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Pricing & Condition Technique
Pricing & Condition Technique
R/3 SD
Vinayaga Sundaram S.
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 --------- Price
K004 --------- Material discount
K005 --------- Customer-specific material discount
K007 --------- Customer discount
K020 --------- Price group discount
KF00 --------- Freight surcharge (by item)
UTX1 --------- State tax
UTX2 --------- Country tax
UTX3 --------- 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.
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.
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 Customers
A001
A001 A002
A002 A003
A003 ... A501
A501 A502
A502
KONH
KONH KONA
KONA
KONP
KONP
KONM
KONM KONW
KONW
SAP AG
Pricing Reports
Creating Reports - Transaction V/LA
Running Reports - Transaction V/LD
Net Price List - Transaction V_NL