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pricing

Former Member
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Hi everyone

I am new to SAP and I recently got a job that is related to pricing, i want experts to give me advice on how to survive in this job?

Please can anyone send me material related to pricing especially formula pricing.

My email is netpundit@gmail.com

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Answers (5)

Answers (5)

Former Member
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Hi sara j,

you are lucky to be part of pricing... its a hot job in SAP,wat i suggest is just use logic..any thing is possible in pricing...

ALL THE BEST...

RAMKI

Former Member
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<b>Pricing Procedure:</b>

&#61550; Pricing procedure: A sequential list of condition types and subtotals.

&#61550; All condition types permitted in pricing are contained in the pricing procedure.

&#61550; You determine how the system is to use conditions by specifying requirements for each condition.

&#61550; The sequence in which the system accesses conditions in the business document is also determined here.

&#61550; The reference level provides a method to specify a different basis for the condition type calculation and for grouping conditions for subtotals.

&#61550; The pricing procedure can contain any number of subtotals between gross and net price.

&#61550; You can mark a condition type in the pricing procedure as being:

--> a mandatory condition

--> a manually entered condition

--> for statistical purposes only

<b>Pricing Procedure Determination & Overview:</b>

&#61656; In this example, an order for 120 pieces of a material is created. The system must determine the price automatically.

&#61656; First, the relevant pricing procedure is determined based on the sales area, customer, and sales document type.

&#61656; The system reads the condition type of the first step. It determines the assigned access sequence for this condition type.

&#61656; The system reads the access sequence. The sequence of condition tables represents the search strategy for finding the relevant condition record.

&#61656; Each condition table represents one access which can be made for a condition record with the specified key.

&#61656; The system searches for valid condition records with the key specified by the condition table (accesses).

&#61656; If the first access does not find a valid condition record, then the system searches for the next access using the next condition table.

&#61656; Once the system finds a valid condition record for an access, it reads the condition record and copies the value that corresponds to the scale into the sales document.

&#61656; The whole process is repeated for each condition type until the system has finished the entire pricing procedure.

<b>Pricing Configuration</b>:

&#61550; The condition table contains the keys that can be used for creating dependent condition records.

&#61550; You can add your own condition tables using table numbers 501 through 999.

&#61550; An access sequence is composed of one or more condition tables.

&#61550; After creating the access sequence, it is assigned to a condition type.

&#61550; You can also create your own condition types. You determine the characteristics of each condition type, for example, whether it is for surcharges or discounts and whether it should be dependent on values or quantities.

&#61550; The condition types are combined in the required sequence in the pricing procedure.

&#61550; Finally, you need to maintain the procedure determination table for the pricing program.

The pricing procedure is determined according to:

>> Sales area

>> Customer pricing procedure field in the customer master

>> Document pricing procedure field in the sales document type.

<u><b>Condition Table</b></u>:

Condition Table:

&#61550; Condition records are always created using a specific key.

&#61550; Use tables for help in defining the structure of condition record keys.

&#61550; The most important fields used in pricing at header and item level are available in the standard system.

&#61550; The key fields of a condition table must appear at the start of the table, in other words, non-key fields must not appear between any two key fields.

&#61550; Condition table: The definition of the key of the condition record.

&#61550; The access sequence determines the sequence in which the condition records for a condition type are found and read.

&#61550; An access sequence (search strategy) is defined for each condition type (with the exception of header and manual only condition types) in the pricing procedure.

&#61550; This search strategy defines the sequence in which the system reads the condition records for a condition type.

&#61550; Each access performed during the access sequence is made using a condition table.

&#61550; A condition table is a combination of fields, which form the key for a condition record.

&#61550; You can make an access dependent on certain requirements.

&#61550; You can define prices, discounts, and surcharges at various levels.

&#61550; Each level is defined by a combination of fields or by a field in a condition table.

&#61550; Using the access sequence, you can define the sequence of the different levels.

The system attempts to determine the condition records in the sequence specified.

&#61550; Within each access of an access sequence, you can specify the specific document field (source field) with which an access is carried out.

&#61550; Examples:

> Material or pricing material?

> Document currency or local currency?

> Sold-to party or ship-to party?

&#61550; Make accesses dependent on requirements to avoid unnecessary accesses. This reduces the system load.

&#61550; Access sequence: A search strategy to locate the proper condition record.

<u><b>Condition Type</b></u>:

&#61550; The condition type determines the category of a condition and how it is used.

&#61550; The calculation type and the scale base type can be controlled for each condition type.

For Example: Scale for Condition Type PROO

1 pieces 800 uni

10 pieces 750 uni

100 pieces 700 uni

&#61550; Possible scale base types - Possible calculation types

Value - Percentage from an initial value Fixed amount

Quantity - Amount per unit of measure

Weight - Amount per unit of weight

Volumes - Amount per unit of volume

Time period - Quantity per unit of time

&#61550; Each condition type can be set as an automatic surcharge, discount or either.

&#61550; Condition types: A calculation or formula used for a component of pricing.

<u><b>Condition Record</b></u>:

&#61550; You can limit a pricing agreement to a certain period by specifying a validity period.

&#61550; For example: Different price lists for different years

Discounts given only for the duration of a special offer

&#61550; The values in a condition record (price, surcharge, discount) can be maintained according to a scale. You can specify an unlimited number of levels in a scale.

&#61550; You can specify an upper and lower limit for each condition record. Manual changes to pricing elements determined by the system can be made only within these limits.

&#61550; Condition records: The data used by condition types to calculate pricing.

Menupath:

SAP Easy Access: Logistics &#61614; Sales and Distribution &#61614; Master Data &#61614; Conditions &#61614; Select using condition type &#61614; Create

Hope this helps you understand Pricing Better.

Regards,

Rajesh Banka

Reward points if helpful.

Former Member
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Sene mail .

Reward if helpful.

Former Member
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HI

SENT DOC TO UR MAIL PLS GO THROUGH

Former Member
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Hi Shesagiri,

This is very usefull information that you have sent to me. I want to thank you for this.

If possible can you send me any information on how to write functional specifications.

Thanks

Sara J

Former Member
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Would you please forward the material for the pricing that you got from this post.

geetar153@yahoo.com

Thanks

Former Member
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Dear Sara,

In VOFM you can see all the requirements & Formulas & also the back end coding,

In pricing we use more routines & Formule,So go through the following to understand in better way

The alternate base value is used as the calculation basis only, while the alternate calculation is used to modify the final value.

For example, imagine you have a condition type ZZ01, with a condition record maintained (master data) for $100. Now, condition ZZ02 also exists lower in the schema, but with a rate of 10%. The standard calculation would result in a final value of $110.

The alternate base value could say, "don't use $100 as the basis -- use the original price PR00 only, which was $90." Then, the final value would be $100 + (10% of $90) = $109.

The alternate calculation routine says, "ignore the 10% altogether. Instead, use an externally calculated 20%." Then, you end up with a final value of $100 + (20% of $100) = $120.

Put them both together, and you could end up with $100 + (20% of $90) = $118.

Now once again,

Alternative Calculation Type:

Normally if you want to calculate a value you have to use a calculation type for determinating the value. This calculation type is either addition, subtraction or multiplication. Similarly SAP also has got a default calculation type in the control data of the condition type. There you have the options of either Qty based , Fixed Amount Based or Percentage based.

Here what happens is suppose if you define Your condition type that calculates the base price of a material on Qty based. Then the calculation will be done based on the quantity of the material. If the customer orders 10 Nos and you have maintained a unit price of 100 Rs for each material then the value determined is 1000 INR. Similarly if the discount condition type , you maintain the calculation type as %. This means if you maintain the value of 10 % in the condition record. Then this percentage is taken as the calculation type and the condition value is determined.

In some cases you have to forego the default calculation types and use the customer specific method for calculating a value. For ex if you are calculating the Freight charges for a Material . it depends on so many criteria like, the weight, volume and also the minimum amount etc etc, in those cases, you forego the default value and then use the alternative calculation type in calculating the condition value against the particular condition.

Alternative Condition Base value :

If you have to calculate any value then you have to have a base value for it. For ex if you want to calculate the discount of 10 % for a material then you have to have a base value on which this 10% is calculated. Normally you take the condition value of the base price of the material to calculate the value.

Now you don't want to take the base value and take other values as base value which are derived on some formulae. So you create a routine which will do the mathematical operations in the routine and derive you a value which is now used as the base value for calculating the condition value for a particular condition type.

Requirement:

A factor in the condition technique that restricts access to a condition table. The system only accesses a condition table to determine the price if the requirement specified has been met.

Example:

The system uses an access sequence to determine the price of a material. One of the accesses in the sequence contains the requirement "in foreign currency." The system only uses the table behind this access if the sales order for which the price must be calculated is in a foreign currency.

Reward points if this is helpful.

Regards,

Naveen.

Former Member
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Dear Sara,

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.

Steps to Configure Pricing Procedure:

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 --> Sales & Distribution --> Basic Function --> Pricing Control --> 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 --> Sales & Distribution --> Basic Function --> Pricing Control --> 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 --> Sales & Distribution --> Basic Function --> Pricing Control --> 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 --> Basic Function --> Pricing Control --> 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 --> Basic Function --> Pricing Control --> Pricing Procedure --> Determine Pricing Procedure.

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.

Hope this is helpful.

Regards,

Naveen.