What is AFS factor price in SAP IS-AFS-SD - Sales and Distribution?

SAP Term: AFS factor price

• Component: IS-AFS-SD

• Component Name: Sales and Distribution

• Description: A price determination indicator. You can use it in the condition technique to determine that certain stock keeping units of a material are sold or purchased at a certain percentage of the AFS standard sales price. &EXAMPLE& If you need more material on average to produce certain stock keeping units of a material, you can use the factor price and conditions to control that the price determined in the sales document for these SKUs stock keeping units is automatically 110% of the normal sales price. For stock keeping units for which you need less material, you determine the price to be 90% of the normal sales price.

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• Key Concepts: 
  AFS factor price is a pricing procedure used in the SAP IS-AFS-SD Sales and Distribution module. It is used to calculate the price of a product based on a set of factors such as the customer's credit rating, the product's availability, and the customer's purchasing history. The AFS factor price is determined by a combination of these factors and can be adjusted to reflect changes in market conditions. 
  
  How to use it: 
  The AFS factor price is used to determine the price of a product for a particular customer. The pricing procedure takes into account the customer's credit rating, product availability, and purchasing history. The AFS factor price can be adjusted to reflect changes in market conditions. The pricing procedure can be used to set prices for individual customers or for groups of customers. 
  
  Tips & Tricks: 
  When setting prices using the AFS factor price, it is important to consider all relevant factors such as customer credit rating, product availability, and purchasing history. It is also important to adjust the pricing procedure to reflect changes in market conditions. 
  
  Related Information: 
  For more information about the AFS factor price, please refer to the SAP IS-AFS-SD Sales and Distribution module documentation. Additionally, there are many online resources available that provide detailed information about how to use the AFS factor price in SAP.