Pricing and conditions in SD
ContentsWhat is Pricing & conditions?
Condition Techniques.
Pricing Elements in Sales Order Processing.
Automatic Pricing.
Header and Item Conditions.
Special Pricing Functions.
Table structure
Pricing & ConditionsPricingThe 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).
ConditionsConditions represent a set of circumstances
that apply when a price is calculated. The variable factors are
- The customer- The product- The order quantity- The date
Condition Techniques
Condition types
Condition tables
Access sequence
Pricing procedures
Condition TypesIdentifies the characteristics of a condition.
Some Basic Condition Types:
PR00 --------- Price K004 --------- Material discountK005 --------- Customer-specific material discountK007 --------- Customer discount K020 --------- Price group discount KF00 --------- Freight surcharge (by item) UTX1 --------- State tax UTX2 --------- Country tax UTX3 --------- City tax
Pricing – The Flow
Pricing Overview
Pricing Overview
Pricing Overview
Pricing Overview
Pricing Overview
Pricing Overview
Pricing Procedure
Primary job of a pricing procedure is to define a group of condition types in a particular sequence.
• Document Pricing Procedure
• Customer Pricing Procedure
Document Pricing Procedure
Pricing Procedure
Condition Table
A condition table defines the combination of fields (the key) that identifies an individual condition record.
Access Sequences
It is an search strategy that the system uses to find valid data for a particular condition type.
It determines the sequence in which the system searches for data
Condition Types
Calculation Type:Determines how the system calculates prices, discounts and surcharges for a condition.
Pricing Elements in Sales Order Processing
Prices
Surcharges and discounts
Freight cost
Sales taxes
Prices
The basis of pricing during sales order processing is the gross price of a material.
Material price
Price list type
Customer-specific price
Freight Charges
We can pass freight costs on to our customers by using special condition types that relate to shipping and freight charges.
Condition Type : KF00
Sales Taxes
The standard R/3 System includes condition types that define country-specific sales taxes.
Material Tax Classification
Customer Tax Classification
Customer TaxesCustomer Taxes
Material TaxesMaterial Taxes
Header and Item ConditionsHeader ConditionsThe standard system includes condition types that you can only apply
at the header level the header conditions. (Only for Manual)- Percent discount (HA00) - Absolute discount (HB00) - Freight (HD00) - Order value (HM00)
Item ConditionsCondition types that you can only use for items are called item
conditions.- Material discount (K004) - Customer/Material (K005) - Customer discount (K007) - Material price (PR01)
Condition Records
Condition records allow us to store and retrieve pricing data in the system.
- All the pricing elements of our daily business - the prices, discounts, and surcharges for freight and taxes - that we want to use for automatic pricing must be stored in the system as condition records.
Transactions
Create conditions (transaction VK31)
Change conditions (VK32)
Display conditions (VK33)
Create conditions with reference (transaction VK34)
Condition RecordsCondition Records
Special Pricing Functions Promotional Pricing Agreements
Promotions -A promotion typically represents a high-level marketing plan for particular products or product lines - for example, a promotion for a range of products during a specific sales cycle. A promotion can include a number of different sales deals. Transaction codes:promotions - VB31 (creating)Sales deals - VB21 (creating)
Customer Expected Price
By entering the expected price during sales order processing and comparing it with our price, we can help avoid disputed invoices later.
Condition Types:
EDI1 - Customer expected price
EDI2 - Customer expected value
Condition Exclusion:In pricing for sales and billing
documents, more than one condition record may apply to a particular item at any one time. We can use the condition exclusion process to compare possible conditions in order to determine such things as the best price for a customer.
The final price in this example is calculated this way:100 USD – 20 USD + 1 USD = 81 USD/KI
Table Structure
SAP AG
R
Table Structure: Conditions for Pricing
A002A002 A003A003
KONHKONH
KONPKONP
KONMKONM KONWKONW
KONAKONA
. . .A001A001 A502A502A501A501
SAP Standard Customers
Pricing Reports
Creating Reports - Transaction V/LA
Running Reports - Transaction V/LD
Net Price List - Transaction V_NL