Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`APPENDIXC
`
`TO THE EXPERT DECLARATION OF
`
`DR MICHAEL SIEGEL
`
`In the Transitional Program for Covered Business Methods Proceeding before the
`
`USPTO Patent Trial and Appeal Board Involving U.S. Patent No. 6,553,350
`
`;3
`n
`> ~
`tn~OO
`m"'t:l>
`n
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`f.ll
`
`Claim Chart
`
`R/3 2.2 Online Documentation
`
`("R3 Documentation")
`
`and
`
`U.S. Patent No. 6,553,350
`
`1
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`26. A computer
`readable storage
`media
`compr1smg:
`computer
`instructions to
`implement the
`method of claim
`17.
`
`The R3 documentation discloses a computer-based pricing system that is part of an overall
`enterprise information system. As a result, the R3 documentation inherently discloses a
`software system (computer instructions) operating within the memory of a computer system,
`which thus satisfies claim 26 because, in my opinion, the memory of a computer system is a
`computer readable storage media. I note that, between invocations, this system would reside
`on secondary storage, such as a hard disk, which would also constitute a computer readable
`storage media.
`
`The R3 documentation's description of the enterprise information system is comprehensive,
`including a detailed description of the pricing component of the system. In addition to pricing,
`the R3 documentation describes accounting, human resources, business process technology,
`basis technology and logistics. The logistics description includes sales and distribution, and it
`is this part of the documentation that describes the pricing functionality. The R3
`documentation's description of the pricing functionality is comprehensive, containing very
`clear disclosure for determining the price of a product offered to a purchasing organization.
`This very clear, comprehensive description, as shown from the documentation quotes below,
`demonstrates that the R3 documentation satisfies the enablement requirement. I have opined
`on this elsewhere in my declaration.
`
`The excerpt below shows the many business-related functions described by the R3
`documentation:
`
`2
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`LOG I STICS
`
`lim Production
`
`Ill!
`
`Planning
`
`Materials
`Management
`
`-I:
`
`J?1t:"' Plant
`Maintenance
`
`m
`
`s.ales&
`Distribution
`
`BUSIN£SS
`PROC ESS
`t ECHNOLOGY
`liD Business
`IIJI Workflow
`
`BAS IS
`T H Iii N,O LOGY
`
`System
`Administration
`
`ABAP/4
`Development
`Workbench
`
`Figure 1 R2.2 Online Documentation
`SAP00014846-57; SAP00000578-89. (The convention I use in this chart is that the first bates
`number is for the 2.2B CD, and this number corresponds to the screen shot above. The second
`bates number is for the same teachings in the 2.2A CD)
`
`As shown above, the R3 documentation describes the functions performed by an operating
`enterprise information system. And, as shown below, the R3 documentation provides
`documentation for "getting started. "
`
`3
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`1 Getting started
`.,. ~ ~
`~~ with R/3
`-~r·
`R/3 BSTEM
`
`1.
`
`_
`
`Chck on a top1c for more Information.
`
`Logging on and off
`shows how to start and log onto the R/3 System
`':]' also shows how to create and change your password
`
`~
`~
`
`TI1e basics
`descnbes some basic tasks you11 perform h also
`descnbes the basic parts of an R/3 screen
`
`Moving around
`shows how to select functions and nav~gate between
`applications
`
`Typical tasks
`shows some typical data-entry tasks, such as
`workmg With fields and saVIng your work
`
`Sessions
`shows how to work on several tasks at the same lime
`by opemng addrt10nal windows, or sessions
`
`Getting help
`descnbes the type of Information prOVIded in online
`help and how to access th1s information
`
`~
`"" r:J
`
`·~~- Working with reports
`~,':1 shows how to generate reports from your
`)''<f''/ application
`
`• ~ Printing
`~~ shows how to output documents from your
`;
`"11' application, and how to monrtor print requests
`
`For Help on Help, Press F1
`
`Figure: Getting Started
`SAP00018749-50; SAP00004404-5.
`The sales and distribution part of the documentation describes the pricing functionality.
`
`4
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Sales and
`&i .stribution
`
`Sales and Distribution
`
`Please select a topic .
`LJ Bas1c Funct1ons and Master Data
`[;I Sales and Sales Order Processing
`U Shipping
`I J Pricmg and Condlt1ons
`U Billing and lnvolc1ng
`U Sales Information System
`
`Figure: Sales and Distribution
`SAPOOOJ4853; SAP00000585.
`The SD Guide to pricing and conditions provides detailed information on how the pricing
`functionality works.
`
`5
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`SO Guide to Pricing and Conditions
`
`The followtng Help Topics are avatlable
`
`Part 1 The Co nditio n Tech ni que
`
`C!J Condition Technique: OveiView
`Ill Usinn Tite Condition Technique: Pticitt<t
`
`Part 2 Pricing in Sales
`
`Ill Pricinq Elements in S.1les
`l:!l Wotking With Co11<htion Records
`l:tJ Prlcitt<l in S.1les Documents
`13 Pticino Re11orts
`C!J New Functions in Release 2.2
`For Help on Help. Press F1
`
`Y!H~!Qn
`C'op~.ngh!
`
`Figure: SD Guide to Pricing and Conditions
`SAP00029633; SAP00013934.
`
`6
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`~ ~ rn:.t~~r.rn.
`
`~
`
`~ontent•l ~eorch I .e_ock I Erint I i<
`
`I L>
`
`I CJo•• I
`
`Pricing in Sales Documents
`
`-
`
`--~-
`
`...,,- ···hl!llil ~
`
`Thrs sectron shows you how to work with pncrng dunng day-to-day sales order processrng Dunng pncrng, the system calculates amounts based on a combinatron of automatr c
`procedures and manually entered data The system automatrcally transfers pncrng data· for example, rnformatron about pnces, surcharges, and drscounts ·from the so-calle d
`condition records rnto sales and brllmg documents Dependrng on the pncrng pohcres of your company, you may be able to mfluence pnces manually dunng sales order
`processmg. You may, for example, be able enter or change certarn discounts wrthrn a specified range.
`
`Overview
`
`Thrs sechon IS organized as follows
`
`Pr~rerJnisit~s for Automatic PricirHJ
`Pricing Screens in S.1les Documents
`
`Head~r anr!llem Condrtlons
`
`Manual Prlclnu
`How He.lder Conditions Are Distributed Among Items
`
`Pr iclnrJ An.llvsfs
`
`SAP00029697; SAPOOOJ4001.
`The R3 documentation describes all of the preliminary steps that must be performed for the
`pricing functionality.
`
`7
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Prerequisites for Automatic Pricing
`
`• Condttlon records must already oxtst tn the system for oach of the cond~ion types that you wan1 the system to apply automatically. For more information about creating and
`mamtamrng condrtron records, see Work;rng Wrth Condrtron Records
`\N'here necessary , data must be mamtarned rn the correspondmg customer and materral master records If, for example, you want to apply drscounts through specral
`grouptngs of either customers or matenals, then the system can only carry out automatrc pncrng when the groups are specified WJthm the relevant customer or matenal
`master records
`
`•
`
`The fields rn the matenal master record that are relevant for prrcrng are on the Ssles 2 screen
`• T aK classfflcatlon lndrcates to what extent the mat anal rs !table for sales taxes tf more than one tax classrficahon exists (for example, in the US there may be tax
`classifications for sales taxes at state, c1ty, and county levels), then you find th1s rnforrnat10n appears on rt own screen In this case, from the Sales 2 screen , select Deta1/ts
`--) Ssleo d6ts118 --) Tsxeo
`• Pricing reference material In th1s field, you can spec1fy another matenal as a reference for pnc1ng Information. If you specrfy a reference, the system, dunng automatrc
`prltlnl:l ~ uses all the cond111on records that agp/, to the reference matenal
`o Material group A matertal group defines a group of matenals for whtch you want to apply the same condrtton record For example, using a matenal group you can spoctfy a
`dtscoun1 that applies to a parttcular range of products.
`• Cash discount In thts field, you can specify whether or not the matertal qualifies for a cash dtscount.
`
`Customer Master Data
`
`Most fields m the customer master record that are relevant for pncmg appear on the Sales screen
`• Custom er pricing procedure Here you spec1fy the pricing procedure for a customer Pncmg procedures are created and mamtarned tn SO CustomiZing Durrng sales
`order processing, the pnctng procedure determines the k1nds of pncmg element you can use and m which s~quence ther are processed
`
` • Price IJst 'YP• Pnce hst types allr:rw you to apply a matenal pnce tn 8 partiCUlar currency to a group of customers. For example' you can specrfy a pnce hst type that
`1 applies to all wholesale customers 1n one of your uport markets
`
`lr
`
`• Tax classifi cati on In th1s field you specify the tax hab1hty of the customer. If there 1s more than one tax classification for a customer the ~nformatton appears on a separate
`screen In thts case, you press ENTER to select the followtng screen.
`
`Note
`ff your bustness operates in the US, you must matntam some additional data so that the system can automattcally determine sales taxes In the Control data screen, you
`should matntatn the County code and C~y code fields
`
`SAP00029698; SAP00014002.
`In the above diagram, I have used red boxes to emphasize the most relevant parts of the
`excerpt. I will continue to do so throughout this claim chart.
`
`As shown throughout this claim chart, the R3 documentation is comprehensive, well written,
`instructive and contains numerous examples and figures of the various operations,
`applications and data structures used as part of an operating software system.
`
`8
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`17. A method for
`determining a
`price of a
`product offered
`to a purchasing
`organization
`comprising:
`
`The R3 documentation discloses a method for determining a price of a product offered to a
`purchasing organization that includes all of the elements of claim 17. The process of
`determining a price is called pricing. It can be used by a client (owner/operator) of the
`software system to determine the price at which it will offer some product to a customer.
`
`As noted below, during a sales order, the R3 documentation discloses automatically
`determining pricing by taking into account such things as the base price, discounts,
`surcharges, and freight and sales taxes. The condition technique is responsible for
`determining the final price of a product. It includes many of the processes used in determining
`the price of a product. Specifically, the condition technique includes pricing procedures,
`condition types, access sequences, condition records and condition tables, all of which are
`described in great detail in the documentation and are further described below.
`
`9
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Foe Edit Bool<mark Options Help
`
`J;;ontents
`
`Overview of Pricing
`
`The term prichUJ 1s used broadly to descnbe the calculation of pnces (for external use by customers or vendors) and costs (for internal purposes, such as cost accountmg).
`
`Pricing in the SAP R/3 System
`
`Pricmg IS used m a variety of SAP R/3 applications. Dunng sa les order process1ng, for example, the system automatically determ1nes pricing for a sales order by takmg mto
`account all the relevant 1nformat1on what kmd of bas1c pnce the customer gets, whether spec1al discounts or surcharges apply, and 1f the customer 1s li able for fre1ght charges
`and sales taxes. L1kewtse, 1f you are us1ng the SAP system for purchasrng, the system can take 1nformat1on from vanous sources, such as the vendor and purchas1ng
`organization, and calculate pnc1ng for a purchase order If you are usmg the SAP system for cost account1ng, the system uses pnc1ng to calculate, for example, the costs of an
`1nternal order
`
`The Condition Technique in Pri cing
`
`Even though the requrrements are dtfferent for every application, the SAP system IS able to calculate prices by usmg a common approach to pnc1ng the cond1t1on technrque
`
`The Goal of the Condition Technique in Pricing
`
`e goal of the condition technique in pricing is always the calculation of a final price or cost. The sales department, for example, wants to be able to determine the net v.1hre ofl
`
`•
`
`•
`
`• •
`
`•
`
`~
`
`. .
`
`••
`
`#
`
`• • •
`
`'
`
`•
`
`•
`
`••
`
`•
`
`•
`
`-
`
`- ·
`
`effective ruice of a purchase order. The cost accounting department wants to know the finalmanuf.lcturing cost of an internal order (that IS, the cost after all the bas1c costs
`and overhead costs are taken into account).
`
`Overview
`
`Th1s sect1on provrdes an overview of the condrt1on technrque as it is used 1n pnc1ng dunng sales order and purchase order process1ng
`
`Exanwle of Prjcjru1 in .1 Sales Order
`
`Examule of Pricin<! in a Purchase Order
`
`SAP00029641; SAP00013942.
`
`10
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Using The Condition Technique: Pricing
`
`Introduction
`
`Usmg the pricing that takes place in sales and purchasmg as an example, thrs sectron explains how the conditron technrque works in practrce The varrous elements used in the
`condrtron technique (condrtron types, records, tables, and so on) that were explamed brrefly in the first section are covered here in more detarl
`
`Overview
`
`This section is organized as follows
`Overview of Pricin<r
`Condition Technicrue Elements: Pricincr
`
`SAP00029640; SAPOOOJ3941.
`Below is an example of pricing a sales order for a product and for a customer. Several pieces
`of pricing information are used to determine the final price of$1772.26.
`
`11
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Example of Pricing in a Sales Order
`
`The following figure shows the pncmg Information for an 1tem 1n a sales order The pncmg screen for the item shows the gross pnce that the customer is charged, several
`discounts for wh1ch the customer qualifies, and other pncmg elements, such as fre~ght and sales taxes. The condrt1on types that apply to each of these pnc1ng elements
`appear on the left s1de of the pnc1ng screen. The sequence 1n wh1ch the vanous cond1t10n types appear 1s deterrmned by the pncmg procedure
`
`"
`
`~~lg!f!
`I DetaHs II Gelete II _New pricing II Condition record I
`li9l
`lm.aae
`~-~eaa
`
`Item
`Quantity
`Material
`
`Net value
`I ~
`Ta>c amount
`Pennsy1van1a ·s Finest
`
`in ~~
`I
`
`1, 798.29 j
`61J. 86 )
`
`pe11tfip1Wn
`C !PP.aa Price
`
`1 !14. 99
`on Gro9G
`:14. 99
`q~:ae1 Custonor discount 1.eae-
`Cl
`n;m, .. t n"""'A~
`a.11J-
`!o.so
`cr !loot
`r: l~:rea Freiqht
`j1U4
`:>
`clurxa tatt salu tax
`I ill . 75()
`cr~·t valut for ord.
`I1U?
`ll6.oo
`clum !cost
`ll9.71i
`n i:IProfit Margin
`
`I
`
`lAl ll'lo
`
`.
`
`·------ -·---·--~--~·---- · ---- ·
`
`Uo~ Cond. value ~
`Curr. per
`j ~l1fFLI
`1 .&3e.ee 1
`jpro-nfFLI
`1 ,&39 .91) I
`1r
`I
`16. B9· j
`ipro-nfFLI!
`1S .S9·
`i!USDI1fKGI
`lfs.B!l I
`1,709.20 I
`:pro-nlflll
`ir
`I
`sus I
`l ~nlfli
`1,772.26
`1~nn slie.eo
`. m
`IVsDirl:lfLll
`
`u
`
`SAP00029642; SAPOOOJ3943.
`
`12
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`arranging a
`hierarchy of
`organizational
`groups
`comprising a
`plurality of
`branches such
`that an
`organizational
`group below a
`higher
`organizational
`group in each of
`the branches is a
`subset of the
`higher
`organizational
`group;
`
`The R3 documentation discloses at least two methods for arranging a hierarchy of
`organizational groups comprising a plurality of branches such that an organizational group
`below a higher organizational group in each of the branches is a subset of the higher
`organizational group: customer hierarchies and customer price groups,
`
`Customer hierarchies: The first method for arranging a hierarchy of organizational groups
`is to build a customer hierarchy. In a customer hierarchy, each node in the hierarchy is a
`subset of the organizations in its parent node, and transitively is a subset of the organizations
`in each of its ancestor nodes. Each node has a customer master record that defines the data
`for that node, and each node has an indication of its parent node. A user may use any criteria
`to organize the hierarchy; in the example below, the criteria is geographical location. A
`customer hierarchy may have any number of levels of nodes, and can be rearranged as
`necessary to adapt to changing requirements. Usually, customers are assigned to nodes at
`the lowest level of the hierarchy. However, it is also possible to assign customers to nodes at
`higher levels in the hierarchy.
`
`Customer price groups: The second method for arranging a hierarchy of organization
`groups is to define customer price groups. A customer price group is used to apply pricing
`information (e.g., a discount) to a particular group of customers. Customers can be grouped
`by indicating the pricing group of each customer in the customer master record. The R3
`documentation has extensive examples of separating customers into wholesale and retail
`groups and of determining the price of a product based on the group of the customer. The
`customer price group forms a hierarchy of two levels: the group and its members.
`
`The following quote describes the customer master record, which is used in both customer
`hierarchies and customer price groups:
`
`13
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`!!~~&''~
`i< I .P I C]ose I
`Different Business Partners
`
`J;ontents[ l_earch [ ~ack I f rinl
`
`l!l~ti[d
`
`A company deals With different business partners such as the sold-to party or the forwarding agent when carrying out busrness transactions. The SAP R/3 System
`drstmgu1shes between personnel, business partners who are customers, and those who are vendors and stores the1r detarls 1n different master records
`
`"
`
`Customer Master Record
`
`I_ Data on business partners who are customers, for example, the sold-to party, is managed in a customer master record.
`
`I
`
`Structure of the Customer Master Record
`
`Both the accounting department and the sales and distribution department have access to the customer master record. In order to avoid data redundancy, the data for both
`departments is stored in a common master record. General data, company code data, and sales and distnbution data is stored separately in the customer master record
`It is defined individually for each company code. Sales and distr ibution data depends on the
`Com11t1ny code data depends on the company code orgamzation
`It is defined individually for each sales area. General data is independent from company code and sales area. h applies to one customer rn
`orgamzation in the sales area.
`all company codes and sales areas. The following figure displays the structure of a customer master record.
`
`Generalda1a
`l
`
`1
`Sales and distribution
`data
`
`I
`Company code
`data
`
`SAP 00029494; SAP OOOJ3791.
`
`14
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Customer Hierarchies
`
`The following excerpts from the R3 documentation describe customer hierarchies and how
`they are built .
`
`...-. ... 1 ; .. m I ll"* I em I ~' I ~, I C)ne :
`Building a Customer Hierarchy
`
`A customer hierarchy it a flexible s1ructure consisting of nodes. Each node· wlh the excephon of the uppermost node· refers to ano1her node a1 a higher lnel m the hierarchy (knOMI as a hiqlttl ..fwtl "ode).
`to higher-level nodes are known as dependent nod H. Creating a customer hierarchy conststs of three steps:
`1. You create master records for each node that you plan to mc!ude tn the hi!rarthy (some dyour master data customers, for example .. already exists}.
`2. You asstgn the nodes to each other, gradually bUJidtng up your hterarchy
`
`Typicany, you create a hierarchy of nodes starting with the topmost, then creating each lml as you go. Usually, customers are asstgned to nodes at the lowest level of the hierarchy. However, it is also possible to assign customers to
`nodes at higher levels in the hierarchy. For example, a particularly large store in a chain of retail outlets may be assigned to a regional office rather than to a local sales office.
`
`figure shows the example from the mtroductory sltd1on, th1s t1me Wllh more deta1l Smrth Central1s the h1gher~level node for Smith South and Smrth North. Smith North is the higher-levt~l node ft:Jr Smith Northwest and Smith
`and so on As a rule, uch f'l(lde 1n the hierarchy has the same orgamzat1onal data However, th•s data can also vary
`
`SAP0002961 7; SAPOOOJ3918-9.
`
`15
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Building a Customer Hierarchy
`
`Hierarchy Types
`
`The hierarchy type IS used behmd the scenes for the follOWing purposes
`• To identify the purpose of a pa111cular hierarchy
`• To deterrn1ne wt'l1ch customer account groups are allowed m a hierarchy
`• To determme wh•ch orgamzatJonal data IS allow9d in a hierarchy
`The standard wtrs1on of the SAP R/3 System contains one, standard hierarchy type A tf you 'WISh, you can define your own types m Customizing for Sales
`
`Creating Mastef Data
`
`Because a node may represent an element in the orgamzational structure of your customer· a regional buying office, for example- you must be able to store limited, customer-related data for the node. Therefore, before you can create a
`hierarchy , you must define each node in the planned hierarchy as a master record. In terms of creating and maintaining master data for nodes in a hierarthy, you proceed just as you would with customer master data.
`
`Spectal Account Group
`
`The kmd of mfonnatton you can store m the master record of a node IS controlled through the wstomet account group For the purposes of creat1ng nodes m a hierarchy, a special account group (0012) has been created The system
`automatically proposes thiS spec tal account group when you create the master record for a node
`
`Data You Can Enter For a Node
`
`The master record for a hierarchy node enables you to specify the following mandatory data
`• Organtzattonal data
`
`• Address
`The followmg data can be entered optiOnally
`'Whether the node IS relevant for pncmg and rebate process1ng
`•
`• Contact person data
`
`Procedure
`
`To create the master record for a node, proceed as follows
`
`1. Select LogistiCs~ SaJe&'dlstllbJ.Jt/On ~Master data tn the main menu screen
`You reach the Sales & D1stnbut/Ofl Master Data screen
`
`Select Bu.,.•• panners __, HIO{Orcf¥ nodes __, Create
`You reach the tntttal screen for creatrng a hterarchy node (you are creatmg a kind of customer master record, so the system uses the same screens you see when you create a customer) The system proposes the account group
`0012.
`Enter your dats, but leave the Customer field blank (tn the standard verston, the customer number ts asstgned automattcally by the system) and press ENTER
`In addrt1on, you can enter data m the followtng screens
`You reach the screen ...mere you enter name and address data
`
`SA P00029617-8; SAP00013919-20.
`
`16
`
`

`
`Anticipation: 35 U.S.C. §102 (R3 Documentation)
`
`Flo Edt 8oolmart< Option<
`
`tiel>
`~·~ Se<lfCh I ~od< ! fli'l_l ~<_I 1> JCJo>eml
`Building a Customer Hierarchy
`3. Enter your data, but leave the Customer field blank (m the standard vers1on, the customer number 1s ass1gned automatically by the system) and press ENTER
`In additiOn, you can enter data m the follOWing screens
`You reach the scraen where you enter name and address data
`Control
`.. Contact person
`• 81lhng ~ndiCalors for rebates and pricing)
`Save your data
`
`Ass1g nm g Nodes Within a Hierarchy
`
`After you create the necessary master records for the nodes in your hierarchy, you can then incorporate the nodes into the hierarchy by making the actual assignments. For each node, you can enter the followmg- assignment data·
`• Number that identifies the master record of the hierarch node
`• Organtzattonal data
`• Vahdrty penod data
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`• Copymg routtne data
`In addttlon, the system automatically coptes the md1cators from the nodes master record that specify whether the node ts relevant for pricmg or stattsttcs On later releases 1 you Will be able to use customer hierarchies for creatin g
`stattstteal analyses)
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`Procedure
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`To create an asstgnment m a customer hierarchy, proceed as follows
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`Select Loglsl/C3 --7 Selesldl3lrlbull00 -lo Mester date tn the main menu scree n
`You reach the Sales & D~Stnbut10n Master Data screen
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`Select Busme8S partners ~ Customer h~erercl>f ~ Chonge
`You reach the selectton screen for customer hterarchtes
`3. Enter a customer hterarchy type ~he standard verston tncludes only one type A), a valtdtty date. and select Execute.
`The system dtsplays a Its! of extstmg customer hterarchtes that are vahd for the date you entered
`Posttton your cursor at the top oft he screen (where It says H1erarch{ headet) and select Ed1t --7 Assignment --7 CreMe a~~gnment.
`The system dtsplays the Create Hterarchj AS&gnment dialog bo x The data tn the upper half oft he dialog box defines the node you want to assign. The data in the lower half spectfies the higher level node
`Enter your data
`If you are asstgmng your node to a hrgher-level, enter data in the lower half of the d1alog box
`groups are defined tn Customtzrng for Sales
`If you are creattng the node at the top or a customer hierarchy. you do not need lo enter data m the lower half of the dtalog box
`Select Cor¥
`The system creates the assignment and displays 11 in the customer hierarchy
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`If you are assigning an extsttng customer master record as a node, you can only asstgn customers with valid account groups Valid account
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`SAP00029618-9; SAP00013920-1.
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`17
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`Anticipation: 35 U.S.C. §102 (R3 Documentation)
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`Building a Customer Hierarchy
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`If you are asSignmg your node to a hrgher-level, enter data rn the lower half oft he dralog bOk. W you are assigning an exrstrng customer master record as a node, you can only asSign customers with valid account groups Vahd account
`groups are defined 1n Custom1zrng for Sales
`If you are crealrng the node at the top of a customer hrerarchy, you do no1 need to enter data m the lower ha~ of the dralog box.
`Select Copf
`The system creates the asstgnment and dtsplays rt in the customer hierarchy
`7. Repeat the procedure for as many nodes as you need to create
`B. Seve your data
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`Assignmg Customers to Nod es
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`Mer you have created the mas1er data for the nodes and assrgned the nodes withtn the hierarchy, you can assrgn your cus1omers to the appropriate nodes. You do this in exactly the same way as when you asstgn the nodes to each
`other tn the hterarchy For each asstgnment, you the enter the same data as above
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`Partn ers Defined as Nodes
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`The customer hterarchtes descnbed so far tn thts documentatton constsl exclusiVely of nodes that are created wrth the spectal account group 0012 However, it is also poss1ble to define a partner as a node For example, a node tn a
`In th1s case, you have an eMIStmg customer master record, already ma1ntamed as a payer partner function You
`It also happens that you send 1nvo1ces to th1s office for payment
`hterarchy represents a customer's reg1onal buy1ng office
`ass1gn th1s customer master record as a node m the customer hierarchy, us1ng the appropnate account group
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`Controlled Through Account Groups
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`If you want to define partners as nodes, you can specrfy 1n Custom1zmg for Sales wh1ch account groups are vahd for a particular h1erarchy type and wh1ch of these accoun1 groups may be defined as highu.level account groups Far
`example, you can exclude the possibilrty of definrng shrp-to partres as hrgher-level nodes, s1nce shrp-to part res play no role rn pncrng
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`Organizational Data
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`\Vhen you create or mamtam a hierarchy node, you must specrfy orgarnzatlonal data Just as wrth customer master records , you specify the sales area sales organ1zat1on, d1stnbution channel, and dMs1on As a rule, the organ1zattonal
`data of nodes wrthm a customer h1erarchy should be identical. However, the sales area data may vary For example, customers ma1ntamed for different dMstons may be ass1gned to the same node A. node 1s ma1ntamed , for example, m
`the followmg sales area
`USOt
`Sales organrzat10n
`01
`Drslnbutron channel
`01
`0MSIOO
`You then ass1gn two customers to the above h1erarchy node. The first customer is ma1ntamed m the followmg sales area
`Ustl1
`Sales organ1zat1on
`01
`Otstnbutron channel
`02
`DMston
`The second customer ts mamtarned rn a different sales area
`US01
`Sales orgamzat10n
`01
`Orstnbut10n channel
`03
`DMsion
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`SAP00029619-20; SAPOOOJ3921-2.
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`Anticipation: 35 U.S.C. §102 (R3 Documentation)
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`Customer price groups
`The following excerpts from the R3 documentation describe how customer price groups can
`be defined in the customer master data, and demonstrate that price groups can be used to
`determine pricing.
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`Prerequisites for Automatic Pricing
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`For the system to carry out automatiC pncmg, the following prerequisites must be met:
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`o Cond1t1on records must already ex1st 1n the system for each of the cond1t1on types that you want the system to apply automatically For more mformat1on about creating and
`mamtam1ng cond1tion records, see Workmg \IIIIth Cond1t1on Records
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`• Where necessary, data must be mamtamed 1n the corresponding customer and matenal master records. If, for example, you want to apply d1scounts through specia l
`group1ngs of e1ther customers or matenals, then the system can only carry out automatiC pncmg when the groups are specified w1thm the relevant customer or matenal
`master records
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`Matenal Master Data
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`The fields 1n the matenal master record that are relevant for pncmg are on the Sales 2 screen
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`• Tax classification Indicates to what extent the matenal1s liable for sales taxes. If more than one tax classification ex1sts (for example, in the US there may be tax
`class1ficat1ons for sales taxes at state, c1ty, and county levels), then you find th1s mformat10n appears on 11 own screen. In this case, from the Sales 2 screen , select Details
`--7 Sales deta1ls --7 Taxes
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`o Pricing reference n1<1terial In th1s field, you can spec1fy another matenal as a reference for pnc1ng information If you spec1fy a reference, the system, dunng automatic
`pricing, uses all the cond1t10n records that apply to the reference matenal
`o M.lterial group A matenal group defines a group of matenals for wh1ch you want to apply the same cond1t1on record For example, us1ng a material group, you can spec1fy a
`discount that applies to a particular range of products
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`• Cash discount: In th1s field, you can specify whether or not the material qualifies for a cash discount.
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`Customer Master Data
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`Most fields in the customer master record that are relevant for pricing appear on the Sales screen.
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`• Customer pricing procedure: Here you spec1fy the pricing procedure for a customer Pncmg procedures are created and maintained 1n SD CustomiZing Dunng sales
`order processmg, the pricmg procedure determmes the kmds of pncmg element you can use and m wh1ch sequence they are processed
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`o Price list type Pnce hst types allow you to apply a matenal pnce 1n a particular currency to a group of customers For example, you can spec1fy a price list type that
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`an one tax classification for a customer, the informat1on appears on a separate
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`Note
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`If your busmess operates in the US, you must mamtam some add1t1onal data so that the system can automatically determme sales taxes In the Control data screen, you
`should mamtam the County code and C1ty code fields
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`SAP00029698; SAPOOOJ4002.
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`Anticipation: 35 U.S.C. §102 (R3 Documentation)
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`Discounts and Surcharges
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`Ths standard version of the SAP system includes a variety of commonly-used discounts. If your business requires 11, special discounts and surcharges can be defined in SO Customizing during system configuration or subsequent
`customrzmg
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`Dtscounts Ill the Standard Version
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`The standard versron mcludes the followm~ dtscounts
`Kmd of d1scotmt
`Dtscount {Key)
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`_j
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`Customer (KIXJ7)
`Malena MD41
`Price group (I@IJ)
`M<J ena group JN..I..:" ,
`Customer/malenal (klll5)
`Customer/matenal grou~ I)<IIDI
`PriCe group/matenal (t<l.i:u)
`Prtce grouplmatenal group (K031)
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`Percentage
`Absolute
`Percentage
`Absolute dtscount by wetght
`Absolute
`Percentage
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`r
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`ime
`cent age
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`You can use any of these standard drscounts to create condrt10n records rn the system Our1ng automatrc pncmg, the system takes 1nto account the drscounts that apply m the circumstanc