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

Posted by PSD Rajan (Solutions Architect)
on Nov 5 at 1:15 PM

Looking at the requirement from a pure indirect sales perspective, the
process would look like:
a) Deliver and invoice dealer at List less Discount (90)
b) Dealer pays on due date (90)
c) Dealer submits sales details - Raise Credit Memo for difference between
dealer price and customer price plus commission. The difference will hit
the revenue as discount and commission will be charged as expense.
Question here is whether the credits should be tied to specific invoice
line items (no value addition).
Issue here is there is no easy control to confirm the customer
price. Makes the process wide open to fraud unless the sale price is
controlled by the client.
SAP addresses indirect sales for rebates using extended rebate processing
and pendulum list. This does not address the credit for the difference
between cost and sale price for the dealer (which does stick out as very
odd here). Hence, addressing the commission in the credit memo itself.

---------------Original Message---------------
From: Rajan Subbaraman
Sent: Saturday, November 05, 2011 12:54 PM
Subject: Pricing Procedure for Indirect Sales

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.

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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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