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SAP - R/3 Sales and Distribution

Pricing Procedure Determination in Sales and Distribution

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SAP - R/3 Sales and Distribution Pricing Configuration 2
SAP - R/3 Sales and Distribution
Pricing Configuration
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Pricing Flow Chart The diagram shows how the various elements in the condition technique work together.
Pricing Flow Chart
The diagram shows how the various elements in the condition technique work together.
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Sales and Distribution Pricing

1.The system determines the pricing procedure according to information defined in the sales document type and the customer master record.

2.The pricing procedure defines the valid condition types and the sequence in

which they appear in the sales order.

3.Each condition type in the pricing procedure can have an access sequence assigned to it.

4.In the example, the first access (searching for a customer-specific material price) is unsuccessful. The system moves on to the next access and finds a valid record.

5.The system determines the price according to information stored in the condition records.

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How Condition Technique Elements Work 5
How Condition Technique Elements Work
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Condition Technique in Pricing Pricing The term pricing is used broadly to describe the calculation of
Condition Technique in Pricing
Pricing
The term pricing is used broadly to describe the calculation of prices.
Conditions
Conditions represent a set of circumstances that apply when a price is calculated.
Condition Techniques
It refers to the method by which the system determines prices from information
stored in condition records. During sales order processing, the system uses the
condition technique to determine a variety of important pricing information.
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Condition Technique in Pricing

  • 1. Create the Condition tables

  • 2. Create the Access Sequences

  • 3. Assign the Condition tables to the Access Sequences

  • 4. Create the Condition types

  • 5. Assign the Access Sequences to the Condition types

  • 6. Create the Pricing Procedure and assign the Condition types to it

  • 7. Determine the Pricing Procedure

  • 8. Create the Condition record

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Condition Table A condition table defines the combination of fields (the key) that identifies an individual
Condition Table
A condition table defines the combination of fields (the key) that identifies an
individual condition record.
Example of a Condition Table:
A condition records for customer-specific material prices is created. The standard
R/3 System includes condition table 005 for this purpose. The key of table 005
includes the following fields:
•Sales organization
Distribution channel
Customer
Material
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Access Sequences An access sequence is a search strategy that the system uses to find valid
Access Sequences
An access sequence is a search strategy that the system uses to find valid data
for a particular condition type. It determines the sequence in which the system
searches for condition record. The access sequence consists of one or more
accesses.
In other word, It is the sequentially placing of condition tables in a logical order
to obtain the valid condition record.
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Assigning C’tables to Access Sequence In this process we will assign the defined condition tables to
Assigning C’tables to Access Sequence
In this process we will assign the defined condition tables to the access sequences.
It is the linking up the tables and access sequences.
for Example, see the below screen short. The access sequences is PR00 and it has
tables assigned like 005,006,004
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Condition Types A condition type is a representation in the system of some aspect of your
Condition Types
A condition type is a representation in the system of some aspect of your daily
pricing activities. For example, we can define a different condition type for each
kind of price, discount or surcharge, freight and taxes that occurs in your
business transactions. Every condition type has its own access sequences,
condition tables, and condition records
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Condition Type control fields 12
Condition Type control fields
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Assigning A’ Sequences to Condition types Access sequences will be assigned to the condition type to
Assigning A’ Sequences to Condition types
Access sequences will be assigned to the condition type to maintain the
condition records. In practically speaking it is the link between the condition
tables and condition types to get the condition records.
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Important control fields

The important control fields in condition type are

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  • 1. Condition class

  • 2. Calculation type

  • 3. Rounding rule

  • 4. Header condition

  • 5. Item condition

  • 6. Validity Periods

  • 7. Scales

Important control fields Condition Class Preliminary structuring of condition types e.g. In surcharges and discounts or
Important control fields
Condition Class
Preliminary structuring of condition types e.g. In surcharges and discounts or
prices. A grouping that lets you control each condition type differently.
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Important control fields Calculation type Determines how the system calculates prices, discounts, or surcharges in a
Important control fields
Calculation type
Determines how the system calculates prices, discounts, or surcharges in a
condition. For example, the system can calculate a price as a fixed amount or as
a percentage based on quantity, volume, or weight.
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Important control fields Rounding rule The rule that determines how the system rounds off condition values
Important control fields
Rounding rule
The rule that determines how the system rounds off
condition values during pricing. The last digit will be rounded
Example:
Commercial: The amount in the sales order will be take has it is like
Rs 500.58
Round up: If the amount in the sales order is Rs 500.58, it will be treated as
Rs 500.60
Round down: If the amount in the sales order is Rs 500.58, it will be treated
as Rs 500.50
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Important control fields Header Condition Header conditions apply to all items in the document and are
Important control fields
Header Condition
Header conditions apply to all items in the document and are automatically
distributed to the items. Automatic pricing does not take header conditions
into account, we can not create condition records for them in the standard
system. Header conditions are entered manually in order processing.
R/3 includes the following header conditions
• Percent discount (HA00)
• Freight (HD00)
• Order value (HM00)
If this condition is marked as a header condition, it is
possible to enter the condition type in the header
condition screen
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Important control fields Item Condition In the standard system, most condition types are defined as item
Important control fields
Item Condition
In the standard system, most condition types are defined as item conditions.
Examples of item conditions are:
• Material discount (K004)
• Customer/Material (K005)
• Customer discount (K007)
• Material price (PR01)
Mark this field if the conditions of this type are allowed to be
entered in the document items. The condition is then only
valid for the particular item in which it is entered.
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Important control fields Validity Periods Condition records for prices and discounts always include a validity period.
Important control fields
Validity Periods
Condition records for prices and discounts always include a validity period. The
validity period is defined by a beginning date and an end date
Valid from
Date proposed as valid-from date
Specifies the beginning validity date that the system automatically proposes
when you create a rebate agreement of this type.
Valid to
Date proposed as valid-to date
Proposed value for how long a condition should remain valid.
The system proposes this value for the Valid to date when you create condition
records
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Important control fields Scales When you create a condition record for a pricing element, you can
Important control fields
Scales
When you create a condition record for a pricing element, you can define a
pricing scale.
Scale Basis
Determines how the system interprets a pricing scale in a condition. For
example, the scale can be based on quantity, weight, or volume
A pricing scale can be based on any of the following criteria
• Value
• Quantity
• Gross weight
• Net weight
• Volume
• A formula specific to your requirements
Checking rule : Indicates whether the
scale rates must be entered in
ascending or descending order
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Maintaining Pricing Procedure

Pricing Procedure

The primary job of a pricing procedure is to define a group of condition types

in a particular sequence. The pricing procedure also determines:

Which sub-totals appear during pricing Which method the system uses to calculate percentage discounts and surcharges Which requirements for a particular condition type must be fulfilled before the system takes the condition into account

Pricing Procedures in the R/3 System

The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access

sequences. We can, of course, modify these procedures or create your own

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from scratch

Pricing Procedure control fields 23
Pricing Procedure control fields
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Pricing Procedure control fields

Step

It is the number that determines the sequence of the conditions within a procedure.

Counter

It is the sub step in the main step, or grouping of similar condition types.

Condition Type

The condition type is used for different functions. In pricing, in output determination, between different output types such as order confirmation or delivery note.

From

The reference step from to take the value of which is the basis for percentage surcharges.

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Pricing Procedure control fields

To

The reference step to up to which the condition values of the previous

steps are totalled. Percentage surcharges are calculated on the basis of the total.

Manual

Conditions, that are given this indicator in the pricing procedure, are only

included in determination (price determination, output determination) either if they are entered manually, for example, on the condition overview screen

in Pricing.

Required or Mandatory

Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure.

Statistics

This indicator causes a surcharge or discount to be set in the document

statistically (that is, without altering the value.

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Pricing Procedure control fields

Print

Controls issue of condition lines when printing documents such as order

confirmations or invoices.

Sub Total

Controls whether and in which fields condition amounts or subtotals (for

example, a customer discount or the cost of a material) are stored If the same

fields are used to store different condition amounts, the system totals the individual amounts.

Requirement

If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified.

Calculation Type Condition formula for alternative calculation type alternative formula to the formula in the standard system that determines a condition.

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Pricing Procedure control fields

Condition Base Value

Alternative formula for condition base value formula for determining the condition

basis as an alternative to the standard.

Accounting Key

Key that identifies different types of G/L account. The account key enables the system to post amounts to certain types of revenue account or it is the link between FI and SD integration.

Accruals

With the aid of the account key, the system can post amounts to certain types of

accruals accounts. For example, rebate accruals which are calculated from pricing conditions can be posted to the corresponding account for rebate accruals.

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Pricing Procedure Determination

The pricing procedure will be determine with the following key combinations

Sales Area

It is the combination of the external organization units, such as Sales

organization, Distribution channel and Division

Document Pricing Procedure

The pricing procedure determines how the system carries out pricing for a particular sales document (for example, which pricing condition records it accesses and in which sequence)

Customer Pricing Procedure

Here you specify the pricing procedure for a customer. During sales order

processing the pricing procedure determines the kinds of pricing element used and in which sequence they are processed.

Pricing Procedure

It determines which condition types can be used in a document and in

which sequence they appear

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Pricing Procedure Determination These three organization units are called as Sales area 29
Pricing Procedure Determination
These three organization units
are called as Sales area
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Creating the Condition record Condition record Condition records allow you to store and retrieve pricing data
Creating the Condition record
Condition record
Condition records allow you to store and retrieve pricing data in the system.
All the pricing elements of your daily business - the prices, discounts, and
surcharges for freight and taxes - that you want to use for automatic pricing
must be stored in the system as condition records. During document
processing, the system transfers data from the condition records and
determines the amounts for individual pricing elements and the final amount
for the sales document.
Key combinations are the key fields of
the condition tables
Creating the condition record with T-code VK11
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Creating the Condition record 31
Creating the Condition record
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