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explain Condition types

Former Member
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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

Accepted Solutions (1)

Accepted Solutions (1)

Lakshmipathi
Active Contributor
0 Kudos

Hi Tarak

Condition types can be defined as follows:-

Price elements are represented in the SAP system byg condition types. Price elements can be, for example, prices, surcharges, discounts, taxes or, freight, and are stored in the system in condition records.

You can, for example, define whether a discount is calculated as a percentage or a fixed amount using the condition type.

You specify an access sequence in every condition type. Thus, you define which fields the SAP system checks when searching for a valid condition record.

<b>Note</b>

--> The pricing procedure groups all condition types together which the SAP system is to automatically take into account during pricing for a business transaction (see the section "Define and assign pricing procedures").

Remember that you can only specify manually in a document those condition types which are contained in the pricing procedure.

--> You can change the outcome of pricing in the sales document manually. You can limit options for changing a condition type in this IMG step.

<b>Recommendation</b>

=> If you define your own condition types, the key should start with the letter Z since SAP reserves these letters for that purpose in the standard system.

=> Do not change the condition types which are contained in the standard SAP R/3 System.

<b>Actions</b>

1. Check to what extent you can use the condition types contained in the standard SAP R/3 System.

2. Create new condition types by copying a similar conditions type and changing it according to your requirements. One reason for creating a new condition type is you may require a calculation rule for a discount which is not avaialable in the standard system.

Specify an alphanumeric key which can have up to 4 digits, and a textual description.

Specify an access sequence for the condition types. You do not need to specify an access sequence for header conditions.

3. Maintain the detail screen of the condition type.

You can also assign a reference condition type if the condition types you are working with are similar. Then you will only have to maintain condition records for the reference condition type.

In addition, you can define the upper and lower limits for the value of a condition at condition type level. This way, you limit the amounts or the scale values in the corresponding condition records.

<b>Checking settings</b>

You can use the SDCHECKT685A report to check the settings for the condition types. This is not a complete check but it does, for example, check the scale type setting for group conditions. For more information, read the report documentation.

<b>Pricing Procedure</b>

You define the pricing procedures in this step. In addition, you assign the pricing procedures to the transactions by defining the following dependencies:

==> Customer

==> Sales document type

==> Sales area

In the pricing procedure, you define which condition types should be taken into account and in which sequence. During pricing, the SAP System automatically determines which pricing procedure is valid for a business transaction and it takes the condition types contained in it into account one after the other.

The determination of the procedure depends on the following factors:

<b>Customer determination procedure</b>

You specify the customer determination procedure in the customer master record for each sales area.

<b>Document pricing procedure</b>

You specify the document pricing procedure for each sales document type and billing type.

To determine the procedure, you allocate the customer determination procedure and the document pricing procedure to a pricing procedure within a sales area.

<b>SAP Recommendation</b>

=> Define your own pricing procedures which contain only those condition types which you use. Otherwise, the system makes unneccessary accesses to conditions.

=> Do not change the pricing procedures contained in the standard SAP R/3 System.

<b>Actions</b>

1. Create new pricing procedures by copying a similar pricing procedure.

--> Specify a key with up to 6 characters and a description.

--> For a procedure, specify the condition types in the sequence of their usage.

Maintain the lines of the pricing procedure

2. Afterwards define the customer determination procedures for determining the procedure.

3. Define the document pricing procedures for determining the procedure.

4. Assign the procedure to the sales document types and billing types.

5. To determine the procedure, define the allowed combinations of:

=> Sales area

=> Customer determination procedure

=> Document pricing procedure

=> Pricing procedure

<b>Check settings</b>

You can check the settings for your pricing procedures. This is not a complete check. It mainly checks the requirements and calculation formulas for standard condition types. Refer to the report documentation for more information

Thanks

G. Lakshmipathi

Former Member
0 Kudos

Hi Lakhmipathi Ji,

Excellent explanation on pricing. Really very gud.

Murli.

Former Member
0 Kudos

Thanks every one for your valuable information and I appreciate it.

Message was edited by:

Tarak Potluri

Former Member
0 Kudos

Thanks every one for your valuable information and I appreciate it.

Lakshmipathi : can you give example or scenario where we have to create a new cond type.

and in pricing procedure i learnt that when you give same condition class (ex prices) in sequence, system picks up the last one in sequence, any idea abt this.

and vprs picks cost from material master and how we will know that it picks from MM and from which field it picks up? actually one of our condition type is bringing wrong value and wanted to trace and where its functionality is described, is it internally by a program?

and in pricing procedure, if manual, mandatory and stat all fields are left blank, what does it mean?

and how can we make some statistical condition types unseen in billing item condition analysis.

and can any one explain standard pricing procedure like how each step works?

Regards

Tarak

Message was edited by:

Tarak Potluri

Lakshmipathi
Active Contributor
0 Kudos

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>

Former Member
0 Kudos

It has been very informative and thanks everyone

Regards

Tarak

Former Member
0 Kudos

Dear G. Lakshmipathi,

Your explanation is great.

But would you tell me the behavior of PB00?

It could overwrite the price determined by PR00.

Should it put behind PR00? Is there any other condition type have the similar capability to overwrite other conditions?

Thank you.

Eugene

Answers (2)

Answers (2)

Former Member
0 Kudos

Hi Tarak,

<b>Condition Types</b>

A condition type serves to differentiate between prices in the system. Price elements are represented in the SAP system by condition types. You can define a separate condition type for each type of price, surcharge or discount that may arise in your business transactions. The condition type defines, for example, a discount as a fixed amount or as a percentage.

<b>Configuration</b>

SPRO -> Sales & Distribution -> Basic Functions -> Pricing -> Pricing Control -> Define Condition Types

A few standard condition types provided by SAP are

BO01

Mat/Group Rebate

BO02

Material Rebate

BO03

Customer Rebate

BO04

Hierarchy Rebate

BO05

Hierarchy rebate/mat

EK01

Actual Costs

EK02

Calculated costs

HA00

Percentage Discount

HB00

Discount (Value)

HD00

Freight

PR00

Price

PR01

Price incl.Sales Tax

VPRS

Cost

<b>Example</b>

A customer comes to a retailer, say for a Television, inquires about the price of a particular model. Now the retailer would have the basic price of the product to which the Freight or Transport charges would be added, the discount would be deducted (if any) and finally add the tax value.

Consider the above example and try to create your pricing procedure. Keep it simple till you understand the concepts.

Hope it had helped you. Do reward if you had felt the same.

Regards

Nadarajah Pratheb

Former Member
0 Kudos

Hi Nadarajah,

What is the significance of EK01 actual costs?

How net value is calculated?

where we use Sub to values?

Regards

Tarak

Former Member
0 Kudos

Hi Tarak,

EK01 is the condition type used to represent the Cost of the Product. Lets say the cost of manufacturing a Television Set is Rs.35,000. The manufacturer would add the margin and other components to the cost and would derive to the final price. The cost of the product is picked from the material master [MM03] -> Accounting 1 Tab -> Moving Price / Standard Price.

Hope it had helped you. Do reward if you had felt the same.

Regards

Nadarajah Pratheb

Former Member
0 Kudos

Hi Tarak,

The net value is calculated as follows

Price Condition Types - Customer Discount Condition Types - Material Discount Types + Freight Condition Types - Cash Discount Condition Types + Tax Condition Types

Regards

Nadarajah Pratheb

Former Member
0 Kudos

Hi Nadarajah,

Thanks for the info, if you dont think otherwise, is it possible for you to give examples for the basic condition types like pr00, pb00 etc.

pr00 is basic price right, it already includes price and again do we need to add ek01 costs? just throw light why and when we use basic condition types.

Regards

Tarak

Former Member
0 Kudos

Hi Tarak,

I assume you are talking about the subtotal field in the pricing procedure.

This field is used to carry forward the value of a particular condition type or step to a different table. This value can further be used for any other complex calculation or reporting purpose.

Assume in the pricing procedure you have calculated the Gross Price of the Product and wish to use the value for reporting purpose. Then the subtotal field can be used to copy the value into a table and use it instead of calculating the Gross Price again.

The value 'B' in the subtotal field can be used to carry the cost of the product into WAVWR of VBAK.

Hope it had helped. Do reward if you had felt the same.

Regards

Nadarajah Pratheb

Former Member
0 Kudos

Hi Tarak,

I didnt understand your requirement with the example for basic condition types.

Yes you correct by saying that PR00 is the basic price and the cost has already been included. However do note the condition type EK01 is only used for display purpose. It woud not be added again during the pricing calculation.

For using a condition type for display purposes only SAP has provided the Statistical field in the pricing procedure. For EK01 the Stat field would have been enabled stating that it is used only for display purpose.

Hope it had helped. Do reward if you had felt the same.

Regards

Nadarajah Pratheb

Former Member
0 Kudos

hi

Condition Types

Use

A condition type is a representation in the system of some aspect of your daily pricing activities. For example, you can define a different condition type for each kind of price, discount or surcharge that occurs in your business transactions.

Example of a Condition Type

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 USD 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. The following figure illustrates how condition types can be used during pricing in a sales document.

In the example in the preceding figure, two discounts apply to the item in the sales order. The first discount is a percentage discount based on the quantity ordered. The second discount is a fixed discount based on the total weight of the item.

You determine the calculation type for a condition type in Customizing. This determines how the system calculates prices, discounts and surcharges for a condition. When setting up condition records, you can enter a different calculation type than the one in Customizing. At present all available calculation types are permitted. The field ‘Calculation type’ can however not be accessed if this field is left empty. After the data release has been printed, if the field has not been completed manually, the proposal is automatically taken from Customizing. After this it is no longer possible to make manual changes.

If you use different calculation types for what are otherwise the same conditions (for example, percentage, as a fixed amount or quantity-dependent), you do not have to define different condition types in Customizing. You can set a different calculation type when maintaining the individual condition records.

Condition Types in the Standard R/3 System

The standard system includes, among many others, the following predefined condition types:

Condition type

Description

PR00

Price

K004

Material discount

K005

Customer-specific material discount

K007

Customer discount

K020

Price group discount

KF00

Freight surcharge (by item)

UTX1

State tax

UTX2

County tax

UTX3

City tax

Creating and Maintaining Condition Types

You can change and maintain condition types provided in the standard version of the SAP R/3 System or you can create new condition types to suit the needs of your own organization. You create and maintain condition types in Customizing.

To reach the condition type screen from the initial Customizing screen for Sales and Distribution:

Basic Functions ® Pricing ® Pricing Control ® Define condition types.

A dialog-box appears, listing the transaction options. Select the corresponding transaction for defining the condition types.

In the Conditions: Condition Types view, you can change existing condition types or create new ones.

Condition Types:

The condition type determines the category of a condition and how it is used.

The calculation type and the scale base type can be controlled for each condition type.

For Example: Scale for Condition Type PROO1 pieces 800 uni

10 pieces 750 uni

100 pieces 700 uni

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

Each condition type can be set as an automatic surcharge, discount or either.

Condition types: A calculation or formula used for a component of pricing.

Header Condition:

Conditions can also be entered at the document header level. These are known as header conditions and are valid for all items.

These header conditions are automatically distributed among the items based on net value. The basis for distributing the header conditions can be changed in the pricing procedure by selecting the appropriate routine (e.g. weight, volumes) in the AltCBV (alternative formula for condition base value) field.

Incase of Condition type RB00, the value is copied to all line items. For Example: Condition Type RB00 is maintained with value $ 50 & there are 4 line items, then all 4 line items each will be populated with the value $ 50.

Incase of Condition type HB00, the value is distributed to all line items. For Example: Condition Type HB00 is maintained with value $ 50 & there are 4 line items, then the value $ 50 is divided in all 4 line items propotionately.