Pricing and conditions in SD

Contents
What is Pricing & conditions? Condition Techniques. Pricing Elements in Sales Order Processing. Automatic Pricing. Header and Item Conditions. Special Pricing Functions. Table structure

Pricing & Conditions

Pricing The term pricing is used broadly to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting). Conditions Conditions represent a set of circumstances that apply when a price is calculated. The variable factors are - The customer - The product - The order quantity - The date

Condition Techniques
Condition types Condition tables Access sequence Pricing procedures

Condition Types
Identifies the characteristics of a condition. Some Basic Condition Types:

PR00 K004 K005 K007 K020 KF00 UTX1 UTX2 UTX3

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Price Material discount Customer-specific material discount Customer discount Price group discount Freight surcharge (by item) State tax Country tax City tax

Pricing The Flow

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Overview

Pricing Procedure
Primary job of a pricing procedure is to define a group of condition types in a particular sequence. Document Pricing Procedure Customer Pricing Procedure

Document Pricing Procedure

Pricing Procedure

Condition Table
A condition table defines the combination of fields (the key) that identifies an individual condition record.

Access Sequences
It is an search strategy that the system uses to find valid data for a particular condition type. It determines the sequence in which the system searches for data

Condition Types

Calculation Type: Determines how the system calculates prices, discounts and surcharges for a condition.

Pricing Elements in Sales Order Processing

Prices Surcharges and discounts Freight cost Sales taxes

Prices
The basis of pricing during sales order processing is the gross price of a material. Material price Price list type Customer-specific price

Freight Charges
We can pass freight costs on to our customers by using special condition types that relate to shipping and freight charges. Condition Type : KF00

Sales Taxes
The standard R/3 System includes condition types that define countryspecific sales taxes. Material Tax Classification Customer Tax Classification

Customer Taxes

Material Taxes

Header and Item Conditions

Header Conditions The standard system includes condition types that you can only apply at the header level the header conditions. (Only for Manual) - Percent discount (HA00) - Absolute discount (HB00) - Freight (HD00) - Order value (HM00) Item Conditions Condition types that you can only use for items are called item conditions. - Material discount (K004) - Customer/Material (K005) - Customer discount (K007) - Material price (PR01)

Condition Records
Condition records allow us to store and retrieve pricing data in the system. - All the pricing elements of our daily business - the prices, discounts, and surcharges for freight and taxes - that we want to use for automatic pricing must be stored in the system as condition records.

Transactions
Create conditions (transaction VK31) Change conditions (VK32) Display conditions (VK33) Create conditions with reference (transaction VK34)

Condition Records

Special Pricing Functions

Promotional Pricing Agreements Promotions -A promotion typically represents a high-level marketing plan for particular products or product lines - for example, a promotion for a range of products during a specific sales cycle. A promotion can include a number of different sales deals. Transaction codes: promotions - VB31 (creating) Sales deals - VB21 (creating)

Customer Expected Price By entering the expected price during sales order processing and comparing it with our price, we can help avoid disputed invoices later. Condition Types: EDI1 - Customer expected price EDI2 - Customer expected value

Condition Exclusion: In pricing for sales and billing documents, more than one condition record may apply to a particular item at any one time. We can use the condition exclusion process to compare possible conditions in order to determine such things as the best price for a customer.

The final price in this example is calculated this way: 100 USD 20 USD + 1 USD = 81 USD/KI

Table Structure
Table Structure: Conditions for Pricing
SAP Standard A001 A001 A002 A002 A003 A003 ... Customers A501 A501 A502 A502

KONH KONH

KONA KONA

KONP KONP

KONM KONM
SAP AG

KONW KONW

Pricing Reports
Creating Reports - Transaction V/LA Running Reports - Transaction V/LD Net Price List - Transaction V_NL