Butter stuff on Pricing Procedure Understanding

Question

Hi Gurus
Please help me on Pricing Procedure Understating , Detail functionality of fileds , like   From , To, SubTo, Reqt, Altcty etc.
Regards\Adnan

Answer 1

Hello Adnan,
Pricing –
     Menu path – IMG – sales & distribution – basic functions – pricing – pricing control – define & assign pricing procedures – maintain pricing procedures (V/08).
     A pricing procedure consists of a list of condition types in a defined order, such as price, less discount, plus tax. Some controls exist in the pricing procedure. For example you can specify that a condition type is mandatory; it must have an entry defined either automatically or entered manually.
     The pricing procedure is also used in account determination. This determines the general ledge (GL) accounts to which the prices, discounts and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the financial accounting module.
     It is suggested to use to the SAP standard pricing procedure RVAA01 to copy and make necessary changes according to the requirement while configuring a pricing procedure. The following is the control data of the pricing procedure in detail –
1.     Step – this indicates the number of steps in the procedure. The first condition type should be step 10; the second condition type should be step 20 and so on. It is possible to number the steps in the intervals of 1, but it is not suggestible as it may cause inconvenience when changing the procedure in future.
2.     Condition counter – this is used to show a second mini-step within an actual step. For example, you may have assigned all you freight surcharges to step 100. However there may be three condition types, each representing a different freight surcharge. Thus you can assign a freight condition type to step 100, counter 1; another to step 100, counter 2; another to step 100, counter 3 and so on.
3.     Condition type – this is the backbone of the pricing procedure. The condition type is the link from the access sequence all the way to the actual condition record. When you enter a condition type, the description field is automatically filled in with the description from the condition type.
     Note: A description without a condition type can be entered for sub-total or total or net price in between the condition types in the control data.
4.     From & To columns – these are used in two circumstances –
a)     To define the range for a sub-total – for example, if you want to add up all the condition types from step 10 to step 50; you would enter 10 and 50 in the From and To columns respectively.
b)     To define the basis for a calculation – for example, if a discount is defined as a percentage, you need to indicate which step must be used as the basis for the calculation. If the calculation must be performed from step 100, you would enter 100 in the From field.
5.     Conditions determined manually – indicates if the condition type it is assigned to is allowed to be processed automatically or only manually. Conditions, that are given this indicator in the pricing procedure, are only included in determination (price determination, output determination, and 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.
6.     (Note: when assigning the pricing procedure to the sales documents, a condition type is also assigned to it; reason being that the condition type assigned to the sales document here is displayed in the sales document item level which can be manually changed - provided it is indicated while configuring the control data  - conditions determined manually). This feature is more often used in case of costing and output determination.
7.     Condition is Mandatory – the mandatory column identifies those condition types that are mandatory in the pricing procedure. Mandatory condition types are the sales price or the cost price. If the mandatory condition is missing in the pricing procedure, the system has an error in pricing and the respective sales order cannot be processed.
8.     Condition is used for statistics - This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value). This can be used to represent the cost price of the material sold.
9.     Print – determines which descriptions and associated values assigned to a step are printed on a document, such as order confirmation.
10.     Condition Subtotal - Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored. If the same fields are used to store different condition amounts, the system totals the individual amounts. 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. These subtotals are used in other areas of the system such as in logistics information system. It is recommended that you assign the subtotal field 4 to the total value in the pricing procedure for Freight.
11.     Requirement – this column is used to assign a requirement to the condition type. This requirement can then be used to exclude the system from accessing the condition type and trying to determine a value. This can be used to specify that the condition type, a discount, should only be accessed if the customer has a low risk credit group.
12.     Alternative calculation type - specifies that the system is to use the formula represented in this column as an alternative in finding the value of the condition type, rather than by using the standard condition technique. This can be used to calculate complex tax scenarios. This field is used in obtaining values such as “Net Price”, ‘Profit Margin’ – where there wouldn’t be any access sequence to get the required value. Instead the system calculates net value using the existing amounts and the alternative calculation types. (formula: profit margin = net value – cost price)
13.     Alternative condition base value – is a formula assigned to a condition type in order to promote an alternative base value for the calculation of a value. For example, one can specify a formula that uses a subtotal, such as 4, from the subtotal field; modify it slightly, such as dividing it by 2, and then using the resultant value as a base value for the condition type.
14.     Account key - Key that identifies different types of G/L accounts. 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.
15.     Account key – accruals/provisions - Key which identifies various types of G/L accounts for accruals or provisions. 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.
REWARD POINTS IF HELPFUL
Regards
Sai