Pricing Procedure

Pricing Procedure

Pricing procedure defines a group of conditions available for pricing and their sequence in a sales document.

You can set the conditions in a pricing procedure as mandatory, manually entered conditions or for statistical purpose only.

You can specify requirements for each condition so that you can define under what condition a condition value should copied into a sales document.

The reference level provides a method to specify a different basis for the condition type calculation and for grouping conditions for subtotals.

To reach the pricing procedure screen from SD Customizing:

1. Choose Basic Functions àPricingàPricing controlàDefine and assign pricing procedures.
2. Select the transaction that you want to execute.

The 16 fields in a Pricing Procedure

1)      Step:

This indicates the number steps in a pricing procedure

It determines the sequence of the conditions within a procedure.

2)      Counter

System uses the counter to count the steps and also it can be used to count mini steps of same condition types. So that number of steps can be reduced in the pricing procedure and hence enhancing the system performance.

3)      Condition type

Condition type determines the category of a condition such as Ex.: PR00 - Price, K004 - Material Discount, K005 - Customer/Material Discount, K007 - Customer Discount

4)      Description

Just a Brief Description of the condition type.

5)      From

This can be used as a base to the condition type for calculating further value.

6)      From  and To

The range between the steps from and to can be used to specify the range between same condition types. So that depending upon the condition type, the system deducts or adds the total value of those condition types from specific common source.

7)      Mandatory

Ø  This indicator specifies whether the condition type is mandatory in the pricing procedure or not.

Ø  If we check the box, then that indicates that entering the value of this condition type in the document is mandatory. The system will not allow us to save the document without entering the particular condition type.

Ø  Condition types such as Price, Tax are mandatory condition types in a sales document.

8)      Manual

Ø  This indicator specifies that the specific condition type is manual.

Ø  In some cases for some customers we will get special discounts, in those cases we can use this condition types.

Ø  System will not determine this condition type automatically, instead we have to manually enter it.

9)      Statistical

1)      This indicator if it is activated will not allow the value of the condition type to be taken into net value calculation.

2)      It is used only for information purposes only.

3)      This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).

4)      This is commonly used for condition types

a.       SKTO - Cash Discount

b.      VPRS - Cost (Moving average price/Standard Price).

10)  Print

The activation of this function will enable the printing of the values and conditions to the document.

11)  Subtotal

Sub-total allows you to calculate each condition value for Information purposes.

12)  Requirement

1.      Requirement routine will determine additional prerequisites or dependencies on fulfillment of which, condition type will appear in the document.

13)  Alternative condition type

1)      Allows use of a formula as an alternative in finding the value of the condition type in place of standard condition technique.

14)  Alternative condition base value

1)       Alternative condition base value is a formula assigned to a condition type for the system to use an alternative base value for the calculation of a value.

15)  , 16) Account key/Accrual Key

The account as well as Accrual keys are form part of account determination. These keys are used to define the posting of the revenue generated to respective account heads& to subsequent assignment to GL accounts.

For example we assign the following account keys for the following condition types.

Ø  ERL --- For all revenues such as PROO

Ø  ERS --- For all Discount condition types like K004, K005 etc.

Ø  ERF --- For all Freight condition types KF00 etc.

Ø  ERB --- For all Rebates condition types BO01 to BO05

Ø  ERU --- For Rebate Accruals.