Condition Exclusion

HI

Condition exclusion: It is a provision by way of which you can control the discounts to be passed on to the customer in case if there are more than 1 discount type. Suppose you have 3 different condition types for discounts. you may not want to pass on all the discounts to the customer. This you can do through condition exclusion.

Condition exclusion procedure:

1. OV31 - Define condition exclusion group.

2. OV32 - Assign the various discount condition types to the group created in step no.1. Only select the discounts which are required by you. Suppose you have 3 discount types - a, b, & c. You want to do exclusion for a & b only. So do not select c here in this step.

3. VOK8 - Here you select your pricing procedure, double click on exclusion. ere click on new entries, select the condition exclusion procedure like best condition between condition types; lease condition between condition types; best condition between 2 exclusion groups; best record within a condition type.

Save it.

4. When you create the sales order in VA01, the system will automatically exclude the condition type not wanted.

HI

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

The Condition Exclusion Procedure

First of all, you create exclusion groups. An exclusion group is a list of condition types that is identified by a three-digit number. Exclusion groups are defined in Customizing for Sales. You also assign exclusion groups to a pricing procedure and to determine how the condition exclusion is to be carried out.

You then assign the exclusion groups to a pricing procedure, thus defining the condition exclusion.

Depending on how you configure exclusion groups in the pricing procedure, the system can use condition exclusion to select the best price or discount in six different ways:

Selecting the best condition record of a particular condition type from within one exclusion group

Selecting the most unsuitable condition from within one exclusion group

Selecting the best condition record for a condition type

Selecting the most unsuitable condition record for a condition type

Selecting the best conditions from different exclusion groups

Excluding all condition types in the second exclusion group if a particular condition type in the first exclusion group exists in the document

Determining Best Price From Condition Types

During automatic pricing for a sales order item, the system may find a number of valid condition records that apply to the same item. If the competing condition records belong to a variety of condition types, the system selects the record with the best price and excludes the other condition records. Condition records that the system ignores are not deleted from the sales order but are simply deactivated. You can still see the excluded condition records on the pricing screen in the sales order.

In condition exclusion in the standard system, a condition record with a zero value is not taken into consideration. It is treated as though it doesn’t exist.

If you want to take a zero value into consideration, enter the standard calculation formula 038 in the pricing procedure for one of the conditions to be compared.

The following is an example of a situation where a zero value should be taken into consideration:

A company has two condition types in the pricing procedure for surcharges. A condition exclusion group with these two condition types has been defined and shows that the lower of the two should be applied. In some cases the surcharge could be zero. The reason for this may be a condition record found or a manual entry. In order that the system takes zero into consideration as the lowest surcharge for the customer, the formula ‘38’ must be assigned to one of the condition types in the pricing procedure.

Determining Best Price Within One Condition Type

If the access sequence for a particular condition type does not specify exclusive accesses, it is possible for the competing condition records to exist within the same condition type. For example, the system may find two valid condition records for a material discount (K004) - one a material discount, the other a customer-specific material discount. The system determines the record with the most favorable discount for the customer.

If the Exclusive access indicator is set, the system looks no further after it finds the first valid condition record. In this case, the system cannot determine a best price.

Determining Best Price from Different Exclusion Groups

This method allows the system to check between exclusion groups for the most favorable price or discount. In this case, the system totals the condition values for each group, compares them, then selects the most advantageous group for the customer.

Excluding the Conditions in an Exclusion Group

In the fourth alternative when the system selects one particular condition type that exists in the first exclusion group, it excludes all the conditions in the second exclusion group from pricing.

After you have defined the exclusion groups you want to use, you can enter them in the pricing procedure. The following example shows how exclusion groups can be used in the pricing procedure. In this case, the exclusion procedure selected is the best condition type within one exclusion group.

TTh Pricing procedure

Exclusion group

Condition type

RVAA01

001

KA00 Sales promotion

RVAA01

001

K005 Customer/Material

RVAA01

002

KF00 Freight

RVAA01

002

KF01 Freight

RVAA01

002

KF02 Freight

You process a sales order item to which the following condition records apply:

Condition type

Rate

Value

Currency

PR00

100 USD/KI

100

USD

KA00

20%

20

USD

K005

10%

10

USD

KF01

1 USD/KI

1

USD

KF02

2 USD/KI

2

USD

In this example, exclusion group 001 deactivates condition type K005. (The system determines that the KA00 condition record is the best discount and ignores the other condition types defined in the group.) Exclusion group 002 deactivates condition type KF02 for the same reason. (The system determines that the KF01 condition record has the lowest freight cost and ignores the other condition types defined in the group.) The final price in this example is calculated this way:

100 USD – 20 USD + 1 USD = 81 USD/KI

Hi

Condition Exclusion

Use

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

The Condition Exclusion Procedure

First of all, you create exclusion groups. An exclusion group is a list of condition types that is identified by a three-digit number. Exclusion groups are defined in Customizing for Sales. You also assign exclusion groups to a pricing procedure and to determine how the condition exclusion is to be carried out.

You then assign the exclusion groups to a pricing procedure, thus defining the condition exclusion.

Depending on how you configure exclusion groups in the pricing procedure, the system can use condition exclusion to select the best price or discount in six different ways:

Selecting the best condition record of a particular condition type from within one exclusion group

Selecting the most unsuitable condition from within one exclusion group

Selecting the best condition record for a condition type

Selecting the most unsuitable condition record for a condition type

Selecting the best conditions from different exclusion groups

Excluding all condition types in the second exclusion group if a particular condition type in the first exclusion group exists in the document

Determining Best Price From Condition Types

During automatic pricing for a sales order item, the system may find a number of valid condition records that apply to the same item. If the competing condition records belong to a variety of condition types, the system selects the record with the best price and excludes the other condition records. Condition records that the system ignores are not deleted from the sales order but are simply deactivated. You can still see the excluded condition records on the pricing screen in the sales order.

In condition exclusion in the standard system, a condition record with a zero value is not taken into consideration. It is treated as though it doesn’t exist.

If you want to take a zero value into consideration, enter the standard calculation formula 038 in the pricing procedure for one of the conditions to be compared.

The following is an example of a situation where a zero value should be taken into consideration:

A company has two condition types in the pricing procedure for surcharges. A condition exclusion group with these two condition types has been defined and shows that the lower of the two should be applied. In some cases the surcharge could be zero. The reason for this may be a condition record found or a manual entry. In order that the system takes zero into consideration as the lowest surcharge for the customer, the formula ‘38’ must be assigned to one of the condition types in the pricing procedure.

Determining Best Price Within One Condition Type

If the access sequence for a particular condition type does not specify exclusive accesses, it is possible for the competing condition records to exist within the same condition type. For example, the system may find two valid condition records for a material discount (K004) - one a material discount, the other a customer-specific material discount. The system determines the record with the most favorable discount for the customer.

If the Exclusive access indicator is set, the system looks no further after it finds the first valid condition record. In this case, the system cannot determine a best price.

Determining Best Price from Different Exclusion Groups

This method allows the system to check between exclusion groups for the most favorable price or discount. In this case, the system totals the condition values for each group, compares them, then selects the most advantageous group for the customer.

Excluding the Conditions in an Exclusion Group

In the fourth alternative when the system selects one particular condition type that exists in the first exclusion group, it excludes all the conditions in the second exclusion group from pricing.

After you have defined the exclusion groups you want to use, you can enter them in the pricing procedure. The following example shows how exclusion groups can be used in the pricing procedure. In this case, the exclusion procedure selected is the best condition type within one exclusion group.

Basically condition exclusion is used when suppose you have for Eg. 3 different types of discount and you want to pass on the best of discounts or least of the discounts. In this case we go for condition exclusion as the name itself says condition exclusion i.e., exclude particular condition type.

Follow the steps as under:

1.go to OV31 - Maintan Condition Exclusion Groups.

2. go to OV32 - Assign the discount condition types to the previously maintained condition exclusion group.

3. go to VOK8 - select yur pricing procedure, now select the condition exclusion procedure i.e. best condition between condition types or least favourable within condition type. like that. Save the entries.

4. Now go to VK11 and maintain the condition records of the various condition types. Save the records.

5. Go to VA01 - create the sales order and in the conditions tab you will see the effect of the condition exclusion. Suppose you had selected the best of the condition types, then the system will automatically make the other condition types related to discount inactive. You can double click on a particular condition type and check the status whether it is active or inactive.

Hi Prashant,

It is quite possible that you may have more than one condition type in your pricing procedure offering a discount to a customer. Should the discounts be automatically determined, there is a risk that the customer will receive all the revelant discount and thus purchase the product lower than he should.

The system can exclude conditions so that they are not taken into account during pricing.

For example:

Material 4711 costs 150 USD. Some customers receive a discount of 10 USD per 100 pieces.

However, a specific customer can buy the material for 100 USD. Since this is a particularly good price, the customer should not also have a discount of 10 USD per 100 pieces. Therefore, this discount is to be excluded from pricing.

Regards

NP

Hi Prashant

With material listing or exclusion you can control which materials can be

sold to each customer. Material listing lists which materials a customer

can buy. Material exclusion lists which materials a customer cannot buy.

TCode for Listing / Exclusion is VB01 to create, VB02 to change and VB03 to display.

Reward me if this is helpful.

Regards

G. Lakshmipathi

Hi Prashant

To create a condition exclusion procedure which will be determined in the billing document.

Assign the procedure to the pricing schema, and maintain copy control so that pricing is not copied from Sales Order.

To achieve this, copy the standard pricing to a ZXXXX Pricing.

Define new document pricing procedure in SM30 - V_TVKV for billing.

Assign new document pricing procedures to billing types in SM30 - V_TVFK_PR

Define the Condition Exclusion Groups in OV31.

Assign the Condition type for the Condition Exclusion Groups in OV32.

Assign the Billing Pricing Procedure in VOK8 for the Condition Exclusion Groups.

When billing document is being created just enter manually your new price and the pricing program logic will include only the higher price one, excluding the rest that are lower price.

Narendran