Pricing Procedure Configuration in SAP SD

In SAP SD (Sales and Distribution), the Pricing Procedure is the central configuration that determines how prices, discounts, surcharges, taxes, and other conditions are applied to sales documents. It defines the sequence of condition types that will be used to calculate the final price for a product or service. A well-configured pricing procedure ensures that the pricing process is accurate, efficient, and adaptable to business requirements.

What is a Pricing Procedure?

A Pricing Procedure is a set of rules that SAP uses to determine the price of a product or service in a sales transaction. It specifies the sequence of condition types (e.g., discounts, taxes, prices) to be applied, as well as the way they are calculated. The pricing procedure is assigned to each sales document type and controls the pricing logic for that document.

Key Elements of a Pricing Procedure

  • Condition Types: These are the individual elements such as prices, discounts, and taxes that make up the final price calculation.
  • Condition Records: These are the data entries that store the actual values for each condition type (e.g., the discount percentage for a specific customer).
  • Access Sequence: Defines the order in which the system will search for condition records for each condition type.
  • Calculation Schema: A set of rules used to determine the calculation logic for the conditions in a pricing procedure.

Step-by-Step Configuration of Pricing Procedure in SAP SD

Step 1: Define Condition Types

Condition types define the different pricing elements that will be used in the pricing procedure. They can represent prices, discounts, taxes, or surcharges.

To define condition types, follow these steps:

  1. Go to transaction V/06 in SAP.
  2. Click on New Entries to create a new condition type.
  3. Enter a unique condition type code (e.g., PR00 for price).
  4. Provide a description for the condition type, such as Material Price.
  5. Set the condition class (e.g., Price, Discount, etc.), which defines the category of the condition.
  6. Choose the calculation type (e.g., Percentage, Fixed Amount) based on how the condition is to be calculated.
  7. Save the condition type.

Step 2: Define Access Sequences

Access sequences define the order in which the system should search for valid condition records. These records are created based on specific criteria like customer, material, or sales organization.

To define an access sequence, follow these steps:

  1. Go to transaction V/07.
  2. Click on New Entries to create a new access sequence.
  3. Enter a unique access sequence code (e.g., 0002 for discounts).
  4. Define the access steps. For example, you can specify that the first step searches for discounts based on the customer, and the second step searches based on sales organization.
  5. Save the access sequence.

Step 3: Define Pricing Procedure

The pricing procedure is the central configuration that determines how all condition types and access sequences are applied. The procedure defines the sequence in which the conditions are applied, whether each condition is required or optional, and whether it is a manual or automatic condition.

To define a pricing procedure, follow these steps:

  1. Go to transaction V/08.
  2. Click on New Entries to create a new pricing procedure.
  3. Enter a unique code for the pricing procedure (e.g., Z001 for your custom pricing procedure).
  4. Provide a description for the pricing procedure, such as Standard Sales Pricing.
  5. In the Condition Type field, list all condition types that will be included in this pricing procedure (e.g., PR00 for price, K004 for discount).
  6. In the Access Sequence field, assign the access sequence (e.g., 0002 for discounts).
  7. Set up other parameters such as Manual Entry (whether the condition can be manually changed) and Required Entry (whether the condition is mandatory).
  8. Save the pricing procedure.

Step 4: Assign Pricing Procedure to Sales Document Types

Once the pricing procedure is defined, it must be assigned to the relevant sales document types (e.g., Sales Orders, Deliveries, or Billing Documents). This ensures that the correct pricing procedure is applied during document processing.

To assign the pricing procedure, follow these steps:

  1. Go to transaction OVKK.
  2. Select the sales document type (e.g., OR for standard order).
  3. Under the Pricing Procedure section, enter the pricing procedure code (e.g., Z001).
  4. Save the assignment.

Step 5: Test the Pricing Procedure

After configuring the pricing procedure, it is important to test it to ensure that all conditions are applied correctly in the sales document.

To test the pricing procedure, follow these steps:

  1. Go to transaction VA01 to create a sales order.
  2. Enter a customer and material to trigger the pricing procedure.
  3. Check that the system correctly applies the prices, discounts, taxes, and any other conditions defined in the pricing procedure.
  4. Verify that the condition types and amounts are displayed correctly in the pricing conditions screen of the order.

Real-World Example of Pricing Procedure

Let's walk through a real-world scenario to understand how the pricing procedure is applied:

  • Step 1: A customer (C1001) places an order for material (M1001) with a price of $1000.
  • Step 2: The system applies the price condition PR00 (Material Price) based on the pricing procedure.
  • Step 3: The system checks if any discounts are applicable. It finds a 10% discount (K004) based on the customer and material combination.
  • Step 4: The system applies the 10% discount to the base price of $1000, resulting in a discounted price of $900.
  • Step 5: The system checks for tax conditions (e.g., MWST), applies the relevant sales tax (e.g., 5%), and calculates the final amount to be billed.
  • Step 6: The final amount after applying all conditions is displayed in the sales order.

Conclusion

The configuration of the pricing procedure in SAP SD is a critical part of ensuring that prices, discounts, taxes, and surcharges are applied correctly to sales transactions. By following the steps to define condition types, access sequences, and the pricing procedure, you can create a flexible and effective pricing strategy for your business. Testing the pricing procedure is also essential to ensure that all configurations are functioning as expected in real transactions.




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