Pricing / Discount Conditions : Right Solution, Right Time, Right Price

Pricing / Discount Conditions
<Site>
Right Solution, Right Time, Right Price
Business Process Workshop

The objectives of the Pricing and Discount
workshop is to:
Provide an overview of the Pricing and Discount Condition Business
Processes
Demonstrate how SAP will be used to manage these processes.
Agenda
Topics:
I. Overview
II. Pricing Conditions
III. Discount Conditions
IV. Manual Conditions
V. Reporting
VI. References
I. Pricing and Discount

Conditions - Overview
Pricing is a broad term to describe the calculation of prices and costs.

Conditions represent a set of circumstances that apply when a price is
calculated.
The variable factors here the customer, the material, the quantity, and the date determine the final price the
customer gets. The information about each of these can be stored in the system as master data. This master
data is stored in the form of condition records.
Condition Records
Condition records allow you to store and retrieve pricing data in the system. All the
pricing elements of daily business the prices, discounts, freight charges, commissions, etc
that you want to use must be stored in the system as condition records. You can define as
many condition records as you want for the different pricing elements for any validity
period. These records are stored in SAP as master data and are retrieved when processing
a sales document.
Master Data is centrally stored (shared across application modules) and processed to
eliminate data redundancy.
These three master data records are critical to sales order processing:
Customer Master
Material Master
Pricing/Discount Conditions
All pricing and discount condition records will have validity dates. All validity dates will
default from todays date to 12/31/9999. (Note: This process is under review and may
change after implementation).
Condition Types
Conditions
Prices
Price
Price List
List
Material
Material Price
Price
Customer/Material
Customer/Material
Discounts/surcharges
Customer/Material
Customer/Material Pricing
Pricing Group
Group
rd
rd
33 Party
Party Commissions
Commissions (Statistical)
(Statistical)
Sales
Sales Area/Material
Area/Material Price
Price Group
Group
Pricing is carried out automatically based on predefined prices,

discounts, and surcharges. Prices can be manually overridden on the
sales order (when applicable).
Condition Types
Some definitions to get us started..
Prices are the base from which the net price is calculated.
Discounts are the reductions that can be applied to your price.
Surcharges are additional prices added to your final price.
Statistical conditions are used to track pricing within a sales
document without affecting the net price of the order or sales
document.
Creating Price/Discount Conditions

Since condition records are
considered master data,
that is where youll find it
in SAP. Most condition
records are created by
following the menu path:
Logistics
Master Data
Conditions
There are two places in

master data where
condition records can be
created, changed and
displayed.
18
Pricing and Discount conditions can be

created, changed and displayed in SAP in two
different modules:
VK31
VK11
Logistics
Logistics
Master Data
Master Data
Conditions
Conditions
Select
using
condition
type
Create
Create
9
Todays Presentation will primarily use

VK11.
VK11
Logistics
Master Data
Conditions
Select
using
condition
type
Create
10
Determining Price through the

Pricing Procedure
Pricing and Discount conditions are organized into a sequence called a pricing procedure.
During sales order processing, the pricing procedure determines the kinds of pricing
elements you can use and in which sequence they are processed to arrive at a final price.
The sequence of Yaskawas standard pricing procedure follow in this order:
Material Price (PR00 or PRRP)
Customer/Material Price
Price List Type
Material
Customer/Material Price Group Discount (K030)
Sales Area/Material Price Group Discount (Z030)
Manual Discounts (PN00, RA00)
Commissions Accrual (ZCOM)
Manual Freight Conditions (ZPPA, ZCOD)
Sales Taxes (XR1-4)
11

Pricing Procedure
C u s to m e r A B C
s e n d s in o r d e r fo r
m a te r ia l X Y Z .
O r d e r is e n te r e d in
V A01
C o n d it io n a p p lie s .
Yes
h a s a C u s to m e r/
M a t e r ia l p r ic e
c o n d itio n ( P R 0 0 )
fo r m a t. X Y Z .
In SAP, the system checks for the most specific

condition record first (customer/material price).
N o
Yes
After this process, other discounts can be

applied to the sales document.
h a s a P r ic e L is t
T y p e c o n d it io n
( P R 0 0 ) fo r m a t e r ia l
XYZ.
N o
E rro r.
No
The system looks for the most specific pricing

element (such as customer/material price of
PR00) and works downward to the most general
(customer/material price group discount K030).
Then manual conditions can be added such as
RA00, freight, taxes, etc.
( P R 0 0 ) is
e s ta b lis h e d f o r t h e
m a te r ia l X Y Z in
t h e d is t . c h a n n e l.
Yes
C o n d itio n a p p lie s .
Yes
M a te r ia l G r o u p
D is c o u n t (K 0 3 0 )
e s ta b lis h e d .
N o
Yes
h a s a S a le s A r e a /
d is c o u n t ( Z 0 3 0 )
N o
12
Yes
P r o d u c t is o r d e r e d a t
th e m a te ria l (P R 0 0 )
p r ic e f o r X Y Z .
No
M anual
c o n d it o n
(P N 0 0 o r
R A 0 0 ) is
u s e d fo r
m a te ria l X Y Z .
Exclusion Indicator
The system can exclude condition types and records so that they
are not taken into account during pricing in sales documents.
If a condition record has exclusion marked, no additional pricing
or discount conditions will be applied to calculate the final price.
Here the customer
has a
customer/material
price for the item.
Since the exclusion
indicator is marked,
once the system
reaches this price, it
will stop looking for
additional PR00
conditions to apply
to this material.
Additional manual
discounts can still
be taken off of this
designated, net
price.
13
II. Pricing Conditions
14
Pricing Condition Record

Condition Type: PR00
Condition types determines selling price of materials
Automatically copied into Sales Order.
Mandatory condition that must be established to
Process sales documents.
15
Pricing Master Records are located in condition types in Sales

and Distribution. Material Price (known as List Price in BOSS) is
no longer maintained in the Material Master Record. Without this
condition, an error will occur in your sales document and require
to be established before proceeding.
Pricing Condition PR00

There are 3 types of scenarios (key combination) that fall under PR00:
Price List Type
Material Price
16
Customer/Material Price (PR00)

Condition where a specific material price is designated for a specific
customer. Also known as a Net price.
The customer will receive this pricing whenever the material is ordered.
Validity dates can be added to the pricing so it can be reviewed monthly,
annually, etc.
17
Customer/Material Price (PR00)

This condition can be used when a specific price has been designated
for a specific material.
Sales organization and distribution channel must be specified for this
condition. Before creating this type of condition, check the customer
master to verify the distribution channel the customer belongs to.
18
Creating Customer/Material Price (PR00)

Initial Screen
Enter PR00 as the condition type and hit

enter.
In the key combination,

click on the
Customer/Material button.
Click on the green arrow to
proceed.
19

Enter 0010 in Sales
Organization.
Enter the appropriate

distribution channel.
Use the match code
button to search from a
list.
Enter the customer

number. Use the
match code button to
search from a list.
20

Enter the material
number. Use the
match code button to
search from a list. Hit
the Tab button.
Enter the rate or price for the

material. Hit enter.
Enter validity dates and

check the exclusion
indicator box with an X.
Exclusion
Indicator
21

The exclusion indicator prevent further customer discounts to be taken on the
actual material price. However, manual discounts such as RA00 and PN00 can
override the PR00 Customer/Material Price. (More discussion on this later).
Once these steps are followed, you can click the orange disk icon to save your
condition.
22
Price List Type (PR00)

Condition where multiple customers share the same designated price
for a specific material or several materials.
All customers need to have the same price list type designated on
their customer master record to receive this pricing.
23
24
The customer
master designates
that the customer
will receive the
price list type
condition. This is
designated at the
price list type
field on the
customer master
by 01. It can be
deactivated on
sales orders and
line items.

Currently, we have one scenario within <client> where this is
condition is used: Honda.
Affiliates of Honda can order material from <client> at the price we
sell to Honda, provided they have the price list designated on their
customer master.
25

Affiliates of
Honda can order
material from
<client> at the
price we sell to
Honda, provided
they have the
price list
designated on
their customer
master. In this
example, there
are several
materials in this
one price list.
26
Material Price (PR00)

Condition where a specific material price is designated regardless of
which customers order the material. In BOSS, it is a list price.
The standard price of a material is no longer attached to the
Material Master as in BOSS.
27
Material Price (PR00)

To create a material price, the Sales organization and Distribution
Channel must be specified. All materials will have a material price in
both distribution channels.
In the example below, the material price for the material SGDH-01AE
is $996 in the Direct distribution channel. The same record should be
input for the distribution channel 20 (Distribution).
28
Creating Material Price (PR00)

Initial Screen
Enter PR00 as the condition type and hit
enter.
In the key combination,

click on the Material button.
Click on the green arrow or
hit enter to proceed.
29
Creating a Material Price (PR00)

Enter 0010 for sales
organization. Then enter
the distribution channel.
NOTE: Material prices
should be setup in BOTH
distribution channels.
Enter the material number.
Use the match code
button to search from a
list.
Enter the desired rate.
Enter validity dates and
check the exclusion
indicator box with an X.
30
Creating Material Price (PR00)

Once these steps are followed, you can click the orange disk icon to save your
condition.
31
Pricing Condition PRRP

The price condition PRRP is used during repair/customer property situations where the material
comes back to <client> as customer property. In the BOSS system, this was the List 9 price.
Note: Exchange items will use the PR00 condition. These items are indicated by a # sign at the
end of the material number. Example, SDGB-10ADG-P#.
In this condition, the exclusion indicator automatically defaults indicating no further discounts
are applicable.
All other service pricing is established with the PR00 condition.
32
Pricing Condition Record

Condition Type: PRRP
Condition types determines selling price of materials
Automatically copied into Sales Order
Pricing Master Records are located in condition types in Sales and

Distribution. Material Price (known as List Price in BOSS) is no longer
maintained in the Material Master Record.
33
Pricing Condition PRRP

There are 3 types of scenarios (key combination) that fall under
PRRP:
Customer/Material with release
status
Price list type with release status
Material with release status
NOTE: <client> is currently on
using the Material with release
status.
This price condition is very similar to PR00. Like PR00, the material
price with release status should always be setup in BOTH distribution
channels.
34
However, PRRP can be entered manually. The order situation will

determine which scenario should be used.
Review
Questions
What 3 scenarios does PR00 include?
In the SAP pricing procedure, the system looks
first at the most ______________ pricing element.
Where must PR00 Price List type be specified to
establish this pricing element?
When setting up material prices, what distribution channel
should they be established for?
35
Pricing
Hands-On Pricing Exercise
III. Discount Conditions
37
Discount/Surcharge Conditions
In BOSS, we used multipliers to establish pricing for our customers. In SAP, we will use discounts.
The two types of discounts we will be using are:
Customer/Material Price Group (K030)
Sales Area/Material Price Group (Z030)
Typically, these discount conditions are always applied to the material price in PR00. However, in certain
situations, discounts can be excluded from the material price PR00 also. For example, in an exchange situation
with a customer who has a K030 customer discount. Their discount shouldnt be applied in the return order.
38
Customer/Material Price Group

Discount Condition Record
Condition Type: K030
Condition type determines net discount to the customer
based on specific material groups.
Currently many customers receive multipliers based on pricing groups

designated on the item. Instead of using multipliers, we will use discounts in
SAP. Example:.
39

Discount (K030)
Material master record must have a material price group specified.
All discounts are applicable to all materials with the designated material price
group.
This discount condition
type will be used instead
of a straight customer
discount as had been
used in BOSS.
40

Discount (K030)
Here on the
material master for
a P5 inverter, the
material pricing
group is designated
on the Sales Org. 2
tab.
41

Discount (K030)
Current Material Price Groups in SAP are:
SAP
Code
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
42
BOSS
SAP Description
Pricing
Group
G3
G3
G5
G5
G5 DC Bus
G5DC
G7
G7
G5 - 575V
575V
High horse power
HHP
High voltage
HV
VS-mini J7
J7
Spindle inverter/combo w/options M5
Spindle drive/G5 base w/options MC5
Regen converter
DC5
Inverter braking options
Optbrk
Inverter options
Option
PC5/P5
P5
PC3
PC3
PC3 N-4
PC3N4
Bookshelf
PCB
Brushless DC
PS5
Regen module
RC5
S300 juspeed
S300
S400 juspeed
S400
VS-mini V7
V7
SAP
Code
23
24
25
26
27
28
50
51
53
54
55
56
57
58
70
71
72
80
81
90
99
BOSS
SAP Description
Pricing
Group
VG3
VG3
VG3+
VG3+
E7
NA
F7
NA
VS-mini
XC
VM3 w/options
NA
Sigma I
NA
Sigma II
NA
General motion options
NA
Linear
NA
MP General (MP930, MP940, MP950) NA
MP Project (MP920, MP910)
NA
CP Controllers
NA
Other Controllers
NA
Parts - General Motion
NA
Parts - Inverters
NA
Parts - Other
NA
Low Voltage Contactors
NA
Bestact
NA
Supermechatronics
NA
NA (other)
NA
Material Pricing
Groups are
maintained by
Product
Management. If
you need one
created, see the
appropriate
product manager.
Sales Area/Material Price Group

Discount Condition
Condition Type: Z030
Discount that applies to a whole sales area for specific
Material groups.
Example: All customers within the Columbus division receive a 20% discount
on the material price group G5 inverters.
45
Sales Area/Material Price Group

Discount (Z030)
Material master record must have a material price group specified.
Discount is given from the material price group in the material master and the
material price (PR00) designated.
In this example,
all materials
with the G5
material price
group
designated on
the material
master will
receive the 20%
discount.
46
3rd Party Commission Condition

Condition Type: ZCOM
Condition type where a percentage of sales in
commission is paid to a 3rd party Vendor or partner.
Statistical condition that does not affect the net total price
of a sales order but is recorded for accruing and paying
commission.
Example:
Regan Controls receives a 7% commission from all orders received from Esab.
In the customer master record for Esab, outside commission is established.
49
3 Party Commissions Discount

rd
(ZCOM)
The pricing
condition record
price group
designates that
commission is paid
on their sales
orders to another
party. This is
designated at the
price group
field on the
customer master
by 01. It can be
deactivated on
sales orders and
line items.
50
3 Party Commissions Discount

rd
(ZCOM)
The
commissionable
amount for a sales
order can be seen
in the header and
line conditions of
the sales order or
document..
In this example,
the commission is
7% of $52935.35.
It is not a part of
the net total price
of the sales order.
51
Creating with Reference

New condition records can be created with reference to existing condition
records. During the process, changes can be made to the rate, validity period
and additional sales data for the newly created record.
When creating a condition with reference, the previous condition
represents the information for the condition to be copied.
In VK14, Create with Template, you are able to view and edit a copy
of the pricing condition created in VK11.
Once this copy had been edited and saved in VK14, it overrides
previous price condition records.
Create with Template should be used to change an existing pricing
records validity dates or Rate, so that a historical record of the
changes to the pricing record is saved.
56

In this example,
MagneTek is
receiving a PC3
discount of 73.1%.
For a short promotion
MagneTek receives a
75% discount. We
need to create this
condition with
reference to the
previous.
In VK14, we enter the
pertinent information: Sales
Org, Dist. Channel,
Customer, and Material
Group. And then hit the
execute button.
57

Then we change our rate to
75% and adjust the validity
dates. Hit enter.
Then click on the save icon
to save the condition.
Looking at the Pricing report

for this condition, we can
see the condition we created.
Once this expires, the
original condition will
resume.
58
Review
Questions
What are the 2 types of discount conditions <client> will use?
In order to use the K030 Customer/Material Price
Group, what must be established on the material
master?
Does the ZCOM 3rd Party Commission condition
affects the net total Price of a sales order?
59
IV. Manual Conditions
61
Manual Conditions
Manual pricing/discount conditions are conditions that are NOT established in pricing master records.
They are condition types that are applied on a sales order, quote, contract or scheduling agreement at the
time it is created.
The different types of manual conditions are:
% Discount from Net (RA00)
Price Net (PN00)
Freight Charges(ZCOD and ZPPA)
Tax Conditions (XR1-XR4)
62
% Discount from Net

Manual Condition Record
Condition Type: RA00
Percentage discount given on sales documents
in addition to pricing/discount conditions already given.
Manually entered on sales documents such as orders,
Quotations, etc. It can be entered either on the header or
at the line item.
Example: Its our fiscal <client>r end and we are giving MagneTek a 3% discount on
sales orders received in Feb. to ship in Feb. This is in addition to any other
discounts which may already apply to MagneTek (example: Customer/Material
Pricing group discount). The approver of this change in pricing should be noted on
the sales document header text notes.
63
% Discount from Net (RA00)

This is a percentage
discount taken from the
total net price of a sales
document.
It is a discount added in
addition to all other
pricing/discount
conditions that may be
present.
It is manually entered
on the sales document.
64
Creating % Discount from Net (RA00) Condition

In VA01, a standard sales order is
created.
The required information is

entered (i.e. Customer number,
purchase order number,
material number, etc).
65

Using the
menu path
Goto,
Header,
Conditions,
we can add
the RA00
condition
to the sales
order.
66

Scroll to an open
line and enter RA00
in the column
marked CnTy
(Condition Type).
Then in the rate
column, enter the
additional percent
discount that is
being given in this
situation. Hit enter.
67

The discount
condition RA00 is
applied to the order.
You can see that it

is given after the
K030 discount the
customer already
received.
68

Last step is to add text to
the order header using the
path Goto, Header, Texts.
Header text note should

include who approved the
pricing.
69
Price Net
Condition Type: PN00
Net price condition that overrides all other pricing on a
line item already established in the sales order.
Manually entered on sales document lines and not the
sales document header.
Example:
On a quotation to MagneTek for a special project, a different material net price
on PCM20P4D8 is quoted to the customer other than their standard pricing.
The approver of this change in pricing should be noted on the sales document
text notes.
70
Price Net (PN00)
A net price established

that overrides all other
pricing on a material.
It is manually entered
on the sales document
line (material line).
In this example, it
overrides the PR00
price and the RA00 5%
percent discount.
Note: Special pricing
for customers should
typically be done
through quotations.
71
Using Manual Conditions

Manual conditions such as PN00 and RA00 are intended for one time
pricing situations. Customers who consistently have the same special
pricing should have quotations which may be referenced when creating the
sales order.
When special pricing is given on a quotation, sales order, contract, etc, a text
memo is required on the sales document signifying the approver of the
special pricing.
See your
departmental policy
for the appropriate
approval level.
77
Freight Prepaid and Add

Condition Type: ZPPA
Freight charge condition used on Prepaid shipments.
Manually entered at the time of delivery.
Example:
Fryer Machine is shipping a rush order to their office via UPS Ground. Their
incoterms are FOB. The freight charges for the delivery are entered on the
sales order with ZPPA freight condition.
78
Freight Prepaid and Add (ZPPA)

Once a delivery is created on a sales document,Warehouse Management will
add freight charges to the delivery in a two step process.
79

The incoterms
description on the
customer master
can default to PPA
shipments.
80

On the sales order,
the incoterms
description will
show as PPA.
81

After an order has a delivery
created, Warehouse
Management will change the
outbound delivery to add the
freight condition.
The material Freight

is added as a line to
the delivery.
82

The quantity is
entered as 1.
The line is
highlighted.
Then by
following the
path: Goto, Item,
Conditions, we
can add the
freight condition
and charge.
83

ZPPA is entered
as the condition
type.
The freight
charges are
entered in the
rate field.
The delivery is
saved.
84
Freight Cash On Delivery

Condition Type: ZCOD
Freight charge condition used on COD shipments.
Manually entered at the time of delivery.
Example:
Defiance is shipping a rush order to their office via UPS Ground. Their
incoterms are FOB. The freight charges for the delivery are entered on the
sales order with ZCOD freight condition.
85
Tax Condition Records

Condition Type: XR1, XR2, XR3, and XR4.
Tax condition used on applicable situations.
Automatically entered at the time of delivery if customer
is deemed taxable in the customer master.
Example:
MagneTek request that a purchase order be shipped to their customer in
Texas who is taxable.
92
Tax Conditions (XR1 to XR4)

Tax jurisdiction is maintained on the customer master data record. If
there the customer is taxable, certain tax conditions will be applied to
their sales orders.
Finance uses a software package called Vertex to determine the
applicability of taxes on each order.
The types of tax conditions we will utilize are:
State Tax (XR1)
County Tax (XR2)
City Tax (XR3)
District Tax (XR4)
These tax conditions populate into sales documents at the time the
document is created.
93

During the customer setup
in XD01, customers are
issued a tax jurisdiction
code by Vertex using the
following information:
Zip Code
County or District
City
State
This code is issued
regardless of whether the
customer is taxable.
94

During the initial customer
setup process, all customers
will be considered taxable. If
the customer has and submits to
<client> a exemption
certificate, their Vertex record
will reflect their exempt status.
Note: <client> does not collect
taxes in every state. Check with
Finance for a listing.
95

When sales documents are processed, the tax condition are automatically
calculated in the sales order.
96

Pricing Procedure
Pricing and Discount conditions are organized into a sequence called a pricing procedure.
During sales order processing, the pricing procedure determines the kinds of pricing
elements you can use and in which sequence they are processed to arrive at a final price.
The sequence of Yaskawas standard pricing procedure follow in this order:
Material Price (PR00 or PRRP)
Price List Type
Material
Customer/Material Price Group Discount (K030)
Sales Area/Material Price Group Discount (Z030)
Manual Discounts (PN00, RA00)
Commissions Accrual (ZCOM)
Manual Freight Conditions (ZPPA, ZCOD)
Sales Taxes (XR1-4)
97

Pricing Procedure
s e n d s in o r d e r fo r
m a te r ia l X Y Z .
O r d e r is e n te r e d in
V A01
Yes
c o n d itio n ( P R 0 0 )
fo r m a t. X Y Z .
In SAP, the system checks for the most specific

condition record first (customer/material price).
N o
Yes
After this process, other discounts can be

applied to the sales document.
h a s a P r ic e L is t
T y p e c o n d it io n
( P R 0 0 ) fo r m a t e r ia l
XYZ.
N o
E rro r.
No
The system looks for the most specific pricing

element (such as customer/material price of
PR00) and works downward to the most general
(customer discount K007). Then manual
conditions can be added such as RA00, freight,
taxes, etc.
( P R 0 0 ) is
e s ta b lis h e d f o r t h e
m a te r ia l X Y Z in
t h e d is t . c h a n n e l.
Yes
Yes
D is c o u n t (K 0 3 0 )
N o
Yes
h a s a S a le s A r e a /
d is c o u n t ( Z 0 3 0 )
N o
98
Yes
P r o d u c t is o r d e r e d a t
th e m a te ria l (P R 0 0 )
p r ic e f o r X Y Z .
No
M anual
c o n d it o n
(P N 0 0 o r
R A 0 0 ) is
u s e d fo r
m a te ria l X Y Z .
Review
Questions
Where is the condition PN00 applied?
When using manual conditions such as RA00 and PN00, what
is mandatory on the sales document?
When are the freight conditions ZPPA and ZCOD
added?
What 2 steps does Warehouse management do to
add freight charges to a outbound delivery?
What determines the tax conditions and where is
it maintained?
99
V. Reporting
100
Pricing Reports
Pricing reports can be run in V/LD.
They are standard reports by price or
discount condition that can be
customized by customer.
Follow the menu path:
Logistics
Master Data
Information System
Conditions & Pricing
101
Running Price Reports in V/LD
Execute Button
In the initial screen, the report

number is entered. Use the
match code button to search by a
list.
Once you have selected a report,
click the execute button.
102

Depending on the
pricing report selected,
any number of fields
may be required or used
to create the pricing
report. The match code
buttons can be used to
search from a list.
Once you have entered
the desired criteria for
your report, click the
execute button.
103

Your report will displayed.
To print the report, hit the printer
icon at the top of the screen.
104
Pricing Reports in V/LD

There are many standard reports that can be utilized in SAP. With specific
criteria, reports can be executed to enable you to view various pricing
information.
Below is a table of the most common reports available to <client>.
Pricing Report
Report
Number
Description
Price List Types Without

Scale Display
05 RV14AK05 Shows Price List Type/Currency/Material Conditions as

created in VK11 with a PR00 price condition.
NOTE: This condition is exclusive to Honda.
Customer Specific Prices 08 RV14AK08 Shows pricing conditions established for specific
without Scale Display
material numbers and specific customer numbers.
NOTE: To see pricing with scales, use Report #07
RV14AK07.
Material Price
15 RV14AK15 Shows price of material numbers.
Individual Price
16 RV14AK16 Shows pricing conditions established for specific

material numbers and specific customer numbers.
Same as Customer Specific Prices without Scale
Display.
Discounts and
17 RV14AK17 Shows pricing conditions established for specific
Surcharges by Customer
customers.
Discounts and
22 RV14AK22 Shows pricing discounts established for a specific
Surcharges by
material pricing group.
Customer/Material Group
Example: Shows discounts for Customer 123 on all G5
products.
105
VI. References
111
PR00 Price Conditions

Quick Reference Table
Price Condition or
Condition
Discount/
Type
Surcharge Type
Customer/Material
Price List
Type/Currency/
Material
PR00
Material
PR00
Repair Price
113
PR00
PRRP
Condition Description
Condition w here a specific material
price is designated for a specific
customer.
Condition w here multiple customers
share a designated specific material
price.
Note: In this condition, all customers
need to have the same price list type
designated on their sold to customer
master record. See SD-XD01
Create/Display /Change Customer (
Condition w here a specific material
price is designated regardless of w hich
customers order the material.
Example
Comments
Customer 123 orders

See BPP for SD VK11 Create Price Conditions (PR00) for
material XYZ, their price =
more information.
$500 each.
Customer 123 price list
allow s customer 123 and
12 different integrators to
See BPP for SD VK11 Create Price Conditions (PR00) for
use the same specific
more information.
material price. When
material XYZ is ordered
the price for all = $500
Material XYZ has a price See BPP for SD VK11 Create Price Conditions (PR00) for
= $500.
more information.
Note: PRRP is very similar to PR00 (including a customer

Condition w here a material net price is Customer 123 is charged material, price list, and material level). YEA w ill only initially
designated on customer property repair $200 to repair material
be using the material level. Release status should alw ays
orders.
XYZ.
be set to blank. Unlike PR00, can be manually entered on
sales docume
Discounts and Manual Conditions

Quick Reference Table
Price Condition or
Discount/
Surcharge Type
Customer/Material
Price Group
Sales Area/Material
Price Group
114
Condition
Type
Condition Description
Example
Comments
K030
Condition that applies to a group of

products to a specific customer.
Customer 123 receives a

See BPP for SD VK11 Create Discount/ Surcharge
40% discount on all G5
Conditions for more information.
inverter units.
Z030
Condition that applies to a w hole sales

area (i.e. Sales org, Dist. Channel, and
Division) for a group of products.
Note: Material Master must have a
Material Price Group established to use
this condition type.
Sales Area ABC receives

a 40% discount on all G5
inverters. Whenever
Customer 123 w ho is a
part of Sales Area ABC
orders G5 product, they
receive a 40% discount.
% Discount from Net
RA00
Price (net)
PN00
Outside Commission
ZCOM
Customer 123 receives a

10% discount on all
Discount given on an entire order.
orders entered in Jan for
Feb. delivery.
Condition w here a specific net price on Customer 123 receives a
a line item is given on the sales order
special net price on
instead of the standard pricing condition material XYZ instead of
already established for the customer
their standard 30%
and/or material.
discount on that material.
Condition w here a specific Sales
Representative receives a percent
Sales Rep ABC receives
commission from a sales order of a
a 7% commission from all
specific customer(s).
orders shipped on
Note: To activate commissions, price
customer 123.
group on the customer master should be
marked 01.
See BPP for SD VK11 Create Discount/ Surcharge

Conditions for more information.
Note: This condition type has initially been established for
Columbus office and G5 inverters.
This is a manual condition given in the order header or line in

VA01 and VA02.
This is a manual condition applied only on designated line

items w here all other pricing is overridden (how ever the
original PR00 price is still visible in the sales order).
This is a statistical price condition in that it does not affect

the net total price of a sales order but instead is recorded
for accruing and paying commission.

Pricing / Discount Conditions : Right Solution, Right Time, Right Price

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pricing / Discount Conditions : Right Solution, Right Time, Right Price

Uploaded by

Copyright:

Available Formats

Pricing / Discount Conditions

Right Solution, Right Time, Right Price

Business Process Workshop

I. Pricing and Discount

Pricing is a broad term to describe the calculation of prices and costs.

Pricing is carried out automatically based on predefined prices,

Creating Price/Discount Conditions

There are two places in

Pricing and Discount conditions can be

Todays Presentation will primarily use

Determining Price through the

Determining Price through the

In SAP, the system checks for the most specific

After this process, other discounts can be

The system looks for the most specific pricing

II. Pricing Conditions

Pricing Condition Record

Pricing Master Records are located in condition types in Sales

Pricing Condition PR00

Customer/Material Price (PR00)

Customer/Material Price (PR00)

Creating Customer/Material Price (PR00)

Enter PR00 as the condition type and hit

In the key combination,

Creating Customer/Material Price (PR00)

Enter the appropriate

Enter the customer

Creating Customer/Material Price (PR00)

Enter the rate or price for the

Enter validity dates and

Creating Customer/Material Price (PR00)

Price List Type (PR00)

Price List Type (PR00)

Price List Type (PR00)

Price List Type (PR00)

Material Price (PR00)

Material Price (PR00)

Creating Material Price (PR00)

In the key combination,

Creating a Material Price (PR00)

Creating Material Price (PR00)

Pricing Condition PRRP

Pricing Condition Record

Pricing Master Records are located in condition types in Sales and

Pricing Condition PRRP

However, PRRP can be entered manually. The order situation will

III. Discount Conditions

Customer/Material Price Group

Currently many customers receive multipliers based on pricing groups

Customer/Material Price Group

Customer/Material Price Group

Customer/Material Price Group

Sales Area/Material Price Group

Sales Area/Material Price Group

3rd Party Commission Condition

3 Party Commissions Discount

3 Party Commissions Discount

Creating with Reference

Creating with Reference

Creating with Reference

Looking at the Pricing report

IV. Manual Conditions

% Discount from Net