditions defined in the SAP Sales Cloud. While with external pricing, pricing conditions are created in and retrieved from external SAP systems. Since pricing already exists and is used in the external systems, it can easily be leveraged and applied to sales documents in the SAP Sales Cloud to simplify the Lead to Order process and keep pricing consistent across the sales landscape.  Pricing data in the Sales Order flows directly into SAP ERP in case changes or adjustments need to be made before billing occurs.  And, currency conversion rates can be applied for global customers 

Alternative to Previous Line Items

Alternative to Previous Line Items

Click on each icon to learn more about pricing types.

Working with Discount Pricing

Now, I’ll show you how to work with discount pricing in the SAP Sales Cloud System.

List prices are centrally defined and managed in Price Lists. The system takes multiple parameters into account in order to enable flexible pricing. The access sequence, or search strategy for prices are as follows: 1. Customer specific prices are searched first, if nothing is found move to step 2. 2. Customer group specific price lists are searched, if nothing is found move to step 3. 3. The system keeps looking to the distribution chain specific price list after that, and if nothing is found there, the base price list is referenced when pricing products. Basically, the top-down approach to price determination is used.  

Optionally, you can use base price list by product category, but the business configuration needs to be adjusted for this option. Product Discounts are centrally defined and managed in Discount Lists. The system takes multiple parameters into account in order to enable flexible pricing.

SAP Sales Cloud supports percentage discounts, not fixed value amounts. Therefore, the sequence to searching for discounts is as follows: 1. The first discount searched for is the customer specific discount. 2. Then the customer specific discount list by product category. 3. Then it searches the overall customer discount list. 4. The last search is the overall customer group discount list. 5. If nothing is found, no discounts are applied 

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