Wednesday 6 July 2016

Variant Pricing

What is variant Pricing 

Pricing configurable materials is a unique process because all items that make up the superior material must be taken into account. SAP uses a method called variant pricing to derive a final price for a configurable material. This method utilizes variant configuration and condition records to arrive at a price for the material. The objective of this activity is to explain how SAP locates the appropriate condition records to calculate a price for each variant configuration


Steps needs to perform 


Create condition records for material variants:

Variant pricing requires the creation of condition records to calculate discounts, taxes, or surcharges for the variant material. A variant material is one that possesses a number of different configurations. A car, for example, could be a variant material because one configuration may include a different type of tires than another. Two different configurations of the same car, therefore, one with wide tires and another with narrow tires, are variants of the superior material. Condition records are created to account for each variant of the header material. Using a condition record, for example, a discount would be calculated for a particular variant. This discount is then added to the header material. All possible configurations of the superior material, therefore, are covered either by creating one condition record which includes separate discounts, surcharges, or taxes for each variant or by creating a unique condition record for each variant. 

The following are two types of condition records specifically created for variant pricing:

· VA00: Discounts and surcharges applied to the item are based on the quantity ordered.

· VA01: Discounts and surcharges based on a percentage.


Create dependencies for each variant:


For the appropriate condition records to be located for each variant, object dependencies must be created. Dependencies are created so the correct condition record is applied to its corresponding variant. The use of a particular condition record, therefore, is dependent upon the variant configuration selected. For the header material car, for example, a dependency would tell the system to use condition record "XXXX" if the variant is a red, two-door, with a V6 engine. Condition record "XXXX" specifies a discount, surcharge, or tax which is then added to this variant of the header material car. The dependency says that choosing this particular condition record is dependent upon finding the values red, two-door, and V6 engine 

for the header material car. Pricing, in this case, is dependent upon choosing these three values.

Pricing may also be independent of certain selected values. After the three values, red, two-door, and V6 engine are chosen a price is applied to the material car. Price is therefore, independent of the other values selected. Anti-lock brakes and bucket seats may be selected and have no effect on the price of the car.


Calculate a price for the variant material:


Once the correct condition record is selected for the variant, a discount, surcharge, or tax is added to the price of the material. For the red, two-door car with a V6 engine, for example, a discount condition record is selected. This record dictates that for this variant, a 10% discount is applied to the regular price of the car. At this point, 10% is deducted from the total price of the car and the final price is calculated.