SAP SD

PRICING PROCEDURE

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 SAP SD PRICING PROCEDURE

Sales Area (sales org , dist. channel, division ) + Customer pricing procedure + Document pricing procedure
OVKK
Pricing Procedure
V/08

Condition Type
V/06

Access Sequence
V/07

Condition Tables
V/05

Condition Records
VK11

SAP SD (Sales and Distribution) pricing procedure is a complex and versatile

functionality that allows you to define how the pricing of products and services is determined
in your organization's sales and distribution processes. It's a crucial aspect of the SAP system,
as it plays a pivotal role in calculating the final prices that customers are charged for their
orders.

STEP 1 :
GO TO T-CODE OVKK

1. SALES ORGANISATION + DISTRIBUTION CHANNEL + DIVISION = SALES AREA

2. DOCUMENT PRICING PROCEDURE

It comes under the document type ( Ex. OR, QT, KE ) . T-CODE FOR THIS IS VOV8

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3. CUSTOMER PRICING PROCEDURE
It comes under the customer pricing . T-CODE for this is BP

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 4. PRICING PROCEDURE
Standard pricing procedure is RVAJUS . For pricing procedure T-CODE IS V/08

5. Condition type for fast entry

The condition type that the system automatically proposes for fast entry during sales order
processing.

STEP 2 :
GO TO T-CODE V/08

There are 16 columns in the pricing procedure, these are going to be used by the system to
control the condition types.
1. STEP :- Number that determines the sequence of the conditions within a procedure. It
indicates the position of the condition type in pricing procedure. Ex.: 10, 15 etc.

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 :- It represents pricing element in pricing procedure as a base price,

discount, freight and tax. The condition type is used for different functions. In pricing,
for example, the condition type lets you differentiate between different kinds of
discount; in output determination, between different output types such as order

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 confirmation or delivery note; in batch determination, between different strategy
types.
Ex.: PR00 - Price
K004 - Material Discount
K005 - Customer/Material Discount K007 - Customer Discount.

4. 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.

6. Manual :- This indicator specifies whether the specific condition type can be
determined manually during sales order processing. If we check the box then the entry
is going to be manual, if we uncheck it, it is going to be automatic. For Base Price and
Taxes, the entry should be automatic.
 For Discounts and Freights, The entry should be manual.
 If we check the box, in VA01 when we go to conditions at the header/item level,
the condition type will not be listed. If we require we will have to manually
enter it.
 If we uncheck the box, in VA01 when we go to conditions at the header/item
level, the condition type will be listed.

7. Required :- Indicates whether the condition is mandatory when the system carries out
pricing using this pricing procedure.
If, for example, you always want to include a tax condition (VAT or sales tax) during
pricing, you can set this indicator for the appropriate tax condition type.

8. Mandatory :- This indicator specifies that particular condition type is mandatory in the
pricing procedure.
 If we check the box, then in VA01 at the header/item level in the conditions
tab, if we delete the value in the condition type and try to save the document
then system will not allow us to do it and throws an error.
 If we uncheck the box, then in VA01 at the header/item level in the conditions
tab, if we delete the value in the condition type and try to save the document
then system will allow us to save it, without giving any error.
 Mandatory check box should be checked in condition types which are
compulsorily required in pricing procedure. Ex.: PR00, MWST.
 If the condition type is checked with mandatory option, then value should be
maintained for that condition type, otherwise the system will not allow the
user to process the document.

9. Statistical :- This indicator if it is activated will not allow the value of the condition type
to be taken into net value calculation. It is used only for information purposes only.
This indicator causes a surcharge or discount to be set in the document statistically.
This is commonly used for condition types.

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 SKTO - Cash Discount
VPRS - Cost (Moving average price/Standard Price).

10. Print type: - The value of this field specifies whether line item can be printed or not in
the sales document and at what level it is to be printed.

11. Subtotal: - The value of this field determines where the values of subtotals to be
captured i.e. in which table and which field. Controls whether and in which fields
condition amounts or subtotals (for example, a customer discount or the cost of a
material) are stored.

12. Requirement: - It is a routine that is written by an ABAP consultant according to the

business requirement. By defining Requirement in condition technique we can restrict
the access of condition type.
 To understand the concept, we will take the example of the Rebates. Rebates are to
be included during the billing document processing and not in the sales document
processing. As rebates are given on the delivered quantity and not on the ordered
quantity (in case of cut-off period for rebates).
 For rebates we use the condition types BO01 to BO05, and in the Requirement column
we give the value 24 which is "Only in Billing Document".
 This Requirement will ensure that these condition types will appear only during the
billing document processing. If new Requirements are to be defined we follow the
procedure given below.
 Go to T-Code: VOFM. - Maintain Requirements & Formulas
 Click on the "Requirements" in the top menu and then click on "pricing".
 We have a list of requirements, we can ask ABAP consultant to create new
requirement based on the client requests.
 And we assign the application type like V - Sales/Distribution etc.

13. AltCty (Condition formula for alternative calculation type):- It is again a Routine that
is written by ABAP Consultant. It is an alternative formula for the condition type that
can be used instead of standard formulas.
For example, let us take the Profit Margin which can be both + / - , so here this routine
will help us in generating the value which can be either + or -. Profit margin is not a
condition type so it cannot be classified as +ve or -ve in the V/06.

14. AltCBV (Alternative formula for condition base value):- Formula for determining the
condition basis as an alternative to the standard. It is again a Routine that is written
by ABAP Consultant. It is used as a basis to calculate value of the condition type instead
of using it from the "FROM" column. Ex.: Freight - KF00.
Freight is calculated based on weight, volume etc. and not on the base price. In pricing
there is no entry of weight from which the value can be referred like we do for
discounts using base price. We have to get the value from the Material master.
In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.

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 During pricing, the system will consider the value that is mentioned in this column and
determine the freight based on this value.
Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention
13 in this column then the Freight condition KF00 will be calculated using the weight
as 100 kgs.

15. Account key:- Key that identifies different types of G/L account. The account key
enables the system to post amounts to certain types of revenue account. For example,
the system can post freight charges (generated by the freight pricing condition) to the
relevant freight revenue account.

16. Accruals:- Key which identifies various types of G/L accounts for accruals or
provisions. With the aid of the account key, the system can post amounts to certain
types of accruals accounts. For example, rebate accruals which are calculated from
pricing conditions can be posted to the corresponding account for rebate accruals.

STEP 3 :
Go to T-code V/06 ( Condition type )

Condition type is defined as specific features of daily pricing activities in a SAP system. Using
the condition type, you can also put different condition types for each pricing, discounts on
goods, tax and surcharge that occurs in business transactions.

Example :-

1. PR00 :- Price
2. K004 :- Material Discount
3. K005 :- Customer-Specific material discount
4. K007 :- Customer discount

In above image I highlighted next point that is access sequence .

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STEP 4 :
Go to T-code V/07 (Access Sequence)

This is the search strategy, which is used by the system to find valid data for a
particular condition type. It tells about the order in which a system searches for the
data. An access sequence consists of one or more access sequences. It helps the
system to search first, second and so on until it finds a valid record. An access sequence
is defined for each condition type where a condition record is created.

STEP 5 :
Go to T-code V/05 ( Condition Table)

Condition Table

A combination of fields that defines the key of a condition record.

Use

For each condition type in a pricing procedure, you define an access sequence. The access
sequence tells the system where to look for relevant condition records for a particular
condition type (a rebate for a specific customer, for example). Each access in the access
sequence refers to a condition table. The fields defined in the table (the key) help the system
to locate valid condition records.

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STEP 6 :
Go to T-code -VK11 (Condition records )
Condition type
The key that uniquely identifies the condition.
Use
The condition type indicates, for example, whether, during pricing, the system
applies a price, a discount, a surcharge, or other pricing elements, such as freight
costs and sales taxes. For each of these pricing elements, there is a condition
type defined in the system.

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