Sap Sale Module: Re: [sap-log-sd] BOM header price

Posted by G (Ms)
on Sep 21 at 10:05 PM

Thanks Claudio for the details. It is most helpful. :)

best regards,

---------------Original Message---------------
From: Mr. Ipinza Claudio
Sent: Wednesday, September 21, 2011 12:15 PM
Subject: BOM header price

Hi,
For SAP this is a typical scenario "Managing Displays in the Consumer Products Industry".
Unfortunately, no easy standard solution exits for this issue.

Definition:
? "Displays" is a consumer products industry term referring to finished products that are assembled from other finished product(s). Typically, pallets of standard product are broken down into individual packages and then re-assembled, sometimes with promotional materials, into new units (trays, cases, pallets). These new, finished products have their own UPC code, but may contain packages from one or more other finished product UPC codes.

? "Displays" may be assembled at manufacturer owned facilities, third-party distribution centers, or co-pack manufacturers.

? Examples of "Displays" include display trays, display shippers, modular pallets, merchandising units, rainbow pallets, banded packs, and pre-priced products.
Business Requirement:
The main business requirements are:

1. Cost-effectively track the sales volume and profitability of a "Display" product and its components.

2. Automatically calculate the 'list' price of a "Display" product based on the list prices of its components.

Conceptual Design:
? Automatically transfer the finished product items from the production bill of material of a "Display" product into the sales order as statistical sub-items for pricing and reporting purposes.

? Note: While the 'SAP Best Practices CP Value Chain' recommends using sales BOM's, with the rapidly growing number of "Display" products that many consumer products manufacturers have to manage, the maintenance of sales BOM's is considered unmanageable.

? Automatically calculate the 'list' price of a "Display" product based on the sum of its individual component prices.

? Note: The pricing elements of the component products that are used to calculate the price of the "Display" product can be flexibly defined. The decimal precision of the calculation can also be controlled to any level of accuracy and can vary by pricing element.

? Define and apply all discount, surcharge, and cost conditions at the "Display" product level only. Automatically suppress these elements for the component sub-items.

? Automatically allocate all revenue, discount, surcharge, and cost conditions of a "Display" product to its finished product components according to the following rules

? Revenue and non-distribution related discounts and surcharges applied to a "Display" product are to be allocated to its finished product components based on the "gross" price of each component.

? Note: The gross price of the components can be flexibly defined.

? Distribution related discounts and surcharges applied to the "Display" product are to be allocated to the components based on the quantity of each component.

? Cost of the "Display" product is to be allocated to the components based on the cost price of each component.

Standard Solution:
The custom solution uses the following standard solution as a starting point. Keep in mind that the standard solution is very basic, and the custom solution involves extensive configuration and user-exit development. This standard solution is intended to capture the component quantities for statistical volume reporting only. This does not include the pricing or profitability dimensions.

? Maintain a sales bill of material for each "Display" product (transaction CS01, usage=5). The sales BOM would be similar to the production BOM, but would only contain the finished product materials and quantities and not packaging, labor, etc.

? Assign item category group 'ERLA' to each "Display" product

? When a "Display" product is entered on an order, the item category group 'ERLA' will trigger the determination of item category 'TAQ'. This item category will trigger a lookup of the sales bill of material and an 'explosion' of the BOM components as sub-items with item category 'TAE'.

? The sub-items with item category 'TAE' are not relevant for shipping, inventory management, pricing, or billing.

Custom Solution:

? No standard solution exists, and custom solution was developed based on the requirements of a specific consumer products manufacturer. Extensive pricing routines and copy control is required.

Regards,
Claudio Ipinza

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