Pricing Flashcards
7 Steps of the condition technique
- Field Catalog
- Condition table
- Access sequence
- Condition type
- Pricing Procedure
- Pricing Procedure Determination
- Condition Record
Field Catalog
The list of fields that can be used as a base for pricing. That is to say, a list of fields which are used for how a price is determined.
Condition Table
A subset of the fields from the field catalog which will comprise the particular fields for that specific pricing scenario
Access sequence
The sequence in which the condition tables need to be accessed
Condition Type
The type of computation i.e. price, surcharges, discounts, taxes
Pricing Procedure
Place where all the condition types are together
- Pricing
- Discounts
- Taxes
- Freights
- Surcharge
Pricing Procedure Determination
Sales Area + Document pricing procedure + Customer pricing procedure
Condition Records
The determining of the actual cost
VOK0
Pricing configuration
Condition Table namespace
1-600 Reserved for SAP Standard
6019-999 Customizable
V/06
Condition type configuration
5 types of condition types
Prices Discounts Taxes Freights Surcharges
Pricing Procedure Field: Subtotals
A summation of multiple condition types. Used when you want to store the sum of certain condition types to then use later.
Pricing Procedure Field: Manual
Conditions that can only be inputted into the order manually
Pricing Procedure Field: Required
Condition type is mandatory
Pricing Procedure Field: Statistical flag
Not used in calculating the price
Pricing Procedure Field: Requirement
Determines whether the condition type is applied or not
Pricing Procedure Field: Calculation routine
Custom routine to compute the price or the value of the condition type
Promotion
For generating higher sales in a specific time.
Particularly useful for retailers who sell in physical stores as well as e-commerce.
Defined for specific period
Can have multiple sales deals
Works like a condition type
Sales Deal
A representation of a promotion
Defined as a group of two or more condition types executed during the order processing for the promotional period
Defines a marketing deal for a certain product
Rebates
Rebate agreement is a special agreement granted to the customer on a specific volume of sales over a specific period of time.
Sales deal assignment
You assign promotions in the “Assignment” section of Sales deals creation/change
Sales deal assignment
You assign promotions in the “Assignment” section of Sales deals creation/change
Sales deal break down
The type of sales deal i.e. Z8C1 annual sales
Condition types for the sales deal Z8C1 i.e.
Z8CK Freight Discount, Z8D7 A/S by Mat Group
The condition records for said condition type which is based on a key combination/condition table
i.e. Condition record 1 for Z8CK based on Material group, for sales deal type Z8C1
Rebate Configuration
Define agreement type
Define condition type group
Maintain the category of the condition type group
Assign condition types and condition tables to the condition type group
Assign agreement types to the condition type group
Condition types and condition records for rebates vs for discounts
Rebates have condition type groups, whereas discounts only have condition types
Rebates accrue whereas discounts are one time bangs
Pricing reports
Put together information from condition records, condition types and condition tables according to various different criteria.
Customer Hierarchy
Used to apply pricing elements to a collection of customers
Hierarchy partners functionality
The partners functions from the higher level customer get passed down to lower level customer at the sales document header level
Customer Hierarchy Configuration
Configure Hierarchy type
Set partner determination for hierarchy categories
Assign account groups
Assign Sales areas
Assign Hierarchy type for pricing by sales document type
Hierarchy nodes placement
Hierarchy nodes are not put into the customer master, but are put into the sales document
Customer hierarchy partner functions source
Can only come from the sold-to
Condition Exclusion
There might be a scenario’s where system determines records for more than one condition type in the pricing procedure. In order to avoid this we can set up conditions or a group of conditions to be mutually exclusive.
Condition Exclusion Configuration
Define condition exclusion groups
Assign condition types to exclusion groups
Maintain condition exclusion for pricing procedure
Group conditions
Some conditions to be used as the scale base value or the condition value taking all related items of the business document into account.
For a group condition to be effective..
the items must belong to a group
Reference condition types
Condition type that references another, thus only the main condition type requires condition records
Hierarchy Access
Using one condition table with one access
Hierarchy Access: Free fields
Fields which act as optional fields during condition record maintenance, allowing any number of combinations of characteristics for an access.
Header condition
Does not have access sequence like item conditions (typical condition type) therefore, you don’t maintain condition records and thus are manual conditions
Group conditions always work on…
Total order quantity
Exclusion group
A container for condition types that need to be compared during condition exclusion
Exclusion method A
Multiple condition types compared and best condition record is chosen, the rest are discarded
Exclusion method B
All condition records for 1 condition type are compared, the best is selected with the others deactivated
Exclusion method C
Best condition record between two exclusion groups
Exclusion method D
If condition record is determined for the first exclusion group, then condition records for the second exclusion group are deactivated
Exclusion method E
Similar to method B, but now highest price will be chosen
Exclusion method F
Similar to method C, but the highest price will now be selected
Exclusion method L
Similar to A, but giving the highest price
Free Goods
Free Goods in SAP is giving certain material/quantity as free of charge based on Order quantity
Types of Free Goods
Free Goods are of two types in SAP, Inclusive Free Goods and Exclusive Free Goods
Inclusive Free Goods
If the Free Goods quantity is a part of Order quantity, it is said to be Inclusive Free Goods. Also, called inclusive bonus quantity.
Example: Buy 10 get 1 free is the Policy. Customer is charged for 9 qty. only and one is given free.
Exclusive Free Goods
If the Free Goods quantity is in addition to Order quantity, it is said to be Exclusive Free Goods. Also called exclusive bonus quantity.
Example: Buy 10 get 1 free is the Policy. Customer is charged for 10 qty. and one is given extra.
The material being given free could be different from Ordered material.
Free good aspects
Can specify a validity period for the free goods agreement
can specify a minimum quantity for which free goods is to be granted
Different rules for determining the free goods quantity
proportional (rule 1)
related to number of units (rule 2)
only for whole units (rule 3)
Free goods proportional (rule 1)
You grant 10 pieces of a material as exclusive free goods for an order of 100 pieces.
A customer orders 150 pieces. They receive quantity of 15 free goods.
Free goods related to number of units (rule 2)
You grant 10 pieces of a material as exclusive free goods for an order of 100 pieces.
A customer orders 150 pieces. They receive quantity of 10 free goods.
Free goods only for whole units (rule 3)
You grant 10 pieces of a material as exclusive free goods for an order of 100 pieces.
A customer orders 150 pieces. They receive quantity of 0 free goods.
Free goods Delivery controlling
you can control whether the free goods are processed independently or whether they are only copied to the delivery for partial delivery or full delivery
PR00
Standard Price condition type
K004
Material discount
K005
Customer-specific material discount
K007
Customer discount
K020
Price group discount
KF00
Freight surcharge
UTX1
State tax
UTX2
County Tax
UTX3
City Tax
Types of Scales
Graduated-To
From
To
Graduated-To Scales
Start from a number and each level adds ontop of the next
10 qty for $10
20 qty for $12
30 qty for $13
So qty of 30 would be $35
From Scales
Anything below is not considered
From 10 qty is $10
From 20 qty is $12
From 30 qty is $13
So 22 qty is $12
To Scales
Everything below is considered. It is Graduated-To but without the adding of the previous
To 10 qty is $10
To 20 qty is $12
To 30 qty is $13
So 15 is $10
Condition type config: Condition class
Used by the system to determine what conditions it must re-determine and when.
For example, a copying rule may indicate to copy pricing conditions unchanged and re-determine taxes; the system would then use this indicator to determine what condition types are taxes.
Condition type config: Condition category
Used by the system to categorize condition types into like groups
Condition type config: Rounding rule
Indicates the system is to use commercial rounding in discovering the value of the condition record
Three rounding rules for condition types
Commercial Rounding - 1.2 = 1, 1.6 =2
Always round up - 1.2 = 2
Always round down - 1.9 = 1
StrucCond.
Controls whether the condition type should be a duplicated or cumulated condition
duplicated condition, duplicated onto all assigned items
cumulated condition, contains the net value of all assigned items
Condition type config: RoundDiffComp
Controls whether rounding difference is settled for group conditions with a group key routine
System compares the condition value at header leve with the total of the condition values at item level. Difference is added to the largest item.
Condition type config: GrpCond.routine
Identifies a routine that calculates the basis for the scale value when a group condition occurs in pricing
Condition type config: Manual entry has priority
Controls the priority within a condition type between a condition entered manually and a condition determined by the system
Condition type config: Qty relation
determines if you can change the conversion factors for the units of measure
Condition type config Changes which can be made options
Header condit. Item condition Delete Value Amount/percent Qty relation Calculat.type
Condition type config: valid from and valid to
The default proposed validity dates in condition records
Condition type config: RefConType
Used if you want to refer to another condition type, thus only creating condition records for the reference
Condition type config: delete fr. DB
Controls how system behaves when deleting condition records
Condition type config: Obsolete
Controls how the system responds to when condition records are maintained
Condition type config: Condition index
Specifies whether the system updates one or more condition indices when maintaining condition records
Condition type config: Condit.update
You can make the use of a particular condition record dependent upon the total value of the document
Condition type config: Scale basis
Determines how the scale must be calculated, i.e. value-based or quantity-based
Condition type config: Scale formula
May be used with a routine to determine the scale base value
Condition type config: Check value
Determines if the scale should always be ascending or descending.
Customer receives $10 discount for a purchase from 0 to 100 items, $20 for a purchase from 101 to 200 items, and $5 for a purchase from 201 to 999, 999
Condition type config: Scale type
Left blank to indicate the scale can be set up in the condition record
Condition type config: Unit of measure
System use this particular unit of measure when calculating the scale
Condition type config: Currency conv.
System converts the condition currency to the document currency after multiplication of items
Condition type config: Accurals
makes value determined by this condition type statistical
Condition type config: Inv.list cond.
Makes the condition type as relevant for internal costing
Condition type config: Int-comBillCond
Permits you to indicate that this condition type is used for internal costing
Condition type config: ServiceChgeSe
Indicates that the trading contract conditions should be calculated using the vendor billing document
Condition type config: Variant cond.
No longer used, was for variant conditions
Condition type config: Qty conversion
Determines the quantity conversion during determination of the condition basis. Only relevant if the sales quantity unit and the condition quantity unit are identical.
Condition type config: Exclusion
Indicates whether system automatically excludes the discounts that are proposed during pricing
Condition type config: Pricing date
System date that must be used to determine a condition record’s validity
Condition type config: Rel.Acc.Assig
Used to identify if standard account determination or specific account determination must take place
Condition type config other fields
Plus/minus
Text determination
Text ID
Cost Determination set up location
Item Category
VPRS condition type
captures Cost of the material which is copied from Valuation segment from Material master Depending on customisation of Condition type - condition Category.
VPRS should have subtotal as B and requirement as 4
Rebate Agreement type config: verification levels
determines the level of detail one sees when displaying totals for a rebate agreement
Rebate Agreement type config: Different val. period
Controls whether condition records within a rebate agreement must have exactly the same validity period as the agreement itself
Rebate Agreement type config Payment procedure
If you wish to make manual payments of the rebate to the recipient
Rebate Agreement type config: Manual Accruals flag
Used if you want to be able to post manual accruals for this agreement type
Rebate Agreement type config: Arrangement calendar
Defines the end of the validity period and controls their extension
Rebate Agreement type config Reverse accruals flag
Should the accruals not be as high as the payment to be made, the system will reverse whatever accruals it h
Rebate Agreement type config Reverse accruals flag
Should the accruals not be as high as the payment to be made, the system will reverse whatever accruals it h
Rebate Agreement type config: Settlement periods
Define the periodic partial settlement is to be carried out for a rebate agreement
Rebate Agreement type config: Settlement periods
Define the periodic partial settlement is to be carried out for a rebate agreement
Rebate Agreement type config: Correction
Specifies the sales document that the system automatically uses to correct the values
Rebate Agreement type config: Correction
Specifies the sales document that the system automatically uses to correct the values on which the rebate payment is based
Rebate Agreement type config: Minimum status
Specifies the minimum status that a rebate agreement must have before the settlement can be calculated
Rebate Agreement type config other fields
TextDetermProc.
Text ID
Retroactive Rebate Processing
You can create a rebate agreement with a validity period starting in the past. The system does not post accruals for billing documents created in the past though.
Rebate Index
Used to settle retroactive rebate agreements
Changes which necessitate restructure of rebate index
New rebate relevance of sales orgs
New rebate relevance of billing types
New rebate relevance of payers
Creation or inclusion of new accesses for rebate processing
Pricing limits
For condition types that may be altered manually, you ensure that there is no room for abuse.
Condition Supplements
Group of conditions that you want to apply every time a certain condition is found
Tax determined based on…
Org structure, Country, Region, City
Of delivering plants and country of receiving customer along with tax relevancy indicators on customer master and MM record
Determination of the tax classification number Determination A
Tax number and Tax indicator classification is generally taken from sold-to party customer master record
Determination of the tax classification number Determination B
Indicates the tax number and tax classification is generally taken from the customer master record of the payer
Determination of the tax classification number Determination Blank (priority rule)
System determines the tax umber and the tax classification according to the following sequence
- If payer has VAT registration number and is identical to the sold-to party, tax number and tax classification are copied from the payer. Tax number is copied according to the “country of destination relevant for taxes”
- If ship-to party has a VAT registration number and the sold-to party does not, tax number, and tax classification are copied from the ship-to party
- If step 2 does not apply, Tax number and tax classification are copied from sold-to party
Determination of the tax classification number Determination C
Same as the priority rule except the destination country is taken from the ship-to party
VAT registration number
11 characters, and starts with the ISO code for the country
Condition type config: RefApplicatio
Using condition types from other applications
Different sections of pricing report
Page Header
Items
Group Header
