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CRM_CPE_OVERVIEW - Commodity Pricing Introduction

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Commodity pricing is used in industries where complex pricing rules are used instead of fixed prices as the basis for negotiations between vendors and customers regarding the price of a product.

Commodity pricing is a price calculation that uses price quotations from the stock market, such as those published by Platts, Reuters, and others to determine the price of a material or product. Currency exchange rates and product quality parameters, such as quantities of impurities, and other business data also influence this price calculation. Commodity pricing allows different methods for determining prices, such as fixed prices, price quotations for a fixed day, or average price quotations.

In a sales document, you use the commodity pricing engine (CPE) to perform commodity pricing. Commodity pricing is based on a set of routines and rules that control how the price is calculated and what data is used. A CPE formula consists of several routines, rules, and terms. You can use routines to combine these terms.

In the case of price condition types with the calculation type Q, the CPE transfers the result of a CPE formula to the corresponding price condition records of a sales document. The result contains the rate and value in the document currency.

To use commodity pricing, you need a SAP CRM system connected to an ERP system.

The external partner program of your data provider imports the price quotations into the ERP system. SAP delivers the Datafeedinterface in the ERP system, for which several data providers are certified. The price quotations are then imported from the ERP system into SAP CRM by means of automatic data exchange.

You can also create price quotations manually in SAP CRM or the ERP system. These price quotations are exported into the other system by means of automatic data exchange.

Commodity pricing only uses currency exchange rates that are maintained in SAP CRM.

You can configure CPE formulas in Customizing or define them manually in sales documents. You can define master data to determine how to use preconfigured CPE formulas from Customizing as defaults for your sales documents.

The routines that you can assign in the single IMG activities are predefined under Define CPE Routine with the combination of the keys CPE Module, Submodule, and a routine number (Routine for Commodity Pricing Engine). The combination of the keys CPE Module and Submoduleis predefined under Define CPE Submodule for CPE Analysis and represents a certain part of the CPE coding, which in most cases is a rule or a routine.

Formula Evaluation

• You maintain the formula attributes in the IMG activity Define CPE Formula. These attributes include formula-specific conversion and rounding parameters, the valid area of the formula, and the terms that constitute the formula. When you select an entry and choose Terms of Formula, you see the term keys that are used in the evaluation of the selected CPE formula. You defined the term keys in the IMG activity Define CPE Term.

• You maintain the term attributes in the IMG activity Define CPE Term. These attributes include term-specific conversion and rounding parameters, the valid area of the term, and the term rules that constitute the term. When you select an entry and choose Details, you see the predefined term rule. You defined the term rule in the IMG activity Define CPE Term Rule.

• In the IMG activity Define CPE Term Rule, when you select an entry and choose Details, you see the following predefined fields: Calculation Rule, Surcharge Rule, and Period Determination Rule. You defined these rules in the following IMG activities:

Commodity Pricing Engine -> Term-Specific CPE Settings ->

Define Calculation Rule

Define Surcharge Rule

Define Period Determination Rule

• In the IMG activities Define Calculation Rule, Define Surcharge Rule, and Define Period Determination Rule, you can see the predefined routines. These routines are defined in the IMG activity Define CPE Routine.

Formula Assembly

• In the IMG activity Determine Procedure for Formula Assembly, the following fields are filled: Sales Organization, Distribution Channel, Division, Document Pricing Procedure, Customer Pricing Procedure, Sales Pricing Procedure. You defined these entries in the IMG activity Determine Pricing Procedures or they were downloaded from the ERP system.

For pricing procedures that are relevant for commodity pricing the fields Formula Assembly Procedure and CPE Routine for Formula Assembly must contain data. "Relevant for commodity pricing" means that the pricing procedure contains at least one pricing condition type with the calculation type Q, and that commodity pricing should be performed.

You defined the formula assembly procedure in the IMG activity Define Formula Assembly Procedure. The CPE routine for formula assembly '1' is predefined in the IMG activity Define CPE Routine with the combination of the keys CPE Module and Submodule: FA/01. It is only in cases when want to replace the formula assembly processing delivered by SAP that must you define a different routine number in the IMG activity Define CPE Routine.

• In the IMG activity Define Formula Assembly Procedure, select an entry and choose Elements of Determination Procedure. You can see the condition types defined for usage FA. You defined these condition types in the IMG activity Define Condition Types. The CPE evaluates each condition type to determine either a complete formula or a part of a formula.

• In the IMG activity Define Condition Types, you can see that for usage FA, an access sequence is assigned to each condition type. You defined this access sequence in the IMG activity Define Access Sequences. The access sequences define the business criteria that are used to find the formula or its parts.

• In the IMG activity Define Access Sequences, when you select an entry and choose Accesses, you can see that at least one condition table is assigned to each access sequence. When you select an entry and choose Fields, you can assign the fields for condition maintenance. You defined the condition tables in the IMG activity Define Condition Tables and the fields in the IMG activity Maintain Field Catalog.

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