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Pricing procedure in MM

Hi Experts,

Can anybody please tell the detailed procedure for determining pricing procedure in MM?

Also detailed steps for pricing procedure in SD ?

Regards,

Nishant.

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4 Answers

  • Best Answer
    Posted on Mar 03, 2008 at 10:49 AM

    Hi,

    Pricing Procedure in MM

    The steps are:

    SPRO->MM->Purchasing->Conditions->Define Price dertermination process

    1. Define Condition Table:

    2.Define Acces Sequence,

    3.Define Condition Type,

    4.Define Claculatin Schema,

    5.Assign Calulation Schema,Acces Sequence and Condition Type,

    6.Define Schema Group Of Vendor,

    7. Define Schema Group Of Purchasing Organisation,

    8.Assign Schema Group Of Vendor to Purchasing Organisation,

    9.Assignment of Schema Group Of Vendor ,Schema Group Purchasing Organisation and Calculation Schema.

    10.Assign Vendor to Schema Group Of Vendor (XK02)

    11.Maintain Condition record(MEK1)

    After above steps , you can go for create PO in ME21N.In the case of Import PO, you have to activate Import PO{ Materials Management -> Purchasing -> Foreign Trade/Customs ->

    Control Foreign Trade Data in MM and SD Documents ->

    1.Incompleteness Schemas for Foreign Trade Data,

    Select the desired schema and click on 'Document fields'. For all fields

    which are displayed here, you can now check which value there is define in field 'Field control'.(This value controls both the field selection

    and the incompleteness check.}

    Regards,

    Biju K

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 03, 2008 at 10:44 AM

    hi

    Select the pricing procedure which is the standard and copy it and create our own pricing procedure.

    Highlight it and double click the Control icon in the LHS screen.

    We can see that there are 16 columns in the pricing procedure, these are going to be used by the system to control the condition types.

    The detail description of each column is given below.

    Step:

    Number that determines the sequence of the conditions with in a procedure.

    It indicates the position of the condition type in pricing procedure.

    Ex.: 10, 15 etc.

    Counter:

    System uses the counter to count the steps and also it can be used to count mini steps of same condition types. So that number of steps can be reduced in the pricing procedure and hence enhancing the system performance.

    Access number of the conditions with in a step in the pricing procedure.

    During automatic pricing, the system takes into account the sequence specified by the counter.

    Condition Type:

    It represents pricing element in pricing procedure as a base price, discount, freight and tax.

    The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types.

    Ex.: PR00 - Price

    K004 - Material Discount

    K005 - Customer/Material Discount

    K007 - Customer Discount.

    Description:

    System copies description of condition type from its description (V/06).

    From and To:

    1.From: This can be used as a base to the condition type for calculating further value.

    1.{+}From and To: + The range between the steps from and to can be used to specify the range between same condition types. So that depending upon the condition type, the system deducts or adds the total value of those condition types from specific common source.

    Manual:

    This indicator specifies whether the specific condition type can be determined manually during sales order processing.

    If we check the box then the entry is going to be manual, if we uncheck it, it is going to be automatic.

    For Base Price and Taxes, the entry should be automatic.

    For Discounts and Freights, The entry should be manual.

    If we check the box, in VA01 when we go to conditions at the header/item level, the condition type will not be listed. If we require we will have to manually enter it.

    If we un-check the box, in VA01 when we go to conditions at the header/item level, the condition type will be listed.

    Mandatory:

    This indicator specifies that particular condition type is mandatory in the pricing procedure.

    If we check the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the condition type and try to save the document then system will not allow us to do it and throws an error.

    If we uncheck the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the condition type and try to save the document then system will allow us to save it, without giving any error.

    Mandatory check box should be checked in condition types which are compulsorily required in pricing procedure. Ex.: PR00, MWST.

    If the condition type is checked with mandatory option, then value should be maintained for that condition type, otherwise the system will not allow the user to process the document.

    Statistical:

    This indicator if it is activated will not allow the value of the condition type to be taken into net value calculation.

    It is used only for information purposes only.

    This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).

    This is commonly used for condition types

    SKTO - Cash Discount

    VPRS - Cost (Moving average price/Standard Price).

    Print:

    The value of this field specifies whether line item can be printed or not in the sales document and at what level it is to be printed.

    Subtotal:

    The value of this field determines where the values of subtotals to be captured i.e. in which table and which field.

    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.

    These condition amounts or subtotals are used as a starting point for further calculations. You may, for example, want a subtotal of all the discounts included in the pricing of a sales order.

    Requirement:

    It is a routine that is written by an ABAP consultant according to the business requirement.

    By defining Requirement in condition technique we can restrict the access of condition type.

    To understand the concept, we will take the example of the Rebates. Rebates are to be included during the billing document processing and not in the sales document processing. As rebates are given on the delivered quantity and not on the ordered quantity (in case of cut-off period for rebates).

    For rebates we use the condition types BO01 to BO05, and in the Requirement column we give the value 24 which is "Only in Billing Document".

    This Requirement will ensure that these condition types will appear only during the billing document processing.

    If new Requirements are to be defined we follow the procedure given below.

    Go to T.Code: VOFM. - Maintain Requirements & Formulas

    Click on the "Requirements" in the top menu and then click on "pricing".

    We have a list of requirements, we can ask ABAP consultant to create new requirement based on the client requests.

    And we assign the application type like V - Sales/Distribution etc.

    AltCty - Condition formula for alternative calculation type:

    It is again a Routine that is written by ABAP Consultant.

    It is an alternative formula for the condition type that can be used instead of standard formulas.

    For example, let us take the Profit Margin which can be both + / - , so here this routine will help us in generating the value which can be either + or -. Profit margin is not a condition type so it cannot be classified as +ve or -ve in the V/06.

    Ex.: 950 0 Profit Margin 11.

    So we assign 11 - Profit Margin.

    If new routines are to be defined we follow the procedure given below.

    Go to T.Code: VOFM. - Maintain Requirements & Formulas

    Click on the "Formulas" and then on the "Condition Values".

    We have a list of routines, we can ask ABAP consultant to create new routines based on the client requests.

    And we assign the application type.

    AltCBV - Alternative formula for condition base value:

    Formula for determining the condition basis as an alternative to the standard.

    It is again a Routine that is written by ABAP Consultant.

    It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.

    Ex.: Freight - KF00.

    Freight is calculated based on weight, volume etc. and not on the base price. In pricing there is no entry of weight from which the value can be referred like we do for discounts using base price. We have to get the value from the Material master.

    In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.

    During pricing, the system will consider the value that is mentioned in this column and determine the freight based on this value.

    Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention 13 in this column then the Freight condition KF00 will be calculated using the weight as 100 kgs.

    AcyKy - Account Key/ Accrls - Accruals:

    The values of the Sales Revenues, Sales Deductions, Freight Revenues, Tax Revenues, and Rebate Accruals etc. are going to be posted in the respective G/L accounts in Fi Module.

    In order to do this we assign account keys/ accruals to the different condition types based on their classification. The classification shown below.

    ERB Rebate sales deduct.

    ERF Freight revenue

    ERL Revenue

    ERS Sales deductions

    ERU Rebate accruals

    For Ex.,

    For all Price condition types like PR00 etc. we assign ERL - Revenue.

    For all Discount condition types like K004, K005 etc. we assign ERS - Sales Deductions.

    For all Freight condition types KF00 etc. we assign ERF - Freight Revenues.

    For all Rebates condition types BO01 to BO05 we assign in Account key ERB - Rebates Sales deductions and for Accruals ERU - Rebate Accruals.

    This account keys and accruals are in turn assigned to respective G/L accounts. So the system posts respective values in respective G/L accounts in Fi-Co Module.

    This also one of the areas of SD - Fi Integration. SD consultants assign the account keys and Fi Consultants assign the respective G/L accounts in T.Code:VKOA.

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    • Former Member

      Hello Experts,

      In MM pricing procedure for local Purchase from EOU.

      the Structure is as follows......

      A--BCD=7.5%(50% of 7.5%)

      B--CVD 14% -


      Cenvatable

      C ESecc on CVD2% ----Cenvatable

      D SECess on CVD 1% -Cenvatable

      E--Total Custom Duty --ABC+D

      F--ECess of Custom Duity 2%-non Cenvatable

      G SECess of Custom Duty 1% - non Cenvatable

      H--Net Duty DTA clearance --EFG

      I ECess on Net Duty Clearance 2% -Cenvatable

      J SECess on Net Duty Cleanance 1% ---Cenvatable

      K--Value of Goods -- HIJ

      L--VAT 4%

      TOTAO VALUE-----K+L

      Please suggest how to configure the above mentioned Cenvatable ECess and SECess condition types?

      These condition types should be manual Enrty in PO.

      And should be able to take CENVAt CREDIT while capturing the Excise Invoice.

      Please Suggest at earlist.

      Answers will be rewarded

      Thanks & Regards,

      Vinod Kshirsagar

  • author's profile photo Former Member
    Former Member
    Posted on Mar 03, 2008 at 10:48 AM

    Hi,

    MM Pricing procedure defaulted as a combination of:

    Pricing Org Schema Group (assigned to Purcchase Org. in Configuration

    +

    Vendor Schema Group (attached to vendor master in XK02/MK02 )

    where as SD Pricing procedure defaulted as a combination of:

    Sales Org (assigned to Purcchase Org. in Configuration

    +

    Distribution Channel (attached to vendor master in XK02/MK02 )

    +

    Division

    +

    Document pricing procedure (assigned to Sales Order type/ BILLING TYPES in CONFIG)

    +

    Customer Pricing procedure (assigned to cutomer master in XD02)

    Hope this helps

    Rgds

    Dheeraj

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    • Former Member

      Hello Experts,

      In MM pricing procedure for local Purchase from EOU.

      the Structure is as follows......

      A--BCD=7.5%(50% of 7.5%)

      B--CVD 14% -


      Cenvatable

      C ESecc on CVD2% ----Cenvatable

      D SECess on CVD 1% -Cenvatable

      E--Total Custom Duty --ABC+D

      F--ECess of Custom Duity 2%-non Cenvatable

      G SECess of Custom Duty 1% - non Cenvatable

      H--Net Duty DTA clearance --EFG

      I ECess on Net Duty Clearance 2% -Cenvatable

      J SECess on Net Duty Cleanance 1% ---Cenvatable

      K--Value of Goods -- HIJ

      L--VAT 4%

      TOTAO VALUE-----K+L

      Please suggest how to configure the above mentioned Cenvatable ECess and SECess condition types?

      These condition types should be manual Enrty in PO.

      And should be able to take CENVAt CREDIT while capturing the Excise Invoice.

      Please Suggest at earlist.

      Answers will be rewarded

      Thanks & Regards,

      Vinod Kshirsagar

  • author's profile photo Former Member
    Former Member
    Posted on Apr 14, 2008 at 04:37 AM
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