Step by Step process for Pricing in SAP

[Former Member]

Hello Experts,

Can any one please send me the documentation for whole process of pricing in SAP , So that it will explain me how it works in SAP.

I don´t need the steps for the configuration.

Thanks

[Former Member]

pl see the sap library which gives you all the information needed.

regards

[Former Member]

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.

In SD, the steps to configure Pricing procedure are as under:

Step 1:

Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Table (select the required fields combination, which will store condition record).

Step 2:

Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.

Step 3:

Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Type. It is always recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence to Condition type.

Step 4:

a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Maintain Pricing Procedure.

b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Determine Pricing Procedure.

5. Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.

It is assumed that document pricing procedure, customer pricing procedure , ... are in place.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi

Pricing and Conditions

The 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). Conditions represent a set of circumstances that apply when a price is calculated. For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here - the customer, the product, the order quantity, the date - determine the final price the customer gets. The information about each of these factors can be stored in the system as master data. This master data is stored in the form of condition records.

refer link below

<a href="http://www.sap-basis-abap.com/sapsdlog.htm">PRICING</a>

PRICING:

Pricing is the combination of creating correct pricing procedure that map the business needs & processes, such as correct pricing & discounting, & keeping to the legal requirements placed on the business, such as adhering to the tax laws of the country.

SPRO- IMG- SD- Basic Functions- Pricing- Pricing Control—

Create Condition Table: V/03, V/04, V/05

Define Access Sequence: V/07

Define Condition Types: V/06

Define & Assign Pricing Procedure

Maintain Pricing Procedure: V/08

Define CuPP: OVKP

Define DoPP: OVKI. The DoPP indicator is used to determine pricing in conjunction with the sales area & CuPP.

Assign DoPP to Order Types & Billing Types: OVKJ & OVTP

Define Pricing Procedure Determination: OVKK

Create Condition Table: V/03, 04, 05

Put the most general field for e.g., Sales Orgn in the highest position & the most specific field in the lowest. After organizational fields, place fields from doc header before those that come from item level (customer comes before material).

Sales Orgn, Distbn Channel, Div, Cust, Mat: Customer Specific Price

Sales Orgn, Distbn Channel, Div, Price List Type, Mat: Price List

Sales Orgn, Distbn Channel, Div, Mat: Material Price.

Maintain Access Sequence: V/07

Go to new entries, define 4-digit acc seq. Select acc seq, go to Accesses and place the cond tables and check exclusive indicator (which determines that if a cond record is successfully found, the system will stop searching further). Select each cond table and go to Fields.

• There are some cond types for which you do not create cond records (header discounts that you can only enter manually). These cond types do not require an access sequence.

Define Condition Type: V/06

They are used in the pricing procedure to define how the cond is going to perform, such as either a %tage or a fixed amount. The cond type can be automatic or it can allow manual changes. Copy the required cond type and rename. Then assign acc seq to cond type.

If you use different calculation types for what are otherwise the same conditions (for e.g., %tage, as fixed amt, qty dependent), you do not have to define different cond types in customizing. You can set different calculation type when maintaining cond records.

Functionality of Condition Types:

Access Sequence

Condition Class: surcharge & discounts or prices

Plus/Minus: -ve, +ve or both

Calculation Type: fixed amt, %tage, qty, wt, voln

Rounding rule: commercial, round up and round down

Group Cond

Manual Entry: whether manual or automatic entry has priority

Header Cond: after entering the header cond type click on the button activate. The cond amt of the header conditon is copied as it is to all the line items in the doc.

Item Cond

Amount/ Percent: check & u can change the amount or % for the cond type during data processing

Delete: check & the cond record may be deleted from the doc.

Value: check & the value of the cond type can be changed during data processing

Calculation Type: check & the cal type can be changed during doc processing

Valid from & to

Scale Basis: determines how the system interprets a pricing scale in a cond, for e.g., the scale can be based on qty, wt, voln

Check Value: indicates whether the scale rates must be entered in ascending or descending order.

Define and Assign Pricing Procedure: V/08

A pricing proc consists of a lists of cond types in a defined order, such as price less discount plus tax. Go to new entries, define 6-digit pricing proc with descp. Select the 6-digit pricing proc and go to Control Data, you will be faced with an empty structure.

Step: the no that determines the sequence no of a cond type with in a procedure

Counter: second mini step with in an actual step

Conditon type: specify the cond type

From & To: if you specify the ref steps in these fields, the cond values of the 2 steps specified and steps in between are totaled

Manual:

Mandatory: whether a cond type is mandatory when system carries out pricing

Statistical: the value represented in this step will not alter the overall value

Print: which cond types should be printed on a doc (order confirmation, invoices)

Subtotal: controls whether & in which fields the cond amts or subtotals are stored

Requirement: for a cond type to be executed in the sales doc the requirement specified here must be satisfied. (It is a gateway)

Alternative Calculation Type: alternative formula to the formula in the std system that determines the cond. In the std SAP system for the cust expected price EDI1, the alt cal type is 9, which means it contains a routine with a logic which states that the difference between the customer expected price & the net value is zero.

Alternative Cond Base Value: alternative formula for determining the cond basis (amt to which the discount or surcharge in a scale refers)

Account Key: this field enables the system to post the sales value to different G/L accounts. ERL: sales revenues, ERS: sales deductions, ERF: freight revenue.

Accruals: this is exclusively for rebate cond types BO01 & BO02. Key, which identifies various types of G/L accounts for accrual postings.

TAX: MWST

Tax is calculated on the following parameters:

Plant

Ship to party region

Customer tax classification

Material tax classification

Pricing Procedure Determination: OVKK: Determination Rule

Before one can proceed with the determination rule, one needs to maintain the CuPP & DoPP. One needs to assign a single character alphanumeric key with a short descp. Then assign the DoPP to the sales doc types. This will ensure that for e.g., all sales orders created using order type OR, which has been assigned a DoPP of 1, will all use the same pricing proc if created in the same sales area & with the same CuPP. In some instances, you may not want to have the same pricing proc for a sales doc, as you may want in a billing doc. For this reason, you may allocate a different DoPP to a billing doc.

Do not forget to assign the CuPP indicator to your CMD in the Sales Screen

Sales Orgn + Distbn + Division + CuPP indicator + DoPP indicator = Pricing Procedure

To Create own Sales Doc Types:

SPRO- IMG- Sales Doc- Sales Doc Header-

Define sales doc types: VOV8. Copy std order type& rename

Assign Sales area to Sales Doc Types:

Combine sales orgn

Combine Distbn channel

Combine division

Assign sales order types to permitted sales area

To create Price List Types:

SPRO- IMG- SD- Basic Functions- Pricing- Maintain Price Relevant Master Data:

• Define price list category for customers: OVSI: assign to CMD sales area screen in price list type field, in sales tab page in pricing and statistics section.

• Define pricing group for customers: OVSL: assign to CMD sales area screen in price group field, in sales tab page in pricing and statistics section.

• Define material group: OVSJ: assign to sales orgn 2 view of MMR in Mat Pricing Group Field.

• 2 digits character key with description

Cond Type Description Cond Class Calculation Type

BO01 Group rebate Exp reimbursement Percentage

BO02 Mat rebate Exp reimbursement Qty (fixed)

BO03 Cust rebate Exp reimbursement Percentage

BO04 Hierarchy rebate Exp reimbursement Percentage

BO05 Hierarchy rebate / Mat Exp reimbursement Percentage

BO06 Sales Independent Rebate Exp reimbursement Fixed amount

EDI1 Cust Expected Price Prices Quantity

HB00 Discount (value) Discount / Surcharge Fixed amount

HD00 Freight Discount / Surcharge Gross weight

K004 Material Discount / Surcharge Qty / absolute

K005 Customer / Material Discount / Surcharge Qty / absolute

K007 Customer discount Discount / Surcharge Percentage

K020 Price group Discount / Surcharge Percentage

K029 Material Pricing Group Discount / Surcharge Absolute discount by wt

K030 Customer/ Mat Group Discount / Surcharge Percentage

K031 Price Grp/ Mat Pr Group Discount / Surcharge Percentage

K032 Price Grp/ Material Discount / Surcharge Quantity / absolute

KF00 Freight Discount / Surcharge Gross weight

NRAB Free Goods Discount / Surcharge Quantity

PI01 Inter company price Prices Quantity (fixed)

PI02 Inter company % Prices Percentage

RB00 Discount / value Discount / Surcharge Fixed amount

PR00 Price Prices Quantity

VPRS Cost Prices Quantity

RL00 Factoring Discount Discount / Surcharge Percentage

MW15 Factoring Discount Tax Taxes Percentage

SKT0 Cash discount

• Customer Specific Price: sales orgn, distbn, division, customer & material

• Price List Price: sales orgn, distbn, division, price list type & material

• Material Price: sales orgn, distbn, division & material

• Customer discount: sales orgn, distbn, division & customer

• Customer material discount: sales orgn, distbn, division, customer & material or sales orgn, distbn, customer & material.

• Material discount: sales orgn, distbn, division & material or sales orgn, distbn & mat.

Condition Records:

Condition records allow you to store & retrieve pricing data in the system. Pricing elements are generally managed at the sales orgn & distbn channel level. There fore you always have to specify organizational level when creating cond records. In the case of cond records for price groups, freight charges, & cust specific prices & discounts you must also enter the division. As a result, you can create conditions according to product groups with these price elements.

Pricing Elements in Sales Order:

• Price: the basis of pricing during sales order processing is the gross price of the mat. The system selects the most specific record- the cust specific price. If it does not exist, the system looks for price list type. If it also does not exist then system takes the basic material price. You can define price list types by customer groups (wholesale or retail) or by currency (price lists for each foreign country dealt with)

• Surcharge & Discounts:

• Freight Costs: you can create cond record either based on: the first part of the inco term (for e.g. FOB) or on the combination of part 1 & 2 (for e.g. FOB & Boston). There are 2 predefined freight conditions

o KF00: applies to each item in a sales doc.

o HD00: applies to entire document.

• Sales Taxes:

Prerequisites for Automatic Pricing:

Necessary data must be maintained in MMR & CMD:

Material Master Data: the price related fields can be found in sales orgn 1 & 2.

Tax Classification

Price Material: you can specify another material as ref for pricing info

Material Group: defines a group of materials for which you want to apply the same cond record.

Cash Discount: whether or not mat qualifies for cash discount

Customer Master Data: the price related fields appear on sales data screen.

CuPP: specify the pricing proc for a customer

Price List: Allow you to apply a mat price in a particular currency to a group of customer’s e.g. wholesale customers.

Price Group: price group lets you apply a discount to a particular group of customers.

Tax Classification: billing tab page.

HEADER & ITEM CONDITIONS:

The standard system includes cond types that you can apply at only the header level, the header conditions. Cond types that you can only use for items are called item conditions. There are some cond types that can be used at both header & item level:

• RA01: percent from gross

• RB00: absolute discount

• RD00: weight discount

Header Conditions: you cannot create cond records for it; it is entered manually in order processing. Automatic pricing does not take place for them.

• HA00: percent discount

• HB00: absolute discount

• HD00: freight

• HM00: order value

Item Conditions: in the std SAP most cond types are defined as item conditions:

• K004: mat discount

• K005: cust/ mat discount

• K007: cust discount

• PR01: mat price

• KF00: freight

Distribution between Header & Item:

Header conditions apply to all items in the doc & are automatically distributed to all the items. It can be either percentage or an absolute amount.

If you enter a header cond that is based on a percentage (e.g., a dis of 2% ) the system automatically applies this percentage to all the items in the doc.

If the header cond is an absolute amount, there are 2 ways in which the system can distribute the amount among the items in the doc:

Distributed proportionally among the items

Amount entered at header level is duplicated for each item.

You control the distribution of absolute header condition in the Group Price Field per cond type.

• HB00: header discount distributed as percentage because it is marked as a header cond & group condition. The system distributes the amt proportionally among the various items, in this case according to the value of the items. The distribution of an absolute header cond need not be based on value. For e.g. you can specify in customizing for sales that the distribution is based on weight & volume of the different items. You can specify the basis of distribution in the ‘Alternative Cond Base Value’ field in the pricing screen.

• RB00: assigns the header discount to each item identically, because it is only marked as header condition.

<b>

REWARD IF HELPS</b>

Message was edited by:

SHESAGIRI GEDILA

[Former Member]

hi

gimeme u r mail id

prashanth

[Former Member]

Hello Prasant,

My email id is sapsduk@gmail.com

Thanks

[Former Member]

Dear Rani,

Best Practice Guide for Pricing:

http://searchsap.techtarget.com/expert/KnowledgebaseAnswer/0,289625,sid21_gci1248773,00.html

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/erplo/pricing%2bprocedure%2b(SD)

Pricing Procedure:

Ø Pricing procedure: A sequential list of condition types and subtotals.

Ø All condition types permitted in pricing are contained in the pricing procedure.

Ø You determine how the system is to use conditions by specifying requirements for each condition.

Ø The sequence in which the system accesses conditions in the business document is also determined here.

Ø The reference level provides a method to specify a different basis for the condition type calculation and for grouping conditions for subtotals.

Ø The pricing procedure can contain any number of subtotals between gross and net price.

Ø You can mark a condition type in the pricing procedure as being:

--> a mandatory condition

--> a manually entered condition

--> for statistical purposes only

Pricing Procedure Determination & Overview:

Ø In this example, an order for 120 pieces of a material is created. The system must determine the price automatically.

Ø First, the relevant pricing procedure is determined based on the sales area, customer, and sales document type.

Ø The system reads the condition type of the first step. It determines the assigned access sequence for this condition type.

Ø The system reads the access sequence. The sequence of condition tables represents the search strategy for finding the relevant condition record.

Ø Each condition table represents one access which can be made for a condition record with the specified key.

Ø The system searches for valid condition records with the key specified by the condition table (accesses).

Ø If the first access does not find a valid condition record, then the system searches for the next access using the next condition table.

Ø Once the system finds a valid condition record for an access, it reads the condition record and copies the value that corresponds to the scale into the sales document.

Ø The whole process is repeated for each condition type until the system has finished the entire pricing procedure.

Pricing Configuration:

Ø The condition table contains the keys that can be used for creating dependent condition records.

Ø You can add your own condition tables using table numbers 501 through 999.

Ø An access sequence is composed of one or more condition tables.

Ø After creating the access sequence, it is assigned to a condition type.

Ø You can also create your own condition types. You determine the characteristics of each condition type, for example, whether it is for surcharges or discounts and whether it should be dependent on values or quantities.

Ø The condition types are combined in the required sequence in the pricing procedure.

Ø Finally, you need to maintain the procedure determination table for the pricing program.

The pricing procedure is determined according to:

>> Sales area

>> Customer pricing procedure field in the customer master

>> Document pricing procedure field in the sales document type.

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/erplo/pricing%2bprocedure%2bin%2bsd

Pricing Procedure is indeed an heart of SD module, reason being if everything else is working fine, but price is not being calculated correctly, the purpose of billing fails.

An Overview of Determination & Configuration of Pricing Procedure is as follows:

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.

In SD, the steps to configure Pricing procedure are as under:

Step 1:

Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Condition Table (select the required fields combination, which will store condition record).

Step 2:

Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.

Step 3:

Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Condition Type. It is always recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence to Condition type.

Step 4:

a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Pricing Procedure --> Maintain Pricing Procedure.

b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Pricing Procedure --> Determine Pricing Procedure.

Step 5: Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.

Also, visit the following link:

http://www.sap-basis-abap.com/sapsdlog.htm under section Pricing and Conditions

Define Condition types

V/05 - Condition Table for V/07
e.g. a business may no longer wants to have a sales discount based on the sales organization, customer group, and material, but decided that the discount should be based on the sales organization, customer group and material group.

V/06 - Create new condition types by copying a similar conditions type and changing it according to your needs.

Double click on the condition type to change the control options
V/07 - Access Sequences for condition type
V/08 - Pricing Procedures for condition types.
The pricing procedure is also used in the account determination. This determines the general ledger accounts to which prices, discounts and taxes must be posted.

Click on the Pricing Procedures e.g. PR0000 - Condition Supplements for PR00
Click Control - e.g. Tick Mdt if you want the condition type to be mandatory
OV34 - Define account key
OV35 - Assign account key
Actky - Revenue account
Accrls - Accruals account
OVKK - Determine which Pricing Procedures to use for which Condition Type.

Price with additional decimals

You can add additional decimals for a currency through a work around method.

Set up a currency let's say instead of USD call it US$ ( OY03 ) and define the number of decimal places ( OY04 ) to be 3 or more depending on your requirement.

Maintain the exchange rate for between US$ and USD to be 1 to 1 ( OBBS and OB08 ).

Create pricing condition records for those customers requiring 3 decimal places using Current US$ instead of USD.

That will give you 3 decimal places for your prices. However, one thing you will have to watch out for is rounding.

You can try transaction OB90, define rounding rule for currency. Here you define the rounding rule for your customer's currency.

Control Pricing Conditions based on Order Type

4.6x

e.g. You create an order type ZP00 for QT - Quotation and does not wish it to be used in OR - Standard Order.

Follows this steps :-

IMG - Sales and Distribution -> Basic Functions -> Pricing Control -> Define and Assign Pricing Procedures

Define document pricing procedure
e.g. Q - Quotation

Assign document pricing procedures to order types
e.g. Assign Q to Order Type QT - Quotation

Maintain pricing procedures
e.g. Copy Standard Pricing Procedure to e.g. ZQT (all the pricing conditions list will only be allowed in order type QT - Quotation

Define Pricing Procedure Determination
e.g. Copy and assign Document Pricing Q and Pricing Procedure ZQT accordingly

Users will receive Message no. V1 206 "Condition ZP00 is missing in pricing procedure A V ZQT".

Create a New Pricing Conditions Key Combination

4.6x

In VK12, click the Key Combination button. You can see a list of available key combination for your price master.

Now, let create a new key combination e.g. Customer + Sales Document + Material

IMG - Sales and Distribution -> Basic Functions -> Pricing Control -> Define Condition Tables -> Create condition tables

e.g. 900
Selected fields
Sales organization
Distribution channel
Customer
Sales document
Material
Click Generate to activate it

IMG - Sales and Distribution -> Basic Functions -> Pricing Control -> Define Condition Tables -> Defince Access Sequences -> Maintain Access Sequences

Select PR00 - Price
Click Accesses
Click New entries

AcNo Tab Exclusive
50 90 X - Tick

Save your entries

IMG - Sales and Distribution -> Basic Functions -> Pricing Control -> Define Condition Tables -> Defince Access Sequences -> Optimize accesses

Copy an existing PR00 and substitute the AcNo with 50

Finally, goto VK12 and key in the new price master for PR00.

Next, goto VA02 and test out the material. If it didn't work check the pricing date in the header details. Is the pricing date within the validity period?

Change a Particular Pricing Procedure

Suppose the client requests to change a particular pricing procedure with respect to a particular customer so what are the steps to go about solving it.
What is the standard method?

=== For a particular customer if you need a unique price, then create a condition table with field customer. Put this condition table in the pricing sequence.

Since this sequence is assigned to the pricing condition, Create record for this codition table (Price) This will ask customer number and price for that customer.

1. create a condition table in necessery by using v/05 or IMG->S&D->BASIC FUNCTIONS ->PRICING ->PRICING PROCEDURE -> CREATE TABLE (first serch is ther any table which is having customer number , name , org, order no and all the requeried fields)

2. copy a condition type which is sutible for your requerment . by using v/06 or IMG PATH WHICH I HAVE GIVEN IN STEP ONE

3. copy a accecss sequence which u want v/07

4. assign access sequence to conditiona type and condition tabel to access access sequence .

5. finale create your only pricing procedure by using condition type like price , discount, tax etc see the standard condition pricing procedure rvv001 . attech this procedur to pricing determination with your sales area.

Now go to VK11 and create pricing condition record by using customer / material.

and also discount and tax recards and save them

After creating your pricing procedure and records you creat a sales order wiht the same sales area and order type which you atteched to pricing determination and give a material code and quentity and press enter

You will get pricing of that.

Regards,

Naveen.

[Former Member]

Hi Naveen,

Can you please send me the login and password to the searchsap.com site that you have referred to in your answer? My email id is: smrithi.pandya@gmail.com

Thanks,

Smrithi.