Price stages - overview

In industries wherein price negotiations take a long time, you can use price stages to categorize the price based on the phase of the price-negotiation process. As long as the price is not final, price stages are used to allow the continuation of the order process, but with a restriction on the activities that you can perform during this process.

Example

Company X operates in a complex business environment that requires strict contract regulations and numerous negotiations between the parties involved. Consequently, final item prices are agreed upon several months after the start of the negotiations.

The price for item ZZ is estimated, but a long lead time is required for the related orders. Consequently, company X allows the start of work on order A, which includes item ZZ.

To restrict the order activities that can be performed for order A, these price stages are applicable:

  • A price stage that prevents the release of the order to Warehousing if the price is still estimated and not provisional.
  • A price stage that prevents the confirmation of the shipment if the price is still provisional and not final.

Master data

To set up price stages:

  1. Specify hold reasons with the Category field set to Price Stage Check in the Hold Reasons (tcmcs2110m000) session.
  2. Specify blocking definitions and link a hold reason to the blocking definition in the Blocking Definitions (tcmcs2111m000) session.
  3. Specify price stages and link a blocking definition to the price stage in the Price Stages (tcmcs2112m000) session.

Business documents

Price stages can be linked to price books and various business documents.

Note: 

The price stage is mandatory only if the Price Stage Mandatory check box is selected for the applicable business document in these sessions:

  • Sales Quotation Parameters (tdsls0100s100)
  • Sales Order Parameters (tdsls0100s400)
  • Request for Quotation Parameters (tdpur0100m100)
  • Purchase Contract Parameters (tdpur0100m300)
  • Purchase Order Parameters (tdpur0100m400)
  • Contract Parameters (tpctm0100m000)

See:

  • Price stages in Sales
  • Price stages in Procurement
  • Landed costs - price stages
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