Explain the Pricing Procedure

[Former Member]

Hi Friends

Explain how the pricing is determined for an item, starting from the sales order

Discuss the full cycle also make a mention on the Condition type controls, and Maintain pricing procedure controls.

Kindly explain it with an example.

Thanks

[Former Member · Accepted solution]

Pricing Procedure is indeed an heart of SD module, reason being if everything else is working fine, but price is not being calculated correctly, the purpose of billing fails.

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 -> 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.

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.

[Former Member]

Hi Shiby,

Pricing Procedure configuration & determination is already mentioned by others

The starting point for determination of pricing procedure is as under:

<b>Sales Area</b> (Sales Order is created for Sales Area)

+

<b>Document Pricing Procedure</b> (Doc. Pric. Proc is maintained in Sales Document type. Incase of STO, it is maintained in Billing Type)

+

Customer Pricing Procedure (Customer Master --> Sales Area Data --> Tab page: Sales --> Field: Cust. pric. Proc)

= Pricing Procedure

For Eg: (10001010)A1=RVAA01

<b>Pricing Procedure</b> is made up of condition types, which are arranged in the sequence, in which it should be called. Eg of Standard Pricing Procedure is RVAA01, JINFAC, etc.

<b>Condition Type</b> are based on condition category, such as price, discounts & surcharge, taxes, freight, etc. some example are as under:

PR00 - Base Price,

K004, K005, etc - Discounts

JEXP for Basic Excise Duty, JIVP for VAT, JIVC for CST, JSER for service tax, JMAN for manual excise duty, & so on .....

Condition types have Access Sequence assigned to it (except Header & Manual Condition). Access Sequence is made up of Access (Tables), which are arragned in the sequence, in which it has to check the tables for condition record. There is an Exclusive indicator, which is normally marked as Checked Box, which refer to that if the condition record have been found, do not check further access (tables) for that particular condition type & move to next condition type. The process is repeated for all condition types in the pricing procedure to arrive at required price.

Regards,

Rajesh Banka

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[Former Member]

Mail sent, check your mail.

Reward points if helpful.

Regards

AK

[Former Member]

Pricing Procedure:

Ø Pricing procedure: A sequential list of condition types and subtotals.

Ø All condition types permitted in pricing are contained in the pricing procedure.

Ø You determine how the system is to use conditions by specifying requirements for each condition.

Ø The sequence in which the system accesses conditions in the business document is also determined here.

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

Ø The pricing procedure can contain any number of subtotals between gross and net price.

Ø You can mark a condition type in the pricing procedure as being:

--> a mandatory condition

--> a manually entered condition

--> for statistical purposes only

Pricing Procedure Determination & Overview:

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

Ø First, the relevant pricing procedure is determined based on the sales area, customer, and sales document type.

Ø The system reads the condition type of the first step. It determines the assigned access sequence for this condition type.

Ø The system reads the access sequence. The sequence of condition tables represents the search strategy for finding the relevant condition record.

Ø Each condition table represents one access which can be made for a condition record with the specified key.

Ø The system searches for valid condition records with the key specified by the condition table (accesses).

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

Ø 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.

Ø The whole process is repeated for each condition type until the system has finished the entire pricing procedure.

Pricing Configuration:

Ø The condition table contains the keys that can be used for creating dependent condition records.

Ø You can add your own condition tables using table numbers 501 through 999.

Ø An access sequence is composed of one or more condition tables.

Ø After creating the access sequence, it is assigned to a condition type.

Ø 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.

Ø The condition types are combined in the required sequence in the pricing procedure.

Ø 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.