Calculating Quote price from Gross Margin in pricing procedure

[Former Member]

Hello Gurus,

   I hope you are all having a great day. I have a requirement from my users, to have the capabiltiy of

calculating quote price when a gross margin is manually entered, hence the following questions:

1. Does the quote price have to be a condition type or a subtotal?

2. If the answer to question 1 is condition type what is the ideal condition type for such calculated

price, if not PR00?

3. If the answer to question 1 is subtotal, how will this value be copied into a sales order in copy control?

3. What is the ideal condition type for a manually entered Gross Margin?

4. Do i have to create a different pricing procedure and document type for this process?

* The reason for the fourth question is due to the fact that a pricing procedure already exist for calculating

gross margin when quote price is manually or automatically entered.

Your anticipated response will be highly appreciated.

Thank you.

[jpfriends079]

Before I could suggest you anything.

I like to know

- how your current pricing structure looks like

Say

Calculation	Condition Type	Subtotal	Value	Amount
	Base Price		100	100
Total		Gross Price		100
+	Surcharge		20	20
-	Discount		10%	10
+	Freight & Insurance		40	40
Total		Net Price for Item		150
	Taxes		20%	30
Total		Net Price with taxes		180
Statistical	Cost			90
Statistical	Profit Margin(Net Price w/o tax - Cost)			60
Statistical	Customer Expected Price			102

In which industry price is derived gross margin?

Thanks, JP

[Former Member]

Hello Jyoti,

  I have attached a copy of what the pricing structure looks like.

Also, i see that you had customer expected price at the end of your example.

I assume that should replace the quote price i have in my example, which is what the customer

views.

*To answer your question,Steel and Tube.

Thank you so much for you reply.

[jpfriends079]

Okay,

Condition	Price Points	Value	Amount	Subtotal	Calculation
Quote Price		100
Freight		20
	Collect	100-20	80	KOMP-KZWI1
Internal Cost		50
Change in Price		10
	Material Cost	50+10	60	KOMP-KZWI2
Processing Costs		10
	Total Material Cost	10+60	70
Other Cost		10		KOMP-KZWI3
	Total Cost	10+70	80
Discount		5		KOMP-KZWI4
	Total cost w. Discount	80-5	75	KOMP-KZWI5
Gross Margin(%)		{(80-60)/80}	0.25		{(KOMP-KZWI1 - KOMP-KZWI2) / KOMP-KZWI1}
Net Margin(%)		[(80-75)/{80-(10+5)}]	0.07692		[(KOMP-KZWI1 - KOMP-KZWI5) / {KOMP-KZWI1 - (KOMP-KZWI3 + KOMP-KZWI4)}]

[Former Member]

Jyoti,

Thank you so much for your reply. The pricing procedure you have given, will help with calculating gross and net margin from price, but the requirement is to have the capability of arriving at a PRICE when GROSS MARGIN is MANUALLY entered.

My key questions are:

• What is the standard condition type for gross margin?
• Will the price still remain a condition type, since it will be automatically calculated

        by a formula?

Thank you.

Ahm.

[jpfriends079]

What is the standard condition type for gross margin?

To my knowledge, there is no standard condition type for that.

Will the price still remain a condition type, since it will be automatically calculated by a formula?

In my opinion, better it should be condition type. With this being a condition type, its amount will hit/capture in respective table.

Hope that suffice your requirement.

Thanks, JP