Purchasing Pricing Procedures ( PPP ) is a core configuration in any S4HANA Implementation. This configuration guides the buyer to make the best possible usage of the pricing situations.
How does it work at a vantage level : SAP standard pricing procedure RM0000 is hardcoded in the system. SAP expects the project team to use this procedure as a reference to create the customized pricing procedures.
For a typical global manufacturing company, the following customized pricing procedures would be required :
A:Local Pricing Procedure
B:Import Pricing Procedure
C:Group Purchases Pricing Procedure
D:Government Related Purchases
E:Nations Block Purchases - EU Purchases, GCC Purchases
A:Local PP - This pricing procedure would be fetched by the system for all the domestic purchases. All local taxation conditions would be included in the PP. In case of Brazil, Nota Fiscal conditions would be applicable. In case of India, CIN details would be fetched.
B: Import PP- This pricing procedure would be fetched by the system for cross border purchases. SAP will identity the cross border purchase by looking at the vendor schema. All import condition types like customs duty, Anti-dumping duty, container charges would be fetched by the system automatically. SAP will allow only import related conditions in this PP.
C: Group Purchases PP : This pricing procedure will be fetched for lateral purchases within the wider company group. Example : British Petroleum Trading orders a X material from British Petroleum Oil & Gas Division. This purchase will be made at the company agreed prices instead of the market prices. The vendor in this case, BP Oil & Gas will be marked with a vendor schema uniquely identifying itself as a group vendor
D: Government Related Purchases : This pricing procedure will be fetched when items are bought from the government under special conditions or special prices. Example : Emirates Airlines secures oil supplies from the Dubai government at special rates. This PP will fetched by the vendor schema of the Dubai Government vendor. A special condition type indicating the subsidized rates would be included in the PP.
E : Nations Block Purchases - EU Purchases, GCC Purchases : This pricing procedure will be fetched when the purchases are being made within a nations block. Example : Purchases made within the EU region, Purchases made within the GCC region.
The whole exercise of configuring the PP is to ensure that all the relevant condition types relevant to a particular purchasing situation are fetched correctly in the stipulated sequence. This configuration negates the manual efforts of the buyer and kind of drives the purchasing activities on a co-pilot mode.
For a textbook definition, Pricing Procedure is a assembly of different modular condition types which are weaved together in a specific sequence in a purchasing document.
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