Discovering products and internal price lists

It's important to understand the key concepts when managing products in SAP Sales and Service Cloud.

Product data is maintained in the Administrative UI of SAP Sales and Service Cloud.

A product has the following components: 

• Product Category: For product category hierarchy 
• Product Basic Data: Global master data describing the product, this data will be used to populate business documents in the future. 
• Price and Discount: Maintains pricing for products when pricing is local to SAP Sales and Service Cloud (not used when external pricing is performed in SAP S/4HANA or SAP CRM) 

Competitor products can be tracked in the system.  Using a lean master data record, competitor products can be evaluated and compared with our products to understand key differentiators. 

These products can be added to sales documents for the sales team to understand the product line and pricing they are up against when trying to win a deal.  

In SAP Service Cloud, competitor products can be tracked and recorded for each account with an installed base active.

Price determination

• As a basic rule, pricing depends on the relevant price master data, which derives mainly from a price list.
• Price lists determine a mandatory list price and several optional discount lists, which determines the discounts. 
• Other price elements such as freight, or surcharges are essential for the total value calculation. 

The two main lists to setup pricing:

• Price Lists: price lists of different types (base price, distribution chain specific and customer specific) can be maintained.
• Discount Lists: discounts lists can be maintained in different granularities (overall customer group, overall customer, customer product specific and customer product category specific).

In this video, you'll learn how to create a new product.

In this video, you'll learn how to create an internal price list using the Bike Tire product.