Leveraging Extended Pricing Concepts in SAP Agricultural Contract Management

Mass pricing allows for the simultaneous update of multiple contracts through a single transaction. This is facilitated by the mass pricing work center, which offers various functionalities.

One way to utilize this transaction is as a query or reporting tool for contracts. It provides a comprehensive view of contract details and serves as a valuable reporting resource.

Another function of the mass pricing work center is the ability to perform price lifts. This involves changing the price of a specific component in an agreement after reaching a new agreement with the counterparty. Prior to implementing the new price, the original price must be removed, and this can be done efficiently in bulk using this transaction.

Additionally, the transaction allows for the mass cancellation of contract quantities. This streamlines the process of adjusting quantities within contracts.

Furthermore, contract rolls can be modified using the mass pricing work center. For example, the delivery period for contract line items can be changed to the subsequent delivery period in the DCS.

Depending on the specific mode selected within the mass pricing work center, different options and criteria are presented. In the provided example, the pricing mode is showcased, displaying pricing approaches and a designated area to input the desired pricing component, such as futures or basis.

Various selection criteria are available within the transaction, including required fields found in the Required Fields tab. This includes document information, pricing data, partner data, admin data, and pricing methods, allowing for comprehensive customization of the pricing process.

Pricing methods offer a range of capabilities that enable agricultural companies to establish pricing programs for counterparties, both on the purchase and sales side. These programs serve as valuable marketing tools to secure large quantities of commodities for the company.

The pricing methods not only benefit the agricultural company, but also provide an opportunity for farmers and other counterparties to participate in these programs. By participating in these programs, counterparties may have the chance to obtain a better price or a guaranteed price for their commodities, enhancing their profitability.

In essence, pricing methods act as an effective marketing tool for agricultural companies, allowing them to secure significant volumes of contracts. It is important to note that these programs typically involve a fee, which is necessary to participate and enjoy the benefits of the program. This fee ensures the commitment and participation of counterparties in the program and helps to secure favorable pricing terms for all parties involved.

• Introduction of new master data and configuration, for example program family, pricing type
• Start and end dates for sign-up and pricing
• Linked to commodity (maturity code) and crop year (can be different by locations)
• Mass pricing functionalities available to maintain contracts which belong to a pricing family
• At contract pricing lot level, a contract can be assigned to a pricing program at its inception, either before or after delivery
• Any fees associated with the pricing program can be collected through integration with a fee framework

Master data setup is where you define the family and assign a program type to it. Additionally, you can specify the market timing, as demonstrated in this example where there is one program per month based on the period from planting through harvest.

In this specific program example, the program starts in April, when it is marketed to counterparties. Pricing, related to futures, begins in May. The market timing is reflected here. You have the option to indicate a crop year if desired.

Traders utilize this master data object to market the program. At a certain point, a trader will assign the program to the contract's pricing lot for counterparties who have agreed to participate in this marketing campaign. The only field with downstream impact is the sign-up start and end date, which undergo validation. If a contract falls outside this range, the program cannot be assigned to the pricing lot.

There is also a notes section that can be utilized for any additional information or for output determination in contracts.

There are two BRFPlus tables associated with this functionality. Note that this tool is primarily designed for futures contracts and is meant to be extensible, allowing customers to build upon the foundation we provide.

• The BRFPlus function used for pricing method assignment to organizational elements is as follows:

  /ACCGO/DT_PRICING_METHOD

• The BRFPlus function used for fee assignment to pricing method is as follows:

  /ACCGO/FN_FE05_ASG_CON_PFX_PRC