Item Category Pricing Relevance

We are currently reviewing the configuration for some of our item categories, specifically those relevant to variant
configuration and sales order BOMs, and several questions have arisen that we'd like answered. The basic decision
being weighed here is whether to configure the item categories for lower-level VC and sales BOM items to require pricing
and then apply a 100% discount or to configure the item categories to be irrelevant for pricing.
1) What is the importance of capturing the pricing information for lower-level items on an assembly? Is it possible that
other processes are predicated on capturing this information? Would marking these items as pricing irrelevant as
opposed to applying a discount handicap us on future reporting or process-related initiatives?
2) What is the best practice for representing free-of-charge VC and sales BOM items on the sales document? Should
they be listed on the sales document at all? If so, how should their sale price and discount be represented?
3) Does a 100% discounted item gross up revenue?
Thank you for taking the time to review our inquiry.

Hi
1) What is the importance of capturing the pricing information for lower-level items on an assembly? Is it possible that
other processes are predicated on capturing this information? Would marking these items as pricing irrelevant as
opposed to applying a discount handicap us on future reporting or process-related initiatives?
>>> How to configure it is depend on business process
Example - Scenario 1 -selling Desk top computer along with keybord, mouse and I want to calculte price at each and every item in sales BOM, then i will keep price at item level, because some time i can sell this as single item too.
Scenario 2 - I don't want to calculate price for each item I will calculate price at higher level item only in sales BOM,then i will keep at price at main item/higher level. and to calculate cost/internal price IN COPY CONTROL delivery to Billing at item level tick mark to CUMULATE COST the cost/internal price will sum up in main item
2) What is the best practice for representing free-of-charge VC and sales BOM items on the sales document? Should
they be listed on the sales document at all? If so, how should their sale price and discount be represented?
For free of charge item you give 100% and maintain settings in copy control as above
3) Does a 100% discounted item gross up revenue?
No discount will not gross up it just make net value of that item zero, even if we give it free, we had incured some cost to manufacture this item and also we have to calculate taxes
maintain price
then tax is calculate on base price
Cost/internal price from material master
if you give 100 discount only net value become zero, tax and cost will flow to FICO when you create invoice
kapil

Similar Messages

Proposed item category & pricing procedure

Hi All,
How can I add a proposed item category to copy controls. I want to adda proposed item category for consignment returns with source as F2 (invoice).
Also, plz let me know where to check for pricing procedure assignment.

Hello Singh,
1)The pricing procedure assignment can be done/seen in t.code OVKK.
2)You can add the item category to copy controls. Lets say you want to include it for F2,
If the source document is sales order go to T.code VTFA
If the source document is delivery go to VTFL
Select the combination of your source and destination documents and click on ' item' under dialogue structure. Click on change icon, Now you can add your item category.
Hope this info serves your need...
Thanks,
Mohan

Item category Billing Relevance

Hi All
Can i exactly understand what is the exact impact on the system for the Billing relevance in the item category?
If I set it as 'B' -Relevant for order-related billing - status according to order quantity
If I set it as 'C'- Relevant for order-related billing - status according to target quantity
I could not understand the impact of the Billing status.
Lets say for eg. If I raise an order for 10 Nos. & deliver 8 Nos & bill what would be the status of billing if I choose "B" & what would be the Billing status if I choose "C".
Looking for your feedback
Thanks & Regards
Aravind

HI there,
Option B: Relevant for order-related billing - status according to order quantity
Billing is based on the sales document. The requested delivery quantity determines the billing status.
Item categories REN (Returns) and BVN (Cash sales items) are set up with billing relevance "B" in the standard system.
Option C: Relevant for order-related billing - status according to target quantity
Billing is based on the sales document. The target quantity determines the billing status.
Item categories G2N (Credit memo) and L2N (Debit memo) are set up with billing relevance "C" in the standard system.
For eg: You order 10 quantities. But you create 2 partial deliveries of 5 each. If option B is selected, system considers order quantity 10. If option C, then it considers target quantity 5.
Hope this clarifies.
Regards,
Sivanand

Is item category relevant for pricing procedure ?

Hi Guru,
Please let me know with examples where item category is relevant for pricing procedure.
Thanks

Dear BAPI,
First Tings First, Item category is not relevant for determination of pricing procedure.
Pricing procedure is calcualted on the bais of these Parameters:
1) Sales Area ( Sales Area is a combination of Sales organization, Distribution Channel and Division)
2) Document pricing procedure
3) Customer pricing procedure
Hope this helps you.
Do award points if you found them useful.
Regards,
Rakesh
P.S. you can send me a mail at my mail id [email protected] for any specific details

Billing Relevance in item category

Hi All,
I have to create a proforma invoice immediately after sales order is created for the item with item category TAN.
1. Now when I am trying to create a proforma invoice F5 for sales order in VF01 the system allows me to do so which should not happen since billing relevance for TAN is A i.e. delivery related biling document.Please let me know why is this happening.
Item category billing relevance determines whether an invoice is to be created from an order or delivery then how come this is being allowed.
2. lso, since I need to create a proforma invoice after sales order then do I need to change the item category to say ZPRO with billing relevance as D and then create proforma invoice.
Once proforma invoice is created then again change the item category back to TAN, create delivery and bill.
Is this the right procedure or there is some way to do it.
Thanks and Regards
Gaurav

system allows me to do so which should not happen
If you have maintained VTAF copy control for sale order to proforma, then system will allow. Check whether you have maintained.
since I need to create a proforma invoice after sales order
Here I am not clear. When in first statement, you say it should not happen here you say you need to create. Please note if you want to create proforma against sale order, you need to maintain copy control as suggested above and also you need to maintain commercial invoice type to your delivery in VTFL, so that system will allow you to create both proforma and commercial invoice. No need to change the item category which is not standard.
thanks
G. Lakshmipathi

Item is not relevant for Billing-VF 044

Hello Experts,
I have the scenario where i am doing Return Process.Here i have done it through scratch as in set the copy control for LR to RE ,with item category REN.
The entire process was running fine till Post Goods Reciept.
But when i am billing the same it says:-- Item is not relevant for Billing
I have done the following :-
VOV7-REN-Check-Business Item
Check-Credit Active
Billing Relavance--A
Pricing-X
Kindly guide where i am missing anything.
Regards
Swati Bhatt

Hi,
I assumed you have thoroughly checked all the configuration is complete it as suggested by other consultants.
In addition to the above, you may want to check if your item category is relevant for POD. If yes, and the POD is not completed, then it would not be possible to create billing document when it is not completed.
You may also want to check in your delivery document overall status of the Delivery document: Go To --> Delivery Header --> Processing. Check the overall status whether it has met all the required status and what other status has not been fulfilled that prevented the Billing doc creation.
Ideally, the standard system would not have POD relevance for return item, but it may have been configured by other individuals.
Hope the above helps.
Thanks.

Item category redetermination

Hi friends
I have a requiremnet in VA01 transaction.
Requirement :
     when iam entering line item in sales order
      ie :
     material no     quantity
      40                 10
   after entering the value and press enter it will determine item category and pricing in the background and will display the values on to the screen.
ie : after pressing enter iam getting these values
   material            quantity      item category      pricing
    40                     10               TANN                ABC
now my client requiremnet is when is changes the materail
ie :
material from 40 to 41   and press enter
in background it will determine again the item category and pricing .
But the processing should not done ie : it should take the item category and pricing of material 40 only.
ie : when the material is changed the item category and pricing should not be redetermined.
How can i stop that process.
is it possible.
To stop this which user exit should be used.
Regards
PRIYANKA.

Hello,
       If you are using ECC 6.0, then you can find an Enhancement Point in the Program MV45AFZZ where you'll find several Routines relevant for determining Item Category. Choose the appropriate one and create an Enhancement Implementation for your requirement.
Thanks and Regards,
Venkat Phani Prasad Konduri

Third party customization: item category TAS

Dear experts,
I am customizing third party process. I copied item category TAS and schedule line category CT. Ideally this item category is relevant for order related billing. I changed it to delivery related billing so that I can combine this item with other items(TAN,TAK) into one invoice during billing. At PGI for item with item category TAS, a new document called confirmation of service appears in the document flow. Where does this document come from? When I click on it, a message appears that no document exists, why is that so? How do I set the number range for this document and where do I locate it since it is not in the sales document types in SPRO?
Thank you in advance and looking forward to your answers

Dear Benjamin
Why you take CT instead of CS here--can you please brief us.
Normally this second letter "T" used for No-Inventory management.
(In third party Inventories cannot be--made you to think like)
But Please compare AT/BT/CT Vs CS--you will get the underlying problem of field which are compulsary in Third party processing..(like order type,Account assignment category)
Hope this helps.
Phanikumar

Item category TA YTAK cannot be invoiced with billing type F2

Hi Experts,
Error message in creating billing
I did not make shipment and directly make delivery PGI This is transportation relevance showing in delivery.
Is this reason preventing from creating F2 blling type?
I am getting error for item category YTAK can not be invoiced with billing tye F2
VOV8 order type is OR. F2 is maintained for delivery related and also sale order related billing F2. YTAK item category billing relevance A It has special stock indicator E. Copy control VTFL has Item category YTAK as below screen shots.
Sales order is complete, delivery is complete and PGI is done. No order/delivery/billing block.
I had made shipment configuration but for this delivery I did not make shipment but directly PGI.
So is this error for billing?

Hi,
I have resolved this issue by creating shipment.

Service item Category and pricing relevance

In regular sales contexts Item categories can be customized for Pricing relevance and billing relevance.In Service context there are no such settings for Pricing and billing relevance.
The only settings for service item category in service context are the ones for resource planning, Confirmation, costing, service type and valuation type and counter managemnet etc.
How does Pricing work in the case of a Service order with item category Ex. SRVP.
Can some one answer this question?
Regards

Hi Rani,
What you can do is assign Business Transaction Category
SALES (BUS2000115) into your Service Item Category.
To do this, just go into Item Category maintenence,
select your Item Category (service), then click on
Assigment Business Transaction Category (located on left
tree menu). Currently, may be you only see BUS2000116 assign to it, then add/create new entry and select BUS2000115.
Now you have this Pricing Relevance setting.
Hope this help.
Cheers,
Gun.

Item category fields: Pricing & billing relevancy..

Hi Experts,
In item category have fields called pricing & billing. why?
If item relevant for billing means system relevant for pricing as well.
If the item is relevant for pricing means we do billing for that item, then why fields are required,
Please light on this.
Thx

Hi
Billing Relevence means order related billing or delivery related billing and so on
Means whether the sales order is taken as a source doc for billing or delivery doc is taken as a source doc for billing and so on and accordingly copy controls are set
Billing relevence means pricing also is there
why separate fields
Both of them have different controls
Pricing means whether it is standard pricing(normal pricing),No pricing,or 100% discount like these entries are defined
Say TANN it is not relevent for billing but pricing is B that is 100% discount
It means when the sales order is created when an item is created free of charge the system determines the pricing for that item and makes it a 100% discount thro condition type R100
It means when these values are posted in FI you will know how much values you have given as discount
For free item also involves manufacturing cost or procurement cost which the client parts as a sales promotion so he need to know the values
When this item cat TANN comes for billing it is not billed because billing relevence is kept blank
Pricing here controls what is going to be the pricing in sales order not in billing doc
Regards
Raja
Edited by: ramanathan raja on Dec 2, 2008 3:24 PM

11i Advanced Pricing Questions on usage of Item Category Segment Values

Hi All,
we are on 11i, i am trying to setup on modifiers using Item Categories. Customer has 4 segment category structure.
Category structure= Vendor, Group, Style, Price code , here is how Data looks = 060.10.800.40
In 11i, can we setup Modifiers on Segment1 & Segment 2 ( 060.10), so system picks up all values for segment3 and segment4.
I understand R12 can do this as per Metalink Note: 746020.1. is this supported in 11i.? I am unable to accomplish this.
regards
girish

Hi
Please donot post more questions in a single thread. If you post it separately, you will get many responses and detailed explanations from more members.
Regarding your queries.,
1. Relevant for delivery field in Item Category is for TEXT Items and for others you should configure the field in Schedule lines.
3. Shipping conditions will be defaulted from the CMR of SP. If a value exists in the sales document type (eg. OR) then it will have priority and will replace the value defaulted from CMR.
5. The pricing applies to Item Level only. But you cannot determine different procedures for different line items.
6. Header conditions will not have access sequence and you cannot create condition records for header conditions in VK11.
7. In consignment process - the first two steps are mandatory i.e., Consignment fillup and consignment issue.
The other two steps are required only if there are returns from the customer(not consignee) and if there are any unsold stocks at the consignee.
Thanks,
Ravi

Regarding difference between item category TAQ & TAN price relevant in BOM

In Bills Of Materials in MAIN ITEM-- TAQ is price relevant & In SUB ITEM --TAN is price relevant.so what is the difference between them

Hi Kalpataru,
The settings for TAQ and TAN are the same in standard system. You could check it in VOV7.
Normally we provide two sample standard item category groups for BOM creation.
If you are using item category group ERLA in materail master, then the BOM will be created as following:
Main Item TAQ (Pricing)
Sub Item TAE (no pricing)
And if you using item category group LUMF, then the BOM will be created as following:
Main item TAP (no pricing)
Sub Item TAN (Pricing)
Hope it helps.
Thanks and best regards,
Smile

Automatic Re-calculation of pricing on re-entering item category

Hi experts,
I have a requirement where during sale order creation (VA01), if I enter the necessary details on the screen and do not enter an item category, and I press enter, the pricing gets calculated. Now if I add an item category and press enter again, the pricing should get re-calculated again.
Currently, pricing gets calculated only if i press enter he first time. It does not get re-calculated if i change it. What do i do for this?
If I go to the conditions tab and click on update, and then select 'B' "Carry out new pricing", the pricing does get re-calculated. But I want it to get re-calculated automatically.
Thanks

For an Abap solution (*) try form USEREXIT_NEW_PRICING_VBAP in include MV45AFZB
if vbap-PSTYV ne *vbap-PSTYV.
new_pricing = 'B'.
endif.
([User Exits In Sales Document Processing|http://help.sap.com/saphelp_46c/helpdata/en/1c/f62c7dd435d1118b3f0060b03ca329/content.htm])
Regards,
Raymond
(*) If no other solution works of course.

New field in Pricing field catalog for Item category

Dear SD colleagues,
We have scenario of maintaining pricing for Lower level BOM component.
Like:
Base price - 100/-
When BOM explodes - 95/-.
For this, I have taken ABAPer help and inseted a Z field for Item category in Pricing field catalog.
Then, a new condition table is been generated using ZPSTYV and included in Access sequence. For Base price condition type, we have maintained record in combination with ZBOM-Item category for lower level BOM item.
A new pricing routine is created in VOFM for Condition value and same is been assigned to Condition type as Alternative calculation type in pricin gprocedure contro data.
Whe I create Sales order, value based on ZBOM is being pciked up by system.
request you to please help in this regard.
Thanks & regards,
Praveen.

Hi Marino,
I have a requirement to determine the pricing based on "Discount Code", which is not a standard SAP field and i would like to have this as a custom field and linked to customer in custom table.
Question: When i add a new custom field and custom table for pricing, what are all the things i need to do in terms of ABAP.
As per my knowledge, below are the steps...Please check and confirm my understanding is correct and let me know if i miss anything.
1. Create a new field
2. Create Custome Table
3. Add field to Field Catlogue KOMG
4. Add Field to KOMP (as this is item field)
5. Add code in userexit USEREXIT_PRICING_PREPARE_TKOMP to make the data avaialable - Sales Order
5. Add code in userexit USEREXIT_PRICING_PREPARE_TKOMP to make the data avaialable - Billing
Thanks.

Item Category Pricing Relevance

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