Pricing type G

[former_member208541]

Hi,

in copy control, pricing type G is defined which means that condition type of condition category G will be redetermined. so VPRS condition will e redetermined.

Can anybody explain with an example how VPRS is redetermined.I think it should always be same.If sales order is 10 units and unit cost in material master =100. then total cost in sales order =1000

so if i do a delivery of 10 units. after PGI, the cost of goods sold will be 1000 only(i.e. it is same). So in what sense really VPRS gets redetermined.

regards

sachin

[Former Member]

Hi

Ofcourse it has been already nicely answered by Mr. Raja & Mr. Lakshmipati.

In Pricing Type, we specify/configure our Pricing behaviour. I mean, how, our Pricing will behave in Sale order and Billing.

There are many Pricing Types from where you can choose one as per your business requirement.

We can specify the Pricing Type for Sale order in two places,

1. in customising for the Pricing procedure (if no value is spsecified then system by default considers Pricing Type "B". Pricing type B takes the latest price and discards the manual pricing elements).

2. In the condition screen of the sales document you will find "update" button. You can click here and you can see here the list Pricing Type from which you can choose one as per business requirement.

When you create delivery and finally Billing document, in the mean time suppose the tax structure or other rate of other pricing elements have changed or come into effect, then how our Pricing will respond, that is decided from the Pricing type specified in copy control table in the "Pricing Type" field.

Pricing Type "G",it copies the pricing elements unchanged and redetermines taxes.

so, if you will assign value G in the Pricing type field in the copy control then only system will take the latest tax rate from the new condition record even though it is different from the one in the Sale order.

I hope, pricing type concept is clear.

Where as the condition category is different from pricing type. It is specified in the condition type.

In the Sale order, cost(VPRS) of the material must be determined, so that profitability can be determined.

In V/06, for condition type VPRS, there is no access sequence. So condition type VPRS takes the help of its condition category "G" and retrieves the cost of the material from the material master > accounting 1 view , depending on the Pricie control there (already explained by other members).

So, "Condition category" is different from "pricing type" and I hope, there should not be any confusion now.

[Lakshmipathi]

Dear sachin

I believe you are confused with condition category G in V/06 for the condition type VPRS with pricing type G in copy control VTFL, which are entirely different.

For condition category G, the system reads either the standard price ("S") or the moving average price ("V") of the material, depending on which price control flag is set in the material master.

On the other hand, the pricing type G controls your tax structure in sale orders and billing documents. Let us assume you have created a sale order in Jan'09 where the VAT is 10%.

In the meanwhile, Government has announced a new tax structure by which the revised VAT rate is 6% which is effective 1st Feb'09. Now when you generate billing document as on Feb'09 and you maintain the pricing type as G, system will automatically fetch the revised VAT percentage in billing.

Hope you are now able to understand the difference between the condition category G and pricing type G.

thanks

G. Lakshmipathi

[former_member550050]

Hi

Pricing type G is pricing elements are copied unchanged and taxes are redetermined in VTFL or VTFA at item level

This means suppose the sales order is created in MARCH 20 th in INDIA and as often you see in our country the VAT and other taxes are restructured From April 1 st and that order which you have created on 20 th march is with 4 % VAT and if you are going to bill that order on april 5 th and if from 1 st april If the VAT is reduced to 3 % with pricing type G this issue can be easily handled

VPRS cost condition type using condition category G to access the standard cost or moving average cost in MMR is something entirely different and not to be confused here in the pricing type used in copy controls

Regards

Raja