Re: [sap-log-sd] Pricing Procedure for Indirect Sales

Posted by PSD Rajan (Solutions Architect)
on Nov 5 at 12:53 PM
Strip all the fancy stuff and look at the bare process.
Client sends material to Dealer. Dealer Sells to Customer at CX. Dealer
gets credit for commission DX*.1. Dealer pays client CX-commission.
To arrive at what the Dealer has to pay the client, we need to know a)
commission base (which here is 90); b) Sale price to the end customer
(which presumably is already known upfront since it can be read from a
condition table). Further, it looks like payment from Dealer is due only
after the sale to end customer.
Lots of assumptions here. You need to know -
a) Does the dealer get possession of the material from the client?
b) What is the payment term between the dealer and the client?
c) Who determines the sale price between the dealer and the end customer?
d) Who does the end customer pay?
The process needs to be laid out plainly without being biased by any
solution approach in SAP. The issue of credit note is part of the solution
which we don't want to hear at this stage. The client is setting you up to
lose track of the actual process here. Remember 'Customer is always right'
is NOT always right.

---------------Original Message---------------
From: Typewriter
Sent: Saturday, November 05, 2011 11:54 AM
Subject: Pricing Procedure for Indirect Sales

Hi Rajan,

Many thanks for your post, I too have marked it as helpful.

After again reading the thread, I think -
- Dealer is the customer
- A company - that has implemented SAP SD - is selling to the Dealer. Thus the price at which Material X is sold to a dealer is PR00
- As it is mentioned material is being sold to dealer e.g. $100 (i.e. PR00), I am assuming that dealer is paying 100$ to the company
- Furthermore, when a credit memo is being created towards a dealer, that makes me conclude that Dealer is the customer
- The procedure is complicated because - in this case - we have to take in to consideration the selling price of a customer (in this case chain is longer i.e. Company --> customer --> its customers)

I do not think consignment process here shall work as dealer warehouse is NOT consignment warehouse, if you are going to take END customer as the customer. In my opinion and from reading this thread - Dealer is someone else and end customers are a separate entity.
Furthermore, the dealer is the final customer for the company (that has implemented SAP), at least that is what is being understood.
What was the reason behind you suggesting this?


Please give more information

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PSD Rajan
SAP Logistics Sales and Distribution Helper

Posted helpful replies on 5 threads in a group to earn a Bronze Achievement
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