Sales and Distribution Q & A : Pricing

Could you explain what condition technique in SAP is?
Hierarchy of elements defining a data combination which leads to certain actions.
In pricing the condition technique refers to the method by which the system determines prices from information stored in condition records. In Sales and Distribution, the various elements used in the condition technique are set up and controlled in Customizing. During sales order processing, the system uses the condition technique to determine a variety of important pricing information.

Name three areas/processes which use condition technique in SD?
Material determination, Output determination, Account determination.

What are the four basic elements of condition technique?
Condition Types, Condition Tables, Access Sequences, Pricing Procedures.

Please explain graphically the relationship between the four basic elements in condition techniques?
Procedures à Condition Types à Access Sequence à Condition Tables à Condition Records.

Explain what a pricing procedure is?
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
– To what extent pricing can be influenced manually
– 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.

Explain what a condition table and an access sequence is and the relationship between them?
A condition table defines the combination of fields (the key) that identifies an individual condition record. A condition record is how the system stores the specific condition data that you enter in the system as condition records. For example, when you enter the price for a product or a special discount for a good customer, you create individual condition records.
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 data. The access sequence consists of one or more accesses. The sequence of the accesses establishes which condition records have priority over others. The accesses tell the system where to look first, second, and so on, until it finds a valid condition record. You specify an access sequence for each condition type for which you create condition records.

What is a condition type? What are the two main groups of condition types?
A condition type is a representation in the system of some aspect of your daily pricing activities. For example, you can define a different condition type for each kind of price, discount, or surcharge that occurs in your business transactions.
Fixed Amount & Percentage.

Is SD the only module that uses condition technique?

What is a condition supplement and why would you use it?
A condition supplement is a supplement for a particular condition type. For example, you can include a supplement every time you apply a material price. The supplement can contain various discounts. During pricing, the system automatically applies the discounts defined in the supplement every time it accesses a material price. You define for which condition types you want to use condition supplements in Customizing for Sales.

Which partner function is relevant when it comes to tax calculation in the sales order?
Ship-to party.

Name at least three different condition types in pricing?
Price, Discounts, Freight. PROO, K007, KF00.
You can create scales for prices and discounts. Name the four possible scale basis in R/3.
Value, Quantity, Gross weight, Net weight, Volume.

Where would you specify that a condition type is a discount or a surcharge?
In Condition Type Details Screen.

If somebody adds price elements manually in the sales order or if somebody changes a discount the system determined automatically, do you have a possibility to see that in the sales order?

You want to list all condition records for a certain material or a certain sales organization. How would you do that?
By creating Pricing Reports.

Does the pricing procedure apply for the pricing data at item level or for the pricing data at header level?

When you create a header condition manually in the sales order the system can copy the values in different ways to the items. Where would you specify how the system should process?
Condition Type.

Which data do you have to maintain in SD so that the system can determine the sales taxes in the sales order automatically?
Tax rate with or without Jurisdiction.

What does the condition exclusion indicator do for you?
The system can exclude conditions so that they are not taken into account during pricing in sales documents.

Can you explain what a statistical condition is? Give an example for a statistical condition?

For what do you use customer hierarchies?
Pricing , Rebate.

Can you track cumulative values in R/3? If yes, it could be based on what?
Yes. Maximum Value, Maximum Orders, Maximum Quantity.

If you want to make sure that conditions records apply for a certain time period only what would you have to do?
Validity Period to be specified in condition record.

What is a group condition?
Condition which can be used to determine a scale value based on more than one item in a document. The system groups the items using either the condition key for the appropriate condition record or a separately defined condition key.

Name the influencing factors for pricing procedure determination during sales order entry?
Customer, Sales Document Type and Sales Area.

Can you copy condition records? If yes, are there any restrictions?
Yes. Field specific.

If you create a new condition type-do you also have to create a new condition table and a new access sequence?

Where can you specify that a condition is mandatory?
In Pricing Procedure.

Tax jurisdiction processing is a close link between which two modules?
FI & SD.

Do you have to create a condition record for taxes in the SD application?