V.

HARI
SAP MM CONSULTANT

PRICING PROCEDURE
Pricing Procedure:
Pricing Procedure is the way to Determine the Prices of the Materials in
Purchasing Documents during Procurement.
The Pricing Procedure takes into account various factors like base price, discounts,
taxes, freight charges, and more, to calculate the total price.
Let’s Discuss the prices involved in the Pricing Procedure:
Gross Price: Base Price without surcharges, discounts, taxes, delivery cost etc.
Net Price: Base Price with surcharges, discounts, taxes, delivery cost, etc.
Effective Price: Final Price with tax, discounts, etc.
Steps to be followed in Pricing Procedure:

Define Condition Table - M/03

Define Access Sequences - M/07

Define Condition Types - M/06

Define Calculation Schema - M/08

Define Schema Group

Define Schema Determination

Test Case with Purchase Order - ME21N

Condition Table:
Condition tables are used to determine the condition records that should be
accessed during pricing calculations.
It is used to store and organize the Pricing information based on specific key fields.
For example, let's say you have a condition table with three key fields:
vendor, material, and plant. Each row in the condition table represents a specific
combination of values for these key fields.
 V.HARI
SAP MM CONSULTANT

When you create a purchase order for a specific material, the system will use these
key fields to search the condition table for matching pricing records. It will look
for records that have the same material, vendor, and plant as in your purchase
order.
Condition Record:
A condition record in the pricing procedure is like a data entry that holds specific
pricing information for a particular combination of factors, such as a vendor,
material, plants, etc.
If we Maintain key fields in the combination of Materials, Vendors, and Plants in
the Condition Table, during the price determination the system searches its values.
(we have to Enter the values of Materials, Vendors, and Plants in MEK1)
Access Sequence:
It is a search strategy that will search condition records in the condition table to
calculate prices based on specific criteria (i.e. condition types)
Now, let's consider the two condition tables:
Condition Table 1: Vendor- based on Vendor Code.
Condition Table 2: Material- based on Material Code.
the system first looks for vendor-specific pricing using the Vendor Code, and if no
matching condition record is found, it proceeds to search for material-specific
pricing based on the Material Code.
The system continues searching through the condition tables in the defined Access
sequence until it finds the necessary condition records for all the condition types in
the pricing procedure. It then uses these records to calculate the final prices.

Condition
Types
After finding the Condition
Records, it retrieves back to
condition types to determine
the pricing in Purchase order
Access
Sequences

Access Sequence searches the

Condition Records for Condition
Types in the Condition Table to Condition Table
find the Pricing.

Condition Field Condition Field Condition Field

(Condition Record) (Condition Record) (Condition Record)

E.g. Material Vendor Plant

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SAP MM CONSULTANT

Condition Type:
The Condition Types are used to representing the Price Elements like Gross price,
Freight Charges, Discounts, Taxes, etc.
Configuration:
Step 1: Creating a Condition Table
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS MAINTAIN CONDITION TABLE
After Selecting the Maintain Condition Table below Screen Will open and Select
Create Condition Table.

I’ve Creating the Condition Table with number 545

Here I’ve Selected the Material, Vendor, Plant and Company Code as Condition
fields to Create a Condition table.
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SAP MM CONSULTANT

Then Save it
Step 2: Define Access Sequence
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS DEFINE ACCESS SEQUENCES

Select New Entries to define new access Sequences

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Create a new Access Sequence as Z001 Vendor Pricing, then Save it, then select
the line item and select Access option in Dialog Structure

Then, Select New Entries

Then, assign a created Condition Table 545, Save it & select a line item and
Double click the Fields option in dialog Structure

By Checking the Exclusive indicator, the

access sequence will search the next
table automatically, For E.g. after
searching a data in line item 10, it
automatically go to line item 20
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SAP MM CONSULTANT

Now, We Activated the Condition Table in Access Sequence.

Now, you can see the field name of condition tables

Then save it.

Now, you can see the created Access Sequence in the list
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SAP MM CONSULTANT

Note 1: We can apply one access sequence to multiple condition types within a
pricing procedure
This approach allows you to reuse the same access sequence and ensure
consistency in pricing determination across multiple condition types in the pricing
procedure.
It simplifies configuration and maintenance, as you can define the access sequence
once and assign it to multiple condition types as needed.
Note 2: We can apply different access sequence to multiple condition types within
a pricing procedure
We have to create different condition tables based on Access Sequences to
Condition types to determine the pricing in specific criteria.
For E.g. Consider three condition types and assigning different access sequences.
Assign the "Vendor Pricing" access sequence to the "Base Price" condition type.
Assign the "Volume Discount" access sequence to the "Discount" condition type.
Assign the "Vendor Pricing" access sequence to the "Tax" condition type.
Step 3: Define Condition Types
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS DEFINE CONDITION TYPES
Select Define Condition Types to create a condition types
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After Selecting the Define Condition Types, select the Standard Condition types
and copy it by selecting Copy as option

Give the Customized Name and assign the Access Sequence and Save it

The Condition Type for Gross Price GP00 is Created

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SAP MM CONSULTANT

Select the Standard Condition type for Discount and copy it

Give the Customized Name and assign the Access Sequence and Save it

The Condition Type for Discount D001 is Created

Note: Assign the Calculation Schema in Condition types in Master Data
portion, after define the calculation schema, check condition type D001
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SAP MM CONSULTANT

Bonus Tip

In case, we need the condition types in Header Section in PO. Access Sequence
is required to search the Condition Record. For Header Condition Type we do
not maintain condition record. Header Conditions are always manual. That is
why no access Sequence is assigned for Header Condition.
Step 4: Define Calculation Schema
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS DEFINE CALCULATION SCHEMA
Select the Standard Calculation Schema and Copy it
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SAP MM CONSULTANT

Give the Customized Name Z1RM00 and assign the Condition Types and Select
Control data by selecting the line item Z1RM00 and delete the unwanted Condition
types as per our Requirement.
Now, I’m assigning the Condition types GP00 & D001

Then Save it.

Step 5: Define Schema Group
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS DEFINE SCHEMA GROUP
Select Schema Groups: Vendor
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SAP MM CONSULTANT

Select New Entries and define the new vendor schema group

Z6 – Vendor Pricing is the New Vendor Schema Group

Then, Save it
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Select Schema Groups for Purchase Organizations

Select New Entries and define the new schema group for Purchase Organization
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SAP MM CONSULTANT

Z006 – ME Purchase Org Schema is the New Schema Group for Purchase
Organization

Then, Save it
Select Assignment of Schema Group to Purchase Org
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Assign a Purchase Organization 1000 to Purchase Organization Schema Group

Then, Save it
Step 6: Define Calculation Schema
Path : SPRO SAP REF.IMG MATERIALS MANAGEMENT
PURCHASING CONDITIONS DEFINE PRICE DETERMINATION
PROCESS DEFINE SCHEMA DETERMINATION
Define Schema Determination
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SAP MM CONSULTANT

Select New Entries to Assign the Schema groups to Pricing Procedure

Assign the Schema Group Purchase Org Z006, Schema Group for Vendor Z6 and
Pricing Procedure Z1RM00 to determine the calculation Schema for Standar
Purchase Orders

Then, Save it.

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SAP MM CONSULTANT

Step 7: Condition Record

Create a Condition Record by the T-Code MEK1, Select Condition Type and hit
Enter

Condition record stores the data as per the key fields in the condition table,
In our Condition Table, I’ve Selected the fields with the combinations of Materials,
Vendors, Plants & Company Code, so we’ve to Enter the corresponding values of
the Condition fields
In Our Case,
Vendor: 100390
Materials: AB311
Plant: 1000
Company Code:1000

Then, Save it
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SAP MM CONSULTANT

Same Procedure to be followed for the Condition Type D001

As Same as GP00

I’ve Maintained 10% Discount based on quantity of Material

Then, Save it
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SAP MM CONSULTANT

Assign the Vendor Schema Group in Vendor Master Data in XK02

Step 8: Test Case

After all the Configurations, We’ve to test the Pricing Procedure by creating the
Purchase Order ME21N
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SAP MM CONSULTANT

Finally, as per our Configuration, the Calculation Schema is Fetched in the

Purchase Order
We can Analyze the Pricing Procedure by selecting the analysis option in Purchase
Order with the created condition types and its corresponding tables