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Condition technique

Hi,

PLZ explain me Pricing technique step by step.

Wt is subtotal , alternative calculation type , Alternative formula for condition base value ,accruals . explain me with examples.

Regards,

pavan.

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    author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2008 at 06:10 AM

    HI,

    Pricing Technique (Condition Technique) is nothing but

    1. Pricing Procedure (V/08)

    2. Condition Type(V/06)

    3. Access Sequence(V/07)

    4. Condition Table(V/03)

    5. Condition Record(VK11)

    and Pricing is determined by,

    Sales Org., Dist Chan, Division, Cust Pricing Procedure and Document Pricing Procedure (OVKK)

    Subtotal:

    u2022The value of this field determines where the values of subtotals to be captured i.e. in which table and which field.

    u2022Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored.

    u2022These 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:

    u2022It is a routine that is written by an ABAP consultant according to the business requirement.

    u2022By defining Requirement in condition technique we can restrict the access of condition type.

    u2022To 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).

    u2022For 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".

    u2022This Requirement will ensure that these condition types will appear only during the billing document processing.

    AltCty - Condition formula for alternative calculation type:

    u2022It is again a Routine that is written by ABAP Consultant.

    u2022It is an alternative formula for the condition type that can be used instead of standard formulas.

    u2022For 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.

    u2022Ex.: 950 0 Profit Margin 11.

    AltCBV - Alternative formula for condition base value:

    u2022Formula for determining the condition basis as an alternative to the standard.

    u2022It is again a Routine that is written by ABAP Consultant.

    u2022It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.

    u2022Ex.: Freight - KF00.

    AcyKy - Account Key/ Accrls - Accruals:

    u2022The 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.

    u2022In order to do this we assign account keys/ accruals to the different condition types based on their classification. The classification shown below.

    oERB Rebate sales deduct.

    oERF Freight revenue

    oERL Revenue

    oERS Sales deductions

    oERU Rebate accruals

    u2022For Ex.,

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

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

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

    oFor all Rebates condition types BO01 to BO05 we assign in Account key ERB -

    • PRASHANT*

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2008 at 05:41 AM

    Hi there,

    Pls refer

    http://help.sap.com/erp2005_ehp_03/helpdata/EN/de/7a8534c960a134e10000009b38f83b/frameset.htm.

    It has all the details that you need.

    Regards,

    Sivanand

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2008 at 05:42 AM

    Hi,

    Calculation type

    u2022The calculation type for a condition type is defined in customizing. This calculation type determines how prices or discounts and surcharges are calculated for a condition.

    Pricing procedure

    u2022The sequence in which the system accesses the conditions by using condition technique in business document is determined in the pricing procedure.

    u2022u201CRequirements, routine and formula provide a method to modify the standard pricing logic to meet unique user requirementu201D

    Pricing procedure determination-

    u2022Sales Org.+ DC+ Division +Document pricing procedure + Customer pricing procedure

    u2022Pricing determination is carried out using the condition technique.

    Requirements (2-Item with pricing, 55- free goods pricing, 59- Free goods)

    u2022You need to determine u201Chow the system should use the conditions typeu201D by specifying the requirements.

    u2022You are able to make access dependent on requirements to avoid unnecessary access, this reduce the system load.

    Reference level (Subtotal)

    u2022Provides a method to specify a different basis to calculate the condition type and to group condition for subtotal.

    u2022Pricing procedure can contain any number of subtotals.

    Condition type

    u2022Are combined in the require sequence in pricing procedure.

    u2022Mark a condition type in the pricing procedure as being:

     A mandatory condition-PR00

     A manually condition-HM00, PN00

     For statistical purpose only. -VPRS, SKTO

    Thanks

    Bhushan

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2008 at 05:48 AM

    Dear Pavan,

    Creation of pricing procedure Steps:

    (1) V/03 = Create condition table

    (2) V/07 = Create access sequence

    (3) V/06 = Define condition type

    (4) V/08 = Define pricing procedure

    (5) OVKK = Define pricing procedure determination

    (6) VK11 = Maintain condition records

    Condition table is a combination of fields that forms a key to assign to condition type (access sequence)

    Access sequence is a search strategy that SAP follows to find out suitable condition record for condition type with

    specific to generic manner.

    Condition type represents pricing element as a base price, taxes, discounts or freight charges. While defining

    condition type we assign the attributes of condition type.

    Specify our sales area, document pricing procedure, customer pricing procedure, specify our pricing procedure:

    BP01-01-01-A-1-ZDOMPP-PR00

    Best Regards

    SRI

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2008 at 06:06 AM

    Hi,

    Condition Technique:

    The purpose of Condition Technique is to find the right condition record for a Condition Type in the procedure.That means where there are several condition records available,Condition Technique is used there.To be more brief, One procedure contains many permitted Conditin Types, each Conditin Type is assigned with only one Access Sequence,each Access Sequence can have many accesses/search,each access has or searches one Condition Table.This Condition tables are nothing but a combination of Fields, which is the key to find a right condition record for the Condition Type.The searches are carried on till the right condition record is found.Once it is found the process is terminated.Then the System searches similarly for all condition Types in the procedure and procures the values for the condition types.Condition Technique is not only used in Pricing but also for Output determination, material determination,listing& exclusion etc.

    The SAP Condition technique

    Conditions have many uses in SAP. The easiest to understand or to relate to is usually in Pricing, where conditions are used to specify the many components of a price (base price, surcharges, discounts, freight, taxes etc). These components may differ for different customers, materials, regions - in fact they may differ in a lot of ways depending on the particular businesses requirements. We may give a customer in West Australia a better price or discount for a product than a customer in NSW for example.

    We start with a procedure which I think of as a "spreadsheet". This "spreadsheet" tells the system the calculations to do and the order in which to do them to calculate the final price or cost of an order item. Each type of calculation is specified by a condition type. In other words the condition type is simply telling the system what kind of calculation to do (a flat amount or a percentage for example). It does not in itself say what numbers to use.

    Procedure (Spreadsheet)

    Line Number Condition Type (Calculation Type) Based On Line

    10 Price

    20 Discount 20

    Total

    When an order is entered into the system, the system knows a whole lot of information (everything it can get from the customer master, the material master and whatever was entered on the order itself).

    It first works out which procedure to use (using procedure determination configuration). Then for that procedure, it needs to look up what numbers to use for the calculations in the "spreadsheet". IE: what prices apply here, what discounts, what taxes for this customer, material etc.

    For each condition type (or calculation type), there can be lots of records in the system with numbers (e.g.: lots of different prices). The system needs to know which is the right record (or price) and in which order should it look for the right record. The configuration lets us specify an "access sequence" for each condition type. The access sequence tells the system in what order to should "access" or look for records.

    For example for the 'PRICE' condition type it may have the following order:

    'Price' Access (Look Up) Sequence

    Description Table

    Region / material 100

    Customer Group / material 120

    Material 200

    So the system will first look in table 100 which is keyed by region and material, and will look last in table 200, which is keyed just by material. Each condition table will have some condition records (master data). For example table 100 may have:

    Region Material Price

    WA X 10

    NT X 12

    Table 120:

    Customer Group Material Price

    A X 11

    Table 200:

    Material Price

    X 15

    Y 200

    For a condition record to be the 'right' record, the information in the order, customer master or material master must match the key of the record. If not then the system will go on to check the next table.

    Worked Examples using data from the example tables above

    Customer Customer Group (from the customer master) Region Material Price

    1234 A NSW X 11

    1224 A WA X 10

    2346 C QLD X 15

    1224 A WA Y 200

    A similar lookup is then done for each condition type. E.g.: the discount condition could specify various percentage discounts.

    TAX APPLICATION

    For the tax condition type, it is most likely that the tax classification fields on the customer and material master would be used as keys for the tax condition records.

    Regards,

    PM

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