Pricing and Conditions in SAP SD

In SAP SD (Sales and Distribution), pricing and conditions play a crucial role in determining the final
price of a product or service being sold. Pricing procedures in SAP SD are highly configurable and
allow for a wide range of pricing scenarios to be implemented based on business requirements.
Here's an overview of pricing and conditions in SAP SD:

Condition Types: Condition types represent various pricing elements such as discounts, surcharges,
taxes, freight charges, etc. Each condition type is identified by a unique key and defines how a specific
pricing element is calculated.

Condition Records: Condition records are maintained for condition types to specify pricing details
such as rates, scales, validity periods, and other attributes. These records are stored in condition
tables and can be maintained manually or automatically through various means such as info records,
pricing agreements, etc.

Pricing Procedure: A pricing procedure is a sequence of condition types that determines the order in
which pricing elements are applied during pricing determination. The pricing procedure is assigned to
the sales document type and controls how prices are calculated.

Access Sequences: Access sequences define the search strategy for finding valid condition records
during pricing determination. They specify the sequence in which condition tables are accessed to find
relevant condition records based on key fields such as customer, material, pricing date, etc.

Condition Technique: The condition technique is the underlying mechanism used by SAP SD for pricing
determination. It involves the use of condition tables, access sequences, condition types, and pricing
procedures to calculate prices based on the relevant pricing conditions.

Condition Exclusion Groups: Condition exclusion groups allow you to define rules for excluding certain
conditions from being applied simultaneously. This can be useful in scenarios where specific
conditions should not be combined due to business rules or regulatory requirements.

Condition Supplements: Condition supplements are additional factors that can influence pricing
determination, such as customer-specific pricing, quantity-based discounts, volume rebates, etc.
These supplements can be configured to enhance the flexibility of pricing in SAP SD.

Condition Techniques and Formulas: SAP SD provides powerful tools for defining complex pricing
calculations using condition techniques and formulas. These allow for the implementation of custom
logic and formulas to determine pricing based on specific business requirements.

Overall, pricing and conditions in SAP SD are highly configurable and allow organizations to implement
sophisticated pricing strategies to meet their business needs. Proper configuration and maintenance
of pricing procedures, condition types, and condition records are essential for accurate and efficient
pricing determination in SAP SD.