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SAP SD Pricing

I am new in SAP pricing and have the below question.

Where does the cost price of a material comes into the SAP and post into FI for example Cost Center or Profit Center. Does the material cost price is maintained and comes from MM03? Can you tell me which tab and field in MM03 the material cost price is maintained?

Second does the sell price of the material in the SAP Sales Order comes from Material Master MM03 as well? And if it does where that is maintained in MM03?

Now if the sell price comes from Material Master MM03 in the SAP sales order. Why do we maintain the pricing conditions for example ZABC etc etc . I know the pricing conditional records are maintained by Sales org/DC/Division/ Customer etc etc.

I know that we need the below to maintain the Customer pricing procedure. 

Pricing Procedure = Sales Organization + Distribution Centre + Division + Customer Pricing Procedure + Document Pricing Procedure

So for example a company would have different pricing models/pricing procedure. For example ZABC and they want XXXX numbers of customer to be priced under this ZABC pricing procedure/pricing model but I wonder if the pricing procedure contains the sell price on the material OR is that the Material Master contains the sell price?

If the sell price is coming from Material Master why do we maintain the Pricing procedures for the customer?




Hi John,

Your questions covers, the whole area of SD pricing. And to have it answered, it will be rather good to refer a book/course on Pricing  .

I am trying to answer few of your questions  here..

Normally the cost(basic cost) of the material is maintained in material master, and you an see it in MM03, Accounting 1 Tab.

The selling price are maintained in Price condition record. So for you it is ZABC.

ZABC is necessarily a basic sale price and its a pricing element. there are other pricing elements like discounts, surcharges, freight charges, taxes and duties.

These elements are arranged in a logical step , and its called pricing procedure.

So please note that ZABC is not a pricing procedure but an element in the Pricing procedure. U can see different std Pri Procedures in Tcode V/08.

And you know how the pricing procedure is determined, and once the PriPro is determined, the pricing elements will come in the sales order for the Material.

Condition technique is used for determining what value the pricing elements should take during a sales order.

For more, you can look for condition techniques in pricing in this forum or on google.

Hope this helps



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