Name: Creating Pricing Conditions within SAP Ariba Sourcing Events
Uploaded: 2023-10-19
Duration: 234 s
Description: Learn how to set up pricing conditions within SAP Ariba sourcing events. Discover how to specify pricing for different validity periods and volume scales, leading to more accurate pricing.

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<div><div>Learn how to set up pricing conditions within SAP Ariba sourcing events. Discover how to specify pricing for different validity periods and volume scales, leading to more accurate pricing.</div></div>

Creating Pricing Conditions within SAP Ariba Sourcing Events

Today's video will review how to set up pricing conditions within SAP Ariba sourcing events. In many cases, the price of a product or service may vary over time, so pricing by time allows these prices to be captured within the event. Specifying pricing conditions for line items enables buyers to request pricing from suppliers for different validity periods, for example, monthly, quarterly, annually, or custom, and for different volume scales. Compacting pricing over time and volume can lead to more accurate pricing. Pricing conditions allow buyers to specify volume and time breaks, which enables you to define validity periods for volume pricing, define volume scale types and volume scales within each validity period, allow suppliers to create their own validity periods, and add cost terms for validity periods. There are some restrictions to consider, however. First is that validity periods are available in contracts and RFPs but are not available in auctions. Secondly, they are only for material items and not service items. Third, you cannot configure the default quantity item term that appears in the sourcing event template to use pricing conditions. And lastly, PIRs do not support custom item terms with pricing conditions. Setting up pricing conditions must be enabled within a template bidding rule, allow pricing conditions, and the item term in the event template must have the add terms to pricing conditions option set to yes. When the project owner is creating the sourcing event, they will want to set the validity period type and the duration within the rules tab. They will specify the period type in the drop-down, which can be monthly, quarterly, yearly, perpetual, or buyer or supplier defined time periods. After setting the period type, there will require the number of periods or end date. The volume scale must be defined as to or from and then define the scale intervals below the type. The option to allow the supplier to override the scales is present, and lastly the period quantity can be enabled or disabled, and if enabled can either be shown or hidden to the suppliers. After the project owner defines the pricing conditions within the rules tab, they will then want to set the pricing conditions and the item attributes for each line item. Here I am copying an existing line item that was created with monthly validity periods. And on my new line item, I will give it a new name and scroll down to the pricing conditions. I see the settings are monthly and click apply. And now I can change the line item terms and see that the pricing conditions have a monthly breakdown for the quantity and price. If I have a situation where the monthly consumption of a product changes, I can edit the quantity and choose to show this to the supplier. By using the pricing conditions, the supplier will enter prices within defined time intervals. This can be used to further differentiate the product tiers, in addition to the quantity and time intervals to suit scaled pricing in addition to duration based pricing. For additional information on setting up pricing conditions and scales, please consult our product documentation.