S4 HANA Floor Price Setting

[MaryAnne]

I have been asked to investigate whether it is possible to achieve the following user scenario in my company's S4 HANA Cloud system: 

[Company] wants to give the Regional Sales Managers more flexiblity in quoting for customers, while ensuring our order processing teams are not going below margin when pricing up these Sales Orders. 

Ideally each region will have a price that order processors cannot go below when doing any pricing adjustments. This needs to consider that every customer in has a set % discount (ranging from 30-70%) applied to the Sales Organisation's PPR0 as well. 

Should the sale price be adjusted below this bare minimum, the user would be notified/unable to continue processing the sales order. CBXN (free of charge) transactions would be the exception. 

I have done some preliminary searching and was hoping the Community had seen similar business requirements and had some luck in achieving this or a similar requirement. 

Any and all help / pointers would be greatly appreciated. 

Many thanks, 
MaryAnne 

[Fancy_Zou]

Hi,

Yes, S/4HANA Cloud can definitely meet your business objectives. Your business requirements regarding sales price management in the quotation process are quite common.

Here's a summary of your business expectations:

• **Headquarter Company Level Pricing**: A unified sales list price (net) will be defined for each product by material ID.
• **Customer-Specific Discounts**: Each customer may have a unique discount percentage based on the unified company list price (net).
• **Regional Floor Pricing**: Each sales region will have a floor price (net amount) by material ID and sales organization (or other condition fields) relative to the company list price (net).
• **Quotation Restrictions**: Sales reps are not allowed to save a sales quotation if the net price, after all discounts (including customer-specific and manually input bidding discounts), falls below the predefined sales region floor price.

To implement this logic and process, you'll generally need three key aspects:

• **Customized Sales Pricing Procedure**: This will reflect and calculate the sales list price, customer discount, bidding discount, net price after discounts, and the sales region floor price.
• **Price Elements Access Control**: This ensures different business roles have appropriate visibility of the price conditions on sales documents.
• **In-App or DEV Extensions**: These will raise an error message to block the quotation from follow-up processing if the net price after discounts is below the predefined sales region floor price.

To customize the pricing procedure, you might need to configure several condition types. You have the option to use pre-delivered, out-of-the-box condition types or create custom ones:

• **Unified Sales List Price**: An example is PPR0, which is quantity-based. Its value is automatically determined using an access sequence.
• **Pre-defined Customer Discount**: An example is DC01, which calculates the discount amount using a pre-defined percentage rate and multiplying the condition value of PPR0 by defining "from-to" steps at the pricing procedure level.
• **Manually Input Bidding Discount**: An example is DRV1, with its value manually entered by the sales representative rather than being auto-determined from an access sequence. For the condition type setup of manual input price elements, ensure that the "Access Sequence" field is empty and "Manual Entries" are not set to "B" or "D". You can maintain flexibility in the "Calculation Type" by choosing between "B Fixed Amount" and "C Quantity".
• **Sales Region Floor Price**: This configuration is similar to the sales list price but should be a statistical value only and not included in the net price after discounts in the pricing procedure.

For more information on price elements access control, you can explore the reference info collected in 3405405 - Role-Based Access to Price and Cost Details in SD Documents - S/4HANA Cloud (sap.com).

Best Regards,
Fancy

[MaryAnne]

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[MaryAnne]

Hi Fancy,

Thanks so much for this! I have a few follow up questions, if you don't mind. I'm new to the whole pricing configuration side, so again, please feel free to point me to any additional resources. 

In reading your notes, I'm particularly interested in the customised sales pricing procedure and the In-App or DEV Extensions, so I am reading up on these. 

In terms of configuring the Sales Region Floor Price as a statistical value only, does that block the order from going further, or does that need to work in concert with the extensions? 

Would you be able to point me to any KB documents which could help me in doing the above? If it is a statistical value for the floor price, can I in theory have two PPR0s on the same Sales Order? My understanding was that this was not possible. 

Thank you so much for your help, my apologies for being a bother!

MaryAnne