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explain Condition types

Hi Gurus,

Can anyone explain condition types and their importance in pricing like how each condition type contributes.

If possible can anyone give example of creating pricing procedure for any business process.

Regards

Tarak

Former Member
replied

Hi Tarak

Let me try to answer your question one by one

<b>Example of a Condition Type

</b>

You define the condition type for a special material discount. You specify that the system calculates the discount as an amount (for example, a discount of INR 1 per sales unit). Alternatively, you can specify that the system calculates the discount as a percentage (for example: a 2% discount for orders over 1,000 units). If you want to use both possibilities, you must define two separate condition types.

<b>VPRS</b>

This condition value is fetched from Material Master Accounting 1 view where you maintain standard price and moving average price

<b>Pricing Procedure

</b>

In Pricing Procedure, if all the three fields are blank, the respective condition value will flow to accounting document provided the condition is maintained in VK11.

Steps of Pricing Procedure will work as follows:-

<b>1) Step number

</b>

Number that determines the sequence of the conditions within a procedure.

<b>2) Condition counter

</b>

Access number of the conditions within a step in the pricing procedure.

<b>Use</b>

During automatic pricing, the system takes into account the sequence specified by the counter.

<b>3) Condition type

</b>

The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types.

<b>4) Description

</b>

Description of the condition type

<b>5) From reference step (for percentage conditions)</b>

Condition step, the value of which is the basis for percentage surcharges.

If you specify a to reference step at the same time, the condition values of the two steps specified and the conditions values of the steps in between are totalled. In this case, percentage surcharges are calculated on the basis of the total.

<u>Example:

</u>

Level CType Description FromSt ToSt ActKy

10 A-B1 Wages

20 A-B2 Salaries

30 A-B3 Overtime/Wages

40 A-Z1 Vacation bonus 10 30 E11

The surcharge for step 40 is added to the total of steps 10 to 30.

<b>6) To reference step (for percentages)

</b>

Condition step up to which the condition values of the previous steps are totalled. Percentage surcharges are calculated on the basis of the total.

If you specify a from reference step at the same time, the condition values of the two steps specified and the condition values of the steps in between are totalled.

<u>Example:

</u>

Step CType Description FromSt ToStep AcctKey

10 A-B1 Wages

20 A-B2 Salaries

30 A-B3 Overtime/Wages

40 A-Z1 Vacation bonus 10 30 E11

The surcharge for step 40 is added to the total of steps 10 to 30.

<b>7) Condition determined manually

</b>

<b>Use</b>

Conditions, that are given this indicator in the pricing procedure, are only included in determination (price determination, outputdetermination, batch determination) either if they are entered manually, for example, on the condition overview screen in Pricing or if they are transferred from an external process, such as costing.

<b>8) Condition is mandatory

</b>

Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure.

<u>Example</u>

If, for example, you always want to include a tax condition (VAT or sales tax) during pricing, you can set this indicator for the appropriate tax condition type.

<b>9) Condition is used for statistics

</b>

This indicator causes a surchage or discount to be set in the document statistically (that is, without altering the value).

<b>10) Print ID for condition lines</b>

Controls issue of condition lines when printing documents such as order confirmations or invoices.

<u>Use</u>

In releases previous to 4.0, the following print indicators are available :

• ' ' : Condition line is not printed

• 'X' : Condition line is printed at item level

• 'S' : Condition line is printed in totals block

The following standard logic is set out for these printing indicators:

o Item POS of the last condition line is determined with 'X'.

o All condition lines that contain an item smaller than POS in the pricing procedure are only printed if print indicators 'X' or 'S' are set.

o All condition lines that contain an item larger than POS in the pricing procedure, that come before the first tax condition line and which have a non-statistical VAT condition, receive printing indicator 'S'. The same applies for condition lines that contain an item larger than POS in the pricing procedure, that come after the first tax condition line and an active non-statistical VAT condition.

o Condition lines that represent a tax condition type are always printed in totals blocks with print indicator 'S' (set internally or externally).

o Condition lines that represent a condition type that is not a tax condition type are only printed with print indicator 'S' (set externally or internally) if the condition value of the condition line is not zero. Condition lines that do not represent a condition type (i.e. subtotals) are only printed with print indicator 'S' or 'X' (set externally or internally) if the condition value of the condition line is different from the condition value of the previous condition line in the pricing procedure.

To provide a better overview of this process, 8 more print parameters are available as of Release 4.0. These print indicators cannot, however be mixed with the three previous print indicators ' ', 'X' and 'S' in the pricing procedure. This means that the new indicators are only taken into account if a no condition lines in the pricing procedure contain printing indicators 'X' or 'S'.

The new printing indicators have the following settings, and corresponding influence on processing.

o 'A' : in total: general

o 'B' : in total: if value <> zero

o 'C' : in total: if value <> value of predecessor

o 'D' : in total: if value <> zero and value <> value of predecessor

o 'a' : at item : general

o 'b' : at item : if value <> zero

o 'c' : at item : if value <> value of predecessor

o 'd' : at item : if value <> zero and value <> value of predecessor

<b>11) Condition subtotal</b>

Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored.

Use

If the same fields are used to store different condition amounts, the system totals the individual amounts.

<u>Example</u>

These condition amounts or subtotals are used as a starting point for further calculations. You may, for example, want a subtotal of all the discounts included in the pricing of a sales order.

<b>12) Requirement</b>

<u>Use</u>

If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified.

<u>Examples</u>

A possible requirement would be, for example, that a difference should be made between document currency and local currency .

<b>13) Condition formula for alternative calculation type</b>

Alternative formula to the formula in the standard system that determines a condition.

<b>14) Alternative formula for condition base value</b>

Formula for determining the condition basis as an alternative to the standard.

<u>Example</u>

An absolute header discount is, for example, distributed in the standard system according to the cumulative value of the items.

If the system, however, distributes the absolute header discount according to volume, a header discount of $30 results in the following discounts:

<b>15) Account key</b>

Key that identifies different types of G/L account.

<u>Use</u>

The account key enables the system to post amounts to certain types of revenue account. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account.

<b>16) Account key - accruals / provisions</b>

Key which identifies various types of G/L accounts for accruals or provisions.

<u>Use</u>

With the aid of the account key, the system can post amounts to certain types of accruals accounts. For example, rebate accruals which are calculated from pricing conditions can be posted to the corresponding account for rebate accruals.

Thanks

G. Lakshmipathi

<b>reward please if this is very useful to you

</b>

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