NEW-Pricefx and SAP Integration Suite

Overview

Pricefx uses SAP Integration Suite to connect processes and enable data-rich integration between SAP and non-SAP systems, including pricing software packages. The Integration Suite allows for quick and simple integration, facilitating the connection of processes and data between different systems. This integration helps Pricefx to work with SAP solutions, particularly in the context of pricing software and dynamic pricing optimization.

Pricefx's technology integrates with SAP through various methods, including data integration, system integration, and frontend interconnection. The integration can be achieved using distinct types of integration, such as manual data integration and other company-specific terminology for integration methods.

Additionally, Pricefx offers a package for SAP S/4HANA Price Condition Integration with Pricefx, which can be found at SAP API Business Hub or SAP Integration Suite. This package provides specific integration capabilities between SAP S/4HANA and Pricefx for price condition management.

SAP Integration with Pricefx Solutions

So, you’ve got your SAP Enterprise Resource Planning (ERP) software running like a dream. Your pricing strategy is taking on a brand-new dimension and efficiency is boosted to the point where you can expand your organization and diversify your client and product base. Then suddenly – Bam! – your business requirements have changed.  

You've discovered the necessity to automate and monitor the recently introduced rebates and promotions setup. Furthermore, you require the integration of your finance and CRM (Customer Relationship Management) systems into what will eventually serve as a centralized pricing software solution

Now it's crucial to acknowledge the urgent need for your organization to implement SAP integration with a pricing software solution. While there will be certain processes to optimize your system, this article outlines several independent steps you can take to facilitate a seamless integration of your SAP platform with pricing software."

SAP Integration Platform and Pricing Software 

Fortunately, the SAP Integration Platform is compatible with most pricing software packages, simplifying the integration process. The Integration Suite enables the connection of processes and facilitates data-rich integration between SAP and non-SAP systems, including pricing software packages. This integration can be customized to meet specific business requirements, such as rebate management, regional breakdown, or ensuring system integrity and security.

The integration establishes a two-way communication system where information is shared between SAP and the pricing software package. For instance, in price list management, new and updated master data is imported from SAP to the pricing software, while the software 'reports back' to SAP with approved price lists in the form of 'condition records.'

Similarly, in rebate management, accruals are built up, the latest updated master customer records are imported from SAP into the pricing software, and returned to the SAP system as approved rebate records in the form of credit memo requests. In certain scenarios, the vendor may also need to populate statistical conditions into SAP.

Regardless of the SAP interface (old or new, SAP PI Netweaver, or SAP Cloud Platform Integration) used by your business, master data can be integrated into your pricing software package. While many businesses prefer SAP cloud (platform) integration, it is not essential, as non-cloud integrations also function effectively.

Since each business has its own unique set of principles, requirements, and anticipated outcomes from their integration process of SAP with pricing software, it is challenging to provide a prescriptive timeframe for completion. Every business is unique in this regard.

Prepare for SAP Integration 

When it comes to integrating SAP to whatever pricing software solution you choose, data is king. The cleaner your data, the better. At the end of the day, it doesn’t really matter that much where the data comes from and how it transmits (remember though, as we discussed above, the cloud-based S/4 HANA will be the only option in the near-future), but its cleanliness is key.  
 
With that in mind, the transmission of clean master data heads the wish list below of steps to pull off a successful integration. Preferably, try to get the elements below in place as soon as soon you can. 

1. Ensure Your Master Data is Clean 

"Ensure the accuracy and consistency of your master data by eliminating duplicates and establishing it as the sole source of truth for future pricing decisions. Identify the necessary data upfront and determine how and where you intend to use it. Establish this data as early as possible in the integration project. Some pricing software solutions also offer data cleansing capabilities for your business's blended Extract-Transform-Load (ETL) data, but it's important to ensure that this data is free of duplicates to maintain a single source of truth.

2. Use an Experienced IT Solutions Architect 

Onboard or source an in-house seasoned IT professional who is familiar with implementing ERP-level projects and managing change management who speaks the native language. In a perfect world, someone who knows your company’s system landscape and SAP intimately, your data and where it lives, and understands the overall vision of the project would be fantastic, which segues nicely to the next step. 

3. Identify the ‘Condition Types’ You Will Require Before You Begin

Consider the required 'Condition Types' for your specific pricing project. Each condition type represents a step (similar to a pricing waterfall) in your unique pricing project on the journey to the selling price of your products – for example, list price, invoice price override, invoice price, net price, etc.

However, the complexity of your business (in terms of customer types, number of products, sales regions, etc.) may result in a greater number of condition types. In such cases, your pricing software vendor may need to redesign new condition types or data access sequences to ensure effective communication with SAP, based on your business's specific pricing project requirements.

4. Facilitate Executive Buy-In  

Source an executive champion for your project – you will know much better than us who is the appropriate person in your company to drive your SAP-pricing software integration project. It might be your Pricing Manager; it could be the VP of Sales.  
 
For sure, in your organization, it will be the individual who ‘gets’ the value of pricing and is possessed with the character and the ‘oomph’ to throw their weight and support behind the integration project in your company. 

How to Have a Successful SAP integration 

To reiterate, successful integration with pricing software hinges on the quality of data residing in SAP. Even with the most advanced pricing system and algorithms designed to optimize profits and exceed business objectives, the presence of dirty, incomplete, duplicated, or corrupted data will hinder its effectiveness.

This is the most common challenge we encounter when addressing integration delays or failures. While it may seem like a cliché, the need for a 'single source of data truth' cannot be overstated. This ensures the accuracy and consistency of the data used for decision-making and pricing calculations.

To give your integration project the best possible chance of success, also have in mind before you begin: 

What you want to achieve now and, in the future?

Making revisions after the original integration is more difficult and time-consuming than on set-up. 

Who do you want to have access to the system? 

Quite literally, too many pricing cooks with access can potentially destroy the infinite positive possibilities of the pricing broth. Worse still, unauthorized changes such as one decimal place changed by mistake here-or-there by multiple users can have disastrous potential consequences. 

API Integration of the SAP Platform with Pricing Software

To ease you through the integration process, SAP has developed an in-house platform to help manage and accelerate enterprise-wide integration across unique business landscapes. 

Driven by Application Programming Interfaces (APIs), the SAP integration platform can specify how pricing software programs can exchange information with SAP, even though designed and run by different organizations. APIs can connect internal information you may store in SAP such as product, customer, transaction, costing, inventory data etc. with pricing software, which in turn can harness external data sources (commodity indexes, competitive, weather) and combine it to optimize customized pricing strategies for your business.

Taking Integration Action

By following the aforementioned steps, you'll be well on your way to achieving successful integration between SAP and pricing software. This integration serves as a powerful and informative tool that supports the realization of your long-term business objectives.

Through proper planning and addressing the challenges associated with your business's growth or SAP/price optimization integration journey, the encountered issues will seem insignificant compared to the immense power these tools offer when they function together as a unified pricing platform.