SAP Training : SD06

Pricing determination
02/10/2007

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Introduction
The objective of this unit is to allow you to :
Explain how conditions are used in pricing Demonstrate how to create condition records Locate condition types in customizing

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Business scenario
During pricing, the system calculates amounts based on a combination of automatic procedures and manually entered data. The system automatically transfers pricing data - for example, information about prices, surcharges, and discounts - from the condition records into sales and billing documents. Depending on the pricing policies of your company, you may be able to change prices manually during sales order processing. You may, for example, be able to enter or change certain discounts within a specified range.

Groups of conditions
Conditions

Pricing

Discounts / Surcharges

Freight

Taxes

Condition records

Level on which the condition is defined

Period 1 March 1 April 30 1000 2000 3000 Lower limit : Upper limit : - 1% - 2% - 3% - 5% 0%

Period 2 May 1 June 30 1000 2000 3000 Lower limit : Upper limit : - 2% - 3% - 4% - 5% 0%

Condition maintenance (1)

New condition maintenance

Old condition maintenance

Condition maintenance (2)

Condition maintenance (3)

Demo
1. Maintain a price condition record for a material 2. Maintain a specific discount for a customer 3. Whats the result in a sales order Data used : Sales Organisation : Distribution chanel : Division : Material number : Customer : Price : Discount : Sales order type : BP01 01 01 C10010 C6120 150/pc 5 from 100 pc OR Standard sales order

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Business Scenario
In order to implement customers pricing requirements in SAP R/3, we need flexible and powerful configuration functionality. To meet those requirements the condition technique combines certain elements, which perform various tasks. These elements also interact to allow highly complex pricing strategies. In this unit we will provide you with an introduction to those elements.

What are those elements?

Pricing procedure Pricing conditions Access sequences Condition tables Pricing procedure determination

Pricing procedure (1)

The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines:
Which sub-totals appear during pricing To what extent pricing can be processed manually Which method the system uses to calculate percentage discounts and surcharges Which requirements for a particular condition type must be fulfilled before the system takes the condition into account
Example of a Pricing Procedure : If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use.

Pricing procedure (2)

3 1 6 2

4
1. 2. 3. 4. 5. 6. All condition types permitted in pricing are contained in the pricing procedure. You determine how the system is to use conditions by specifying requirements for each condition. The sequence in which the system accesses conditions in the business document is also determined here. The reference level provides a method to specify a different basis for the condition type calculation and for grouping conditions for subtotals. The pricing procedure can contain any number of subtotals between gross and net price. You can mark a condition type in the pricing procedure as being: a mandatory condition a manually entered condition for statistical purposes only

Pricing procedure (3)

7 8 9 10 11

Condition sub-total : controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored. These condition amounts or subtotals are used as a starting point for further calculations. 8. Formula for alternative calculation type : alternative formula to the formula in the standard system that determines a condition value. 9. Formula for condition base value : formula for determining the condition basis as an alternative to the standard. 10. Account key : it enables the system to post amounts to certain types of revenue account in FI 11. Account key for accruals/provision : with the aid of this , the system can post amounts to certain types of accruals accounts in FI.

7.

Pricing procedure (4)

Pricing Procedures in the Standard Version of the SAP System
The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access sequences. You can, of course, modify these procedures or create your own from scratch.

Creating and Maintaining Pricing Procedures

You create or maintain pricing procedures in Customizing for Sales. To reach the pricing procedure screen from SD Customizing:
Choose Basic Functions Pricing Pricing control Define and assign pricing procedures. Select the transaction that you want to execute

Condition types (1)

A condition type is a representation in the system of some aspect of your daily pricing activities. For example, you can define a different condition type for each kind of price, discount or surcharge that occurs in your business transactions.

100 1000 10000

1- % 2- % 4- %

100 kg 1000 kg 10000 kg

1- per 1 kg 3 5-

In the example in the preceding figure, two discounts apply to the item in the sales order. The first discount is a percentage discount based on the quantity ordered. The second discount is a fixed discount based on the total weight of the item. You determine the calculation type for a condition type in Customizing. This determines how the system calculates prices, discounts and surcharges for a condition.

Condition types (2)

Condition Types in the Standard Version of the SAP System
The standard system includes, among many others, the following predefined condition types :

Creating and Maintaining Condition Types

You can change and maintain condition types provided in the standard version of the SAP System or you can create new condition types to suit the needs of your own organization. You create and maintain condition types in Customizing. To reach the condition type screen from the initial Customizing screen for Sales and Distribution : 1. Basic Functions Pricing Pricing Control Define condition types. A dialog-box appears, listing the transaction options. Select the corresponding transaction for defining the condition types.

2. In the Conditions: Condition Types view, you can change existing condition types or create new ones

Access Sequences (1)

An access sequence is a 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. The access sequence consists of one or more accesses. The sequence of the accesses establishes which condition records have priority over others. The accesses tell the system where to look first, second, and so on, until it finds a valid condition record. You specify an access sequence for each condition type for which you create condition records. There are some condition types for which you do not create condition records (header discounts that you can only enter manually, for example). These condition types do not require an access sequence. A sales department may offer customers different kinds of prices. The department may create, for example, the following condition records in the system: - A basic price for a material - A special customer-specific price for the same material - A price list for major customers During sales order processing, a customer may, in theory, qualify for all three prices. The access sequence enables the system to access the data records in a particular sequence until it finds a valid price. In this example, the sales department may want to use the most favourable price for a certain customer. For this reason, it ensures that the system searches for a customer-specific price. The above figure shows how the system searches for the relevant record.

Access Sequences (2)

Access Sequences in the Standard Version of the SAP System
The standard version of the SAP System contains access sequences that are predefined for each of the standard condition types. The names of the access sequences often correspond to the condition types for which they were designed. For example, the access sequence for a material discount (condition type K004) is also called K004.

Creating and Maintaining Access Sequences

You create and maintain access sequences in Customizing. To reach the access sequence screen, go to the initial screen for Sales and Distribution Customizing and choose : Basic Functions Pricing Pricing Control Define access sequences
Select the transaction that you want to execute (Maintain access).

Condition tables (1)

A condition table defines the combination of fields (the key) that identifies an individual condition record. A condition record is how the system stores the specific condition data that you enter in the system as condition records. For example, when you enter the price for a product or a special discount for a good customer, you create individual condition records. Information About Fields The fields that you choose to make up the key are called the selected fields. The fields from which you can make your selection are called the allowed fields. Selected Fields The preceding figure shows the fields that make up the key for condition table 005 (the table for customer/material condition records in Sales). The selected fields show organizational data, such as Sales organization.The fields Customer and Material define the relationship between a particular customer and material. Field Catalog (Allowed Fields) When you select fields for the key, you must choose the fields from the list of allowed fields.

Condition tables (2)

Condition Tables in the Standard Version The standard system includes predefined condition tables and specifies them for each access in each predefined access sequence. Creating or Maintaining Condition Tables You can change and maintain the condition tables in the standard system. You can also create new condition tables to meet the needs of your own organization. You create and maintain condition tables in Customizing. From the initial screen of Customizing for Sales and Distribution, you reach the condition table screens by choosing : Basic functions Pricing Pricing Control Define condition tables. Then select the mode you want to work with (create, change, display).

When you create a new condition table, you select a combination of fields from the list of allowed fields. The selected fields define the key for the subsequent condition records. Before you select the fields for the key, there are two things to consider: The sequence (or hierarchy) of the fields Which fields you want to appear in the header and item areas of the corresponding fast-entry screens

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Creating condition records with template (1)

2007

2009

2007

2009

Creating condition records with template (2)

Change condition records (1)

x M1 x M2

500 400

M1 M1

550 440

Change condition records (2)

Copy condition record (1)

20

20

20

20

Copy condition record (2)

Copy condition record (3)

Net price list

Partner Customer pricing procedure

Sales order (OR) Document pricing procedure

Pricing determination in a sales document Order

Item 10 PR00 110 pc 90

Pricing procedure RVAA01

1. 2. 3. 4.

PR00 K004 K007

Condition Type : PR00 Access sequence : PR00 Access sequence : PR00 1. 2. 3. Customer/Material Price list/Material Material

Condition record for PR00 No valid record found No valid record found Valid record found Scale : From 1 pce From 100 pce From 200 pce

100 90 80

Excluding conditions (old way) 1

This requirement check the value of the following field : komp-kznep. The combination of those two elements (flag in condition record and requirement assigned to a condition in the pricing procedure) excludes subsequent conditions. This condition exclusion indicator can be set either in the condition type or the condition record. You can create your own indicator and check it in a requirement routine.

Excluding conditions (new way) 2

The new way to exclude conditions in pricing determination is to use exclusion groups .
You create groups to which you assign condition types

You assign the groups to a pricing procedure defining the condition exclusion procedure

Seq num 10

Cond. Proc. A

Excl. Grp 1 001

Excl. Grp 2

Excluding conditions (new way) 3

The possible condition exclusion procedures are : A B C D E F Best condition between condition types Best condition within the condition type Best condition between the two exclusion groups Exclusive Least favorable within the condition type Least favorable betweent the two exclusion groups

Changing prices manually in documents

You can change or create conditions on the condition screen. You can prevent one condition type from being changed manually by making the appropriate settings in customizing.

Conditions in the document header (1)

Conditions can also be entered at the document header level. These are known as header conditions and are valid for all items. These header conditions are automatically distributed among the items based on net value. The basis for distributing the header conditions can be changed in the pricing procedure by selecting the appropriate routine (e.g. weight, volumes) in the AltCBV (alternative formula for condition base value) field.

Conditions in the document header (2)

This slide illustrates two possible reactions of the system with conditions entered in the document header. This is managed through customizing of the condition type and more precisely with the field Group condition .

New pricing and pricing type

Update prices on the condition screens is available at header and item level: You can choose the pricing typein a dialog box. To use the new pricing document function for the sales document (-> Edit -> New pricing document), assign a pricing type to the pricing procedure. If you do not maintain an entry, the system uses pricing type B(Carry out new pricing). These functions are supported for both the sales and billing documents.

Pricing in the billing document

Special condition types

Manuel order value HM00

A condition exists in the standard version, which allows you to enter the order value manually. The difference between the old and the new order value is distributed between the items (taking into account the net item value). Taxes are redetermined for each item.

Net price PN00

The PN00 condition in the standard system allows you to specify the net price for an item manually. The original conditions are deactivated.

Minimum order values AMIW and AMIZ

You may create a minimum value for each order using condition type AMIW. If the value in the order header falls short of this minimum order value during pricing, the system will copy it as the net order value automatically. he minimum order value is a statistical condition. Condition type AMIW is a group condition and is divided among the different items according to value. Calculation formula 13 is assigned to condition type AMIZ in the pricing procedure. This calculates the minimum value surcharge by subtracting the net item value from minimum order value AMIW

Minimum price PMIN

You can create a minimum price for a material using condition type PMIN. If the minimum price is not met during pricing, the system determines the difference using condition type PMIN.

Interval price PR02

You can maintain condition records with interval scales if the condition type is set to scale type D in Customizing. Interval scales cannot be used for group conditions.

Customer Hierarchy

Customer hierarchies are available in Sales and Distribution, so that you can create flexible hierarchies to reflect the structure of customer organizations. If your customer base includes multilevel buying groups, cooperatives, or chains of retail outlets, for example, you can create hierarchies to reflect the structure of these groups. Use customer hierarchies during sales order processing and billing for determining pricing and running statistics

Hierarchy path

Hierarchy discount HI01

Customer 2743 belongs to the Miller northern office. This is why a discount of 8% has been assigned. In the standard system, the access sequence is set in Customizing so that the discount is initiated at the lowest hierarchy level.

Pallet discount KP00

Incomplete pallet surcharge KP01

Mixed pallet discount KP02

Surcharge for incomplete mixed pallets KP03

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Statistical condition types

Cost VPRS

Cash discount SKTO

Taxes

Criteria for Tax determination

Tax classifications

Agenda
Introduction Pricing fundamentals Pricing control Using prices and other conditions in sales documents Other pricing conditions* Conclusion

Conclusion
You are now able to : Describe the elements of the pricing condition technique and the relationships between them. Convert your pricing requirements into the necessary R/3 pricing strategy.