Pricing is an intrinsic part of Sales & Distribution. System has provided extensive features to map various pricing scenarios in business environment. ‘Pricing’ term is used to explain the calculation of prices for customers or vendors and costs for internal purposes. ‘Conditions’ are extensively used in pricing. These represent a set of circumstances that apply when a price is calculated. These are based on many variable factors like Customer, Material, Order quantity, Period etc.
Condition technique is main basis of pricing in sales. Condition Technique is a method designed in SAP which is utilized in various functionalities. In Pricing this method is used by system to determine prices. There are various elements used in condition technique, which are setup and controlled in customizing. A variety of important information like which gross price and what discounts are applicable to which customer in sales order is determined by condition technique in system. It is a universal technique, the basic elements of which remain same in different functionalities of Sales & Distribution.
Following elements are used in condition technique in pricing:
Condition Types : Condition type is representation in system of some aspect of daily pricing activities in business environment. For each kind of price in business transaction a condition type can be created in customizing. Example for Prices, Surcharge, Discount etc. Various Controls are provided in condition type definition in customizing to suit the numerous price types. System has predefined condition types for all categories of price types. These are utilized in the standard pricing procedures used for standard scenarios. Standard condition types are normally copied to new customer condition types and modified to suit specific pricing requirements in business transactions.
Condition Table: Condition table defines combination of fields that identify a condition record. Specific condition data is stored in system as condition record.
Access Sequences: Access Sequence is a search strategy used by system to find valid condition record for particular condition type. It determines the sequence in which search is conducted.
Access sequence consists of one or more accesses. This sequence establishes which condition records have priority and it tells the system where to look first, second and so on till a valid record is found.
Access sequence contains the condition tables and the standard procedure to maintain the sequence of condition table is from ‘Most Specific’ to ‘General’.
Pricing Procedures: Pricing Procedure is a group of condition types arranged in particular sequence to have correct prices being determined in a sales document.
Various controls of pricing are setup in Pricing procedure like
- Processing condition types manually
- Requirements for specific condition types
- Printing of Condition types, etc.
Standard system contains many pre-defined pricing procedures for various business scenarios. These contain frequently used condition types again pre-defined in system.
Pricing in delivery is used in cases where packaging costs need to be displayed at delivery level or in Retail where retail price (i.eprice paid by end customer) is to be displayed for each article on delivery notes. In Retail this price can also be used by pickers when price is printed on picking labels. Pricing in delivery provides additional information in identifying articles during goods receipt and goods issue.