Pricing and conditions in SD

ContentsWhat is Pricing & conditions?

Condition Techniques.

Pricing Elements in Sales Order Processing.

Automatic Pricing.

Header and Item Conditions.

Special Pricing Functions.

Table structure

Pricing & ConditionsPricingThe term pricing is used broadly to describe

the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting).

ConditionsConditions represent a set of circumstances

that apply when a price is calculated. The variable factors are

- The customer- The product- The order quantity- The date

Condition Techniques

Condition types

Condition tables

Access sequence

Pricing procedures

Condition TypesIdentifies the characteristics of a condition.

Some Basic Condition Types:

PR00 --------- Price K004 --------- Material discountK005 --------- Customer-specific material discountK007 --------- Customer discount K020 --------- Price group discount KF00 --------- Freight surcharge (by item) UTX1 --------- State tax UTX2 --------- Country tax UTX3 --------- City tax

Pricing – The Flow

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Procedure

Primary job of a pricing procedure is to define a group of condition types in a particular sequence.

• Document Pricing Procedure

• Customer Pricing Procedure

Document Pricing Procedure

Pricing Procedure

Condition Table

A condition table defines the combination of fields (the key) that identifies an individual condition record.

Access Sequences

It is an 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 data

Condition Types

Calculation Type:Determines how the system calculates prices, discounts and surcharges for a condition.

Pricing Elements in Sales Order Processing

Prices

Surcharges and discounts

Freight cost

Sales taxes

Prices

The basis of pricing during sales order processing is the gross price of a material.

Material price

Price list type

Customer-specific price

Freight Charges

We can pass freight costs on to our customers by using special condition types that relate to shipping and freight charges.

Condition Type : KF00

Sales Taxes

The standard R/3 System includes condition types that define country-specific sales taxes.

Material Tax Classification

Customer Tax Classification

Customer TaxesCustomer Taxes

Material TaxesMaterial Taxes

Header and Item ConditionsHeader ConditionsThe standard system includes condition types that you can only apply

at the header level the header conditions. (Only for Manual)- Percent discount (HA00) - Absolute discount (HB00) - Freight (HD00) - Order value (HM00)

Item ConditionsCondition types that you can only use for items are called item

conditions.- Material discount (K004) - Customer/Material (K005) - Customer discount (K007) - Material price (PR01)

Condition Records

Condition records allow us to store and retrieve pricing data in the system.

- All the pricing elements of our daily business - the prices, discounts, and surcharges for freight and taxes - that we want to use for automatic pricing must be stored in the system as condition records.

Transactions

Create conditions (transaction VK31)

Change conditions (VK32)

Display conditions (VK33)

Create conditions with reference (transaction VK34)

Condition RecordsCondition Records

Special Pricing Functions Promotional Pricing Agreements

Promotions -A promotion typically represents a high-level marketing plan for particular products or product lines - for example, a promotion for a range of products during a specific sales cycle. A promotion can include a number of different sales deals. Transaction codes:promotions - VB31 (creating)Sales deals - VB21 (creating)

Customer Expected Price

By entering the expected price during sales order processing and comparing it with our price, we can help avoid disputed invoices later.

Condition Types:

EDI1 - Customer expected price

EDI2 - Customer expected value

Condition Exclusion:In pricing for sales and billing

documents, more than one condition record may apply to a particular item at any one time. We can use the condition exclusion process to compare possible conditions in order to determine such things as the best price for a customer.

The final price in this example is calculated this way:100 USD – 20 USD + 1 USD = 81 USD/KI

Table Structure

SAP AG

R

Table Structure: Conditions for Pricing

A002A002 A003A003

KONHKONH

KONPKONP

KONMKONM KONWKONW

KONAKONA

. . .A001A001 A502A502A501A501

SAP Standard Customers

Pricing Reports

Creating Reports - Transaction V/LA

Running Reports - Transaction V/LD

Net Price List - Transaction V_NL