Prerequisites for Automatic SAP SD Pricing

For the system to automatically determine pricing, the following prerequisites must be met:

• Condition records must already exist in the system for each of the condition types that you want the system to apply automatically. For further information about creating and maintaining condition records, see
Condition Records.
• Where necessary, data must be maintained in the corresponding customer and material master records. If, for example, you want to apply discounts to special groups of customers or materials, then the system can only carry out automatic pricing when the groups are specified within the relevant customer or material master records.

Material Master Data

The fields in the material master record that relate to pricing are on the Sales 2 screen.

• Tax classification: Indicates to what extent the material is liable for sales taxes. (In the US, for example, there may be tax classifications for sales tax at the state, city, and county levels). This information appears in a separate screen. In this case, from the Sales 2 screen, choose Details
® Sales details ® Taxes
• Pricing reference material: In this field you can specify another material as a reference for pricing information. If you specify a reference, the system, uses all the condition records that apply to the reference material during automatic pricing.
• Material group: A material group defines a group of materials for which you want to apply the same condition record. For example, using a material group, you can specify a discount that applies to a particular range of products.
• Cash discount: In this field you can specify whether or not the material qualifies for a cash discount.

Customer Master Data

Most fields in the customer master record that relate to pricing appear on the Sales screen.

• Customer pricing procedure: Here you specify the pricing procedure for a customer. You create and maintain pricing procedures in Customizing for Sales and Distribution. During sales order processing the pricing procedure determines the kinds of pricing element you can use and in which sequence they are processed.
• Price list type: Price list types allow you to apply a material price in a particular currency to a group of customers. For example, you can specify a price list type that applies to all wholesale customers in one of your export markets.
• Price group: Price groups let you apply a discount to a particular group of customers.
• Tax classification: In this field you specify the tax liability of the customer. If there is more than one tax classification for a customer, the information appears on a separate screen. In this case, you choose ENTER to select the following screen.

If your business operates in the U. S., you must maintain some additional data so that the system can automatically determine sales taxes. In the Control data screen, you should maintain the County code and City code fields.