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Pricing procedure ?

hi

Explain me about the pricing in MM??

What is significance and roles of each and every thing in Pricing ??

Like access sequence , condition type ..etc ??

Explain without any links in short ...

Thanks

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    author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2010 at 07:57 AM

    A Pricing procedure defines how values that are posted in the R/3 system are calculated. Pricing procedures are used in Profit Center Accounting to calculate transfer prices. Maintain Pricing Stipulation agreed with the Vendor.

    Elements of Price Determination: (To store pricing stipulation agreed with the vendor such as applicable discounts or surcharges, or stipulations regarding the payment of freight costs in the system)

    - Condition Table

    - Access sequence

    - Condition Type

    - Calculation Schema

    Condition Table: (M/03)

    A condition table consists of one or more condition keys and a data part. The data part contains a number that refer a record in another table. (The Condition Keys are Vendor, Material, Purchase Organization and Purchasing info record category).

    Condition Record: The stores record that a condition, or condition supplements conditions includes:

    Prices, Discounts, Surcharges, Taxes etc.,

    Possible way of creating Condition Table:

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material Group u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Material

    Access sequence (M/07): The access sequence defines the order in which the system searches for condition records.

    Condition Type (M/06): The condition type represent price factor in the system. There are condition types for absolute and % discounts, freight costs, custom duties or taxes.

    Condition Class: Preliminary structuring of condition types e.g. discounts, surcharges or prices.

    Condition Category: A classification of conditions according to pre-defined categories (for ex. all condition that relate to freight costs).

    Calculation Type: Determines how the systems calculate Prices, Discounts, (or) Surcharges in a condition.

    (ex. The system can calculate Price as a fixed amt. or as a percentage based on Quantity, Volume or Weight.

    PB00 - Gross Price FRB1 - Freight (Value) ZA01 - Surcharge % on Gross

    PBXX - Gross Price FRC1 - Freight/Quantity ZB00 - Surcharge (Value)

    R000 - Discount % on Gross MWST - Input Tax ZC00 - Surcharge/Quantity

    R001 - Discount/Quantity SKTO - Cash Discount ZOA1 - Customs %

    R002 - Discount (Value) CUIN - Insurance ZOB1 - Customs (Value)

    R003 - Discount % on Net MWVS - Input tax manually ZOC1 - Customs/Quantity

    CUFR - Freight NAVM - Non-Deductible Tax

    FRA1 - Freight % VS15 - Factor Discount Tax

    FRA2 - Freight % ZA00 - Surcharge % on Net

    Exclusion Indicator: The Exclusion Indicator prevents the use of too many condition types in the Price detemination procees.

    Calculation schema (M/08): A Calculation Schema group together all condition types that plays a part in calculating the price.

    Schema Group: These allow you to group together purchasing organizations that use the same calculation schema. You can also use them to group together vendors for whom the same calculation schema is valid.

    Schema Determination:

    Assign Purchase transaction and processes to a calculation schema

    - For Std. PO (depending on the schema group of the vendor and the purchase organization)

    - For STPO (depending on the supplying plant, the doc. type and the schema group of the pur. org.)

    - For Market Price Determination (depending on pur. org. i.e. for each pur. org. a separate calculation schema can apply for the determination of the market price)

    Thanks & Regards,

    Mani

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    • Former Member Former Member

      Hi

      PBOO - Automatic price determination through serch strategy which will search valid record from condition type which are stored in table - table no 17 info record plant specifc having below details

      Vendor

      Material

      Purch. Organization

      Plant

      Info record categoryis

      Automatic prices are triggered through Purchase info record, if there are valid conditions, price is picked from there, if not then price is picked from last purchase order,so PBOO price comes there.

      PBXX- No search strategy hence system will fetch any record user has to enter manual the values here.

  • Posted on Aug 04, 2010 at 08:08 AM

    Hi,

    Calculation Schema or MM pricing is used to claculate effectiv price of a material

    An access sequence is a serch stategy against which system search valid condition record for certaion condition type.

    For condition types for which you maintain conditions with their own validity period, you must assign to an access sequence. With this, you define which fields the SAP System checks in searching for a valid condition record.

    The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs . These elements are stored in the system in condition records.

    Schema Group allow to group together purchasing organizations that use the same calculation schema.

    Schema Determination can be done to have particular document type in the PO with vendor combination.

    Chcek the link:

    pricing-procedure

    Regards,

    Biju K

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2010 at 09:04 AM

    Hi,

    Steps for MM Pricing Procedures

    Pricing Procedure :

    In MM module, pricing procedure is used during RFQ and PO creation. Total value of material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In this we are defining pricing procedure and linking to vendor and purchase department through the virtual schemas.

    Following steps for pricing procedure as,

    1. Define conditions.

    2. Define pricing procedure.

    3. Define virtual purchase organization and vendor.

    4. Info Record.

    Customization for Pricing Procedure :

    1. Definition of Conditions :

    /NMEK0 -condition typeu2026condition types - definition (define for basic price, net price, discount, surcharge, tax etc.)

    2. Defining pricing procedure :

    /NMEK0 - calculation schema -calculation schemasu2014New entries (Define procedure and put the conditions like formula so that final price will be net price / total value as per company requirement)

    3. Linking pricing procedure to independent condition types.

    /NMEK0 -condition typeu2026condition types - definition for position for defined conditions (Enter the defined pricing procedure in the each independent conditions u201CPricing Procedureu201D box)

    4. Defining Schema group for Vendor :

    /NMEK0 - calculation schema -schema groupsu2014vendoru2014New Entries.

    5. Defining Schema group for Purchase Organization--- New entries.

    /NMEK0 - calculation schema - schema groups---- purchasing organization--- new entries.

    6. Linking Virtual Purchase Organization to actual Purchase Organization.

    /NMEK0 - calculation schema - schema groups----- Assign P.Org. (in actual P.Org, enter virtual P.Org)

    7. Linking Pricing procedure to virtual P.Org and virtual vendor :

    /NMEK0 - calculation schema - Determine Schema--- -Standard --- New entries (Enter virtual schema and P.Org. along with pricing procedure)

    8. Linking virtual vendor to actual vendor-- /NXK02 then enter schema group vendor in Purchasing Data )

    9. Info Records (/NME11)---- click on u201CPurch. Org. data1u201D and enter condition types and pricing procedure

    pherasath

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2010 at 09:06 AM

    Access sequence: An access sequence is a search strategy with the aid of which the SAP System searches for valid condition records of a certain condition type from the valid table and fetches the value in PO.

    Condition type: The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP System. These are stored in the system in condition records.

    Basically in Pricing procedure there 16 step/ column which are their own importance in pricing procedure the derive the value based on this configuration. Would like brief each and every field as under.

    Step: Number that determines the sequence of the conditions within a procedure. (This starts calculation based on from and to)

    Counter: Access number of the conditions within a step in the pricing procedure. During automatic pricing, the system takes into account the sequence specified by the counter.

    Ex if you are having freight condition type it is be possible to have different freight combination as per qty freight, fixed value freight & freight % on gross in this case you can have same from but o,1,2 different counter as whichever is applicable system will draws this condition fro step & counter.

    Condition type: The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount, gross, freight,

    Description: Description of the condition type.

    From: Condition step, the value of which is the basis for percentage surcharges. If you specify a to reference step at the same time, the condition values of the two steps specified and the conditions values of the steps in between are totalled.

    To: Condition step up to which the condition values of the previous steps are totalled. Percentage surcharges are calculated on the basis of the total. If you specify a from reference step at the same time, the condition values of the two steps specified and the condition values of the steps in between are totalled.

    Manual: Conditions, that are given this indicator in the pricing procedure, are only included in determination either if they are entered manually, for example, on the condition overview screen in Pricing or if they are transferred from an external process. Here user has to enter the value system will determine automatically

    Requirement: Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure. For example, you always want to include a tax condition (VAT or sales tax) during pricing; you can set this indicator for the appropriate tax condition type.

    Statistical: This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value or adding to the value Ex; if Gross + discount+ freight= 1000 this is statistical value).

    Print: Controls issue of condition lines when printing documents such as order confirmations or invoices.

    Subtotal: 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. Ex if you wish to add freight to the Gross then taxes on the gross have to use subtotal 4 condition value of which will added to the gross.

    Requirement: If the requirement is fulfilled then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified.

    Calculation type: Alternative formula to the formula in the standard system that determines a condition.

    Condition base calculation: Formula for determining the condition basis as an alternative to the standard.

    Account key: Key that identifies different types of G/L account. The account key enables the system to post amounts to certain types revenue account. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account.

    Accruals: Key which identifies various types of G/L accounts for accruals or provisions.

    Hope this helps you.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2010 at 07:57 AM

    Pricing Procedure - A Pricing procedure defines how values that are posted in the R/3 system are calculated. Pricing procedures are used in Profit Center Accounting to calculate transfer prices. Maintain Pricing Stipulation agreed with the Vendor.

    Elements of Price Determination: (To store pricing stipulation agreed with the vendor such as applicable discounts or surcharges, or stipulations regarding the payment of freight costs in the system)

    - Condition Table

    - Access sequence

    - Condition Type

    - Calculation Schema

    Condition Table: (M/03)

    A condition table consists of one or more condition keys and a data part. The data part contains a number that refer a record in another table. (The Condition Keys are Vendor, Material, Purchase Organization and Purchasing info record category).

    Condition Record: The stores record that a condition, or condition supplements conditions includes:

    Prices, Discounts, Surcharges, Taxes etc.,

    Possible way of creating Condition Table:

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material Group u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material

    u2022 Plant u2013 Purchase Organisation u2013 Material

    Access sequence (M/07): The access sequence defines the order in which the system searches for condition records.

    Condition Type (M/06): The condition type represent price factor in the system. There are condition types for absolute and % discounts, freight costs, custom duties or taxes.

    Condition Class: Preliminary structuring of condition types e.g. discounts, surcharges or prices.

    Condition Category: A classification of conditions according to pre-defined categories (for ex. all condition that relate to freight costs).

    Calculation Type: Determines how the systems calculate Prices, Discounts, (or) Surcharges in a condition.

    (ex. The system can calculate Price as a fixed amt. or as a percentage based on Quantity, Volume or Weight.

    PB00 - Gross Price

    PBXX - Gross Price

    R000 - Discount % on Gross

    R001 - Discount/Quantity

    R002 - Discount (Value)

    R003 - Discount % on Net

    CUFR - Freight

    FRA1 - Freight %

    FRA2 - Freight %

    FRB1 - Freight (Value)

    FRC1 - Freight/Quantity

    MWST - Input Tax

    SKTO - Cash Discount

    CUIN - Insurance

    MWVS - Input tax manually

    ZOC1 - Customs/Quantity

    NAVM - Non-Deductible Tax

    VS15 - Factor Discount Tax

    ZA00 - Surcharge % on Net

    ZB00 - Surcharge (Value)

    ZC00 - Surcharge/Quantity

    ZOA1 - Customs %

    ZOB1 - Customs (Value)

    ZA01 - Surcharge % on Gross

    Exclusion Indicator: The Exclusion Indicator prevents the use of too many condition types in the Price detemination procees.

    Calculation schema (M/08): A Calculation Schema group together all condition types that plays a part in calculating the price.

    Schema Group: These allow you to group together purchasing organizations that use the same calculation schema. You can also use them to group together vendors for whom the same calculation schema is valid.

    Schema Determination:

    Assign Purchase transaction and processes to a calculation schema

    - For Std. PO (depending on the schema group of the vendor and the purchase organization)

    - For STPO (depending on the supplying plant, the doc. type and the schema group of the pur. org.)

    - For Market Price Determination (depending on pur. org. i.e. for each pur. org. a separate calculation schema can apply for the determination of the market price)

    Check this link for further details:

    what-is-pricing-procedure-in-mm

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2010 at 09:06 AM

    Hi,

    Steps in pricing determination in MM - Condition, Access sequence and schema.

    In the SAP MM Pricing is more important. Just yesterday I have completed the Pricing as I am doing the SAPMM now. I can give some light on this Topic, not 100%. After 2 days definitely some more I can share.

    The Basic thing is Condition Technique. In which there are

    1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.

    A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition Technique.This is a simple logic

    Here the Condition Type is very important like PB00, PBXX,RA01 etc.

    In the background every Condition Type has its own defition means the purpose of the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions.

    Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement.

    The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement.

    The Pricing Schema means the calculations procedure of Condition Type.

    Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means

    RA01 is based on PB00 like that we have to define in the Pricing Schema

    which makes easy to use in realtime.

    Here PB00 has the Access Sequence - 0002.

    But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types.

    In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define.

    For the configuration, I may not able to explain properly through here but will give some Idea.

    Configuration: SPRO-IMG-Material Management- Purchasing- Conditions-Define Price Deternmination Process

    1. Define Access Sequence

    2. Define Condition Type

    3. Defince Calculation Schema:- Here you have to define the Schema

    Define Schema group

    1. Define Schema Group vendor

    2. Define Pricing Schema group

    3. Schema group for Purchase Organisation

    4. Assign Schema group to Purchase Organisation

    Define Schema determination

    1.define calculation schema for Standard purchase organisation

    After completion of the Schema Group, we have to assign it to Vendors.

    Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured by us.

    I think this will help you. Actually the Pricing is a vast. Becuase each Condition have its own importance and each Access Sequence have its own importance. So you need not bother about this. First you learn how to define the Calculation Schema through the above.

    Here we can create many Calculation Schemas which can assign one schema to Local vendors

    another schema to out side vendor one more schema to foreign vendors like that we can classify.

    pherasath

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 26, 2016 at 06:11 AM

    This message was moderated.

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