Pricing in SAP CRM

Sunday, August 28, 2016 by Abhi


Pricing

In any business transaction like sales order or service order, pricing is used to determine the cost of the item or product in that transaction. Every time we make a new business transaction, we do not need to enter the prices for the item or product manually into the system. We prepare a customer master record and do some customizing in the system so that system automatically finds the price for that item. The whole of the procedure in customizing the prices is known as pricing procedure in sap crm. In sap crm, the pricing is maintained by internet pricing and configurator(IPC).

IPC

Main role of IPC is that it provides the pricing data to different components in the SAP CRM. It is mainly responsible for pricing throughout entire SAP CRM system. IPC is connedcted to CRM components, and CRM components gets the prices from the IPC. IPC fetch price from CRM Database and provides to entire CRM components. IPC is connected to database by RFC. IPC provides faster access to pricing data. If IPC is not there in the system, CRM components will fetch data directly from the database, making the system slow. The concept of IPC can be understood by following picture.


Pricing Procedure

Pricing procedure is mainly a calculation rule on pricing on what type of formula or calculation should be applied in a transaction. Pricing procedures defines all the valid condition types, calculation of that condition types in any transaction.


Every pricing procedure have different type of condition types. The condition types are the calculation rule of  prices. How you want to calculate the price, whether you want to give the discount to the price or charge some taxes.

Pricing procedure determination is influenced by following elements:
- Sales organization
- Distribution channel
- Document pricing procedure (assigned to transaction type)
- Customer pricing procedure (assigned to business partner as billing data in sales area data)
- Division (optional)

Apart from Condition types, there is one more important concept in pricing, and that is Access Sequence. Access sequence is basically a search strategy which system uses to find a data in condition type.

Creating Pricing Procedure

Though the pricing procedure topic is a very vast topic. But for basics, there are two simple steps in creating a princing procedure. First we make a copy of the standard sap crm pricing procedure. Then we determine that pricing procedure in our transaction. Lets see how..

Go to SPRO > CRM > Basic Functions > Pricing > Define Setting for pricing > Create Pricing Procedure.


Select OCRM01 or OCRM02, which is SAP standard pricing procedure. Copy As, and edit it with a new name and description.


This will create a pricing procedure in CRM. Now, We have to Determine this pricing procedure in the transaction.
Go to  SPRO > CRM > Basic Functions > Pricing > Pricing in Business Transaction > Determine Pricing Procedure.


Make a new entry with your Sales Organization, Distribution Channel, Division, Document Pricing Procedure which should be B which is standard w/o tax, Customer Pricing Procedure should be 1 which is standard and the pricing procedure which we created in earlier steps.


Save the entries and your pricing determination is done.
Some basic thing you should keep in mind before using the pricing procedure.

Go to org structure, and make sure you have selected correct currency in the attribute section.


Make sure the customer pricing procedure and currency is maintained in the Billing section of respective BP.

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