Cost plus Margin in pricing

Dear All,
Can anyone explain me if I can link my sales price with GR value.?The requirement is the client wants to link the sales margin with GR value of the material.
So I want to calculate price = cost + 10% margin. Can i use condition exclusion for EK01 and VPRS condition type and to find higher cost and then add margin.?
Please guide me with what should be in subto field...
Thanks in advance...
Plz reply soon....
Regards
manish
Edited by: Manish Patel on Oct 19, 2008 9:15 AM
Edited by: Manish Patel on Oct 19, 2008 7:24 PM

Hi,
For this change, just enter the step number of the value after tax in the from field of the profit margin.
see if this works out.
every condition type has a step number and a counter number.
enter the step number of the value after tax to the from to field in the profit margin value.
regards,
Siddharth.

Similar Messages

How to capture Material costs, profit margins in pricing

Guys,
What is the way to capture material costs, profit margins and other sub-totals into the pricing procedure?
Thank you.

Hi
For capturing the material costs, you can use one of VPRS, EK01 or EK02 condition types. The usage of these condition types and their significance can be seen in some other thread here. There are lot of threads on these condition types.
You can also go to these links given below.
http://sap.ittoolbox.com/groups/technical-functional/sap-log-sd/condition-type-ek01-ek02-1396383
http://www.jt77.com/system-dynamics/model-08388.html
http://www.jt77.com/system-dynamics/model-05254.html
http://www.jt77.com/system-dynamics/model-04469.html
http://www.sap-img.com/sap-sd/difference-between-condition-type.htm
This should also tell you something about profit margin.
For subtotals, there is a separate column in pricing procedure and you can mention which subtotal a condition type or subtotal should correspond to. The subtotals range from 1 to 9 and then A to Z. The purpose of these subtotals can be seen by putting an F1 in that column or through some oss notes.
Hope this helps you.
Rewards if this helps.

Hide the cost and margin fields on Sales Orders and Invoices

Hi all,
I need to hide the cost and margin fields in Sales Orders and Invoices. We sell our products to our employees sometimes, hence we don't want them to know cost and margin information.
Can this be done?
Cheers

Go to VOV7 & as per the Item category ,de - select the Check Box Determine Cost.
Else remove the Condition Type VPRS & Margin Condition type from the Pricing Procedure
Best Regards,
Ankur

Cost plus and fixed cost project

Project Experts,
I have business requirements to create two projects first with fixed price and second with cost plus. Has any one did this and would like to share there expertise would be great.
Here are details.
For cost plus the business need is to create a project with transactions that applied a markup over the cost percentage. Any one did this do you know how you applied mark up over the cost %
For Fixed cost create a project with transactions that will create an automatic (additional line) with flat fees?
Many thanks in advanced for your time
Aijaz

Hi
I'm not sure I understood the exact requirements.
Anyhow, you could bill and generate revenue for a project based on the project expenditures. Setup the distribution method as WORK. You need to setup the bill rates for labor and bill rates for non labor resources. If you setup the bill rate for non-labor as 5%, the system will apply an additional amount of 5% to the costs of project non-labor expenditures. You could also use the burden schedule to apply a percentage of markup on labor and non labor expenditures. In any of those alternative you invoice will include lines which summarize the RDLs. The amount of each RDL us the calulated billing amount which include the raw cost with the additional markup.
Your additional alternative for billing and revenue is using events, which could be automatic or manually entered. Automatic events are calculated and generated based on the custom logic you might develop using billing extension. You could use that method to generate a fix amount event for the project invoice / revenue. Each event will be included as additional line in the invoice. Note, if you invoice should include the amount of expenditures and additional event based events, the distribution rule should be WORK. If you only need to bill the events, without the RDL's of expenditure items, setup the project for revenue and invoice method as Event.
Dina

DBA Support cost - Per DB ( Unit Pricing Model) .

Hi,
For one of the RFP solution we are asked to give the DBA Support cost Per unit ( Different pricing for Simple, medium, Complex Categories ) .
Do you know the typical price range for DB / Instance ?
Apart from Clustering,Size what all factors are taken into account to decide on Complexity
Thanks in advance for an immediate reply
Regards

For one of the RFP solution we are asked to give the DBA Support cost Per unit ( Different pricing for Simple, medium, Complex Categories ) .
Do you know the typical price range for DB / Instance ?
Apart from Clustering,Size what all factors are taken into account to decide on Complexity Contact Support person.
Check this for license and pricing list http://www.oracle.com/us/corporate/pricing/technology-price-list-070617.pdf

Profit Margin in Pricing

Hi,
I am using a pricing procedure which includes the condition type "vprs" for cost.
However, my Profit Margin shows the sum of my TOTAL and my COST.
Can you advice me on how to rectify this?
Thanks and Regards,
Aditya

In the T.code: V/08 go to your pricing procedure and in that, in reference to the condition type VPRS check if it is checked for Statistical.
The functionality is given below
Statistical:
This indicator if it is activated will not allow the value of the condition type to be taken into net value calculation.
It is used only for information purposes only.
This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).
This is commonly used for condition types
SKTO - Cash Discount
VPRS - Cost (Moving average price/Standard Price).
Also Profit margin should be assigned with AltCTY as 11.
Regards
AK

About the costs from iSuppli and pricing policies

Mobile / Techrunch:
“The folks at iSuppli have found that iPhone 4, according to their estimates, cost $188 to make. While this is almost comically low, it says something about Apple’s ability to mass produce phones and the high margins they’re able to make on relatively low-cost products.”
I’m really surprised to see such a point of view in an online tech publication…
One friend of mine was saying the other day: “If somebody invents the Star Trek beaming machine out of two forks and half baked potato, there would be no way for this machine to be priced as the sum of its physical components; thinking this way it’s pure communism, to just equalize the price to the costs”.
Read more at http://utestme.com/2010/06/28/communism-vs-apple/

so R+D, staff, shipping, marketing, store costs - all cost nothing?

Standard Report on Purchase Cost,Sales Cost and Margin

Dear Friends,
We are working on SAP 4.7V. The user requirement is like ths. Is it possible.
Can you advise me what need to do to get this Report from SAP for Margins earned.
a.       For every item, we have purchase costin INR
b.      We have data on duties and taxes in % and hence can be allocated to each item.
c.       Other costs like transport, etc. can be allocated on total transport cost divided by the total no. of items transported.
Please advise.
Regards
Sridhar

The requirement is not possible and is on hold.

Urgent : CO product costing into the SD pricing

client requiremnet is that product costing of material should be reflected in pricing procedure.
Thanks in advance.

Hi Rahul,
you need to work along with CO guys.
the concern condition type is EK01 (cost from co used as a basis for furthur calculation of pricing)& EK02 (used just for reference -statisticle value)
this also has assignment in your respective doc. type.under billing tab.
hope this will put some light on required area.
karnesh

What is the strongest iPad that will work in New Zealand and Australia? What is the cost plus tax, please?

What is the strongest iPad that will work in New Zealand and Australia. What is the cost including tax, please? Can I purchase this at the Brea, California Apple shop?

You can see the American retail prices on the Apple website. If you look at 3G, make sure not to get the Verizon model, as it won't work outside of the US.
Otherwise, sales taxes are different from jurisdiction to jurisdiction, so you'll have to Google to find out the local sales tax in Brea as well as the California state sales tax.

Excise on Net and VAT on Net plus margin

Hi.
We purchase some material from a vendor. This vendor in turn is an intermediary who purchases it from a manufacturer.
The Manufacturer sells this material to vendor at say Rs. 100/- + ED of 8%. The vendor adds a margin of Rs. 40 to it, making the price 100 + 8 + 40 = 148/-.
Now the vendor sells it to us at 148 + 12% VAT i.e. 148 + 17.76 = 165.76 /-
How do we map this scenario in SAP to claim CENVAT ? Because tax calculations are based on Net price. So even if I put a Net price of say Rs.100, the ED will be calculated correctly as Rs.8/-. But the VAT (which is deductible) will also get calculated on 108/-.
How do we make the system calculate VAT on 148/- ?

Hi,
Assumptions : Material price (inclusive of ED )                 : 148.00
                           VAT (Deductible) @ 12%                      : 17.76
Amount Payable to Vendor                       : 165.76
Actual Excise Invoice received for amount                   : 8
Amount to be loaded on Inventory                        : 140
1   While creation of PO for such cases maintain the u201CZerou201D tax code u2013 usually V0. Also do not forget to tick mark GR based IV.
2. While doing GR through MIGO, enter the actual Excise duty in the respective cells of Excise Tab in Item details. Also ensure to change the Base value to [PO value u2013 (ED)].
3.In the Excise Header Tab maintain Excise Invoice No. and Date & Check on MRP Indicator. This check ensures that the value going on inventory is after deducting the Excise Duty .
4.In MIRO Screen, change the Amount to the Base Amount.
5.Ensure that the Calculate tax Indicator is checked and the value populated in Tax Amount is = ED maintained in GR + Vat maintained in PO(thru Condition record).
Regards,
Shailesh Mackwan

COST OF GOODS MANUFACTURED IN COPA - MARGINAL COSTING?

Dear members,
I need to confirm the following:
COPA provides profitability based on Cost of Sales and not Cost of Goods Manufactured (COGM) for the period.
I need to confirm if this is possible in a COPA report:
SALE as per Billing
COGS:
Material Costs (as per costing key settings in COPA) relevant to sales
Activity Costs:
Labor (cost for the period)
Overheads (cost for the period)
For activity cost if I take the data available from the value fields, it will be relevant to Cost of Sales and and not COGM.
Firstly is it possible to call up cost elements and cost centers in COPA report painter (costing based COPA)? If I can, I take this cost as posted in cost element (primary) and cost center (for my overheads and labor costs) then it provides me cost for the period. But will it show me that cost by SKU (Finished Material)?
If the above is not possible please suggest how can I get Marginal Costing in COPA?
Regards.
MAK

Hello MAK,
Right, you can use both form of reporting simultaniously. No consequenses, but every time ou need to change the type in KEBC.
But while getting requirement from client you need to make sure which type suites the most. This will yield better report.
To achive Marginal costs results you can go for the Costing based report. becase you need to analyse the pattern of change of total cost over period of time.
Ex: Period 01 Period 02 Period 03 P............................
Total revenue:
-Total Cost :
Contrbution Margin:
Hope this helps
Regards
Ajith

Cost in pricing

How is the cost determined in pricing?
How can I recognize how the cost was determined?

Cost is determined in pricing by following ways:
In the order, the cost is generally taken from the valuation segment of the material master.
In the billing document, however, it may have other sources. Depending on the business transaction, the costs can be taken from the goods issue of the billed delivery or, in the case of a third-party order processing or individual purchase order, from the respective purchase order, the goods receipt or the invoice verification in purchasing.
If you want to see how was cost was determined:
Go to the detail display of the VPRS condition. If the condition control (KSTEU) is set to 'H', the cost was taken from the goods issue. If it set to 'A', it was redetermined from the valuation segment of the material master, in case of 'D' or 'E' it was copied from the preceding document.

Costing and Pricing

Hi,
This thread probably doesnt belong here...
I am working on a margin tool that is an extension of sales online quoting 'lines' page.
-The old page allows you to add products and see prices.
-The new page also contains product cost for margin calculations.
Now the issue is that for configured products the costs that are in cst_item_costs are rolled up, and the price that shows up is not rolled up. Please suggest what can be done.
thanks
Kalpana

No the material type should be a FG : it is relevant for sales reporting. For example I call it material "A". In the material master data within the sales screen the item category group ERLA is assigned to "A" . The material A is a grouping material with a sales BOM which contains some sub-items for example B and C which are picked and shipped together. The grouping material is not handled as stock material: only the sub-items are stocked and moved.
The customer could only require the material A with its price and receive phisically the two sub-items with a unique package unit or with two separate ones.
In this scenario the FG with ERLA item could be estimated for standard cost or not?
Thanks in advance
Andrea

Sales Order cost estimate with variant config

Hi
I'm hoping for some advice on costing on a variant material.
I have created a sales order for a variant material and ran a cost estimate to get costs for the sales order. Should this populate a cost condition within the sales order pricing? How can the margin be seen in the sales order?
Thanks for your help.
Ashley Shannon

Hello Ashley
Yes, if you have done your settings correctly, especially Requirements class set up (see the documentation link), then the cost estimate will flow to a condition type in Pricing, usually EK01/EK02 conditions. These conditions are used to calculate sales prices (PR00) in cost-plus (mark-up) scenarios.
Link: http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6da4446711d189420000e829fbbd/frameset.htm
However Profit margin as calculated in a sales order comes from VPRS condition (which is based in Material Master) and is the difference of net value and VPRS condition value in normal circumstance.
Hope other more knowledgeable experts will weigh in.

Cost plus Margin in pricing

Similar Messages

Maybe you are looking for