Pricing Procedure Concept

[former_member787609]

Dear Support,

Please help me to understand the concept of pricing and pls provide usefull document

for pricing Tech. and Procedure so that I can Understand , So pls help me.

Thanks

M. Kumar

[Former Member · Accepted solution]

Hi

Ref this link http://www.sap-img.com/materials/steps-for-mm-pricing-procedures.htm

[Former Member]

Hi ,

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 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,

Senthil.