Prakash Bhangare (bhangareprakash11@gmail.

com) 1

1) What is Pricing procedure in SAP MM?

➢ Is a way to determine prices in purchasing documents.

2) How the pricing procedure determined in PO?

➢ The pricing procedure is determining the prices from the vendor master record and
purchasing organisation because in configuration we assigned the calculation schema to our
schema group of vendor and schema group of purchasing organisation.

➢ It is based on condition technique -means uses condition types for calculating effective price
for PO.

Below is the basic flow diagram for pricing procedure

Schema group of vendor schema group of purchasing organisation

Assigned to vendor master Assigned to pur. Org.

Calculation schema

Condition type

Condition record found

Access Sequence

Condition table 1 condition table 3

Condition table 2

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Path to define pricing procedure

Now we will configure each and every step:

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STEP-1

Creation of condition table (M/03)

➢ In condition table we can add combination of field for making a condition record so that we
can perform pricing procedure.

Here I have created one condition table by selecting various fields.

You can create your own table by selecting various fields from field catalog.

STEP-2

CREATION OF ACCESS SEQUENCE

As per the flow chart we can get idea about access sequence. Access sequence is the basically
middleware between condition type and condition table, which will fetch condition record for
condition type from condition table.

PATH: Material management>Purchasing> Conditions>Define Price determination >Define access

sequence

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STEP-3

ASSIGN CONDITION TABLE TO ACCESS SEQUENCE

Now select the one access and click on the fields so that each and every condition will get
activated, do same procedure for the 20 & 30 access.

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STEP- 4

CREATION OF CONDITION TYPES (M/06)

A condition type is a representation in the system of some aspect of your daily pricing activities. For
example, you can define a different condition type for each kind of price, discount or surcharge that
occurs in your business transactions.

As per the client requirement we can define different terms like Gross price, Discount, freight,
surcharge etc.

Here I have taken Gross price, discount, freight on net condition types.

In SAP there are so many standard condition type I have copied PB00 condition type and created
my own condition type YPB0

STEP-5

ASSIGNING ACCESS SEQUENCE TO CONDITION TYPE

Here I have only assigned my access sequence to Gross price condition type (YPB0).

Remaining all condition type I kept as manual entry with respect to gross price.

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STEP-6

CREATION OF PRICING PROCEDURE (M/08)

Here we have a standard pricing procedure from SAP we can copy the same else we can create our
own new pricing procedure.

Here I have copied it from standard pricing procedure and only keep required condition type that I
required. i.e Gross price, discount on gross price %, freight on net price % etc.

Now we have maintain sequence for these condition type which we want in purchasing document
that we will maintain in control data tab.

Now I am going to maintain all the control data in pricing procedure.

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Now in the next step we will going to assign this PB0000 pricing procedure to our condition type
YPB0 so that prices will be determine automatically.

STEP-7

ASSIGNING PRICING PROCEDURE TO CONDITION TYPE

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STEP-8

CREATING VENDOR SCHEMA GROUP IN CALCULATION SCHEMA

PATH: Material management>Purchasing> Conditions>Define Price determination >Define Schema

Group

STEP-9

CREATING SCHEMA GROUP FOR PURCHASING ORGANISATION

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STEP-10

ASSIGNING SCHEMA GROUP OF PUR. ORG. TO PURCHASING ORGANISATION.

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STEP-11

ASSIGNING SCHEMA GROUP OF VENDOR/SUPPLIER TO VENDOR

STEP-12

DEFINE SCHEMA DETERMINATION

Here we will assign schema group of vendor/supplier and schema group of purchasing org to my pricing
procedure PB00.

PATH: Material management>Purchasing>Conditions> Define Price determination > Define

Schema Determination

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STEP-13

DEFINING CONDITION RECORD (MEK1)

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Now we are going to create purchase order to check whether prices are going to trigger or not.

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ANALYSIS PRICING IN PO

THANK YOU…………….!!!!!!!!!!!!!!

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