Retail — Retail Pricing And Conditions

Content coming soon.

Retail Pricing

Overview

Retailers manage hundreds of thousands of articles across thousands of stores.
Manual alignment with costs, markups, promos, and competitors is impossible → use automation.
SAP Retail automates via Sales Price Calculation (e.g., /SAPMM/PRICAT, WVK1/WVK2/WVK3) + Change Pointers & Pricing Worklist (S111).

👉 Interview hook:

“Retail pricing ensures articles always have the correct sales price across all sites and channels, based on planned markup rules, transfer prices, or competitor strategies. The S111 worklist is the cockpit for monitoring and updating prices.”

Pricing Levels (Hierarchy of Determination)

Sales prices can exist at different granularity levels. The system always uses the most specific one:

Site (most detailed)
Distribution chain + Price List (medium)
Distribution chain (broadest)

Example: If a site‑specific price exists, it’s used; otherwise the system checks the price list, and if not found, falls back to the distribution chain price.

Planned Markups & Condition Technique

Retail pricing uses SAP’s condition technique (retail‑flavored).
Planned Markup = condition type (percent or amount) applied on purchase price.
Markup rules can be defined for:
- Sales Org + Distribution Channel + Merchandise Category,
- Distribution Chain + Price List + Merchandise Category,
- or even per article.
Planned markups may include cost components (freight, handling) and target profit margin.

Example: Purchase price = 10 EUR; planned markup = 40% → suggested retail price = 14 EUR.

One‑Step vs Two‑Step Pricing

1) One‑Step (Vendor → Store)

Store buys directly from external vendor.
Store sales price = Vendor Purchase Price + Planned Markup.
Simpler scenario.

2) Two‑Step (Vendor → DC → Store)

Common in large retail.
Step 1: Vendor → DC; DC calculates transfer price = Vendor Net + DC Markup.
Step 2: Store purchase price = DC Transfer Price; store adds its markup → final consumer price.

Numerical Example:

Vendor Net = 8 EUR → DC markup 25% ⇒ transfer price = 10 EUR.
Store markup 50% ⇒ final retail price = 15 EUR.
Setup: include both DC and Store distribution chains in Sales Price Calculation so the system first determines vendor cost for DC, then cascades to store.

Pricing Functions Beyond Markups

Family Pricing: keep a group of related articles at fixed ratios (e.g., all toothpaste SKUs).
Competitor Pricing: calculate your price relative to competitor strategy/reference article.
Backwards Calculation: start from fixed consumer price (regulated or market) → compute implied margin.

Change Pointers & Pricing Worklist (S111)

Change Pointers track changes that may require price recalculation (vendor costs/discounts, supply source, conditions, etc.).
S111 – Pricing Worklist: shows articles/sites needing re‑determination; supports mass recalculation and review of suggested new prices.

👉 Interview phrasing:

“S111 is the cockpit where Retail controllers check which prices need updating after cost or condition changes, and mass‑update them.”

Pricing Screen Setup (Execution)

List Group controls layout (A/B = hierarchical; C/D = ALV table).
List Variant controls columns/order and storage behavior.
From here, users can adjust markup, cost, or retail price and save so condition records (WVK*) are updated.

POS & Price Lists

Assortment list profiles determine which sales price version is pushed to POS.
Sites receive a full version or delta version of prices depending on configuration.

Integration Points

Purchasing → vendor net prices feed retail pricing.
Logistics → DC transfer pricing in two‑step flows.
POS → updated sales prices distributed via assortment list outbound (IDoc).
Condition Contracts → promotions may override standard retail price conditions.

Interview Cheat Sheet

Levels: Site > Price List > Distribution Chain (system picks the most specific).
Markups: planned markups (condition types) drive retail price.
One‑step vs Two‑step: vendor→store direct vs vendor→DC→store with transfer prices.
Functions: family pricing, competitor pricing, backwards calculation.
Change Pointers + S111 keep prices current after master/condition changes.
Execution: Sales Price Calculation with list groups & variants.
Integration: purchasing, logistics, POS, promotions.

👉 Quick 10‑sec answer:

“Retail Pricing in SAP calculates sales prices from purchase costs using planned markups. It supports one‑step (vendor→store) and two‑step (vendor→DC→store) pricing. The system monitors changes with pointers and proposes updates in the S111 pricing worklist — keeping prices aligned across thousands of stores.”

CCM (Condition Contract Management)

🚧 Content for Condition Contract Management (CCM) will be added soon. Stay tuned!