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created by Mamta Saboo on 26-Apr-2013 13:01, last modified by Deepa Sampath on 22-Jul-2014 07:14

Pricing in Business Transactions

Pricing is used to describe the calculation of prices and costs in a business transaction. Pricing enables to determine

relevant price information in all types of business transactions such as sales or service orders, contracts, quotations or

campaigns.

Different kinds of condition groups – for example, prices, discounts, surcharges, freight or taxes – can be

determined. The system uses the condition technique for pricing, to determine relevant pricing information

from condition records for a business transaction. Using condition technique the system answers the search

queries of different applications by searching in existing condition records for valid results using certain search

criteria.

SAP Pricing Fundamentals

ConditionTechnique in Pricing

The condition technique refers to the method by which the system determines prices from information stored

in condition records. The various elements used in the condition technique are set up and controlled in

customizing. During the processing of a business transaction, the system uses the condition technique to

determine a variety of important pricing information.

For example, the system automatically determines which gross price the c ustomer should be charged and

which discounts and surcharges are relevant given the c onditions that apply.

Elements in the condition technique

Condition Types: Define condition types different components that make up a price of a product (base price,

discounts, and surcharges)

Condition Tables: To store and retrieve condition records for each of the different condition types

Access seque nces: Strategy to enable the system to find val id co ndition records

Pricing Procedure: Grouping of condition types in a particular sequence

Process Flow for condition determination

The determination of pricing procedure is determined based on the data in the application.

The pricing procedure has several condition types in sequence; the system reads the first condition

type of the search procedure and determines the access sequence.

The access sequence is read with the condition tables which are also read in a sequence. The

condition tables determine the condition records. The condition tables have key field combinations

based on which the system determines the condition records.

As soon as the system has found a valid condition record for a cond ition table, i t makes the result

value for a results field available to the application.

When the determination procedure condition more than one condition type, the system repeats the

search for condition records for each condition type.

Pricing in CRM using IPC

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Condition Types In order to translate the receipt below in CRM, the system uses “condition types” to differentiate between different

price components. Condition types may be defined for base price, freight charges, taxes, discounts, net price, etc.

The calculation can be based on the amount or weight or volume of the product. It can be based on a number or can

be “%” based or can vary depending on a scale.

Access sequences

Pricing depends on a host of factors. For example, a discount may be applied only may only on a

particular

customer or the customer group. It may depend on the region or the product being or it may be

applicable for only certain duration. There are many such complex scenarios in real world and in

order to determine the prices accordingto these conditions, the system makes use of access sequences.

Access sequ ence i s a search strategy used i n pri cing to determine the best value that meets the

required conditions in an iterative manner. For example, if a certain tax % should be waived off

particular customer group for a sales office, then the system searches for this combination via access

sequence. The access sequence contains

a list of condition tables having condition records which are accessed in aniterative fashion to get the

best possible match.

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Condition Tables & Condition Records

A cond ition table defines the combi nation of field s that i dentifies a un ique condition record. Speci fic

data about the condition s is stored in the condition tables as condition records. For example, condition

records can be used to maintain a product price or special discount for privileg ed customer or a

special price is applicable for a certain period.

Values in condition records can also be scale based.

Note : The fundamental pricing concepts explained above are

applicable equally for SAP CRM as SAP SD.

Pricing in CRMPricing in CRM is also governed by condition types which in turn forms a sequence in pricing procedure. The

pricing procedure in CRM is determined based on the following factors:

Sales Organization

Distribution Channel

Document Pricing Procedure (can be assigned to a

sales transaction, on the third level)

Customer Pricing Procedure (assignment in business

partner master)

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Path in customizing

SAP Customizing Implementation Guide->Customer Relationship Management->Basic Functions->Pricing-

>Pricing in the Business Transaction->Determine Pricing Procedures

The customizing data for the condition technique and pricing is first downloaded from R/3 into the CRM

system. This is done via initial load in CRM via transaction R3AS.

In the standard system there are the following objects for transferring:

DNL_CUST_CNDALL (all data for condition

technique and pricing)

DNL_CUST_CND (condition technique data without

the cross-client data)

DNL_CUST_PRC (Pricing data)

Internet Pricing and Configurator (IPC)The Internet Pricing and Configurator is the pricing and configuration tool for CRM Online and CRM Internet

Sales. SAP

CRM uses IPC (Internet Pricing and Configurator) to determine pricing information when creating a business

transaction, such as a quotation, sales order, service process or a contract in a web based environment. It

allows to configure price and products in a web environment, using master data that is downloaded from SAP

R/3 system. It combines the functions of the Sales Configuration Engine (SCE) and the Sales Pricing Engine

(SPE) with a standardized Web interface.

IPC is the core part of pricing in CRM. The IPC ensures integrated price calculation, regardless of whether

prices are calculated for a business transaction in CRM Enterprise, in Telesales, or in SAP E-Commerce. It is

a Java-based client-server package. It provides R/3 pricing and R/3 product configuration outside of an R/3

system. It can access both the customizing data as well as the condition records. It does not need an online

R/3 system whilst still maintaining pricing and configuration data in one place.

Pricing Routines

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Routines for pricing are maintained in R/3 system using transaction VOFM. These are then entered in the

pricing procedure or the condition type. The standard routines in R/3 are mapped to IPC user exits in CRM.

The pricing routines or user-exits in IPC are developed in Java.

In an SAP R/3-CRM set-up, where the pricing related customization can be downloaded from the source, R/3

to CRM, the standard pricing runs fine on CRM. However, in cases where we have custom pricing routines

developed in R/3, they will not get downloaded to CRM as the translation between ABAP and Java is not

automatically performed. Hence, in order to maintain consistency between the custom routines in R/3 and

CRM, they should be coded in IPC. In case of a vice versa arrangement where the source of the pricing

routine is CRM, the same routine needs to be implemented in ABAP in R/3. In the next sections we will see

how these user exits are developed.

Pricing Communication Structure in CRM

The CRM applica tions communicate with IPC using pricing communication structure for data transfer.

This communication structure is called the pricing communication structure or the field catalog. All the

fields in the access sequence will be maintained in the field catalog.

Path in customizing

SAP Customizing Implementation Guide->Customer Relationship Management->Basic Functions->Pricing->

Define Settings for Pricing->Define Settings for Pricing

More often than not, we have a requirement to customize the pricing, for example, to determine pricing based

on some custom fields on the business transaction. In order to do so, we need to add these custom fields

during pricing process. For example, we need to determine price according to product hierarchy which is not

contained in the standard communication structure. In this case, we need to do some enhancement to pass

custom field to the communication structure.

Pricing Business Add-in (BADI)

Any custom fields that need to be accessed to determine pricing should be present in this pricing

communication structure. The structure will hold the value in run time via a pricing related BADI. In order to

process the custom fields in pricing communication structure and to pass it back to the communication

structure, SAP provides a BADI

CRM_COND_COM_BADI.

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If any field is added at header level of the field catalog, that will available in the changing parameter of the

method

HEADER_COMMUNICATION_STRUCTURE.

If any field is added at item level of the field catalog, that will availabl e in the changing parameter of the

method ITEM_COMMUNICATION_STRUCTURE.

Development Environment

The pricing user-exits will be compiled with the J2SE 1.4.x or a compatible java

compiler of version 1.4.x. Also the used libraries must be compatible

with J2SE 1.4.x. An IDE like Eclipse, 3.1 and above is recommended for

development of the routines.

Note: It is important that the compiled class files are compatible to a JDK 1.4 version as well as the

standard library used isonly JDK 1.4. The VMC java environment of SAP BASIS 7.00 does only

support 1.4 class files and libraries.

Important related SAP notes

Development Steps of Pricing Routine

In order to implement a routine in IPC, we first import an existing project into

workspace. We take this existing

project from a zip file attached in an SAP provided note, 809820, for this purpose.

This helps is accelerating the development.

Here are the steps.

1. Download and unzip the ZIP file attached in SAP Note 809820 into a

directory, say C:\DEV. This folder is the workspace folder for eclipse.

2. Enter into transaction /n/SAPCND/UE_DEV. API JAR files and some source

JARs from the system will be downloaded in a subfolder in the above

directory upon executing the transaction as shown in screenshot below.

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The development of the pricing routine will be done in an IDE, say eclipse.

Hereprepare an eclipse project using the folder in step 1 which will act as a

workspace in eclipse.

Customer implementations will be created in the src directory. After implementing

the customer exits, the user exit

classes need to be uploaded back into the system. For this, the java sources

and the compiled classes must be error free. Then prepare a

JAR file from the SAP delivered configuration file

‘create_PRC_UE_CUSTOMER_jar.jardesc’ in the SAP note. We will see shortly how the user exit accesses the application data and

determine the pricing.

1. The developed user exit will then be uploaded into the system using the

same transaction /n/SAPCND/UE_DEV. For one ABAP package, only

one JAR file can be used. Uploading will over-write an existing JAR file if

present, however the new coding is not taken automatically. We need to

reset the VMC in transaction SM52.

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Uploaded user exits

The uploaded user exits can be seen in transaction SM53.

The transaction SM53 contains also a browser to see the installed and

uploaded java modules along with the user exit files.

1. Select in the Navigation tree the element Application.

2. Browse the Installation tree down to the shown level 0/SAP/IPC ->

Modules.

3. All modules ending with _SAPCND_UE are customer uploaded modules

equals jar files.

4. Select the folder for /0CUST/ZSD_DEV_SAPCND_UE and we can see

the uploaded jar files.

Configuration of uploaded user-exits

Theuploaded java routine is configured in transaction /n/SAPCND/UEASS.

Give application as CRM.

Enter usage as Pricing, PR, and execute.

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The next screen the various types of standard user exits.

Register a user-exit

In order to create a custom implementation, it first needs to be registered

under the appropriate user exit type.

Registering a user-exit is a cross client customizing and can be done by

creating a new entry. Provide a user-exit name which is a symbolic or short

description of the functionality. The customer namespace starts with Y or Z.

As an example below, user exit type “VAL” has two custom implementations

registered under it. Select

the “Implementations” folder in the left pane of the transaction as shown in

the screenshot below after having selected the appropriate user exit type in

the above screenshot.

Double-click on the implementation name and then enter the name of the

implementation class compiled for this routine. There is no restriction on the

name but it should be different from com.sap*. Give a description to the exit.

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Attributes in exits

If the user exit needs access to some attributes on the application data, then

these attributes should be defined in the

“Attributes” section of the user exit. This attribute is only a symbolic name

which will be mapped later to a field from the pricing communication structure.

This name of the attribute will be referenced in the user exit implementation.

As shown in example below, the user-exit Z1156 has three attributes

maintained against it.

ZDENOMINATOR

ZNUMERATOR

ZSOLDCAPACITY

Formula number assignment

The next step is to assign a formula number to the implementation. This

formula number will be assigned to the

relevant condition type in pricing.

Number range of formulas

Allowed number range for different types of user exits can be seen in

transaction /n/SAPCND/UERNG.

For exit of type VAL, the customer number range is within 600-999.

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1

Double–click on the “Formulas” folder in the left panel of the transaction and create

a new formula number, say, 900, configured for Z1156, our custom user-exit.

Select “Attributes” double click on it

Now, these characteristics that appear in the column “Field Name” of this

screenshot are required to be maintained in the pricing communication

structure.

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These fields in the pricing communication structure will be populated via the

pricing BADI, by implementing either of the header or the item methods,depending on which level this pricing is maintained and required for.

The custom fields may be present on the application data or may be derived

via some other attributes on the application data. In our case, these attributes

are linked to configuration characteristics at item level for a product on a

business transaction.

The last step within CRM after registration and assignment of the user-exit

formula must be to upload before it can be assigned to any pricing.procedure

or other configuration. As the configuration is buffered for one day (default

setting) the changes will only become immediately active with a restart of the

VMC or the application server.

Note: While testing different configuration in a test or development system also the

function module, IPC_DET_CLEAR_CUST_BUFFER can be executed.

Virtual Machine Container

The VirtualMachine Container (in short VM Container or VMC) is a

component integrated into the SAP Web AS ABAP that enables Java functions

that comply with the Java Standard J2SE 1.4 to be executed in AS ABAP. The

VMC is optimized for applications that use functions implemented in ABAP as

well as in Java, and that have to communicate quickly and reliably with one

another.

Logs in Virtual Machine Container

In the transaction SM53, on the left side we can see Log Administration, in

that we also see the Log Configuration. We can specify the various severity

levels like at the package or class level.

1. Info

2. Warning

3. Error

4. Fatal

5. Debug

Logs can now be viewed in SM53 itself. Theycan also be filtered by different

criteria such as severity, log name,or user.

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The creation of the logs will be required to be done in the user exit itself. The

class com.sap.spe.base.logging.UserexitLogger implements two methods for

logging debug messages or error messages.

An example coding is shown below from a sample user exit in the note.

Classes to be inherited for different types of user exits

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Related Content

a. http://help.sap.com

b. http://scn.sap.com

c. http://service.sap.com

( For reference to SAP notes)

23676 Views Topics: customer_relationship_management

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32 Comments

Like (0)

Markus von Detten 06-Jun-2013 10:40

Very helpful article. Thank you!

Like (0)

Fernando Rodriguez 13-Jun-2013 00:38

Un articulo muy completo. Gracias !!

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Like (0)

Kiran Premlal 26-Jun-2013 17:56

Very detailed article !. thanks...

Like (0)

Iñigo Garcia Arriaga 27-Jun-2013 17:48

Great article!! Thanks!

Like (0)

Naga Vikranth Kotagiri 10-Jul-2013 09:29

Very good article ... Thanks

Like (0)

Venugopal V K 10-Jul-2013 14:05

Exhaustive Coverage . . . !!! Thanks for sharing . . .!!!

Like (0)

naval bhatt 12-Jul-2013 06:50

Very helpful article ..

Like (0)

Deepa Ashok 15-Jul-2013 12:04

Excellent Article....

Like (0)

Shobhit Srivastava 05-Aug-2013 20:29

nicely explained, thanks Mamta

Like (0)

Kavindra J 19-Aug-2013 11:23

Hi ,

I found this document extremely useful for somebody who is new to IPC and is looking to ramp up on

IPC. Also if just want to debug in ABAP stack , this document is extremely useful as you now know

that CRM_COND_COM_BADI BADI is the place where the debug points could be put. ~Kavindra

Like (1)

Fahrettin Kerem Bozbiyik 26-Aug-2013 13:40

So useful Pricing Fundamentals & IPC core function article.

thanks,

Fahrettin

Like (0)

Fahrettin Kerem Bozbiyik 27-Aug-2013 08:28

So useful Pricing Fundamentals & IPC core function article.

thanks,

Fahrettin

Like (0)

Nidhi Mukhija 03-Sep-2013 10:55

NIce article. THough I have not been working with IPC.. I am bookmarking it for any future references

Like (0)

Ravi Katyal 18-Sep-2013 16:25

Gud detailed article. Thanks.

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Like (0)

Vinay Rao 24-Sep-2013 15:27

Very good article. Thanks.

Like (0)

Ramesh Babu 25-Sep-2013 12:46

Excellent, very helpful

Like (0)

Krishnendu Laha 27-Sep-2013 13:25

Hello Mamta,

Very Nice document...

I have found one typo mistake:

"

If any field is added at header level of the field catalog, that will available inthe changing parameter of the method ITEM_COMMUNICATION_STRUCTURE." ~ Here Header should be replaced with Item, please check.

Thanks

Krish

Like (0)

Robson Soares 19-Mar-2014 16:08 (in response to Krishnendu Laha)

Hi Krish,

I did it.

Regards.

Like (0)

Sanjukta Dey 27-Sep-2013 16:59

Hello Mamta,

Thanks for this document .It was of great help.I have a doubt in 2 scenarios.Can anyone please help

me out to solve this:

1.Suppose we need two search criteria to display a single field,can it be possible using the following

way:

create 2 condition table for the 2 search criteria field and then assign both the condition table as

access under access sequence.Then while creating the condition record I am getting both the searchcriteria fields and putting the required values in those fields for which I need to display that particular

condition type.

Did I follow the correct path?? But I am nt getting my desired output..

2.Suppose for a condition type I had auto populated its value through Code.But then I need to set

access sequence against this particular condition type.I need to make it available only for a particular

criteria.So I had done the required configuration and made condition record with the particular search

criteria for that condition type.But after that the auto-populated value is not coming."0.00" is getting

populated against that condition type as in the condition record the value to be populated is getting

automatically set to "0.00". What should I do???

Like (0)

Divya Gupta 02-Dec-2013 08:13

Excellent Compilation Mamta. Very informative documentation.

Thanks

Like (0)

Shai Sinai 14-Jan-2014 12:21

Mamta,

Thanks for this useful document.

For your information, this document cannot be rendered as PDF (View as PDF) because it is using

non-standard formatting ( PDF Cannot be Rendered)

Shai

Vinay Rao 05-Mar-2014 11:07

Thank you Mamta for this excellent document.

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Like (0)

I have implemented given solution and this is working for ECC billing scenarios, However for CRM

billing scenarios it is not.

Do we need to perform any additional configurations/ABAP coding for CRM billing scenarios ?

Thanks in advance.

Regards,

Vinay.

Like (0)

Kiran Endreddy 20-May-2014 00:07

Hi Mamta,

Thanks for a very good article on IPC. I have a question on number of times each custom user exit is

getting executed.

When i see the debug log i can see that the Value user exits executes more than once during

calculation. Can you please help me in understanding on why the user exits executes more than

once for a given item.

In the below table PresentValue caculation is done 3 times for item 100. Cant we just restrict to do

only one time for each time.

Can you please help me in this

Thanks,

kiran

2014-05-19T14:55:07:139-

08:00

INFO Effective severity set to 'Debug' (100)

2014-05-19T14:55:32:619-

08:00

DEBUG Start Presentvalue.overwriteCo nditionVal ue() for item:

0000000100

2014-05-19T14:55:32:620-

08:00

DEBUG . Item Category ZDLE

2014-05-19T14:55:32:620-

08:00

DEBUG . in the if condition ZDLE

2014-05-19T14:55:32:620-

08:00

DEBUG . ZZTERM: 60

2014-05-19T14:55:32:620-

08:00

DEBUG . N Value (Term) is: 60

2014-05-19T14:55:32:620-

08:00

DEBUG Fair Value is zero so no calculation of i

2014-05-19T14:55:32:620-

08:00

DEBUG End fvintrate.overwriteConditionValue()

2014-05-19T14:55:32:687-

08:00

DEBUG Start Presentvalue.overwriteCo nditionVal ue() for item:

0000000100

2014-05-19T14:55:32:687-

08:00

DEBUG . Item Category ZDLE

2014-05-19T14:55:32:687-

08:00

DEBUG . in the if condition ZDLE

2014-05-19T14:55:32:688-

08:00

DEBUG . ZZTERM: 60

2014-05-19T14:55:32:688-

08:00

DEBUG . N Value (Term) is: 60

2014-05-19T14:55:32:688-

08:00

DEBUG Fair Value is zero so no calculation of i

2014-05-19T14:55:32:688-

08:00

DEBUG End fvintrate.overwriteConditionValue()

2014-05-19T14:55:33:445-

08:00

DEBUG Start Presentvalue.overwriteCo nditionVal ue() for item:

0000000100

2014-05-19T14:55:33:445-

08:00

DEBUG . Item Category ZDLE

2014-05-19T14:55:33:445-

08:00

DEBUG . in the if condition ZDLE

2014-05-19T14:55:33:449-

08:00

DEBUG . ZZTERM: 60

2014-05-19T14:55:33:449-

08:00

DEBUG . N Value (Term) is: 60

2014-05-19T14:55:33:449-

08:00

DEBUG Fair Value is zero so no calculation of i

2014-05-19T14:55:33:449-

08:00

DEBUG End fvintrate.overwriteConditionValue()

Kavindra J 28-Nov-2014 15:47 (in response to Kiran Endreddy)

Hi Kiran ,

This may not be possible as your routine may not be used in multiple condition types.

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~Kavindra

Like (0)

PIYUSH RANJAN SINHA 20-May-2014 09:20

Very Well drafted Document for the understanding of Pricing concept

Like (0)

Kalyan M 22-May-2014 09:04

Very helpful. Thanks

Like (0)

Pradeep Singhal 10-Jun-2014 07:46

Hello,

Mamta, Many thanks for this Information, it's very helpful.

Can anybody please help me, In CRM_COND_COM_BADI BADI,

I wanted to read all the Condition Type applicable for a particular Item/Header Guid ?

My scenario was to enable a certain condition based on another condition in the list.

Like : MWST is present enable "ZWST" else not.

How I can achieve this in IPC ?

Like (0)

Kavindra J 28-Nov-2014 15:41 (in response to Pradeep Singhal)

hi Pradeep ,

You don't implement CRM_COND_COM_BADI for a particular condition type but for aroutine to be created. If you want to read this information , then there are FMs available. Let

me get back to you on this.

~Kavindra

Like (2)

Joao Sousa 20-Jul-2014 19:06

CRM still uses IPC?..... In CRM 4.0 this was one of the worst bits of technology I'd ever seen, another

Java monster to stand next to the same exact functionality in ABAP....

Implement the exit in ABAP for SD, implement the same exit in Java for IPC. Awesome design.

Like (0)

Luís Pérez Grau 20-Jul-2014 22:02 (in response to Joao Sousa)

Yes, and we are enjoying it sooooo much!

Like (0)

Shai Sinai 21-Jul-2014 09:38 (in response to Joao Sousa)

Yes, only god (and SAP) knows why...

Like (0)

Kavindra J 28-Nov-2014 15:44 (in response to Shai Sinai)

Actual p eople confuse IPC is o nly u sed for pricing but the bigger use ca se of IPC is

TTE & SCE. There used to be a JAVA PME which was used to support Variant

Configuration. Writing routines could be just one use case.

~Kavindra