What is Pricing Procedure?

Pricing procedure in MM module is a way to determine prices in purchasing documents. It

give us functionality to assign different calculation types for different needs. Defining a
pricing procedure can be done by creating an access sequence, and assigning it to condition
types. Access sequence tells the system where to look for the condition values. It can search
multiple condition tables based on our settings. Tables have different priority, and different
key fields. Determination of the pricing procedure is practically assigning the calculation
schema to a combination of vendor schema group and purchasing organization schema group.
So, you need to enter the vendor schema group on vendor master, and assign schema group to
purchasing organization, in order for the system to find the calculation schema to be used in
the document.

In order to setup a pricing procedure in purchasing documents, you need access to the
customizing features.

In General, the Pricing structure or break up provided by vendors is under the following format
Particulars                                                  Rs.           Condition Types
Gross Price  (@5%):--------------------100.00                     PB00
Discount on Gross Price----------------5.00                        RA01
Gross Price after Discount--------------95.00 
Excise duty @ 10% on GP after                                           ED00
Discount---------------------------------9.50
Sub Total--------------------------------104.50  
Sales Tax @ 10% on subtotal-----------10.45                      ST00 
Freight 20% on GP----------------------20.00                      FRA1
Packing 2% on GP-----------------------2.00                       PK00
Total Price--------------------------------136.95  

aIMG path to the available functions:

Transaction SPRO => Materials Management => Purchasing => Conditions => Define

Price determ.process
Following functions can be used to maintain the pricing procedure. There are more settings
concerning the pricing procedure, but we will cover the most used ones.

 Define Access Sequence

To define and maintain access sequences, you need to follow a few simple steps.

Step 1) Go to SPRO > Materials management > Purchasing> Conditions> Define price
determination process> Define access sequences.

As shown below , you will find a dialog structure of Access sequences, Accesses and Fields.

1. Choose the Access sequence you want to maintain (PB01 gross price).

2. Double click the Accesses folder in the dialog structure.
Step 2) In the next step you define access methods for the access sequence. You can see that
several access methods are present for one sequence.

Every one of them is exclusive. It means that if a record is found in first access (Contract
item), meaning that if the system finds a condition available from the Contract item, it will
not search further, and that value will be used. If not, system will follow the other accesses in
order to find appropriate entry.

You can also set a requirement for an access method to be used. For example, there is a
requirement 35 assigned to access 10, which uses condition table 17 - Material Info Record
(Plant-Specific).
A requirement for access number 10 is 35 - Plant info record. If there is no plant info record
for the combination of the values in table 17, access 10 will not be used at all.

Step 3)

1. Select the access you want to modify.

2. Choose the lowest level folder in dialog structure - Fields.

Step 4)

1. You can see we are located on the details screen for access sequence PB01, access 20 and
table 18.
2. The key fields of a condition table used in the condition access are showed here.

Condition table consists of condition fields which have certain attributes assigned to them.
When the system tries to access a condition record it uses these attributes.
  Special value source – this field contains a value to be used as default while accessing (e.g.
using a fixed info record category for the access sequence)
 Init – if this box is checked system will allow initial value for this field while accessing the
condition table. If not system will not process the condition table lookup.
 Atyp – processing type in access. You can specify if the field is relevant for condition access
if it is part of a free or fixed key type. Default is left blank (fixed key type).
 Priority – priority of a field (characteristic), it can be set from 01 to 99. Most of the time this
field is left blank.

Define condition tables

Now, when we know what is a condition table, what it is used for, we can see where a
condition table can be defined, and what option we have while creating it.

As you have seen in the previous topic, we have used table 18 – Material Info Record in our
example.

Let's see where and how it is defined.

Step 1)

1. Execute the transaction code V/05 and on the initial screen enter our table number - 18.
2. In the section 2, you can see our table definition, table number, description, and two options
that can be selected. First means use of the validity period (always recommended) and the
other is a check for release status of the record. If checked, only released info records will be
taken into account while searching for the condition.
3. Here is the list of fields you have already seen in the Define access sequence topic.

You can see how is the table defined for later use in customizing the access sequence.
V/05 transaction is used for displaying a condition table.

V/04 transaction is used for changing a condition table.

V/03 transaction is used for creating a condition table.

Now you can define a new condition table if it is required, in order to use it in the access
sequence definition. Most of the times new access tables aren't required since a vast number
of predefined tables.

Step 1)

1. Enter t-code M/03 and execute it.

2. Choose your new table number (must be unused, e.g. 818).
3. If you want to copy an existing table into your new table, you can select the source table here.
This is useful if your table is similar to another existing table, and needs only a simple change
to fulfill the requirements.
Step 2) On the next screen, you can do all of the settings for a condition table, and generate
it.

1. Click this button if you want to edit the description.

2. Choose if your table should check validity periods and release statuses.
3. List of current fields. You can select any field you want to remove (by single clicking it) and
choose the remove icon (List icon with a red minus sign).
4. You can add fields from field catalog by double clicking them.
5. You need to generate the table in order for it to be used by pricing functions.

You can also use right click to delete or add a field to your table, as well as to navigate the
Field catalog on the right side of the screen. Not all of the fields can be shown in a single
page of field catalog.
After successful creation, you will be prompted to create a change request and afterwards,
you will be presented a log screen like you can see on the following screen.

You have successfully generated a condition table let's see if we can see it in the access
sequence maintenance screens.

It's there, so now we can create an access using this table. We will not cover this in detail as it
is extremely straight forward process.

On the accesses node of our access sequence, choose New entries button. You can create
access like in the below screen for testing purposes.

Fields should also be assigned to our access PB01 – 96 in order for it to work properly

How to Define Condition Types in SAP

Defining of condition types can be done in few simple steps.

Step 1)
In the IMG, click on the define condition types option.

Step 2)

Choose Define Condition Type option.

Step 3)

You can find all of the existing entries for condition types.

1. Click on the desired condition you would like to change.

2. Click this icon to choose the selected condition and enter the change mode.
3. If you want to create a new entry click on New entries. In this case, you don't have to select
any existing entries.
4. If you want to create a new condition type by copying an existing condition type (it will
inherit it's setting which you can change – just like copying a condition table in the previous
topic), you can choose this icon – copy condition type.

You have several more actions at your disposal: deletion, selecting all condition types, deselecting all
condition types.
If you select multiple condition types, you can edit them all by navigating through them in
the following screen (arrow left and right or F7 and F8).

This screen has a lot of settings for a condition type, let's review the most important.

Step 4)

First section of the screen contains condition type PB00, description, and access sequence
used for condition determination.

A) Control data 1 section contains the following:

1. Condition class (e.g. prices, discounts, taxes)

2. Calculation type (e.g. quantity, percentage, fixed amount, formula)
3. Condition category (e.g. basic price, input tax)
4. Rounding rule (e.g. commercial, round up, round down)
 5. Plus/minus (indicates if a condition can be positive, negative or both)

B) Group condition section:

1. Group condition (indicates if a condition calculates its value by more than one item in the
document)
2. RoundDiffComp (rounding difference comparison)
3. Group condition routine (routine that calculates the value)

C) Changes which can be made section:

1. Manual entries (e.g. no limitations, not possible, manual entry has priority)

2. Header condition (indicates if a condition can be used at header level)
3. Item condition (indicates if a condition can be used at item level)
4. Delete (indicates if a condition can be deleted)
5. Amount/percent (can amount/percentage be changed)
6. Value (can value be changed)
7. Qty. relation (can conversion factor between UoMs be changed during processing)
8. Calculat. Type (can calculation type be changed during processing)

  

Step 5)

The other section on the lower end of the same screen are:

D) Master data section:
 1. Valid to (default date to use)
2. Pricing Proc. (pricing procedure to be used for this condition type)
3. Delete fr. DB (deletion procedure for this condition type)

E) Scales section:

1. Scale basis (e.g. quantity scale, value scale)

2. Check value (default blank)
3. Scale type (controls the validity of the value/quantity)

F) Control data 2 section:

1. Currency Conv. (indicates if currency conversion is allowed)

2. Accruals (if you check this box you indicate that it is a statistical condition)
3. Promotion condition (is this condition relevant only for promotions)
4. Quantity conversion (controls how quantity conversion will be processed)
5. Exclusion (condition exclusion indicator – e.g. gross price, tax code, delivery cost)
6. Rel.Acc.Assig (determines if the condition type is relevant for account assignment)

When you are done with creating, changing or copying of the condition type, you can save
your changes.
How to Define Calculation Schema in SAP

As you saw in the previous topic, a condition type is assigned a calculation schema. It is
defined in customizing.

Step 1)

In IMG, Choose Define Calculation Schema option.

Step 2)

1. You can see that the initial screen contains a dialog structure with Schemas as the top
level.Additionally, you can drop down to Control data.
2. Right portion of the screen shows Usage and Application data.We can see that usage is to A –
Pricing, and application is set to M – Purchasing.
3. Contains a list of schemas and its short description

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Step 3)

1. Click on the schema you want to change

2. Double click the Control data node.
Step 4)

The following table of condition types (reference steps) is used in this calculation schema.
There are a number of options for condition types that can be set for this calculation schema
(different settings could be set for the same condition type in the other calculation
schema). List of possible options with a short description:

1. Step (indicates the sequence of the procedure)

2. Counter (counts the number of conditions in a step)
3. Condition type (one of the already defined condition types - previous topic)
4. From (reference step to be used as a base for calculating percentage conditions)
5. To (up to which step the conditions should be used as a base for calculating percentage
conditions)
6. Manual (allowed to be entered manually)
7. Required (required condition)
8. Statistics (only statistical condition)
9. Print (printing control for condition)
10. Subtotal (how to calculate the subtotal)
11. Requirement (custom routine for the requirement)
12. CalType (calculating routine - if custom routine is needed)
13. BasType (custom routine for base condition value)
14. AccKey (G/L account key)
15. AccrualAccKey (G/L account key for accruals or provisions)

After the right settings are applied to all of the conditions in a procedure you can save the
transaction data.

How to Define Schema Group & Determination in SAP

In this tutorial, we will learn

 How to Define Schema Group

 How to Define Schema Determination
How to Define Schema Group
We can create schema groups for purchase organization or vendor.

Schema groups are then assigned to purchase organizations in customizing and to vendors in
vendor master record. They are used to map the pricing determination process based on the
vendor or purchase organization.

Step 1)

1. Choose Define Schema Group from SPRO IMG path like in the previous topics.
2. From the menu below, choose Schema Groups: Vendor.

Step 2)
On the next screen, you can define schema group for use in vendor master & maintain a
description of your vendor schema groups.

You define only schema group number and description. There are no settings as this is used
to be assigned to the vendor master record.

For example, we might need to create a new group 02 – Schema vendor 02.

Step 3)
Next, choose schema groups for purchasing organizations from main schema group menu.

Define your schema groups per your requirement. You define only schema group number and
description. No settings either, just an indicator assigned to a purchasing organization.

Step 4)

Choose Assignment of Schema Group to Purchasing Organization from schema group

menu.
Assign desired schema group to purchasing organization. As you can see on the below screen, the
field on the right is left blank, that is because if you leave it blank, it means that the default
purchase organization schema should be used.

If you want to use a standard schema for group organization, leave the field in the previous
screen blank, and if you want to choose the Schema 0001 enter 0001 in the field marked in
the upper screen. Screen with the available schemas for assignment to purchasing
organization is available in the previous step (same as on below screen).
Step 5)

Assigning a schema group in the vendor master.

Go to the purchasing data view. You will see Schema group, Vendor field. You can choose
whichever schema group is suitable for this vendor, default is left blank for standard schema
vendor.

You can see that this field is maintained at purchasing organization organizational level
(0001), so in combination with schema group for that purchasing organization, if we check
tables, the selected calculation schema will be RM0000 – Purchasing Document (Big), as
you can see in the next topic.

How to Define Schema Determination

Determination of calculation schema is a customizing activity.

You have to assign a pricing procedure to a schema group purchasing organization / schema
group vendor combination.

Settings are located in Define schema determination option.

Step 1)

Choose Determination Calculation schema for Standard Purchase Orders.

Step 2)

 Choose schema group for purchasing organization.

 Choose schema group for vendor.
 Choose calculation schema to be assigned to the purch.org/vendor schema group
combination.

Let's analyze two records on this screen.

1. In case 1, we have chosen default schema group for purchasing organization (first field is
empty), also, default schema group for vendor (second field is empty), for this combination of
both default schema groups, we assigned a RM0000 (Purchasing document - Big) calculation
schema.
2. In case 2, we have chosen schema group for purchasing organization as 0001, and schema
group for vendor as 01, and assigned an RM1000 calculation schema to the combination.

How does it work?

Let's say that we have a purchase organization 0001 with blank (default) schema group

assigned to it, and a purchase organization 0002 with schema group 0001 assigned to it (not
default).

We also have a vendor 1 with assigned schema group as blank (default), and vendor 2 with
schema group defined as 01 (not default).

 In case we are creating a purchase order through purchasing group 0001 for vendor 1, our
calculation schema is going to be determined as RM0000.
 If we are creating a PO for vendor 2 through purchasing organization 0001, calculation
schema RM1000 will be determined.
 If we are creating a PO for any of the two vendors in purchasing organization 0002, in both
cases there will be determined calculation schema RM1000.