Non ferrous metal pricing dimp sap best practices for fabricated metals v1 603 france
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Non-Ferrous Metal Pricing (DIMP) SAP Best Practices for Fabricated Metals V1.603 (France) PowerPoint PPT Presentation


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Non-Ferrous Metal Pricing (DIMP) SAP Best Practices for Fabricated Metals V1.603 (France)

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Non ferrous metal pricing dimp sap best practices for fabricated metals v1 603 france

Non-Ferrous Metal Pricing (DIMP) SAP Best Practices forFabricated Metals V1.603(France)

SAP Best Practices


Scenario overview 1

Purpose

This Business Scenario, Non-Ferrous Metal Pricing, represents the Business Process for Supply of Non-Ferrous materials as regards price determination in both purchasing and sales within the logistic chain.

Benefits

This enables you to quickly react and adapt to short term changes in pricing determination due to Stock Exchange rates fluctuations.

Key process flows covered

Definition of a NF material containing the non-ferrous metal Ferrochrome

Definition of different base values specific to the non-ferrous metal

Definition of different rate determination methods based on business requirements

Mapping of default values in master data, purchasing and sales documents

Definition of prices

Definition of Pricing Agreements (Coverage)

Supply of Non-Ferrous metals provided by customers

Scenario Overview - 1

Purpose and Benefits:


Scenario overview 2

Required

SAP ECC 6.0 EhP3

Company roles involved in process flows

Administrator

Sales Administration

Buyer

Purchasing Manager

Warehouse Clerk

Accounts Payable Accountant

Sales Billing

Accounts Receivable Accountant

Scenario Overview - 2

SAP Applications Required:


Scenario overview 3

Non-Ferrous Metal Pricing (DIMP)

This scenario describes how to manage Non-ferrous metals (NF metals) rates fluctuations, as they are traded on Stock Exchanges. Materials that contain non-ferrous metals are described as non-ferrous materials (NF materials).

This Business Scenario, Non-Ferrous Metal Pricing, represents the Business Process for Supply of Non-Ferrous materials as regards price determination in both purchasing and sales within the logistic chain. This enables you to quickly react and adapt to short term changes in price determination.

There are various different rate determination methods available for non-ferrous metals in the business scenario, for example : fixed rates, key date rates, average rates and pricing agreements.

This scenario is for DIMP only.

Scenario Overview - 3

Detailed Process Description:


Nf metal pricing calculation of prices using base key c1 1 2

NF Metal Pricing – Calculation of Prices using Base key C1 (1/2)

  • You sell a product that is partly made of non-ferrous components (such as : gold, ferrochrome, ..) and you want to share the risk of the volatile Stock Exchange rate changes of these non-ferrous components with your customer.

  • Example:

  • You have a material with one non-ferrous component : „FerroChrome“.

  • You apply the following pricing strategy : see next slide for a graphical representation

    • PR00 = Price list for Customer100099 = 350 EUR per 100 M.

      You fix the base key for the Ferrochrome at 1500 EUR per 1000 M (=> the order base value = 150 EUR/100M). Knowing that value, you sell your finished product at 350 EUR per 100 M. The Stock rate fluctuations of the „Ferrochrome“ will be taken into account via the „YMCH“ condition.

    • „YMCH“ = Net Rate

      The Net Rate is calculated dynamically and is influenced by the actual Stock Exchange rate of the Ferrochrome.

  • On the day of the order creation:

    • The Stock Exchange value of Ferrochrome rises to 3000 EUR per 1000 M. This corresponds to 300 EUR/100M and this reflects an increase of the order base value of 150 EUR / 100 M. The total order value will be 350 EUR (PR00) + 150 EUR (YMCH) per 100 M.


  • Nf metal pricing calculation of prices using base key c1 2 2

    NF Metal Pricing – Calculation of Prices using Base key C1(2/2)

    EUR

    500

    450

    400

    350

    300

    250

    200

    150

    100

    50

    0

    Net value (YMCH)considering NF rate fluctuations

    Final Net price (PR00) including

    actual NF Ferrochrome rate

    Initial Net price (PR00)including NF base value

    Base value (NF value already included

    in price list)

    Order creation date

    Initial pricelist date

    • REMARKS:

    • In the net rate calculation, a rounding is applied to the third decimal

    • YMCH can also be negative in case that the stock price drops below the agreed base value of 1500 EUR/1000M.


    Process flow diagram

    No

    No

    No

    Yes

    Yes

    Yes

    Process Flow Diagram

    Non-Ferrous Metal Pricing in Purchasing (DIMP)

    Pur-chasing Manager

    Approve Purchase Order

    Buyer

    PO Approval required?

    Print Purchase Order

    agree on coverage with vendor ?

    (Optional)

    Display History of Coverage in Purchase

    Change Purchase Order

    Purchase Order (PO)

    Send Purchase Order (to Vendor)

    Ware-house Clerk

    Receive Goods from Vendor to the Purchase Order

    Stock GR/IR PPV

    Print GR Slip

    Accounts Payable

    Accounts Payment (158)

    GR/IR PPV

    Small differences

    Use tax payable Vendor

    Invoice Receipt by Line Item

    GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance


    Process flow diagram1

    No

    Yes

    Yes

    Process Flow Diagram

    Non-Ferrous Metal Pricing in Sales (DIMP)

    Customer

    Delivery Note

    Billing Document

    Order Confirmation

    Sales Administration

    Change sales Order with new Rate Determination Key

    Create sales Order

    agree on coverage with customer ?

    (Optional)

    Display History of Coverage in Sales

    Warehouse Clerk

    Delivery Due List

    Post Goods Issue

    Inventory COGS

    Pick List

    Sales Billing

    Billing

    Accounts Receivable

    AR–IncomingPayment

    (157)

    Closing Operations SD (203)

    AR= Accounts Receivable, COGS = Cost of Goods Sold


    Legend

    Diagram Connection

    Legend

    <Function>

    Hardcopy / Document

    External to SAP

    Financial Actuals

    Business Activity / Event

    Budget Planning

    Unit Process

    Manual Process

    Process Reference

    Existing Version / Data

    Sub-Process Reference

    System Pass/Fail Decision

    Process Decision


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