Pricing Configuration: OverviewBy admin on April 16th, 2013 in Configuration, SD | 3 Comments

Pricing is a crucial topic in SD, and can often times be quite daunting. Thankfully, pricing configuration is

based off of the condition technique concept, which is used in many others areas of SD. This means that

once you understand how pricing works, you can easily pick up other areas of the module such as

account determination, tax determination, text determination much more.

The Condition Technique concept

 

Condition Tables: These define the structure of your condition record. For example, the following are 2

examples of condition tables. The first indicates that the price of the product on your sales order varies

based on which material and customer l is being sold to, whereas the second example indicates that the

product price is dependent solely on the material itself.

1. Sales Org. / Material / Customer

2. Sales Org./ Material

Access Sequences: Condition tables are searched for in a specific sequence. This sequence is defined in

the Access Sequence. If the access sequence was defined as per the above example, the system would

first check to see if condition records existed in the first condition table. If not, it would then check the

second condition table.

Condition Types: The condition table and access sequence are used to determine the value of the

condition record. This needs to be assigned to a condition type.

Pricing Procedure: This lists the order in which condition types are displayed. Based on this, subtotals are

calculated, such as gross value and total .

How the condition technique plays a part on a sales order

his page goes into detail on pricing configuration. If you would like an introduction to pricing configuration

and it’s terminology, see the pricing configuration: overview page.

Scenario: The client has a new customer which receives a 5% discount on all purchases. We will

therefore set up a percentage (%) discount condition.

(Note: There are existing conditions in the system for this scenario, however for learning purposes, we will

go ahead and create our own.)

Step 1: Create condition tables

IMG Path: SPRO | Sales and Distribution | Basic Functions | Pricing | Pricing Control |

Define Condition Table | Create condition tables

Transaction

Code:V/03

1. Go to the transaction above

2. Hit enter. A list of fields from the field catalog will be displayed. These are a list of all the

fields that you can choose (without any customization)

3. Select Sales Org, Material and Sold-to Party. It should look like this:

4. Select Generate (red/white button) and save

Result: The condition table is created (mine was created as table 502).

 

 Step 2: Create Access Sequences

IMG Path: SPRO | Sales and Distribution | Basic Functions | Pricing | Pricing Control |

Define Access Sequences | Maintain Access Sequences

Transaction

Code:V/07

1.  Go to the transaction above

2. It is standard practice to create new items by copying existing ones. I will copy access sequence

K004 as it is similar to our scenario. Highlight K004 and select the copy icon.

3. Rename your Access Sequence to Z001, and rename it to Material/Customer. Hit enter

4. Highlight Z001 and select ‘Accesses’ on the left.

5. You will notice that a condition table already exists. Ideally we would want our condition table to

occur before the existing one, as it makes sense to search a table with material and customer,

before a table with only material. Hit the ‘New Entries’ button

6. Enter 5, and 502 as the condition table. Hit Enter.

7. Select the ‘exclusive’ indicators. It should look like the following:

8. Hit back, and save.

Result: Access Sequence Z001 is now created. The system will now first search in condition table 502. If

nothing is found, it will move on to condition table 4.

 

Step 3: Create Condition Type

IMG Path: SPRO | Sales and Distribution | Basic Functions | Pricing | Pricing Control |

Define Condition Types | Maintain Condition Types

Transaction

Code:V/06

1.  Go to the transaction above

2. Similar to creating access sequences, create a new condition type by copying an existing one.

K004 is similar to our purposes, so we will copy that. Begin by highlighting the K004 condition

type and hit the copy icon

3. Enter your condition type ID and name. Mine will be called ZDIS – % Discount

4. Change the access sequence to the one created earlier (Z001)

5. Change the Calculation Type to ‘A’. This will ensure that it is percentage based.

6. There are many more options to explore on this screen. For our purposes though, we will save

them for another time. Hit Save.

Result: Condition Type ZDIS has been created and linked to access sequence Z001

 

Step 4: Create Pricing Procedure

IMG Path: SPRO | Sales and Distribution | Basic Functions | Pricing | Pricing Control |

Define and Assign Pricing Procedures | Maintain Pricing Procedures

Transaction

Code:V/08

1.  Go to the transaction above

2. As with other configuration steps, create a new pricing procedure by copying an existing one. I

will copy RVAA01 and call it ZVAA01.

3. Highlight the line and select ‘Control data’ on the left panel

4. Since this is a discount condition, it should be placed in the same area as other discount

conditions (i.e. before the ‘Discount Amount’ subtotal). Highlight any other discount line and

select the copy icon

5. Change the step to 150, and Condition Type to ZDIS.

6. Hit enter and Save

Result: Pricing Procedure ZVAA01 has been set up.

 

 Step 5: Set up Pricing Procedure Determination

The final step to the configuration process is to set up the pricing procedure determination. This ensures

that the sales order will use our new pricing procedure.

IMG Path: SPRO | Sales and Distribution | Basic Functions | Pricing | Pricing Control |

Define and Assign Pricing Procedures | Pricing Procedure Determination

Transaction

Code:OVKK

1.  Go to the transaction above

2. Create a new entry and add the pricing procedure (ZVAA01) to your sales area, document pricing

procedure and customer pricing procedure. It should look as follows:

Result: Pricing Procedure determination has been setup. When your sales order is created now for that

sales area, it will use the newly defined pricing procedure.

 

Related Posts

It is almost guaranteed that there will be questions on Enterprise Structure in the exam, and if you’re not

prepared for it, you’ll be missing out on essentially FREE marks.

Why do I say that? The organizational structure is simply a set of rules. More importantly, a very small set

of rules. The only tricky part about organizational structures is the relationship ratio. Here are some

sample questions of what I mean by this.

“How many distribution channels can be assigned to a sales org?”

“How many sales orgs can be assigned to a Distribution Channel?”

The answer to these questions is: Many distribution channels can be assigned to a sales org, andmany

sales orgs can be assigned to a distribution channel. Here is a comprehensive list for you to remember (I

will assume you know the definition and purpose of each organizational unit).

SD organizational structure

Sales Organization

A sales organization is assigned to a company code

1 Sales Org can only be assigned to 1 company code

1 company code can have several sales organizations

Distribution Channel (DC)

A DC is assigned to a sales org.

A DC may be assigned to more than 1 sales organization

A sales org may have several DC’s

Division

A Division is assigned to a sales organization.

A division may be assigned to more than 1 sales orgs

A sales org may have several divisions

Sales Offices

Sales offices are assigned to Sales Areas

A Sales office can be assigned to multiple Sales Areas

A sales area can have multiple sales offices

Sales Groups

Sales group assigned to Sales office

A sales group can be assigned to multiple sales offices

A sales office can have several sales groups

How plants fit into the organizational structure. They are assigned to 2 areas – company code and Sales Org/Dist. Channel

Plants:

Plants are assigned to company codes

A plant only exists for 1 company code

1 company code can have several plants

Plants are also assigned to a sales org + Distribution Channel

A Plant can be assigned to more than one combination of sales org. and DC

The combination of Sales Org. and DC’s can have several plants

Pro Tip:

Since plants are assigned to both company codes and sales orgs separately, it is possible to

assign it to a sales organization that is part of a different company code. When a sale like this is

made, it triggers the cross-company sale process.

Shipping Point

Shipping Points are assigned to plants

A shipping point can be assigned to 1 or more plants

A plant can have several shipping points

Business Areas

These can be assigned to either of the following:

Plant + Division

A business area can be assigned to several Plant/Division combinations

A Plant/Division combination can only have 1 business area

Sales Area

A business area can be assigned to several sales areas

A sales area can only have 1 business area