non ferrous metal pricing dimp sap best practices for fabricated metals v1 603 france n.
Download
Skip this Video
Download Presentation
Non-Ferrous Metal Pricing (DIMP) SAP Best Practices for Fabricated Metals V1.603 (France)

Loading in 2 Seconds...

play fullscreen
1 / 9

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


  • 194 Views
  • Uploaded on

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

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Non-Ferrous Metal Pricing (DIMP) SAP Best Practices for Fabricated Metals V1.603 (France)' - meriel


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
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

ad