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Purpose

The purpose of this page is to provide an overview about the SD Pricing functionality.

Overview

The following sections will explain how condition technique works, the main pricing customizing and how to analyze the pricing in the sales order. 

Condition technique

The figure shows how the condition technique works in the background to produce the pricing information. The diagram shows how the various elements in the condition technique work together. 

  1. The system determines the pricing procedure according to information defined in the sales document type and the customer master record.
  2. The pricing procedure defines the valid condition types and the sequence in which they appear in the sales order. In the example, the system takes the first condition type (PR00) in the pricing procedure and begins the search for a valid condition record.
  3. Each condition type in the pricing procedure can have an access sequence assigned to it. In this case, condition type PR00 is assigned to access sequence PR00. The system checks the accesses until it finds a valid condition record. (Although you cannot see this in the diagram, each access specifies a particular condition table. The table provides the key with which the system searches for records).
  4. In the example, the first access (searching for a customer-specific material price) is unsuccessful. The system moves on to the next access and finds a valid record.
  5. The system determines the price according to information stored in the condition record. If a pricing scale exists, the system calculates the appropriate price. In the example, the sales order item is for 120 pieces of the material. Using the scale price that applies to quantities from 100 pieces and more, the system determines a price of USD 99 per piece.

The system repeats this process for each condition type in the pricing procedure determines a final price.

  1. The system takes the next condition type (K007) in the pricing procedure and begins the search for a valid condition record.
  2. Condition type K007 is assigned to access sequence K007. The system checks the accesses until it finds a valid condition record.
  3. The system finds a condition record in the first access (searching for Division/Customer).
  4. The system determines the discount according to information stored in the condition record. In this case, the condition record found has a rate of 5,000 %.
  5. The system takes the next condition type (KF00) in the pricing procedure and begins the search for a valid condition record.
  6. Condition type KF00 is assigned to access sequence KF00. The system checks the accesses until it finds a valid condition record.
  7. The system finds a condition record in the first access (searching for Incoterms Part 1 + 2).
  8. The system determines the discount according to information stored in the condition record. In this case, the condition record found has an amount of 20,00 USD.

Pricing customizing

The main pricing customizing are: Customizing of Pricing procedure (tcode V/08), customizing of Condition type (tcode V/06) and customizing of Access sequence (tcode V/07).  The condition master data for pricing belongs to component SD-MD-CM, as shown in the following figure.

 

Customizing: SD Pricing Procedure – Transaction V/08

A pricing procedure is a set of condition types that can be prices, discounts, surcharges, taxes, and freights, in a particular sequence.

Example of standard pricing procedure: RVA001

Related notes:

SAP Note 388112: Change of pricing procedures in the production system

Customizing: SD Condition type – Transaction V/06 


A condition type is a representation in the system of some aspect of the daily pricing activities.

For example, a different condition type can be defined for each kind of price, discount or surcharge that occurs in the business transactions.

Customizing: Access sequence – Transaction V/07 


An access sequence is assigned to the condition types that are determined automatically.

It consists of a sequence of condition tables.

The sequence of the accesses establishes which condition records have priority over others.

The accesses tell the system where to look first, second, and so on, until it finds a valid condition record.

Pricing in Sales order

The following figure shows the item conditions in the sales order.


You can access the item pricing screen by going to menu Goto – Item -> Conditions.

Related notes:

SAP Note 834174: How are 'value-related' condition bases determined?

SAP Note 1007110: How is the KWERT determined in a subtotal?

SAP Note 791944: How is the KBETR determined in a subtotal?

The following figure shows the analysis button:


Related notes:

SAP Note 363212: 'Pricing analysis' mode of operation

SAP Note 859876: Condition is missing: Message VE 108 or VE 008

SAP Note 156230: Requirements: What is permitted, what is not? 

The following figure shows the pricing types that can be used to update the pricing in the sales order item. They are also used in the copy control to define which pricing the system will carry out when creating an SD document with reference to another.


Related note:

SAP Note 24832: Pricing rules / TVCPF

Related Content 

Related Documents

SAP Library on path:

SAP ERP (Central Component) -> Logistics -> Sales and Distribution (SD) -> Pricing and Conditions (SD-BF-PR)

Related Notes

SAP Note 388112 : Change of pricing procedures in the production system

SAP Note 834174 : How are 'value-related' condition bases determined?

SAP Note 1007110 : How is the KWERT determined in a subtotal?

SAP Note 791944 : How is the KBETR determined in a subtotal?

SAP Note 363212 : 'Pricing analysis' mode of operation

SAP Note 859876 : Condition is missing: Message VE 108 or VE 008

SAP Note 156230 : Requirements: What is permitted, what is not?

SAP Note 24832 : Pricing rules / TVCPF

6 Comments

  1. Former Member

    very nice explanation!! (smile)

  2. Anonymous

    Bravo!!  Excellent work(smile)

  3. Thanks Kelly for the step by step info.. this has really helped me to do pricing setup

  4. Former Member

    Nice one...

  5. Former Member

    Beautifully explained and to the point. Good work.

  6. Former Member

    very neat pictorial explanation..