Understanding Price Scaling within SAP ERP and Magento

Within SAP ECC, Price scaling is functionality within the pricing condition types. This helps the enterprise to increase their sales as well as revenue. By this functionality, we can sell a particular product to different customers at different prices. At a particular point in time if you want to sell the product, we can offer the discount price by using volume scales.

Understanding Volume Prices within SAP ERP

While creating each pricing condition, we can define the pricing scale. A pricing scale can be defined based on Quantity, weight, and volume, etc.

In this article, we can see how to set up pricing conditions based on volume and how it integrates with Magento.

Some important SAP transactions for price conditions

Following are some important SAP transactions to set up volume prices. Having them handy can help you process in an easy manner.

i) VK11 – Create conditions

ii) VK12 – Change condition

iii) VK13 – Display condition

Setup price conditions:
Launch the VK12 tcode. Select the condition type for which scales are maintained. In this, we have chosen the existing one. ZP01 is the condition which is shown in below screenshot.

We can maintain condition based on organizational requirements. These are examples of how we can maintain conditions:

i) Sales Org. /Material
ii) Sales Org. /Distribution Channel/Material
iii) Sales Org. /Distribution Channel/Customer

In our example Sales Org. /Material, we are going to set the prices. Enter your organization and products which is shown in below screenshot.

Now select the scales which are shown in below screenshot.

Maintain the price condition as you are going to offer to the customer. In below example:

i) If the order quantity is from 1 to 575 – price 4.75$

ii) If the order quantity 575 and more – price 2.75$

The information of pricing conditions is stored in various SAP tables. Given below are some important tables for this topic.

Understanding prices within Magento:

Magento by default provides the Product price, special prices and tier prices for the product. If we want to provide discount prices based on bulk quantity default functionality will not support. However, we can achieve this by using a special price but we may lose some profit. Without losing the profit, we can achieve by using APPSeCONNECT connector which will support this kind integration with SAP.

During the check out and product page, it refreshes the prices with SAP on real-time manner. In the B2B (Business to Business) scenarios consider pricing as one of the most crucial and complex parts. With our solution, APPSeCONNECT, we enable customers to have real-time sync of specific prices from SAP to the front end.

Once the order is placed in Magento and it is synchronized with SAP, prices and conditions are automatically determined which is shown in below screenshot. In B2B business customers who are placing bulk orders will receive the discounts and it increases the sales of the product.

Following are the key benefits once we have the above integration in place:

Automates the pricing scales: Applying SAP pricing scale, it helps to maintain the different price for a customer or group of customers for the same product and it will be reflected in the website.

Increase in sales: It will increase the sales of a particular product or we can use these conditions to clear the product.

We sincerely hope that this was useful and any comment of feedback will be very helpful. Now, you can easily connect your SAP ERP and Magento store to automate the business process!

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