How to do Pricing in SAP SD

 
SAP Pricing is considered to be one of its strengths. It is used in multiple applications in Configuration of both SD and MM. The Multinationals and ex- CMM Level 5 companies use a complicated pricing schema in their business which cannot be handled by ordinary ERP solutions in the market. SAP does the job efficiently. However for SAP Consultants it is one of the challenges as  during the UAT they have to satisfy both the management and Super Users with practical demonstration. The following gives an introduction about Pricing to the SD Consultants. 

Applications of Condition Technique :

Following are the applications of condition techniques

1.       Pricing

2.       Account Determination

3.       Output Determination

4.       Batch Determination

Pricing Elements              : Price, Discount/Surcharge, Freight and Tax are called Pricing Elements

Pricing Procedure            : It is used to determine valid condition record

Pricing Procedure Determination               : Sales Area, Customer Pricing Procedure, Sales Doc Pricing Procedure

Header Conditions         : Header conditions are automatically distributed among Items.

1.       Header Conditions has to be marked as Group Condition in order to be distributed among Items

2.       Header conditions are distributed among Items on the basis of Value, Volume and Weight

3.       The basis of distribution of header condition among Items is set in Base Formula field in Pricing Procedure in the IMG

Pricing in Billing               : Pricing can be done again at Billing level using following Pricing Types

A: pricing Elements copied from Reference document and updated according to scales

B: Pricing is carried out again

C:  Manual Pricing Elements are adopted & pricing is carried out again for remaining pricing elements

D: Pricing Elements are copied from Reference document

G: Pricing Elements are copied from Reference document and Tax re-determined

H: Pricing Elements are copied from Reference document and Freight re-determined

Condition Exclusion       : Condition exclusion can be used to determine the Best Price

1.       Condition exclusion is performed using Exclusion group

2.       Exclusion group is a combination of condition types

3.       During Pricing the conditions which give best price are selected from the exclusion group and the others are de-activated

4.       The cumulative value of a condition can be tracked and displayed in a condition record

Condition Supplements:  These are the condition types which are added to the condition record

Important Condition Types      : Following are important condition types.

1.       HM00    : Manual Header condition to enter Order value

2.       AMIW   : Min Order Value, Statistical group condition whose value is distributed among items

3.       DIFF       :  Group Condition to calculate diff b/w the rounded value & Net order value. 

4.       PN00     : Net Prince for Item,

5.       PMIN    : Min price for the material

6.       PR02      : Prices with scales [scale type=D]

7.       KF00      : Freight Surcharge

8.       HD00     : Manual Freight Surcharge

Note: Rounding Unit is maintained in Table OO1R for each company code and currency