Pricing Procedure in MM

The steps are:

SPRO->MM->Purchasing->Conditions->Define Price dertermination process

1. Define Condition Table:

2.Define Acces Sequence,
3.Define Condition Type,
4.Define Claculatin Schema,
5.Assign Calulation Schema,Acces Sequence and Condition Type,
6.Define Schema Group Of Vendor,
7. Define Schema Group Of Purchasing Organisation,
8.Assign Schema Group Of Vendor to Purchasing Organisation,
9.Assignment of Schema Group Of Vendor ,Schema Group Purchasing Organisation and Calculation
Schema.
10.Assign Vendor to Schema Group Of Vendor (XK02)
11.Maintain Condition record(MEK1)

Customization for Pricing Procedure :

1. Definition of Conditions :
/NMEK0---condition type…condition types--- definition (define for basic price, net price, discount,
surcharge, tax etc.)

2. Defining pricing procedure :

/NMEK0--- calculation schema---calculation schemas—New entries (Define procedure and put the
conditions like formula so that final price will be net price / total value as per company requirement)

3. Linking pricing procedure to independent condition types.

/NMEK0---condition type…condition types--- definition for position for defined conditions (Enter the
defined pricing procedure in the each independent conditions “Pricing Procedure” box)

4. Defining Schema group for Vendor :

/NMEK0--- calculation schema---schema groups—vendor—New Entries.

5. Defining Schema group for Purchase Organization--- New entries.

/NMEK0--- calculation schema--- schema groups---- purchasing organization--- new entries.

6. Linking Virtual Purchase Organization to actual Purchase Organization.

/NMEK0--- calculation schema--- schema groups----- Assign P.Org. (in actual P.Org, enter virtual P.Org)

7. Linking Pricing procedure to virtual P.Org and virtual vendor :

/NMEK0--- calculation schema--- Determine Schema--- -Standard --- New entries (Enter virtual schema
and P.Org. along with pricing procedure)

8. Linking virtual vendor to actual vendor-- /NXK02 then enter schema group vendor in Purchasing Data )

9. Info Records (/NME11) ---- click on “Purch. Org. data1” and enter condition types and pricing
procedure

After above steps, you can go for create PO in ME21N.In the case of Import PO, you have to activate
Import PO {Materials Management -> Purchasing -> Foreign Trade/Customs ->
Control Foreign Trade Data in MM and SD Documents ->
1.Incompleteness Schemas for Foreign Trade Data,
Select the desired schema and click on 'Document fields'. For all fields
which are displayed here, you can now check which value there is define in field 'Field control'.(This
value controls both the field selection
and the incompleteness check.}

In MM pricing procedure for local Purchase from EOU.

The Structure is as follows......

A--BCD=7.5 %(50% of 7.5%)

B--CVD 14% ---------Cenvatable
C--ESecc on CVD2%------Cenvatable
D--SECess on CVD 1%---Cenvatable

E--Total Custom Duty --A+B+C+D

F--ECess of Custom Duity 2%-non Cenvatable

G--SECess of Custom Duty 1%--- non Cenvatable

H--Net Duty DTA clearance --E+F+G

I--ECess on Net Duty Clearance 2%---Cenvatable

J--SECess on Net Duty Clearance 1%-----Cenvatable

K--Value of Goods -- H+I+J

L--VAT 4%

TOTAO VALUE-----K+L
Please suggest how to configure the above mentioned Cenvatable ECess and SECess condition types?

These condition types should be manual Entry in PO.

And should be able to take CENVAt CREDIT while capturing the Excise Invoice.

The steps in pricing determination in MM? Condition, Access sequence and schema.

In the SAP MM Pricing is more important.

The Basic thing is Condition Technique. In which there are
1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.

Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition
Technique. This is a simple logic

Here the Condition Type is very important like PB00, PBXX, RA01 etc.

In the background every Condition Type has its own definition means the purpose of the Condition Type
like, is it for Pricing or Percentage, Quantity base, Accrual Fields etc is to be defined to work this
functions.

Normally we use the existing ones without any risk. But some cases, we have to create a New Condition
Types as per the organization requirement.

The Pricing Schema is useful to minimize condition types while mention prices for Vendor on the basis of
Pricing Schema which we defined according to organization requirement.

The Pricing Schema means the calculations procedure of Condition Type.

Ex. RA01 - Discount % is calculated on PB00 - Gross Price means

RA01 is based on PB00 like that we have to define in the Pricing Schema
which makes easy to use in real-time.
Here PB00 has the Access Sequence - 0002.
But RA01 does not have the Access Sequence. Why because it is a dependent on PB00. But both are
Condition Types.

In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor
Master Screen means the standard one is assigned which is very lengthy which may fulfill our
requirement. But some cases which may not fulfill our requirement, in such we have to define.

For the configuration, I may not able to explain properly through here but will give some Idea.
Configuration: SPRO-IMG-Material Management- Purchasing- Conditions-Define Price Determination
Process
1. Define Access Sequence
2. Define Condition Type
3. Define Calculation Schema:- Here you have to define the Schema
Define Schema group
1. Define Schema Group vendor
2. Define Pricing Schema group
3. Schema group for Purchase Organization
4. Assign Schema group to Purchase Organization

Define Schema determination

1.define calculation schema for Standard purchase organization

After completion of the Schema Group, we have to assign it to Vendors.

Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured
by us.

Actually the Pricing is a vast. Because each Condition have its own importance and each Access
Sequence have its own importance. So you need not bother about this. First you learn how to define the
Calculation Schema through the above.

Here we can create many Calculation Schemas which can assign one schema to Local vendors
another schema to outside vendor one more schema to foreign vendors like that we can classify

Configuration steps for Pricing Procedure are:

SPRO->MM->Purchasing->Conditions->Define Price determination process

1. Define Condition Table:

2.Define Access Sequence,
3.Define Condition Type,
4.Define Calculating Schema,
5.Assign Calculation Schema, Access Sequence and Condition Type,
6.Define Schema Group Of Vendor,
7. Define Schema Group Of Purchasing Organization,
8.Assign Schema Group Of Vendor to Purchasing Organization,
9.Assignment of Schema Group Of Vendor ,Schema Group Purchasing Organization and Calculation
Schema.
10. Assign Vendor to Schema Group Of Vendor (XK02)
11.Maintain Condition record (MEK1)
After above steps , you can go for create PO in ME21N.

You can go for pricing manually or automatic. If you need pricing automatic you have to go for use of
Access Sequences and Schema Group of Vendor. You can customize your pricing procedure according to
your requirement such as like Domestic, Import and Stock transport.

In the case of Import PO, you have to activate Import PO.

Materials Management -> Purchasing -> Foreign Trade/Customs ->
Control Foreign Trade Data in MM and SD Documents ->Import screens in purchasing documents.