Estimated Price in SAP MM

Use

Instead of a net order price, you can enter an estimated price and flag it as such. At the time of invoice verification, higher tolerances will then apply in the event of price variances than in the case of purchase orders issued with an exact price.

Prerequisites

The tolerances must be defined accordingly in Customizing for Invoice Verification. (Invoice block ® Set tolerance limits.)

Activities

To maintain an estimated price, enter the amount in the Net price field on the item detail screen and select the Estimated price field.

Daily Ruling Prices for Precious Metals in SAP MM

Use

There is a separate condition category for pricing components that vary according to daily fluctuations in ruling rates. It causes the price for the material to be redetermined according to the day’s ruling price at the time a purchase order is created or a goods receipt posted. In the case of the PO, the date chosen by you is taken. In the case of a GR, the key date is the posting date.

Prerequisites

You must make the following settings for each precious metal in Customizing:

• Define a non-dimensional unit of measurement (Global settings ® Check units of measurement)
• Set up two new condition types (Purchasing ® Conditions ® Define price determination process ® Define condition types)
• Make new entries in the calculation schemas Purchasing ® Condition ® Define price determination process ® Define calculation schema)

The settings for one precious metal are supplied in the standard system. If further precious metals are to be taken into account in the price determination process, they must be set up beforehand in Customizing. You can use the settings supplied in the standard system as a reference for copying purposes.

Non-Dimensional Unit of Measurement

You must create a unit of measurement that links the precious metal with the unit of measurement. (E.g. GAU for "gram of gold"). ("G" stands for "gram" and "AU" is the symbol for the chemical element "gold".) The proportion of the precious metal is specified for this unit of measurement in the material master record (e.g. 1 piece of wire = 3 GAU).

Two New Condition Types

1. For the precious metal price portion (GAU1) included in the material price.
2. For the current ruling price of the precious metal (GAU2).

Both condition types have condition class A, condition category U, and calculation rule C (quantity-dependent), and the same unit of measurement (e.g. GAU) must be assigned to each.

An access sequence must be assigned to the condition type for the current daily ruling price (GAU2). In the standard system, access sequence 0001 is defined for this purpose.

New Entries in Calculation Schemas

Document Schema

The two new condition types must be included in the document schema. Document schema RM0000 is available in the standard system.

The two condition types must be entered in the document schema in the above sequence. Different but directly consecutive steps must be assigned for both. The Statistical indicator may not be set for either.

The first condition type must be flagged as "manual" and have the calculation formula "31".

The second condition type may not be flagged as "manual". It must have the calculation formula "32" and the requirement "31".

Supplementary Calculation Schema for Price

Document schema RM0002 is available in the standard system.

Here you must enter the first condition type (GAU1). The Statistical indicator must be set.

Activities

For information on how to maintain current ruling precious metal prices, refer to Maintaining Customers’ Own Conditions.

Conditions Dependent on the Order Unit in SAP MM

Use

You can enter separate conditions for individual order units.
During the source determination process, the system offers you the order units for which prices have been maintained. If, for example, prices have been maintained in an info record for the order units pallet and crate, you can only order these units from the relevant vendor. If no order-unit-dependent conditions have been maintained, you can order in the units that have been maintained in the info record or the material master record.

Prerequisites

In order to work with conditions for each order unit, you must set the Variable OUn indicator on the general data screen in the info record.

Weight- or Volume-Dependent Conditions in SAP MM

Use

You have the option of maintaining weight- or volume-dependent conditions. The condition types for weights and volumes are then taken into account during the purchase price determination process.

Activities

You can maintain the Gross weight and Volume fields in the additional data for the item.
Both fields relate to an order unit. This means that if you order 100 pcs. of material A, for example, and one piece weighs 10 kg, the Weight field contains the figure 10 kg (not 1000 kg).

Price Variance in SAP MM

Use

A price variance occurs when the net price of the PO item differs from the standard or moving average price defined in the material master record. If the price you enter does not equal the price in the master record for the material, the system issues a warning message.

Different Currency in SAP MM

Use

If you wish to create a PO in a currency that differs from the default currency taken from the vendor master record, you must change the currency before creating the PO items.

Activities

To maintain a different currency in the purchase order, branch to the PO header data before entering the relevant item and change the content of the Currency field.

Foreign Currency in SAP MM

Use

If the PO is issued in a foreign currency, the system calculates the net value of the order based on the ruling exchange rate defined in your system.
The rate can be changed when the invoice is entered if it differs from the rate specified when the purchase order was created.

However, if the rate in the purchase order is to be the basis for the invoice amount, you can specify a fixed exchange rate in the purchase order. This way, the invoice amount has to be based on the exchange rate specified in the purchase order.

Activities

To specify a fixed exchange rate for a foreign currency, branch to the PO header data, enter the exchange rate, and select the Fix rate field.

• What is Purchase Order in SAP?
• Purchase Orders
• Archiving RFQs Request for Quotation
• Monitoring RFQs and Request for Quotation
• Rejecting Request for Quotation
• Comparing SAP MM Request for Quotation
• Entering a Quotation Against an SAP MM RFQ

Planned Delivery Costs in SAP MM

Use

Planned delivery costs are delivery costs (incidental procurement costs) agreed with or stipulated by the vendor, a forwarder or carrier, or a customs office before the purchase order is placed, which are entered in the PO when the latter is created.

Planned delivery costs can be subdivided according to the following criteria:

• Source of the costs
• Freight charges
• Duty
• Calculation of costs
• Fixed amount, independent of quantity
• Quantity-dependent amount
• Percentage of value of goods delivered

Planned freight and duty costs are linked to a vendor. If they are not to be invoiced by the vendor who receives the PO, a different vendor must be entered at the time the delivery costs are planned in the PO. (This so-called "freight vendor" may be a forwarder/carrier or a customs office, for example.)

At the time of goods receipt, the vendor can be changed. In contrast, at the time of invoice receipt, only the "freight vendor" can invoice you in respect of the delivery costs.
Planned delivery costs are entered in the purchase order for each order item. Such costs can only be posted in an invoice if there has been a goods receipt for the relevant order item, that is to say, the delivery costs have actually been incurred.)

Activities

You can store planned delivery costs in the purchase order on the Item conditions screen.

To enter a different vendor (i.e. a "freight vendor" or a customs office), select the desired condition on the condition screen and choose Goto ® Details. Overwrite the content of the Vendor (creditor) field.

Taxes in SAP MM

Use

The relevant tax rate is taken into consideration in the PO automatically. The tax rate is derived from the key in the Taxes field in the relevant PO item.

The tax code is suggested at the time of invoice verification. You can thus check the vendor’s net price when the invoice is received.

Non-deductible tax portions are displayed in the conditions and taken into account in material valuation.

During the price determination process, it is possible to have the system find the relevant tax code via the conditions. This is useful, for example, if different tax rates apply, depending on whether a material is taken into stock or consumed directly.

You can determine how the tax amount was calculated in the item conditions from within a PO, a quotation, or an outline agreement.

Activities

To display the calculation of the tax amount, proceed as follows: (This function can only be performed in the case of items having a valid tax key.)

1. Select an item on the item overview screen.
2. Choose Item
® More functions ® Taxes.

The system lists all amounts and condition types included in the calculation of the tax amount. The condition types and their amounts are determined from the tax calculation schema defined for your country in Customizing.

The base amount, from which the individual tax amounts are deducted, represents the net value of the item.

Some Selected Conditions in SAP MM

Use

Refer to the documentation on the following types of condition:

Taxes

Planned Delivery Costs

Foreign Currency

Different Currency

Price Variance

Weight- or Volume-Dependent Conditions

Conditions Dependent on the Order Unit

Daily Ruling Prices for Precious Metals

Estimated Price

Functions from the Retail Environment

Discount in Kind (Discount in the Form of Bonus Goods)

See the documentation

SD Basic Functions and Master Data in Sales and Distribution Discount in Kind.

SAP Retail: Promotion: Discount in Kind

Rounding of PO Quantities

See the documentation

SAP Retail - Order Optimizing.

Additional Items

See the documentation

SAP Retail - Additional Items.