Pricing in Delivery

Sales & Distribution

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 Topics

1. Introduction

2. Condition Technique

3. Pricing in Delivery
 Introduction

 Pricing is an intrinsic part of Sales & Distribution. System

has provided extensive features to map various pricing
scenarios in business environment.
 ‘Pricing’ term is used to explain the calculation of prices
for customers or vendors and costs for internal
purposes.
 ‘Conditions’ are extensively used in pricing. These
represent a set of circumstances that apply when a price
is calculated. These are based on many variable factors
like Customer, Material, Order quantity, Period etc.
 Condition technique is main basis of pricing in sales.
 Condition Technique

 Condition Technique is method designed in SAP which is

utilized in various functionalities. In Pricing this method is
used by system to determine prices.
 There are various elements used in
condition technique, which are setup and
controlled in customizing.
 A variety of important information like which gross price
and what discounts are applicable to which customer in
sales order is determined by condition technique in
system.
 It is an universal technique, the basic elements of which
remain same in different functionalities of Sales &
Distribution.
 Condition Technique

 Elements used in Condition Technique – Following

elements are used in condition technique in pricing
 Condition Types

Condition type is representation in system of some aspect of

daily pricing activities in business environment. For each kind of
price in business transaction a condition type can be created in
customizing. Example for Prices, Surcharge, Discount etc.
Various Controls are provided in condition type definition in
customizing to suit the numerous price types.

System has predefined condition types for all categories of price

types. These are utilized in the standard pricing procedures used
for standard scenarios. Few of them are as under:
 Condition Technique

Condition Description
Type
PR00 Price
K005 Customer/Material
HB00 Discount
Discount Value (Manual)
KF00 Freight
MWST Output Tax
UTX1 State Tax
UTX2 County Tax
UTX3 City Tax

Standard condition types are normally copied to new customer

condition types and modified to suit specific pricing requirements
in business transactions.
 Condition Technique
 Condition Table
Condition table defines combination of fields that identify a
condition record. Specific condition data is stored in system as
condition record.

Example: Condition table ‘005’ is used for customer specific

material prices. Key fields of this table are displayed below:
In this table first two fields identify
organizational data and last two fields
describe relationship between customer
and selected materials.
 Condition Technique
 Access Sequences
Access Sequence is a search strategy used by system to find
valid condition record for particular condition type. It determines
the sequence in which search is conducted.

Access sequence consists of one or more accesses. This

sequence establishes which condition records have priority and
it tells the system where to look first, second and so on till a
valid record is found.

Access sequence contains the condition tables and the standard

procedure to maintain the sequence of condition table is from
‘Most Specific’ to ‘General’.
 Condition Technique

Example of Access Sequence:

PR00 is standard access sequence used for condition type Price.

As seen above the access is arranged from ‘Most Specific’

(Customer/Material) to ‘General’ (Material).

Additional controls are explained in customizing guide

 Condition Technique
 Pricing Procedures
Pricing Procedure is a group of condition types arranged in
particular sequence to have correct prices being determined in a
sales document.

Various controls of pricing are setup in Pricing procedure like

 Processing condition types manually
 Requirements for specific condition types
 Printing of Condition types
etc.

Standard system contains many pre-defined pricing procedures

for various business scenarios. These contain frequently used
condition types again pre-defined in system.
 Condition Technique

Example of Standard Pricing Procedure in system

 Condition Technique

 Relationship between
elements in condition
technique explained
in figure →
 Pricing in Delivery

 Pricing in Delivery
Pricing in delivery is used in cases where packaging
costs need to be displayed at delivery level or in Retail
where retail price (i.e price paid by end customer) is to
be displayed for each article on delivery notes.

In Retail this price can also be used by pickers when

price is printed on picking labels.

Pricing in delivery provides additional information in

identifying articles during goods receipt and goods
issue.
 Pricing in Delivery

 Pricing Procedure

For ‘Retail’ pricing procedure used is ‘EVP000’