1/2/2019 Pricing Procedure In SAP MM - Learn Online SAP MM

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Pricing Procedure In SAP MM

By TekSlate September 17, 2018  Total Views: 4,736

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Pricing
• This component is to store the pricing stipulations agreed with the Vendor (like discounts,
surcharges or payment of freight etc) in the system.
• You can enter these conditions in

– Quotations
– Outline Agreements (Contracts and Schedule Agreements)
– Purchase Info Records

• The system applies the conditions in determining the price in Purchase Order

Note: You can enter further conditions in the PO itself.

• There are three kinds of prices in purchasing.

o Gross price:

? It is the basic price of the material w/o discounts, surcharges and taxes
Gross price = Basic Price of the Material

o Net Price:
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? The Gross price after considering duties & taxes into account

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? The Gross price after considering duties & taxes into account.
Net Price = Gross Price + Duties + Taxes

o Effective price:

? The net price after considering surcharge and discount

Effective price = Net price + surcharges + discounts

Condition Technique
• The Condition Technique is used to determine the purchase price by systematic
consideration of all the relevant pricing elements
• This is the technique for formulation of rules and requirements.
• The system arrives at a suggested price by applying conditions de ned by means of
Condition technique.
• The Condition Technique is how the price determined?
• The Condition Technique is used for

– Pricing for price determination

– Tax Determination
– For automatic account determination

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 and RA01 etc. In the background
every Condition Type has its own de nition means the purpose of the Condition Type like, is it
for Pricing or Percentage, Quantity base, Accrual Fields etc is to be de ned 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.

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Elements in price determination:

• The Important elements in price determinations are:

– Access Sequence
– Condition Required
– Condition Record
– Condition Table
– Calculation Schema

1. Access Sequence

– An access sequence is a search strategy and it searches for a valid condition record in a
sequence
– It checks where prices are stored and at what condition prices are to be picked up.
– If Contract or Schedule Agreement exists, what price has to be picked-up

2. Condition Record

• It represents that actual condition value and is stored in a condition key.

Field Description Field name

Material no. MATNR
Vendor LIFNR
Purchase Org. EKORG
Plant WERKS
Purchase Info Record ESOKZ

3. Condition Record

• Condition types represent price/elements factors in the system

• E.g.: Discounts in the Gross, Discounts on Net, Freight, Insurance, custom Duties, and
Taxes.

Note: Via Condition type you specify how the price factor is calculated.

E.g.PB00 – Standard Gross (Basic) Price (Automatic)

PBXX – Standard Gross (Basic) Price (Manual)
FRA1 – Delivery Costs
NAVS – Non-Deduct able Input Tax
SKTO – Cash Discount

4. Condition Table

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A Condition Table consists of one or more condition keys and data part.
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• Data Part contains a number that references a record in another table (which contains

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• Data Part contains a number that references a record in another table (which contains
the condition records)

Field Catalog: Grouping of certain elds for determining prices

Material MATNR komp
Vendor LIFNR komk p – item eld in komp &
komk
Purch. Org EKORG komk k – header eld in komp &
komk
Plant WERKS komp
Purch.Info Re ESOKZ komp

Note:

1. Each condition type has same control data

2. Control data for condition type:
3 All condition types have the same screens. In that eld values may be different.

5. Calculation Schema

• The Pricing Schema means the calculations procedure of Condition Type.

• The standard Calculation schema provided by SAP for Purchasing is RM0000

In General the Pricing structure or break up provided by vendors is under the following format

Rs. Condition Types

Gross Price 100.00
PB00
Discount on Gross Price (@5%): 5.00
RA01
————
Gross Price after Discount 95.00
Excise duty @ 10% on GP after
ED00
Discount 9.50
————
Sub Total 104.50
Sales Tax @ 10% on sub total 10.45
ST00
Freight 20% on GP 20.00
FRA1
Packing 2% on GP 2.00
PK00
———–
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• A framework of steps used to calculate or determine costs, prices, period end rebates
and taxes.

o Ex. RA01 – Discount % is calculated on PB00 – Gross Price.

o It means RA01 is based on PB00 like that we have to de ne in the Pricing Schema
o 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.

IMG settings

De ne Price Determination Process

De ne Access Sequences
De ne Condition Types
De ne Calculation Schema
De ne Schema Group

– Schema Groups: Vendor

– Schema Groups for Purchasing Organizations
– Assignment of Schema Group to Purchasing Organization

De ne Schema Determination

– Determine Calculation Schema for Standard Purchase Orders

• 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 con gured by us.
• The Pricing in MM is vast because each Condition has its own importance and each Access
Sequence has its own importance. So you need not bother about this. First you learn how to
de ne the Calculation Schema through the above.

ELEMENTS IN PRICE DETERMINATION SAP MM TUTORIALS

Meet the author

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