Explain the Pricing Procedure

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

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.

Similar Messages

  • About the pricing procedure of purchasing order

    Hello friends,
    can anyone tell me about the pricing procedure,conditions & texation of Purchase order?
    and hoew to maintain all those term in Customisation?

    The Basic thing is Condition Technique. In which there are 
    1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table. 
    A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a  Condition Technique.This is a simple logic 
    Here the Condition Type is very important like PB00, PBXX,RA01 etc. 
    In the background every Condition Type has its own defition means the purpose of the Condition Type  like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions.  Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement. 
    The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement. 
    The Pricing Schema means the calculations procedure of Condition Type. 
    Ex.  RA01 - Discoount % is caclulated on PB00 - Gross Price  means 
    RA01 is based on PB00  like that we have to define in the Pricing Schema 
    which makes easy to use in real time. 
    Here PB00 has the Access Sequence - 0002. 
    But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types. 
    In the system, by default some standard  Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define. 
    For the configuration, I may not able to explain properly through here but will give some idea. 
    Configuration: SPRO - IMG - Material Management - Purchasing - Conditions - Define Price Deternmination Process:
    1. Define Access Sequence 
    2. Define Condition Type 
    3. Defince Calculation Schema:- Here you have to define the Schema - Define Schema group 
    1. Define Schema Group vendor 
    2. Define Pricing Schema group 
    3.  Schema group for Purchase Organisation 
    4. Assign Schema group to Purchase Organisation - Define Schema determination 
    1.define calculation schema for Standard purchase organisation 
    After completion of the Schema Group, we have to assign it to Vendors. 
    Then whenever we use any transaction with this Vendor, the concerned  Schema will work as configured by us. 
    The Pricing in MM is vast because each Condition have its own importance and each Access Sequence have its own importance. So you need not bother about this. First you learn how to define the Calculation Schema through the above.

  • Subtraction in the pricing procedure.

    Hello Friends,
                 I have requirement as follows:
    I have two steps in the pricing procedure. One has a condition type and the other does not. Now my requirement is to subtract the condition price of step 1 from the condition price of step 2 and display it as the condition price for step 3 which has no condition type.
    I have been suggested to create a new routine in vofm and assign that in the pricing procedure.
    Is there any otherv way of doing this?
    If not, how we design the code to get the values from the structure KOMV for the field KWERT for different steps to calculate and update in the rpicing procedure?
    Can u please guide me.

    and display it as the condition price for step 3 which has no condition type
    In SD, unless you have a condition type, you cannot show it as a pricing since it has an impact in FI via Account Key and G/L Account assignments.  Please explain more about the Business Process and how you want to capture.  Dont go for VOFM and all when the process can be configured via standard.
    G. Lakshmipathi

  • About tax in the pricing procedure

    Hi Gurus,
    I need your help. Our client says that the tax was incorrectly calculated from the start of SAP application.
    Before SAP Application, their tax is computed as follows based on the Pricing procedure used:
    19% on Freight
    6% on Value of goods
    But now this is how tax is incorrectly calculated:
    6% on net value of goods
    I need your help on how I will solve this issue. This tax calculation should only be applied to sales to domestic Intercompany customer.

    Hi,
    Can you pls explain little more clearly with example in the pre and post SAP scenarios.
    Kind Regards
    Chakradhar

  • Excise duty in the Pricing Procedure for Local Purchase / Importation

    Hi,
    I'd like to know how to set up the pricing procedure for the purchase of an IS Oil Material; for local purchase and importation, especially with regards to the excise duty posting.
    Local purchase:  the vendor will bill us inclusive of the ED tax he previously paid, so the tax is just passed on to us..  My receiving location has ED paid status. In the PO item, we need to see this price (inclusive of tax) in the net price field.
    Importation:  the vendor only bills us the cost of the material.  When we received the fuel, we paid ED tax to local tax authorities.
    I know that both in these scenarios, the system has to determine the excise duty.
    My questions are (1) how do you set up the excise duty condition type  in the pricing procedure(or do they have to be maintained in the pricing procedure?) ?   and (2)  how do you set up this condition type in the config?
    Thank you and hoping for your immediate feedback.
    zccr

    Hi,
    You can use same pricing procedure
    put 4 in subtotal in pricing procedure against the Discounr or freight cond
    and in taxinn
    BASb ALTCBV 362 and for jmop 363
    But this will work only if same  discount or freight value is in IV as that given in PO
    if freing value changes in IV then its a problem
    This is SAP bug, and SAP workes in that way only, freight value should be same in PO and IV
    other solution
    in taxinn create tax code like v8 vat 4% for 003 tax clasification
    in ftxp create tax code V8 desc vat 4%
    in fv11 for jvrd put 4
    and at the time of IV put this tax code for freight amount
    and for regular material value V1 tax code
    this will work only if u have used acess seq MWST instead of JTAX pr JST1
    hope this helps
    Vipin

  • The pricing procedure in Sales order is not getting copied into invoice

    The pricing procedure in Sales order is not getting copied into invoice.
    I have created a document type (pricing procedure),based on the document type ,pricing procedure determination is done.
    So while creating sales order the pricing procedure is determined but when invoice is created the pricing doesnt refelect in the invoice.How to over come this problem

    Hi
    Please check the in OVKK, weather you have maintained correctly or not.Also check in the Billing document type details what is the Document pricing procedure that has been maintained.
    Regards
    Srinath

  • Rebate fixed amount condition in the pricing procedure

    Hi SD Gurus,
    i'm using rebate fixed amount conditions (Lum sum).
    The situation from a business point o f view is the following: i pay the customer 1000$ once he made something.
    This kind of condition is not relevant for accruals since they have to be built manually (manual accrual). As a consequence i'm note sure if this condition shoul be put in the pricing procedure used for invoices. In the other and for sure this condition should be inserted in the pricing procedure for manual accrual/credit note.
    What is your point of view!!
    Thanks
    C

    if you are going to use Rebate, then there is no need to add condition type in standard pricing procedure, if you have designed your pricing procedure, include condition types for rebates as in standard pricing procedure.
    This condition type is linked to Rebate type.
    I think you first try the scenario in IDES and then do the same settings as per yoru requirement.
    If you want step-by-step procedure for rebates will help you
    Please refere the thread
    rebate documentation
    Regards
    Jitesh

  • Object Class Invalid when downloading the pricing procedure from ECC to CRM

    Hi,
    I want to download the pricing procedure for that I have created the ZDNL_CUST_CND which contains only the following tablesT683, T683S, T683T and T683U.
    When I check in R3AM1 status is Red.
    The following Error have been found in SLG1
    •     Object class invalid
    •     Error in inbound data check
    Message no. CND_MAP120
    Diagnosis
    During the receiving inspection, serious errors were found in the consistency of the exchange object.
    System Response
    Data exchange is terminated
    •     Data exchange terminated     
    Message no. CND_MAP122
    Diagnosis
    Data exchange has been terminated due to serious errors. No exchanged data has been posted in the system.
    The following Error has been found in SMQ1
    •     R3AD_CONDITIONS     STOP
    Details of STOP
    Set by Host name: litldq; Transaction: ; Report: SAPMSSY1
    I have checked the connection, everything is perfect.
    What may be the problem?
    Thanks

    Hi,
      Please try to re-generate the adapter object (ZDNL_CUST_CND) services using trx.
    SMOGGEN
    . After this, try re-running the load.
    I assume that your CRM inbound mapping module are correctly coded. If the problem persists, try de-registering the R3AD_CONDITIONS inbound queue using trx.
    SMQR
    and then debugging the inbound queue from the same trx. after re-starting the load.
    Reward if this helps!
    Regards,
    Sudipta.

  • Mark Up Price in the Pricing Procedure

    Hi
    I want to add 45 % of my Moving avg price  automatically , when i select my pricing procedure.Say if the price is 100 $, i want to select the pricing condition and expecting the system to assign 145 % automatically.How to do in the Pricing Procedure ?
    Thanks
    Nick

    One simple way would be to create a pricing condition called surcharge (type discount and surcharge) and maintain it as 45% in the condition record.
    This will automatically add 45% to the MAP which is picked up in the STO.
    Lakshman

  • Conditions mutually exclusive in the Pricing Procedure

    Hello,
    I want to define two conditions in the pricing procedure, but I don't want them to be determined at the same time in the billing document. One of them has an access sequence and it isn't always determined, and the other one doesn't have access sequence and is always determined, but I want that the last to be active only when the first one isn't. Is there any way to do this without developing a condition to put it in the requirement field?
    Thank you,
    Silvia

    Try to use the Condition Exclusion For Groups Of Conditions in the pricing customizing.
    Create 2 groups, one assigned to the first condition and the other to the second, then assign the exclusion procedure to the you pricing schema.
    The exclusion procedure should be D, that means:
    Exclusive procedure: If a condition type from the first group exists
    in the document, all conditions types that are found in the second
    group are set to inactive.
    Pls. reward points if helpful
    Regards
    Roberto

  • Selling price in the Pricing procedure

    In my implementation the company is arriving at the selling price like this:-
    Basic GLP Price     100
    Freight  & Insurance @5%      5.00
    Sub Total      105.00
    Exchange to INR @  1Euro=Rs.1.00(For ex.) 105.00
    Loading  1%      1.05
    ***. Value      106.05
    Basic Customs Duty at 15 %      15.91
    Sub Total      121.96
    CVD 16%      19.51
    Cess on CVD 2 %      0.39
    Sub Total      141.86
    Total Duty      35.81
    Cess on  Total Duty 2%      0.72
    Clearing Charges 1%      1.42
      TOTAL COST  ( CIF + C DUTY+ CVD+ CESS +CL CHRG)      142.95
    Sub Total cost without CVD      <b><u>123.04(Selling price)</u></b>
    I want this selling price to be picked up once I punch in the material part no. in my sales order. Can I get this selling price directly without using the pricing procedure? Can I hardcode the selling price or can i use some selling price simulation? Since the data to arrive at the selling price is dynamic is it advisable to hardcode the SP or to use different condition types to arrive at this selling price?

    Hi Arindam,
    It is advisable to create a new condition type so that in future it will be useful for the reporting purposes related to sales order documents.
    Othewise you can write a exit ( Requirement/ Formula etc ), and do the  calculation part for the selling price what you have mentioned in any of the mandatory condition type which you are using in sales orders, so that selling price value will always get populated.
    Thanks
    Lakshman

  • How to find the pricing procedure?

    Hi,
         in the sales order modification(VA02), if there is any change in a field, i have changed the pricing procedure.
    i have done my coding in MV45AFZB and FORM USEREXIT_NEW_PRICING_VBAP CHANGING NEW_PRICING.
    Now my requirement is, when u user saves the document, i need to find whether the pricing procedure is changed. if yes, then i have to update all the deliveries for sales order with some values from Ztable.
    please tel me how to check whether the pricing procedure is changed?
    Reward points wil be awarded.
    Thanks in advance,
    Regards,
    Niyaz

    Hi,
    Look at the below link, this may helps you
    http://www.sap-img.com/sap-sd/creating-new-pricing-procedure.htm
    Regards
    Sudheer

  • How to create the pricing procedure for domestic & import.

    HI,
        Pls any body let me know how to create the pricing procedure for domestic & import.
    what is the use of the keys
    step condiiton condition type from   to  manual required statistic   subtotal requirement caltype basetype.
    how system will work based on this.

    Hi,
    Please see below WIKI for your reference:
    http://wiki.sdn.sap.com/wiki/display/ERPLO/16FieldsDescriptioninPricing+Procedure
    Regards,
    Ninad Kshirsagar

  • Step number in the pricing procedure

    Hi experts,
    Pls advise the reasons. How to solve them without changing the step number?
    Q1: As long as HM00 is the first step number in the pricing procedure, the value of HM00 cannot be distributed among items.
    Example:
    Pricing procedure:
    step no.         conditon type
    10                      HM00 (statistical)
    30                      NETW (ERL)
    Sales order (HM00 = $100):
    item 1     NETW = 0
    item 2     NETW = $100
    Q2: When putting a conditon type between PR00 & subtotal in the pricing procedure, such as VPRS, the value of subtotal cannot be the same as PR00.
    Example of sales order:
    PR00 (unit price) = $19.95 per 10kg
    VPRS (internal price) = $10 per 1kg
    subtotal = $2 per 1kg
    Request: PR00 = subtotal = $19.95 per 10kg

    hello, cathy.
    i do not have access to my references now, but please allow me to advance a general concept.
    in SAP standard, HM00 is a group condition, and fixed value.  the distribution of this value is controlled by certain logic.  as in other header condition types, distribution of this amount can be based on either the value or quantity contribution of the different sales order items. 
    what serves as the basis for distribution of HM00, i do not recall but i will get back to you on this... or perhaps another consultant can give it sooner.
    as to your second issue, i will try to understand your situation better.  but generally VPRS is statitical and not meant to come between PR00 and the sub-total.  VPRS has a different logic compared to the other condition types, and is intended to return a statistical presentation of profit margin in the condition tabs.  if fact, in pricing procedure RVAA01 you will notice that VPRS is grouped with the other statistical condition types just before the profit margin.
    regards.

  • Configuring the pricing procedure

    Hi Experts,
    My requiremnt is,
    1. configure the price inclusive of sales tax             = X(Gross Price)
    2.calculate the vat of 4% in that                               = X*(104/100)=y(tax amount of 4%).
    3.Net price which is exclusive of tax                       =X-Y=z(net price).
    This is the scenario of the pricing procedure,.
    can u help me how to configure the pricing procedure as per this scenario.
    Gross price which has to be entered ,while  creating the sale order. From that vat 4% output tax which has to be calculated and finally give  the net price excluding the tax amount..
    I dono on what basis i should select my condition tables.I knw only the basic procedure of pricing .
    pls help me urgently.
    Regards,
    Divya.

    Hi divya,
    This may be helpful for u..
    15     0     ZPR0     FACT PRICE STD DOM               
    200     0     JEXP     IN: A/R BED %               
    405     0          Copy of base value     15       
    410     0     JEXT     IN A/R BED total     15       
    420     0          BED + AED + SED+CESS     200     202
    422     0     ZECP     IN A/R % ECess     410     419
    426     0          BED + AED + SED+ CESS     420       
    428     0          copy of Base Value     420       
    430     0          BASIC + ED + ECESS     10       
    440     0     JA1X     A/R Secondary&Hr ECS     424     429
    445     0          BASIC + ED + ECESS+HSCess     420       
                        430     440
    550     0     ZIVP     IN A/R VAT Payable     445     
    600     0          Base + ED + ST     445     560
    810     0          Net Value     600     
    Regards,
    Dippy

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