Name: Working with Custom Formulas in SAP Ariba Sourcing Events
Uploaded: 2023-8-25
Duration: 345 s
Description: Event owners can leverage the SAP Ariba event functionality to calculate pricing using quantifiable and non-quantifiable elements from the event. This video demonstrates how custom formulas are created in events with complex pricing requirements.

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<div><div><div>Event owners can leverage the SAP Ariba event functionality to calculate pricing using quantifiable and non-quantifiable elements from the event. This video demonstrates how custom formulas are created in events with complex pricing requirements.</div></div></div>

Working with Custom Formulas in SAP Ariba Sourcing Events

This video focuses on creating custom formulas in SAP Ariba Sourcing events. The SAP Ariba Sourcing tool comes with a series of formulas that customers can use out of the box to calculate the extended price, price breakdown, for more complex events, or, simply the savings that they're aiming for. However, in certain situations, customers require complex calculations that contain multiple factors. Formulas enable you to create terms in events and then use the term values provided by event participants, or, the project owner to calculate complex pricing. You can add as many terms as you need and use terms that are derived from other formulas or map event questions' responses to numeric values which will then be used in the final calculation. The event we're looking at here requires a complex calculation of the cost, as the project owner is interested not just in the price of laptops themselves, but also in how much the setup and configuration would cost. To calculate this, the buyer has created a formula using event terms and questions, which will take into account the price for each laptop X the quantity + the number of hours required for installing the laptops X the supplier's hourly rate X the quantity of laptops. Let us rewind and see how this formula was created in the system. When you add a formula, the formula editor presents a list of other content elements that are available for use within the formula. The content that is available depends on where the formula is placed in the event, and where and how the other content elements were defined. You should start by creating the terms and questions that will be part of the formula. The event already has an item for the laptops, so next we create the questions suppliers will have to answer to. To map text to a numerical value, you have to specify that the term be included in the cost as custom. For a question to be available for use in a formula, the answer type has to be a numerical value. For this particular question, the response will be required for event participants, but there might be instances whereby responses are factored into the calculations as well. We click Done to add the question to the event content. Next, we edit a line item to add the last of the formula elements. The terms currently available are used to calculate the extended cost and the savings. But the buyer is looking to include another cost term, which is the number of hours it takes for a laptop to be installed. For that, they will create a new term and this term will have to be included in the cost as an adder and the answer type will have to be set to whole number. Remember, this is the number of hours it takes to install a laptop. We click OK to return to the terms list in the line item. Since all the pricing components are available now, it is time to create the custom formula. Formulas can be added anywhere in the event content, but the cost components you can use will vary depending on the position. In this case, the formula will be created inside the line item. Also, remember that project owners must be allowed via the template configuration to create formulas in their events. If the formula option is not available in the drop-down list of the add button, please contact the Event Template Administrator. After choosing Formula from the options list, the system takes us to the formula editor, where cost components can be chosen. The editor allows us to insert terms, but also to set specific parameters for the custom formula, like for example if it is visible for participants or not. To create the custom formula, we start by inserting the first term, in this case price, followed by the mathematical operator we need, X. So here we have price X quantity and then we continue with the rest of the formula. So then we have + the installation time, so number of hours that it takes to install the laptop, X by the hourly rate that the supplier will charge, and then again X by the quantity of laptops that we wish to purchase. We click validate to ensure the formula works correctly. After doing this, we return to the line item and then from there we go back to the event content to see how the formula is displayed for the event owner. This concludes our video on creating custom formulas in sourcing events. Thank you.