PRICING PROCEDURE DETERMINATION in SAP SD – the Architecture of SAP Order to Cash Management
This document portrays the essentials of Pricing procedure determination with a detailed flow on configuration, tips in configuration and error handling techniques.
Pricingis the process of determining what a company will receive in exchange for its product or service. It is a method adopted by a firm to set its selling price.
Pricing is one of the most powerful but least understood disciplines within many organizations. The process of arriving at the calculation of selling price will eventually elevate company’s top line and bottom line growth.
This document caters in comprehending the fundamentals of pricing and its implementation along with an instance.
Pricing in SAP:
Pricing is the crux of SAP SD; it determines the final cost of a product while considering all other costs in order to arrive at competitive selling price.
Pricing Procedure :
T code : V/08
Pricing procedure basically defines the group or set of condition types in a predefined sequence. It is always feasible to copy the existing and identical pricing procedure and perform the changes accordingly.
IMG SPRO Path :
Pricing procedure determination in SAP SD:
Pricing procedure in SAP SD is determined on the basis of 3 elements:
1. Sales Area ( which is the combination of Sales Organization + Distribution Channel and Division )
2. CUSTOMER PRICING PROCEDURE (from Customer Master)
3. DOCUMENT PRICING PROCEDURE (Sales Document Type)
T code : OVKK
Pre-requisites of pricing procedure:
Maintain: Customer pricing procedure for relevant customer
Maintain: Document pricing procedure for relevant Sales document type
Steps in Pricing Procedure:
Step 1: Create Condition Table
T code: V/03-V/04-V/05
An initial analysis needs to be carried out in order to identify whether an existing Condition Table can be used, if not we need to create a new Condition table as per the business requirements.
Before creating the new condition table, check whether the existing Tables have the required key combinations
Existing table is copied and so as the fields.
How to Add new field: Double Click on the fields on the right hand side of Field Catalog
How to Delete the existing field : Select the field on the left hand side which needs to be deleted and press DELETE button
After the relevant fields are added and deleted as per the sequence, Please click on GENERATE button which is highlighted below
Step 2:Create Access Sequence
An initial exploration needs to be carried out in order to identify whether an existing Access Sequence can be used, if not we need to create a new
Condition table as per the business requirements
Access sequence is a search strategy which system utilizes to search for condition records valid for particular condition type
Assignment Activity: Condition Table needs to be assigned to the Access sequence
T code: V/07
Choose any existing and similar access sequence which suits your business requirements and copy the same.
If the field assignment is not assigned properly then the below message will pop up. Now press ENTER button twice
This will take you to the screen to make proper field assignment.
If the existing field assignments are missing, then please select the field and choose Field Catalog
Now select the proper field on the listed field catalog and double click on the same
This will update the field assignment as expected
Step 3:Create Condition Type
Identify whether any current Conditions can be used, otherwise we need to create new Conditions as per business requirements.
Assignment Activity: Access sequence needs to be assigned to Condition type
Copy the existing condition type as per business requirements viz., Customer Discount, Material Discount, Rebate Condition type etc
Copy the existing condition type which suits your business requirements and make necessary changes.
Important changes under condition type to be considered:
- Whether the condition type to be Discount or Price or Taxes etc
- Calculation type
- Rounding Rule
- Header condition type or Item condition type
- Scale basis etc
Now assign the newly created Access sequence under new condition type
STEP 4:Assign the new condition type under existing or new pricing procedure
We need to assign the condition type to the new or existing pricing procedure as per business requirements
Here I am assigning the new condition type to the existing pricing procedure.
Pre-requisites for assigning new condition type to the pricing procedure.
Analyze, where the new condition type needs to be assigned, check the STEPS and the FROM and TO fields and assign the condition types accordingly.
If any requirement routine needs to be added, please maintain the same
Account Key needs to be maintained in order to ensure the Condition value hits the correct G/L account.
The Pricing procedure is configured, now we need to maintain the condition records for the specified key combinations as per the business need.
Step 5 : Condition Records
T code : VK11/VK12/VK13
VK11
Condition records is maintained for the below key combinations, material 10268167 is maintained with 20% discount for Sold to - 10360566 and material 10268174 is having 10 % discount.
Sales Order is created and the above condition records are picked automatically as per ACCESS SEQUENCE search strategy.
Analysis button under Condition tab of the sale order item level, will provide the complete flow of condition type with condition records associated with the relevant pricing procedure.
Few important tips under SAP SD pricing procedure :
- Condition tables under access sequence needs to be maintained as per Specific to Generic rule.
- Once the condition table is GENERATED, we cannot ADD or DELETE the fields. We have to create a new condition table.
The ADD or DELETE button is not activated in change mode.
- Pricing condition types can be Manual or Automatic
- Manual condition types are basically header conditions and will not have access sequence, we can maintain them manually in sales orders, change the values or delete the values
- Payment terms displayed at header level can be over written at item level on maintaining the condition records for item level and for specific key combinations through pricing procedure.
Important SAP SD Pricing related tables :
T683 - Pricing procedures
T683S - Pricing Procedure: Data
T683V - Pricing Procedures: Determination in Sales Docs
T683T - Pricing Procedures: Texts
TVKD - Customer Pricing Procedures
TVKV - Pricing Procedures: Transaction
TVFCSF - Pricing Procedure Determination
TVKDT - Customer Pricing Procedures: Texts
TVKVT - Pricing Procedures: Procedure: Texts
KONV - Conditions (Transaction Data)
KONP - Conditions (Item)
KONH - Conditions (Header)
KONM - Conditions (1-Dimensional Quantity Scale)
" Learning is a treasure that will follow its owner everywhere " - Chinese proverb
Happy learning...
Regards
Chirag Chandramohan Gowda