Overview of Pricing in SAP SD

• Purpose of 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 represent a set of circumstances that apply when a price is calculated. For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here - the customer, the product, the order quantity, the date - determine the final price the customer gets. The information about each of these factors can be stored in the system as master data. This master data is stored in the form of condition records.

• What is Pricing Procedure?

Pricing procedure is the collection of all condition types that are permitted for a transaction in pricing of the product in sequence.

Below Image serves as an example of Pricing procedure:

• Condition Type:

Defines category of condition and how it is used. +/- need to be set to show whether surcharge or discount.

• Access Sequence:

It’s a search strategy defined for each condition type. Header and Manual condition are exception.

• Condition Record:

A condition record is defined as how system stores the specific condition. Maintains discounts, Validity date and manual changes limit.

• Pricing Procedure determination:

The pricing procedure is determined in customising according to the following criteria -

1. Sales Area

2. Sales Document type (Document pricing procedure)

3. Sold to party (Customer pricing procedure)

• The 16 Fields of pricing procedure-

1. Step

2. Counter

3. Condition type

4. Description

5. From

6. To

7. Manual

8. Mandatory

9. Statistics

10. Print

11. Subtotal

12. Requirement

13. Alt Cty - (Alternative calculation type)

14. Alt CBv - (alternative condition base values)

15. Account key

16. Accruals.