An Overview of Determination & Configuration of Pricing Procedure is as follows:

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) +
Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level.
Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from
Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are
fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing,
system will through an error message.
In SD, the steps to configure Pricing procedure are as under:
Step 1:
Condition table: If existing condition table meets the requirement, we need not create a new condition table.
Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG u2013>
Sales & Distribution u2013> Basic Function u2013> Pricing Control u2013> Condition Table (select the required
fields combination, which will store condition record).
Step 2:
Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence.
Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG u2013> Sales
& Distribution u2013> Basic Function u2013> Pricing Control u2013> Access Sequence (Access sequence is made
up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to
access sequence.
Step 3:
Condition Type: If existing condition type meets the requirement, we need not create a new condition type.
Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG u2013>
Sales & Distribution u2013> Basic Function u2013> Pricing Control u2013> Condition Type. It is always
recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access
sequence to Condition type.
Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new
pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform
the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as
follows: IMG -> Sales & Distribution u2013> Basic Function u2013> Pricing Control u2013> Pricing Procedure ->
Maintain Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure.
Configuration for determining pricing procedure in SPRO is as follows: IMG -> Sales & Distribution u2013> Basic
Function u2013> Pricing Control u2013> Pricing Procedure -> Determine Pricing Procedure.
Step 5:

Condition record: Condition record is a master data, which is required to be maintained by Core team / person
responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT,
LSMW, etc.
There are 16 fields in pricing procedure which can surely be termed as back bone when configuring pricing in SAP
SD. These are:
1. STEP
2 CTRSTEP
3. CTYP
4. DESCRIPTION
5. FROM
6. TO
7. MAN
8. Mand
9. STAT
10. PRINT
11. REQUIREMENT
12. ALCTYP
13. ALBCTYP
14. ACKEYS
15. ACCRUALS
A. STEP: This indicates the number of step-in the procedure.
B. COUNTER: This is used to show a second ministep
C. CONDITION TYPE: This is the most important component in the pricing procedure. The rates are picked up from
this element, on the basis of the properties described.
D. DESCRIPTION: This forms the description of the condition type.
E. FROM: This is used to define the progression of the calculation and range of subtotals
F. TO: This is used to define the progression of the calculation and range of subtotals
G. MANUAL: This function enables to allow the condition type to be entered manually also apart from automatic
pickup.
H. MANDATORY: This function identifies the conditions that are mandatory in the pricing procedure. The sales price
is a mandatory condition type.
I. STATISTICS: This can be used to represent the cost price of the material sold, generally used for study statistical
impacts of price
J. PRINT: The activation of this function will enable the printing of the values and conditions to the document.

K. SUBTOTAL: A key is assigned from the drop down menu; this can be used by the system in other area like Sis for
reporting purpose also
L. REQUIRMENT KEY: This function is used to assign a requirement to the condition type. This requirement can be
used to exclude the system from accessing the condition type and trying to determine the value. This can be used to
specify that the condition type should only be accessed if the customer has a low risk credit.
M. ALTERNATE CALCULATION TYPE: This function allows you use a formula as an alternative in
finding the value of the condition type, instead of standard condition technique. this can be used to calculate complex
tax structures.
N. ALTERNATE CONDITION BASE VALUE: The alternative condition base value is a formula assigned
to a condition type in order to promote an alternative base value for the calculation of a value.
O. ACCOUNTS KEY: The account keys form part of account determination. These keys are used here to define the
posting of the revenue generated to respective account heads& to subsequent assignment to GL accounts.
PR00- ERL
K007/KA00- ERS.
KF00- ERFu2026u2026u2026u2026.& so On.
P. ACCRUAL KEY: The accrual keys form part of account determination. These keys are used here to define the
posting of the revenue generated to respective account heads& to subsequent assignment to GL accounts and
payment to respective parties.