What is formula and average pricing in SAP IS-OIL-DS-MAP - Marketing, Accounting and Pricing?

SAP Term: formula and average pricing

• Component: IS-OIL-DS-MAP

• Component Name: Marketing, Accounting and Pricing

• Description: A calculation that uses quotations such as those from Platts, Reuters, and others to determine the price of a material. It can be used both on the purchasing side MM as well as on the sales side SD. The purpose of formula and average pricing is to enable the calculation of product prices based on external quotations over a set period of time. The calculation is performed with company-defined calculation rules. Currency fluctuations within the time period are taken into account either by daily conversion or by averaging.

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• Key Concepts: 
  Formula and average pricing is a pricing method used in the IS-OIL-DS-MAP Marketing, Accounting and Pricing component of SAP. This pricing method allows users to set up a formula to calculate the price of a product based on the average of multiple factors, such as cost, market conditions, and customer demand. The formula can be adjusted to reflect changes in the market or customer demand. 
  
  How to use it: 
  Formula and average pricing can be used in SAP by setting up a formula in the IS-OIL-DS-MAP Marketing, Accounting and Pricing component. This formula can be adjusted to reflect changes in the market or customer demand. The formula can also be used to calculate discounts or surcharges based on certain criteria. 
  
  Tips & Tricks: 
  When setting up a formula for average pricing, it is important to consider all factors that may affect the price of the product. This includes cost, market conditions, customer demand, and any other factors that may influence the price. Additionally, it is important to regularly review and adjust the formula as needed to ensure that it is up-to-date with current market conditions and customer demand. 
  
  Related Information: 
  For more information on formula and average pricing in SAP, please refer to the official SAP documentation on IS-OIL-DS-MAP Marketing, Accounting and Pricing. Additionally, there are many online resources available that provide detailed tutorials on how to set up and use this pricing method in SAP.