© 2004 Hewlett-Packard Development Company, L.P.

The information contained herein is subject to change without notice

 Condition Technique
The diagram shows how the various elements in the condition technique work
together.

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Sales & Distribution - Pricing
 The system determines the pricing procedure according to information defined
in the sales document type and the customer master record.

 The pricing procedure defines the valid condition types and the sequence in
which they appear in the sales order.

 Each condition type in the pricing procedure can have an access sequence
assigned to it.

 In the example, the first access (searching for a customer-specific material

price) is unsuccessful. The system moves on to the next access and finds a
valid record.

 The system determines the price according to information stored in the

condition records.

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 Condition Technique in Pricing

• Condition Technique: It refers to the method by which the System

Determines prices from information stored in condition records. During
sales order processing, the system uses the condition technique to
determine a variety of important pricing information.

• Pricing : The term pricing is used broadly to describe the calculation

of prices.

• Conditions: Conditions represent a set of circumstances that apply

when a price is calculated.

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 Steps in Condition Technique

1. Create the Condition tables

2. Create the Access Sequences

3. Assign the Condition tables to the Access Sequences

4. Create the Condition types

5. Assign the Access Sequences to the Condition types

6. Create the Pricing Procedure and assign the Condition types to it

7. Determine the Pricing Procedure

8. Create the Condition record

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Condition Tables
• A condition table defines the combination of fields (the key) that identifies an
individual condition record.
• Eg: A condition records for customer-specific material prices is created. The
standard condition table 005 is created for this purpose. The table 005
includes the following fields: Sales organization, Distribution channel,
Customer & Material

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Access Sequences
• An access sequence is a search strategy that the system uses to find valid
data for a particular condition type. It determines the sequence in which the
system searches for condition record. The access sequence consists of one or
more condition Tables.
• In other word, It is the sequentially placing of condition tables in a logical
order to obtain the valid condition record.

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Assigning C’tables to Access Sequence

• In this process we will assign the defined condition tables to the

access sequences.
• It is the link between the condition tables & access sequences.
• Eg: See the below screen short. The access sequences is PR00 and it
has tables assigned like 005,006,004

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Condition Types
• A condition type is a representation in the system for condition Elements,
we can define a different condition type for each kind of price, discount or
surcharge, freight and taxes that occurs in your business transactions.
• Every condition type has its own access sequences, condition tables &
condition records

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Condition Type – Controlling Data

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Assign Acs Seq to Condition type

• Access sequences will be assigned to the condition type to maintain

the condition records. This is the link between the condition tables
and condition types to get the condition records.

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Important controlling fields
Condition Class: Preliminary structuring of condition types e.g. In
surcharges and discounts or prices. A grouping that lets you control
each condition type differently.

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Important controlling fields
Calculation type : Determines how the system calculates prices,
discounts, or surcharges in a condition. For example, the system can
calculate a price as a fixed amount or as a percentage based on
quantity, volume, or weight.

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Important controlling fields

Rounding Rule: The rule that determines how the system rounds off
condition values during pricing. The last digit will be rounded

•Commercial: The amount in the sales order will be take has it is like
Rs 500.58

•Round -Up: If the amount in the sales order is Rs 500.58, it will be

treated as Rs 500.60

•Round Down: If the amount in the sales order is Rs 500.58, it will be

treated as Rs 500.50

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Important controlling fields
• Header Condition: Header conditions apply to all items in the
document and are automatically distributed to the items. Automatic
pricing does not take header conditions into account, we can not
create condition records for them in the standard system. Header
conditions are entered manually in order processing.
• R/3 includes the following header conditions
• Percent discount (HA00)
• Freight (HD00)

If this condition is marked as a header condition, it is

possible to enter the condition type in the header
condition screen

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Important controlling fields
• Item Condition : In the standard system, most condition types are
defined as item conditions.
• Examples of item conditions are:
• Material discount (K004)
• Customer/Material (K005)
• Customer discount (K007)
• Material price (PR01)

Mark this field if the conditions of this type are allowed to be

entered in the document items. The condition is then only
valid for the particular item in which it is entered.

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Important controlling fields
Validity Periods: Condition records for prices and discounts always
include a validity period. The validity period is defined by a beginning
date and an end date
•Valid from: The date from when the condition is valid-from
•Specifies
the beginning validity date that the system automatically
proposes when you create a condition Records.
•Valid to : Date proposed as valid-to date
•Proposed value for how long a condition should remain valid.
•The system proposes this value for the Valid to date when you create
condition records

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Important controlling fields
• Scales: When you create a condition record for a pricing element,
you can define a pricing scale.
• Scale Basis: Determines how the system interprets a pricing scale in
a condition. Eg; the scale can be based on quantity, weight, volume
• A pricing scale can be based on any of the following criteria
• Value
• Quantity
Checking rule : Indicates whether the
• Gross weight scale rates must be entered in
• Net weight ascending or descending order
• Volume
• A formula specific to your requirements

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Maintaining Pricing Procedure
• Pricing Procedure:
• The primary job of a pricing procedure is to define a group of
condition types in a particular sequence. The pricing procedure also
determines:

• Which sub-totals appear during pricing

• Which method the system uses to calculate percentage discounts and
surcharges
• Which requirements for a particular condition type must be fulfilled
before the system takes the condition into account

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Pricing Procedure Controlling Data

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Pricing Procedure Controlling Data
• Step : It is the number that determines the sequence of the conditions
within a procedure.

• Counter: It is the sub step in the main step, or grouping of similar

condition types.

• Condition Type: The condition type is used for different functions. In

pricing, in output determination, between different output types such
as order confirmation or delivery note.

• From: The reference step from to take the value of which is the basis
for percentage surcharges.
• To : The reference step to up to which the condition values of the
previous steps are totaled. Percentage surcharges are calculated on the
basis of the total.

• Manual: Conditions, that are given this indicator in the pricing

procedure, are only entered manually, for example, on the condition
overview screen in Pricing.

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Pricing Procedure Controlling Data

• Required or Mandatory: Indicates whether the condition is

mandatory when the system carries out pricing using this pricing
procedure.

• Statistics: This indicator causes a surcharge or discount to be set in

the document statistically (that is, without altering the value.

• Print: Controls issue of condition lines when printing documents such

as order confirmations or invoices.

• Sub Total: Controls whether and in which fields condition amounts

or subtotals (for example, a customer discount or the cost of a
material) are stored If the same fields are used to store different
condition amounts, the system totals the individual amounts.

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Pricing Procedure Controlling Data
• Requirement: If the requirement is fulfilled (SY-SUBRC = 0), then
output determination also takes into consideration output type or the
access sequence, for which the requirement has been specified.

• Calculation Type: Condition formula for alternative calculation type

alternative formula to the formula in the standard system that
determines a condition.
• Condition Base Value: Alternative formula for condition base value
formula for determining the condition basis as an alternative to the
standard.

• Accounting Key: Key that identifies different types of G/L account.

The account key enables the system to post amounts to certain types
of revenue account or it is the link between FI and SD integration.

• Accruals: With the aid of the account key, the system can post
amounts to certain types of accruals accounts. For example, rebate
accruals which are calculated from pricing conditions can be posted to
the corresponding account for rebate accruals.
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Pricing Procedure Determination
• The pricing procedure will be determine with the following key
combinations:

• Sales Area: It is the combination of the external organization units,

such as Sales organization, Distribution channel and Division

• Document Pricing Procedure: The pricing procedure determines how

the system carries out pricing for a particular sales document (for
example, which pricing condition records it accesses and in which
sequence)

• Customer Pricing Procedure: Here you specify the pricing procedure

for a customer. During sales order processing the pricing procedure
determines the kinds of pricing element used and in which sequence
they are processed.

• Pricing Procedure: It determines which condition types can be used in

a document and in which sequence they appear

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Pricing Procedure Determination

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Creating the Condition Records: VK11
• Condition Records: Condition records allow you to store and retrieve
pricing data in the system. All the pricing elements of your daily
business - the prices, discounts, and surcharges for freight and taxes -
that you want to use for automatic pricing must be stored in the system
as condition records.
• During document processing, the system transfers data from the
condition records and determines the amounts for individual pricing
elements and the final amount for the sales document.
Key combinations are the key fields of
the condition tables
Creating the condition record with T-code VK11

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Creating the Condition Records

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