Re-pricing in a Quotation

Introduction

Re-pricing in a quotation is a critical aspect of sales operations, ensuring accuracy and consistency in pricing before a deal is finalized. Whether updating pricing manually or configuring automatic updates during sales order conversion, understanding the correct approach can save time and reduce errors.

In this guide, we’ll cover how re-pricing works in a quotation, the methods to update pricing, and the business implications of repricing when converting a quotation into a sales order.

How to Update Pricing in a Quotation

Manual Re-pricing in a Quotation

Re-pricing can be done manually within a quotation, just like in a sales order. This can be achieved in both the creation and modification stages:
  • Navigate to the Quotation: Open the quotation in the sales system.
  • Access Pricing Update: 
    • Click on Edit → New Pricing from the menu path.
    • Alternatively, go to the Item Conditions Tab and click the ‘Update Pricing’ button.
  • Review and Save: Ensure the updated pricing is accurate before saving the quotation.
This method allows for flexible adjustments, making it easy to align pricing with the latest costs or discounts before finalizing the deal.

Re-pricing When Converting a Quotation to a Sales Order

If you need to update pricing automatically when converting a quotation into a sales order, this can be configured using Copy Controls for the Item Category. Here’s how:
  1. Go to IMG Configuration: 
    • Navigate to Sales & Distribution → Sales → Maintain Copy Control for Sales Documents (Transaction Code: VTAA).
  2. Select the Sales Document Type: 
    • Choose the correct document combination (Quotation → Sales Order).
  3. Modify the Pricing Type: 
    • Locate the "Pricing Type" field in the item category settings.
    • Adjust it based on whether you want the pricing to be copied as-is or re-determined during order creation.
  4. Save Changes and Test: 
    • Ensure the configuration aligns with business requirements before deploying it in live transactions.

Should You Re-price a Quotation During Conversion?

From a business standpoint, re-pricing a quotation when converting it into a sales order is often not recommended. The purpose of a quotation is to finalize details, including pricing, before the customer agrees to the sale. Changing the price at the order stage can lead to:
  • Customer Dissatisfaction: Unexpected changes may cause disputes.
  • Operational Inefficiencies: Additional approvals and re-negotiations may be required.
  • Lost Deals: Customers may choose competitors if pricing is inconsistent.
However, if your business model involves fluctuating prices, using automatic re-pricing through copy controls may be necessary.

FAQs About Re-pricing in a Quotation

1. Can I update pricing in a quotation after it has been created?
Yes, you can manually update pricing in a quotation using the ‘Update Pricing’ button on the item conditions tab.

2. What happens if I don’t update pricing when converting a quotation to a sales order?
By default, the pricing from the quotation is copied into the sales order. If re-pricing is needed, it must be configured in the copy control settings.

3. How can I prevent re-pricing when converting a quotation?
Set the "Pricing Type" in copy controls to retain the original quotation pricing when creating a sales order.

4. Is there an automated way to update pricing in a quotation?
Yes, SAP systems allow pricing updates based on predefined conditions using background pricing updates or batch jobs.

5. Does re-pricing a quotation impact customer relationships?
It can. Unexpected pricing changes may lead to trust issues, so it’s important to have clear pricing policies in place.

6. Can I apply discounts while re-pricing a quotation?
Yes, discounts can be applied during manual pricing updates or configured in pricing conditions for automated application.

Conclusion

Re-pricing in a quotation is a powerful tool for maintaining accurate and competitive pricing. While manual updates provide flexibility, configuring copy controls ensures pricing consistency when converting quotations into sales orders. However, businesses should carefully consider the implications of re-pricing to maintain customer trust and streamline operations.

By following the best practices outlined above, you can optimize your pricing process and enhance sales efficiency.

Fast Links:
Implementing the Sales BOM
Sales BOM Implementation

Get help for your SAP SD problems
Do you have a SAP SD Question?

SAP SD Books
SAP Sales and Distribution, Certification, Interview Questions Reference Books

Delivery Hints
SAP Logistics Execution

SAP Sales and Distribution Tips
SAP SD Discussion Forum and Sales/Distribution Tips

Main Index
SAP Basis, ABAP Programming and Other IMG Stuff
http://www.erpgreat.com

All the site contents are Copyright © www.erpgreat.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies.  The site www.erpgreat.com is in no way affiliated with SAP AG.
Every effort is made to ensure the content integrity.  Information used on this site is at your own risk.
 The content on this site may not be reproduced or redistributed without the express written permission of
www.erpgreat.com or the content authors.