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PUBLICPrice Management in SAP S/4HANA Cloud - Sales

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Introduction & Scope

Price Management is one of the core and crucial processes in cloud sales. In general, the pricing of goods and services handled by an organization is

determined based on certain conditions such as cost of materials, manufacturing, shipping, sales tax, etc. From a solution perspective, the prices are

calculated using the functions such as pricing procedure, condition types, access sequence and condition fields.

During the sales document processing, the system automatically calculates the net value of goods / services entered, by considering the condition record value

maintained in master data for different pricing elements. The prices are calculated using a condition technique, which is a process of determining the

appropriate condition record value in the sales documents.

The scope of this presentation is to provide an overview of pricing framework in S/4HANA Cloud. Additionally, the related SSCUI configuration required for

pricing setup and the possible extensibility options using the In-app extensibility have been explained.


Price Management – Solution Framework (1/2)

Following are the key business objects needed to setup Price

Management in S/4HANA Cloud

✓ Condition Records (Master Data)

✓ Condition Tables (Configuration)

✓ Access Sequence (Configuration)

✓ Condition Types (Configuration)

✓ Pricing Procedure (Configuration)

✓ Pricing procedure determination (Configuration)

Material X – 10 items

PPR0 Price – 100 USD

1. Price – PPR0

2. Mat. Discount – DM01

3. Output Tax – MWAS

Condition Type – PPR0 Access Sequence – PPR0

Access Sequence – PPR0

Customer / Material

Material with release status

Valid Condition Record

1 Qty – 100 USD

Sales Document Pricing Procedure

Access Sequence Condition Type

Condition Master

App for maintaining the pricing condition records “Set Material

Prices” can be accessed with Business role “Pricing Specialist”

(SAP_BR_PRICING_SPECIALIST).


Price Management – Solution Framework (2/2)

Condition Record is the master data for pricing. You can maintain condition

master record using the app – ‘Set Material Prices’.

Condition Tables is a combination of fields which are used to maintain

condition records. You can maintain condition tables using SSCUI – 103119

/ 103120

Access Sequence is a search strategy used to search for valid condition

records from most specific to most general. You can maintain access

sequence using SSCUI – 103121

Condition Type helps to control the pricing elements. You can define

condition types using the app ‘Configure your solution - Set Condition Types

for Pricing (SSCUI – 101120).

Pricing Procedure is a logical grouping of condition types to determine

appropriate prices in sales documents (SSCUI – 101117).

Pricing Procedure Determination allows to calculate the gross price of

goods/services by considering the unit price, quantity and customer/material

preferences maintained in the condition master (SSCUI – 101118).

Material X – 10 items

PPR0 Price – 100 USD

1. Price – PPR0

2. Mat. Discount – DM01

3. Output Tax – MWAS

Condition Type – PPR0 Access Sequence – PPR0

Access Sequence – PPR0

Customer / Material

Material with release status

Valid Condition Record

1 Qty – 100 USD

Sales Document Pricing Procedure

Access Sequence Condition Type

Condition Master


Price Management – System Setup

Manage your Solution App

Implementation Cockpit

Change Field Catalog

103118

Create/Change Condition Tables

103119 / 120

Set Access Sequence

103121

Set Condition Types for Pricing

101120

Set Pricing Procedures

101117

Set Customer Pricing

Procedure

101202

Set Pricing Procedure

Determination

101118

You can set up and control pricing elements used in the condition technique in the Manage Your Solution app, such as Field catalog, condition

tables, access sequence, condition type, pricing procedure, and price list type as well as pricing group for both customers and materials.

Pricing Master Data

Set Material Prices

(Condition Master Data)


Manage your Solution – Change Field Catalog

▪ A condition table, consist of list fields that represent price-

relevant business attributes. This list of supported fields is called

field catalog. Technically, these selected fields are by default key

fields for the corresponding condition table.

▪ The field catalog that is predelivered with the standard system

includes price-relevant business attributes that are commonly

used in sales, such as customer, material, sales organization.

An access sequence consists of condition tables, which in turn

posses fields (Access sequence is a search strategy to

determine the appropriate condition value).

Field Catalog (list of fields)

Condition Table

(contains fields)

Access Sequence

(sequence of condition tables)

Additionally, S/4HANA Cloud solution allows to add additional fields in the field catalog as per specific business requirements. It is

possible to create custom fields by using the Custom Fields and Logic app and add these fields to the field catalog if necessary.


Manage your Solution – Create / Change Condition Tables

▪ A condition table defines the combination of fields (the key) that identifies an individual condition record.

▪ The specific business information maintained as master data in the condition records is stored in the condition tables. For

example information such as Sales org, distribution channel, division, customer group, material group etc.


Condition Table

(contains fields)

Access Sequence



Manage your Solution – Set Access Sequences


Condition Table

(contains fields)

Access Sequence


▪ Access Sequence by definition is a search strategy used

to find the appropriate value for a specific condition type.

▪ The search strategy guides the system in which it has to

search for the data.

▪ An access sequence consists of one or more accesses,

which in turn is composed of condition tables / fields.


Manage your Solution – Set Condition Types for Pricing

▪ Price elements are represented in the system as condition types such as prices, surcharges, discounts, taxes or freight. The values of these price elements are

stored in the form of condition master records.

▪ The SSCUI configuration allows to configure the condition type, for example, define whether a discount is calculated as a percentage or a fixed amount. Further,

you can assign an access sequence to a condition type, which is a search strategy to identify an appropriate value based on a set criteria.

✓ Within the solution, the pricing

procedure is an object that groups

all condition types.

✓ The logical grouping of these

condition types differ based on a

business scenario.

Key Inputs

▪ Manual condition types are allowed.

▪ The identification code for custom condition types (business specific), must start with letter Z as SAP reserves this namespace for this specific purpose.


Manage your Solution – Set Pricing Procedures

Pricing procedure is a logical grouping of condition types that are taken into account in a specific sequence for calculating prices in a sales document. During

the sales document processing, the system automatically determines the appropriate pricing procedure based on a determination criteria (maintained in SSCUI

– 101117).

▪ Customers are recommend to define their own pricing procedure with relevant condition types that are accurate for business. Adopting standard procedures

without any changes and business reasoning may lead to unnecessary accesses to conditions and may have impact on system performance as well.

▪ Additionally, S/4HANA Cloud solution allows to incorporate custom logic for calculations (details covered in the next section of this presentation).

Please refer to section ‘additional information’ in this deck for explanation on pricing procedure configuration.


Manage your Solution – Set Pricing Procedure Determination

The pricing procedure determination depends on the sales

area, sales document type (document pricing procedure) and

customer pricing procedure.

Customer pricing procedure is maintained in the Business Partner (customer) record for each

sales area.


Condition Master Data – Set Material Prices

▪ Use this app to set material prices for sales.

▪ When the price of a material is calculated during sales document processing, the system uses conditions that are derived from business

document data, such as the sales organization or distribution channel of a sales order.

▪ For example, if a customer orders certain quantity of a material, the data captured in the sales order such as - the customer, the material,

the order quantity and the order date – play a critical role in determining the price of the material for that customer.

▪ Additionally, customer or material categorization such as customer group or material group can be included as determination parameters

(if required).

▪ The actual price of the material together with its determination parameters is stored as master data, which are referred as condition

records in the solution.


System Setup – SSCUIs for Price Management (Comprehensive)

▪ S/4HANA Cloud is primarily Fiori-Based, and all the tools are designed to work using the UX framework. It means that you can no longer use IMG (SPRO) to

customize your system (if you are familiar with on-prem model).

▪ Instead, S/4HANA Cloud is supported with Self-Service Configuration IU (SSCUI) which consists of a set of Fiori apps that allows to personalize the pre-

configured cloud system to your business needs.

▪ Below is the comprehensive list of SSCUIs available with cloud release 2005 for setting up price management.

Sl.No SSCUI ID Step Name Short Description

1 103118 Change Field Catalog Display and change the list of allowed fields used for pricing in sales.

2 103119 Create Condition Tables Create new condition tables for pricing in sales.

3 103120 Change Condition Tables Change existing condition tables used for pricing in sales.

4 103121 Set Access Sequences Create, change, and display access sequences for pricing in sales.

5 101120 Set Condition Types for Pricing Set pricing condition types for sales.

6101117 Set Pricing Procedures Create, change, and display pricing procedures and configure pricing procedure determination.

7 101202 Set Customer Pricing Procedures Create, change, and display pricing procedures and configure pricing procedure determination.

8 101118 Set Pricing Procedure Determination Create, change, and display pricing procedures and configure pricing procedure determination.

9 102134 Define Condition Exclusion Groups Define how condition exclusion is to be carried out by using exclusion groups.

10 102135 Assign Condition Types to Exclusion Groups Define how condition exclusion is to be carried out by using exclusion groups.

11 102136 Maintain Condition Exclusion for Pricing Procedures Define how condition exclusion is to be carried out by using exclusion groups.

12 102627 Define Requirement in Pricing Control whether a condition is applicable during pricing.

13 102430 Set Alternative Calculation of Condition Amount Define alternative ways for how the system calculates the condition amount.

14 102808 Set Alternative Calculation of Condition Base Value Define alternative ways for how the system calculates the condition base value.

15 102795 Edit List of Fields Used in Pricing Routines Work on the list of document fields for a specific routine number.

16 101215 Set Price List Types for Customers Define the list of values that can be used for price list types.

17 101116 Set Price Groups for Customers Define the list of values that can be used for customer price groups.

18 101115 Set Price Groups for Materials Define the list of values that can be used for material price groups.

Extensibility Options


Set Alternative Calculation of Condition Amount (1/2)

▪ This SSCUI (102430), allows to define alternative ways to influence

the calculation logic to apply for the condition amount during price

calculation.

▪ Routines can include custom logic to reflect necessary checks and

calculations as per the business requirement and assigned to the

pricing procedure.

▪ To define the custom routine – register a routine number and the system

automatically enters the Condition Amount (CONDITION_AMOUNT)

process enhancement option. This routine number can be assigned in a

later step in the pricing procedure configuration.

▪ The general number range for custom routines is from 3000000 to

3009999.

▪ Assign the filter value of the BAdI implementation to this routine number as

an enhancement identifier (ID) for a valid process enhancement option

task.


Set Alternative Calculation of Condition Amount (2/2)

BAdi – Define Alternative Calculation for Condition Amount in Condition Item

▪ This Business Add-In (BAdI) can be used in Pricing and

Conditions (SD-BF-PR) component to define alternative

calculations for amount-related fields in the document item. For

example, it can be used to calculate condition amount or the

condition base value, that are used for price elements.

▪ The method CHANGE_CONDITION_AMOUNT allows to adjust

different attributes and amounts of the document item. In

addition, the method supports different attributes of the price

element that triggers the execution of the Business Add-In.

BAdi – Define Alternative Calculation for Condition Amount in Document Condition

▪ This Business Add-In (BAdI) can be used in the Pricing and Conditions (SD-BF-PR)

component to define alternative calculations for amount-related fields in the document

header. For example, it can be used to calculate the condition amount or the condition

base value, that are used for price elements.

▪ The method CHANGE_CONDITION_AMOUNT allows to adjust different attributes and

amounts of the document. In addition, the method supports different attributes of the

price element that triggers the execution of the Business Add-In.


Set Alternative Calculation of Condition Base Value

BAdi – Define Alternative Calculation for Condition Base Value of Document

Item

▪ This Business Add-In (BAdI) can be used in the Pricing and Conditions (SD-

BF-PR) component to set an alternative calculation of the condition base

value.

▪ The method CHANGE_CONDITION_BASE_VALUES allows to adjust

different attributes and amounts of the document item. In addition, the

method supports different attributes of the price element that triggers the

execution of the Business Add-In.

▪ This SSCUI (102808), allows to define alternative ways to influence the

calculation logic to apply for the condition base value during price calculation

in a business document.

▪ Routines can include custom logic to reflect necessary checks and

calculations as per the business requirement and assigned to the pricing

procedure.

▪ To define the custom routine – register a routine number and the system automatically enters the Condition Amount (CONDITION_AMOUNT) process

enhancement option. This routine number can be assigned in a later step in the pricing procedure configuration. The general number range for custom routines is

from 3000000 to 3009999.

▪ Assign the filter value of the BAdI implementation to this routine number as an enhancement identifier (ID) for a valid process enhancement option task.


Define Requirement in Pricing

▪ In pricing, “requirements” can be used in the condition technique process to

apply a custom logic or additional filter criteria during the execution of pricing.

You can assign the custom logic routine in a step of the pricing procedure or in

an access of an access sequence.

▪ This Business Add-In (BAdI) Define Requirement in Pricing for Document is

used in the Pricing and Conditions (SD-BF-PR) component and the method

IS_PRCG_REQUIREMENT_FULFILLED allows you to check if the pricing

requirement is fulfilled for the step in the pricing procedure or the access in the

access sequence.

▪ You can set the filter criteria to first check the document fields (header) or you

can use the requirement for document as a stand-alone check that checks only

the header attributes.

▪ In both cases, the document item fields do not have to be checked if the result

of the check is negative.

▪ You can decide if you want to use either the requirement for document or the

requirement for item or both. If one of the two requirements has not been

implemented, the system sets the result for the respective requirement

automatically to fulfilled.

▪ With SSCUI (102627), you can register the custom routine number and link it to

the enhancement id (BADi). As a next step, the custom routine can be

assigned to step of the pricing procedure or in an access of an access

sequence


Edit List of Fields Used in Pricing Routines

▪ When the system executes pricing, the system does not

fill all fields of the Business Add-In (BAdI) interface and

only the ones that are relevant for a specific process are

availed.

▪ In specific business cases, it is possible that a BAdI

implementation may require to evaluate a document field

that is not automatically filled. To handle this, you can list

the pricing-relevant document fields that you need in your

coding as input fields.

▪ SSCUI 102795 can be used edit the list of document

fields that need to be filled with data for the execution for

each customer-specific routine.

▪ This is relevant for service transactions, such as service

order, service order quotation, or service confirmation.

▪ The system scans the coding of your routine to find fields of the BAdI interface. You can include or remove fields that have been found by the code scan. You

can manually add any fields that need to be filled with data but are not detected by the system during the code scan.

Additional Information

SSCUI ID Step Name Short Description

101116 Set Price Groups for Customers Define the list of values that can be used for customer price groups.

101115 Set Price Groups for Materials Define the list of values that can be used for material price groups.

101215 Set Price List Types for Customers Define the list of values that can be used for price list types.

102134 Define Condition Exclusion Groups Define how condition exclusion is to be carried out by using exclusion groups.

102135 Assign Condition Types to Exclusion Groups Define how condition exclusion is to be carried out by using exclusion groups.

102136 Maintain Condition Exclusion for Pricing Procedures Define how condition exclusion is to be carried out by using exclusion groups.


Price Groups – Customers / Materials

▪ Customer or Material price groups can be used to simplify the price maintenance and calculate prices for different category of customers.

▪ For example, a condition record with customer price group as a key field allows to logically group customers and maintain a specific price for that group as

per the business requirement.

▪ During the sales order processing, the system considers the price group of that customer or material maintained in the master data to calculate the price.

▪ Price groups can be applied for calculating prices or discounts.


Price List Type for Customers

▪ Price list types can help to structure the pricing model across the sales areas. It allows to group customers by

assigning them to the same price list type.

▪ You can simplify the price maintenance by creating the condition record with price list type as a key field.

During the sales order processing, the system considers the price list type assigned to the customer in the

master data to calculate the price.


Condition Exclusions

▪ In general, businesses can offer multiple discounts to their customers (each discount represented by a condition type).

▪ During the price calculation in sales document processing, Condition Exclusion is a technique that can be applied to find the most favorable discount when

multiple discounts are applicable simultaneously.

▪ Below are the steps to configure condition exclusions –

o Define exclusion group

o Assgin condition types to exclusion group

o Assign exclusion group to procedure


Pricing Procedure Configuration

Pricing Procedure Column Description

Step Indicates the position of the condition type in pricing procedure.

Counter System uses the counter to count the steps and also it can be used to count mini steps of same condition types.

Condition Type Represents pricing element in pricing procedure as a base price, discount, freight and tax

Description Description of the condition type.

From & To The range between the steps from and to can be used to specify the range between same condition types. So that depending

upon the condition type, the system deducts or adds the total value of those condition types from specific common source.

Manual This indicator specifies whether the specific condition type can be determined manually during sales order processing.

If you flag the check box then the entry is manual, otherwise its considered as automatic.

Mandatory Indicator specifies that particular condition type is mandatory in the pricing procedure during sales order processing.

Statistical This indicator controls if the condition type should be considered into net value calculation or not.

Print The value of this field specifies whether line item can be printed or not in the sales document and at what level it is to be printed

Subtotal Subtotals are used as a starting point for further calculations. For example, subtotal of all the discounts included in the pricing of

a sales order.

Requirement Business specific requirement. Extensibility possible using BADi

Alternative Calculation Type Used to calculate alternative formula for the condition type – as an alternative to the standard – Extensibility possible using BADi

Alt.Condition Base Value Used to calculate alternative formula for determining the condition basis – as an alternative to the standard – Extensibility

possible using BADi

Account Key Values of Sales Revenues, Sales Deductions, Freight Revenues, Tax Revenues, and Rebate Accruals etc. are posted into G/L

Accounts through the account key assigned to each condition type in pricing procedure.

Author

Sai Kasturi

SAP DBS (Digital Business Services)

S/4HANA Cloud Competence Center

[email protected]

Thank you.

mailto:[email protected]

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