The Confectionery Pricing

Conundrum in the SAP S/4 HANA

- By Chandan Kumar Modi & Arnab Banerjee

The Challenge…

The client has confectionary business that sells a Bouquet of chocolates and sweets. It accounts for around 40% of their total
revenue.

The Bouquet contains some combination of chocolates that are sold individually also,

A typical Bill of Material but with a twist:

1) The pricing / discounts / surcharges etc. is to be maintained at the sub item level
2) While creating the order, the entire pricing value should accumulate at the main item level and the respective
pricing value at the sub-item level should be zero. Therefore, let me explain using the following example:
Condition record In the sales order & invoice
Main item Sub item 1 Sub item 2 Sub item 3 Main item Sub item 1 Sub item 2 Sub item 3
Price 50 40 100 Price 190 0 0 0
Not
Discount -5 -10 -15 Discount -30 0 0 0
maintained
Surcharge 10 20 10 Surcharge 40 0 0 0
in VK11
Tax 10% 10% 10% Total 200 0 0 0
Tax 10% 10% 10% 10%
Tax amount 20 0 0 0
3) The Goods movement to be done at the main item level
4) The invoice must contain the sub items but the pricing calculation should happen at the main item level
The Standard Solution and its limitations…

The current standard solution by the SAP has 2 approaches:

Pricing at main Pricing at sub item

item level level

1) Condition record must be maintained at the main- 1) Condition record must be maintained at the sub-
item level item level

2) Sales order and invoice will reject the pricing 2) Sales order and invoice will reject the pricing
condition record at the sub-item level condition record at the main-item level

3) Goods movement will happen at the main-item 3) Goods movement will happen at the sub-item level
level

No standard solution is available

in the SAP for this kind of
requirement
The Approach…

We used the KUMU condition type.

It can be used with alternate calculation tzype – 36 that allows to accummulate the Net values of all the sub-item level
to the main item level. However, the condition type is a statistical. Let me explain using some example:

In the sales order & invoice when using KUMU

Main item Sub item 1 Sub item 2 Sub item 3
Price 50 40 100
Discount -5 -10 -15
Surcharge 10 20 10
Total 0 55 50 95
KUMU type 200 55 50 95

As you can see KUMU copies the Net value from Sub items and cummulates at the main item.
The Approach…

Item Category modification

Two item categories, one each for Main item and sub item:

Main-item : Same as TAQ but with `no pricing´

Sub-item : Sames as TAE but with `Pricing´

Pricing procedure

Need condition types to accumulate the Net value for each pricing condition type (KUMU variant), reversal, and
accumulation of the main item.

Enhancement

Will be required to ensure the calculation requirements are met

The Solution…

Item Categories

T-code VOV7:
Main-item : ZTAQ copy of TAQ with `no pricing´.
Sub-item : ZTAE copy of TAE with `Pricing´.

Item Category Determination T-code VOV4: Item category Higher Level Default Item
Sales doc type Item usage
group Item Category Category
OR ERLA ZTAQ
OR NORM ZTAQ ZTAE
Pricing Procedure

T-code V/08: Sr. No. Condition type Description From To Statistical Requirement Calculation
Need the following changes in the pricing procedure 10 PR00 Price condition type Standard (2)
20 PRKU Price KUMU variant a If Item cat = ZTAQ or ZTAE Standard (36)
30 DS00 Discount condition type Standard (2)
40 DSKU Discount KUMU variant a If Item cat = ZTAQ or ZTAE Standard (36)
50 SC00 Surcharge condition type Standard (2)
60 SCKU Surcharge KUMU variant a If Item cat = ZTAQ or ZTAE Standard (36)
70 PRMI Price main item If Item cat = ZTAQ = PRKU
80 DSMI Discount main item If Item cat = ZTAQ = DSKU - PRKU
90 SCMI Surcharge main item If Item cat = ZTAQ = SCKU - DSKU
100 PRRE Price Cond reverse If Item cat = ZTAE = (-1) x PR00
110 DSRE Discount Cond reverse If Item cat = ZTAE = (-1) x DS00
120 SCRE Surcharge Cond reverse If Item cat = ZTAE = (-1) x SC00
130 Total 10 120
140 MWST Tax 130
The Logic…

Let us take the same example: Condition record

Main item Sub item 1 Sub item 2 Sub item 3
Price 50 40 100
Not
Discount -5 -10 -15
maintained
Surcharge 10 20 10
in VK11
Tax 10% 10% 10%

The pricing procedure will work as follows:

Confectionery Item
Condition
Sr. No. Statistical Requirement Calculation Main item Sub item 1 Sub item 2 Sub item 3 Regular item Remarks
type
ZTAQ (no pricing relevant) ZTAE ZTAE ZTAE
10 PR00 Standard (2) Will not be read (req. 2, not fulfilled) 50 40 100 50
20 PRKU a If Item cat = ZTAQ or ZTAE Standard (36) 190 50 40 100 Will not be read Statistical
30 DS00 Standard (2) Will not be read (req. 2, not fulfilled) -5 -10 -15 -5
40 DSKU a If Item cat = ZTAQ or ZTAE Standard (36) 160 45 30 85 Will not be read Statistical
50 SC00 Standard (2) Will not be read (req. 2, not fulfilled) 10 20 10 10
60 SCKU a If Item cat = ZTAQ or ZTAE Standard (36) 200 55 50 95 Will not be read Statistical
70 PRMI If Item cat = ZTAQ = PRKU 190 Will not be read Will not be read
80 DSMI If Item cat = ZTAQ = DSKU - PRKU -30 Will not be read Will not be read
90 SCMI If Item cat = ZTAQ = SCKU - DSKU 40 Will not be read Will not be read
100 PRRE If Item cat = ZTAE = (-1) x PR00 Will not be read -50 -40 -100 Will not be read
110 DSRE If Item cat = ZTAE = (-1) x DS00 Will not be read 5 10 15 Will not be read
120 SCRE If Item cat = ZTAE = (-1) x SC00 Will not be read -10 -20 -10 Will not be read
130 Total 200 0 0 0 55
140 MWST (10%) 20 0 0 0 5.5

The goods movement will happen as expected

Thank you!