SAP Contract-Based Tier'd Billing Pricing

Tier'd Billing Requirement

Do you have a tier'd pricing requirement within your enterprise?

See below for the section on who would benefit from our billing solution.  

Tier'd Pricing Requirement

Requirement Overview (Business)

Tier Pricing requirement will calculate correctly, until the order quantity exceeds the threshold max-hours of the tier.  

For example, suppose there are two tiers, each with its own rate:

• Tier-1  $100 per hour,  the first 100 hours. 
• Tier-2  $200 per hour for the next 250 hours. 

SAP SD pricing calculates the first order of 90 hours correctly: 

90 x $100 = $9,000

However, a second order for 11 hours will go one hour above the threshold. The system is calculating

10 x $100 = $1,000 that is correct, plus 1 x $0 = $0

as that extra quantity went over the threshold of the 1^st Tier and Tier 2 is inactive, because Tier-1 one already exist in line item. 

Creating a third order for quantity 50, the system correctly calculates at Tier-2 rate

50 x $200 = $10,000

Tier'd Pricing Solution

Long story short, this is a very complex requirement, a gap in SAP SD, discussed from many angles in Michael Romaniello's blog on SAP Cumulative Graduated Pricing and Discounts. For our Service Contract Billing Workbench (BWB) we implemented a fantastic and flexible contract billing solution to the mult-tier requirement. 

 

Interested?

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