Pricing Procedure: Condition Technique in Pricing in SAP SD

In SAP SD (Sales and Distribution), the condition technique is a powerful feature that allows you to define and manage pricing rules for sales orders. The condition technique involves several elements that work together to determine how prices, discounts, taxes, and other conditions are applied to sales transactions. This tutorial will walk you through the pricing procedure and how the condition technique is used in SAP SD.

What is Condition Technique in SAP SD?

The condition technique in SAP SD is a framework used to determine how the system applies pricing conditions (such as price, discount, tax) during sales order processing. It uses a set of rules to calculate the final price by finding applicable conditions based on specific criteria, such as the customer, material, and sales area.

Key Elements of Condition Technique

The condition technique involves several key elements that work together to calculate pricing in SAP SD:

  • Condition Types: These represent the individual pricing elements, such as base price, discount, surcharge, or tax. Examples include PR00 (Price), K004 (Material Discount), and MWST (Sales Tax).
  • Condition Records: Condition records store the specific values for each condition type. For instance, a price record may define the price of a specific material for a customer.
  • Access Sequences: These determine how the system searches for condition records based on specific criteria, such as customer, material, or region.
  • Pricing Procedure: A pricing procedure is a sequence of condition types that defines the order in which the conditions are applied. It also specifies which conditions are mandatory or optional during the pricing process.
  • Condition Exclusion: This defines situations where certain conditions should not apply under specific circumstances, for example, when a discount is not applicable due to a certain product category.

How Condition Technique Works

The condition technique works by following a series of steps during the sales order process to calculate the final price. Below is a step-by-step overview of how the condition technique is used:

  1. Step 1: Access Sequence: The system uses the access sequence to search for condition records. The access sequence defines the search strategy, such as searching by customer or material. For example, it may first look for a price record based on the customer and material combination.
  2. Step 2: Condition Types: The system applies the condition types defined in the pricing procedure, such as PR00 for the base price, K004 for discount, and MWST for tax.
  3. Step 3: Pricing Procedure: The pricing procedure specifies the order in which the condition types are applied. For example, it may first apply the price, then apply any discounts, and finally calculate the sales tax.
  4. Step 4: Calculation: The system calculates the final price based on the conditions found and applied during the pricing process.
  5. Step 5: Output: The final price is displayed to the user, and it is used in the sales order, delivery, or billing document.

Step-by-Step Process for Configuring Condition Technique in SAP SD

Now, let’s walk through a step-by-step process for configuring the condition technique in SAP SD. This includes defining condition types, creating condition records, and configuring the pricing procedure.

Step 1: Define Condition Types

Condition types are the building blocks of the pricing process. To define a condition type:

  1. Transaction Code: Use transaction V/06 to define condition types.
  2. Condition Type: Create a new condition type, such as K004 for material discount or MWST for sales tax.
  3. Group Condition: Specify whether the condition type applies to individual items or to the entire order.
  4. Calculate with: Define how the condition type should be calculated, whether based on value, quantity, or percentage.
  5. Save: Save the condition type.

Step 2: Create Condition Records

Condition records store the actual values for condition types. For example, a price record will define the price for a particular customer and material. To create condition records:

  1. Transaction Code: Use transaction VK11 to create condition records.
  2. Condition Type: Choose the condition type, such as PR00 for price or K004 for discount.
  3. Access Sequence: Define the access sequence for searching the condition records. This could include customer, material, and sales area.
  4. Enter Validity: Specify the validity period for the condition record (e.g., from 01/01/2024 to 12/31/2024).
  5. Enter Condition Values: Enter the specific values for the condition, such as the price or discount for a customer and material combination.
  6. Save the Condition Record: Save the record once the details are entered.

Step 3: Configure Pricing Procedure

The pricing procedure determines the sequence in which conditions are applied. To configure it:

  1. Transaction Code: Use transaction V/08 to access the pricing procedure configuration.
  2. Pricing Procedure: Define a new pricing procedure or modify an existing one, such as RVAA01 (Standard pricing procedure).
  3. Assign Condition Types: Add condition types such as PR00 for the base price, K004 for discounts, and MWST for tax in the correct sequence.
  4. Assign Access Sequences: Assign the access sequences that define the order in which the system searches for condition records.
  5. Save the Pricing Procedure: Save the configuration for the pricing procedure.

Step 4: Test the Pricing Procedure in Sales Order

Once the pricing procedure and condition records are configured, test the pricing mechanism by creating a sales order:

  1. Transaction Code: Use transaction VA01 to create a sales order.
  2. Enter Customer and Material: Enter the customer and material for which you created the condition records and pricing procedure.
  3. Review Pricing: SAP SD will automatically apply the conditions, such as the base price, discounts, and taxes, based on the configured pricing procedure.
  4. Save the Sales Order: Once the pricing is applied correctly, save the sales order.

Real-World Example of Condition Technique

Let’s consider a real-world example where a customer C1001 orders 10 units of material M1001. The base price is $100 per unit, but a 10% discount is applied based on the customer’s pricing agreement, and 5% sales tax is added.

Steps:

  • Condition Record for Price: A condition record for PR00 is created, specifying that material M1001 is priced at $100 per unit for customer C1001.
  • Condition Record for Discount: A condition record for K004 applies a 10% discount for customer C1001.
  • Condition Record for Sales Tax: A condition record for MWST calculates a 5% sales tax based on the net price.
  • Final Price Calculation: SAP calculates the total as follows:
    10 units x $100 = $1000 (Base Price)
    10% Discount = $1000 x 10% = $100
    Net Price = $1000 - $100 = $900
    5% Sales Tax = $900 x 5% = $45
    Total = $900 + $45 = $945

Conclusion

The condition technique in SAP SD is an essential tool for determining the pricing in sales processes. By using condition types, condition records, access sequences, and pricing procedures, businesses can configure a flexible and powerful pricing system. This tutorial explained the key elements of the condition technique and provided a step-by-step guide to configuring it in SAP SD with a real-world example.




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