SAP SD Pricing and Conditions

Purpose

The term pricing is used broadly to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting). Conditions represent a set of circumstances that apply when a price is calculated. For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here - the customer, the product, the order quantity, the date - determine the final price the customer gets. The information about each of these factors can be stored in the system as master data. This master data is stored in the form of condition records.

The Condition Technique in Pricing

The condition technique refers to the method by which the system determines prices from information stored in condition records. In Sales and Distribution, the various elements used in the condition technique are set up and controlled in Customizing. During sales order processing, the system uses the condition technique to determine a variety of important pricing information. For example, the system automatically determines which gross price the customer should be charged and which discounts and surcharges are relevant given the conditions that apply.

Example of Pricing in the Sales Order

The following figure shows how the condition technique works in the background to produce the pricing information. The diagram shows how the various elements in the condition technique work together.

1. The system determines the pricing procedure according to information defined in the sales document type and the customer master record.
2. The pricing procedure defines the valid condition types and the sequence in which they appear in the sales order. In the example, the system takes the first condition type (PR00) in the pricing procedure and begins the search for a valid condition record.
3. Each condition type in the pricing procedure can have an access sequence assigned to it. In this case, the system uses access sequence PR00. The system makes the specified accesses until it finds a valid condition record. (Although this diagram does not show it, each access specifies a particular condition table. The table provides the key with which the system searches for records).
4. In the example, the first access (searching for a customer-specific material price) is unsuccessful. The system moves on to the next access and finds a valid record.
5. The system determines the price according to information stored in the condition record. If a pricing scale exists, the system calculates the appropriate price. In the example, the sales order item is for 120 pieces of the material. Using the scale price that applies to quantities from 100 pieces and more, the system determines a price of USD 99 per piece.

The system repeats this process for each condition type in the pricing procedure determines a final price.

For further information on the condition technique, see Introduction to the Condition Technique

SAP Introduction to the Condition Technique Pricing And Conditions

Use

This section describes the elements within the condition technique. It is organized to reflect the likely sequence of events that you go through when you implement pricing in Customizing. The standard R/3 System includes predefined elements for routine pricing activities. For example, the standard system includes condition types for basic pricing elements, such as material prices, customer and material discounts, and surcharges such as freight and sales taxes. In the case of each element, you can use the standard version, modify the standard version, or create entirely new definitions to suit your own business needs. The sequence of activities is generally as follows:

1. Define condition types for each of the price elements (prices, discounts, and surcharges) that occur in your daily business transactions.
2. Define the condition tables that enable you to store and retrieve condition records for each of the different condition types.
3. Define the access sequences that enable the system to find valid condition records.
4. Group condition types and establish their sequence in pricing procedures.

For more information about implementing and customizing pricing in sales order processing, see Customizing for Sales and Distribution.

For a more technical description of how the condition technique works, see the Business Workflow documentation for Message Control.

Elements Used in the Condition Technique

Condition Types

Condition Tables

Access Sequences

Pricing procedures

SAP Condition Types Pricing And Conditions

Use

A condition type is a representation in the system of some aspect of your daily pricing activities. For example, you can define a different condition type for each kind of price, discount, or surcharge that occurs in your business transactions.

Example of a Condition Type

You define the condition type for a special material discount. You specify that the system calculates the discount as an amount (for example, a discount of USD 1 per sales unit).Alternatively, you can specify that the system calculates the discount as a percentage (for example: a 2% discount for orders over 1,000 units). If you want to use both possibilities, you must define two separate condition types. The following figure illustrates how condition types can be used during pricing in a sales document.

In the example in the preceding figure, two discounts apply to the item in the sales order. The first discount is a percentage discount based on the quantity ordered. The second discount is a fixed discount based on the total weight of the item.

Condition Types in the Standard R/3 System

The standard system includes, among many others, the following predefined condition types:

Condition type	Description
PR00	Price
K004	Material discount
K005	Customer-specific material discount
K007	Customer discount
K020	Price group discount
KF00	Freight surcharge (by item)
UTX1	State tax
UTX2	County tax
UTX3	City tax

Creating and Maintaining Condition Types

You can change and maintain condition types provided in the standard version of the SAP R/3 System or you can create new condition types to suit the needs of your own organization. You create and maintain condition types in Customizing.

To reach the condition type screen from the initial Customizing screen for Sales and Distribution:

1. Choose Basic Functions
® Pricing ® Pricing Control ® Define accesss sequences and condition types.

A dialog-box appears, listing the transaction options. Select the corresponding transaction for defining the condition types.

2. In the Conditions: Condition Types screen, you can change existing condition types or create new ones.

SAP Pricing And Conditions Condition Tables

Use

A condition table defines the combination of fields (the key) that identifies an individual condition record. A condition record is how the system stores the specific condition data that you enter in the system as condition records. For example, when you enter the price for a product or a special discount for a good customer, you create individual condition records.

Example of a Condition Table

A sales department creates condition records for customer-specific material prices. The standard R/3 System includes condition table 005 for this purpose. The key of table 005 includes the following fields:

• Sales organization
• Distribution channel
• Customer
• Material

The first two fields identify important organizational data and the last two fields express the relationship between customers and specific materials. When the sales department creates a condition record for a material price or discount that is specific to one customer, the system automatically uses condition table 005 to define the key and store the record.

The following figure illustrates the connection between the condition table and the subsequent condition records.

Condition Tables in the Standard Version

The standard system includes predefined condition tables and specifies them for each access in each predefined access sequence.

Creating or Maintaining Condition Tables

You can change and maintain the condition tables in the standard system. You can also create new condition tables to meet the needs of your own organization. You create and maintain condition tables in Customizing.

From the initial screen of Customizing for Sales and Distribution, you reach the condition table screens by choosing Basic functions ® Pricing ® Pricing Control ® Define price dependencies (condition tables). Then select the mode you want to work with (create, change, display).

Information About Fields

The fields that you choose to make up the key are called the selected fields. The fields from which you can make your selection are called the allowed fields.

Selected Fields

The preceding figure shows the fields that make up the key for condition table 005 (the table for customer/material condition records in Sales). The selected fields show organizational data, such as Sales organization.The fields Customer and Material define the relationship between a particular customer and material.

Allowed Fields

When you select fields for the key, you must choose the fields from the list of allowed fields.

Making Changes to Condition Tables

You can make limited changes to existing condition tables. For example, you can change the name of the table or the format of the fast entry screens for the condition records. (Fast entry screens are screens where you can quickly, on a single screen, create and maintain the condition records that refer to the condition table).

Format of a Fast-Entry Screen

The screen consists of header and item lines. Each item line represents a separate condition record. The header lines include the fields that are general to all item lines. When deciding on the format of the fast-entry screen, you can determine whether each field in the key appears as a line in the header or as an item line.

Changing the Format of a Fast-Entry Screen

To change the format of the Fast-Entry screen, choose Technical View on the screen where you create or maintain a condition table.

When you determine the format, you have the following possibilities:

If you want the...	Do the following...
Field to appear as header line	Leave the Line field blank
Field to appear as an item	Mark the Line field
Text for an item line to appear	Mark the Text field

After you make changes to a condition table, choose Generate to regenerate the table.

Creating a New Condition Table

You can create new condition tables to meet the pricing needs of your organization. When you create a new condition table, you select a combination of fields from the list of allowed fields. The selected fields define the key for the subsequent condition records.

Before you select the fields for the key, there are two things to consider:

• The sequence (or hierarchy) of the fields
• Which fields you want to appear in the header and item areas of the corresponding fast-entry screens

Important Fields

In sales, the fields you should take into consideration are Sales organization and Distribution channel. The sales organization is nearly always used as a criteria in pricing, because different sales organizations often want to use their own prices, discounts, and surcharges. If you use the sales organization as a criteria in pricing, you should also use the distribution channel. If you do not want to establish different prices, discounts, and surcharges for each distribution channel, use the field anyway. In Customizing for Sales, you can use one distribution channel as a reference for all others (thereby sharing the same pricing data).

Deciding the Sequence of Fields

The order of the fields in a condition table affects the performance of the system during pricing. Two general guidelines will help you create an efficient condition table:

1. When you select fields that relate to the structure of your organization (such as Sales organization and Distribution channel, order the fields to reflect the degree of generality, working from general to specific. Place the most general field (Sales organization, for example) at the top and the most specific field at the bottom.
2. After organizational fields, place fields from the document header before those that come from the item level. (For example, Customer comes before Material)

After you have selected the fields for the key on the screen where you maintain and define condition tables, choose Generate to generate the table in the system. Generation prepares the condition table for storing condition data.

SAP Pricing And Conditions Access Sequences

Use

An access sequence is a search strategy that the system uses to find valid data for a particular condition type. It determines the sequence in which the system searches for data. The access sequence consists of one or more accesses. The sequence of the accesses establishes which condition records have priority over others. The accesses tell the system where to look first, second, and so on, until it finds a valid condition record. You specify an access sequence for each condition type for which you create condition records.

There are some condition types for which you do not create condition records (header discounts that you can only enter manually, for example). These condition types do not require an access sequence.

Example of an Access Sequence

A sales department may offer customers different kinds of prices. The department may create, for example, the following condition records in the system:

• A basic price for a material
• A special customer-specific price for the same material
• A price list for major customers

During sales order processing, a customer may, in theory, qualify for all three prices. The access sequence enables the system to access the data records in a particular sequence until it finds a valid price. In this example, the sales department may want to use the most favourable price for a certain customer. For this reason, it ensures that the system searches for a customer-specific price. The following figure shows how the system searches for the relevant record.

Access Sequences in the Standard R/3 System

The standard R/3 System contains access sequences that are predefined for each of the standard condition types. The names of the access sequences often correspond to the condition types for which they were designed. For example, the access sequence for a material discount (condition type K004) is also called K004.

Creating and Maintaining Access Sequences

You create and maintain access sequences in Customizing. For more information, see the online Implementation Guide for Sales and Distribution.

To reach the access sequence screen, go to the initial screen for Sales and Distribution Customizing and choose:

1. Basic Functions
® Pricing ® Pricing Control ® Define access sequences and condition types.

Select the transaction that you want to execute (Maintain access).

SAP Pricing Procedures And Conditions

Use

The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines:

• Which sub-totals appear during pricing
• To what extent pricing can be processed manually
• Which method the system uses to calculate percentage discounts and surcharges
• Which requirements for a particular condition type must be fulfilled before the system takes the condition into account

Example of a Pricing Procedure

If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use.

Pricing Procedures in the R/3 System

The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access sequences. You can, of course, modify these procedures or create your own from scratch.

Creating and Maintaining Pricing Procedures

You create or maintain pricing procedures in Customizing for Sales. For more information on creating pricing procedures, see the online Implementation Guide for Sales and Distribution.

To reach the pricing procedure screen from SD Customizing:

1. Choose Basic Functions
® Pricing ® Pricing control ® Define and assign pricing procedures.
2. Select the transaction that you want to execute.

SAP How Condition Technique Elements Work Together

The following figure illustrates the relationships between elements of the condition technique.

SAP SD Pricing in Sales Documents

Use

This section is intended to provide an overview of the pricing elements used in order processing. In addition, the section shows you how to work with pricing during day-to-day sales order processing. During pricing, the system calculates amounts based on a combination of automatic procedures and manually entered data. The system automatically transfers pricing data - for example, information about prices, surcharges, and discounts - from the condition records into sales and billing documents. Depending on the pricing policies of your company, you may be able to change prices manually during sales order processing. You may, for example, be able to enter or change certain discounts within a specified range.

SAP Pricing Elements in Sales Order Processing

Use

All of the pricing elements that you use in your day-to-day pricing procedures - the prices, surcharges, discounts, freight charges, and taxes - are defined in the R/3 system as condition types. This section gives you an overview of the pricing elements and their corresponding condition types that appear in Sales & Distribution (SD). When you create or maintain pricing information for a particular pricing element in the system, you create condition records. For more information about the tasks of creating and maintaining conditions, see Working with Condition Records.

Further Information

The task of actually defining condition types is part of system configuration and maintenance. For further information on condition types, see Introduction to the Condition Technique.

Pricing Elements in the Standard Version

Pricing elements are divided into four categories:

Prices

Surcharges and Discounts

Freight Costs

Sales Taxes

When entering sales orders, the system can carry out an automatic check. During sales order entry, the system can calculate prices automatically by finding a gross price, deducting all the relevant discounts and adding any surcharges such as freight and sales tax. The following figure illustrates how the system represents various pricing elements of everyday business.

In the figure, you can see that the price of a material is represented by one condition type (PR00). However, the price of a material can be based on different kinds of pricing records. The price can come from a price list; it can be specific to a particular customer, or it may be a simple material price. On the other hand, each discount, surcharge, freight charge, and tax is defined by its own condition type.

SAP Prices Pricing And Conditions

Use

In the standard R/3 System, the basis of pricing during sales order processing is the gross price of a material. The following kinds of price are predefined:

• Material price
• Price list type
• Customer-specific price

Selecting from Competing Pricing Records

During automatic pricing, the system looks for a gross price. Since you can store different kinds of pricing information in the system, pricing records can compete with each other in certain circumstances. For example, in addition to a basic material price, you may have a special material price for a particular customer.

In the standard R/3 System, the system selects the most specific record - the customer-specific price. If no customer-specific price exists, the system looks for a valid price list type. If no valid price list type exists, the system takes the basic material price. This search strategy is determined during system configuration in Customizing for Sales and Distribution. For further information, see Access Sequences.

Material Prices

When you create a material price, you specify:

• A price or a pricing scale for a specific material
• A combination of sales organization and distribution channel for which the material price is valid.

In Customizing for Sales and Distribution, you can specify that pricing information assigned to a particular combination of sales organization and distribution channel can be shared by other combinations. For more information, see the online Implementation Guide.

Price List Types

Depending on your company’s pricing policies, you can define your own price list types to suit the needs of your business. For example, you can define price list types by customer groups (wholesale, retail, and so on) and by currency (price lists for each foreign country you deal with). Condition records are created for each price list type. You do this using the same organizational data as for material prices (sales organization, distribution channel). You can then assign price list types to each customer in the their master record.

Customer-Specific Prices

If you give special prices to different customers, you can create customer-specific pricing records. In addition to the same organizational data you enter for material prices (sales organization, distribution channel), you assign the pricing record to a specific combination of customer and material.

SAP Pricing And Conditions Surcharges and discounts

Use

The standard R/3 System includes a variety of commonly used discounts. If your business requires it, you can define special discounts and surcharges in Customizing for Sales.

Discounts in R/3

The standard system includes, among many others, the following discounts:

Discount (Key)	Kind of discount
Customer (K007)	Percentage
Material (K004)	Absolute
Price group (K020)	Percentage
Material group (K029)	Absolute discount by weight
Customer/material (K005)	Absolute
Customer/material group (K030)	Percentage
Price group/material (K032)	Absolute
Price group/material group (K030)	Percentage
Rebate processing (BO01)	Group rebate (%)
Rebate processing (BO02)	Material rebate (fixed)
Rebate processing (BO03)	Customer rebate (%)
Inter-company processing (PI01)	Intercompany discount (fixed)
Inter-company billing (PI02)	Intercompany discount (%)
Invoice lists (RL00)	Factoring discount
Invoice lists (MW15)	Factoring discount tax

You can use any of these standard discounts to create condition records. During automatic pricing, the system considers the discounts that apply in the circumstances and searches for valid condition records. In the case of discounts that refer to a group of some kind (for example, material and price groups), you must assign the group in the corresponding customer or material master record before automatic pricing takes place.

Further Information

For further information on these discounts, contact your system administrator. The system administrator will be able to tell you how the the individual discounts are set up in the system. You can also, during sales order processing, branch from each pricing element in the document to screens that give you more information. You can see, for example, some of the data - the relevant condition record and pricing scale information, etc. - that the system uses to calculate a pricing element.

SAP Pricing And Conditions Freight Charges

Use

You can pass freight costs on to your customers by using special condition types that relate to shipping and freight charges. The standard SD application component includes predefined condition types that are based on Incoterms.

Incoterms

Incoterms are the internationally recognized shipping terms that establish the respective liabilities of both the shipping party and the recipient. For example, a common shipping term is FOB (Free on board). The term can be further qualified by adding the loading port, for example, FOB Boston.

You can create condition records either:

• Based solely on the first part of the Incoterm (for example, FOB)
• Based on the combination of parts 1 and 2 (for example, FOB and Boston)

Freight Conditions

The standard R/3 System includes two predefined freight conditions:

• Freight condition type KF00 applies to each item in a sales document. During automatic pricing, the system searches for valid condition records that apply to this freight condition.
• Freight condition type HD00 can only be applied to an entire document. You enter this freight manually during sales order processing.

For further information on entering freight conditions, see Manual Pricing.

SAP SD Pricing And Conditions Sales Taxes

Use

The standard R/3 System includes condition types that define country-specific sales taxes. For example, there are condition types for Value-Added Tax (VAT) for use in some European countries. For tax determination in the U.S., the standard system includes condition types for state, county, and city sales taxes, as well as taxes based on tax jurisdiction codes.

Automatic Calculation of Sales Taxes

During the automatic calculation of sales taxes, the system takes the following factors into account:

• Whether the business being transacted is domestic or foreign
• The tax classification of the customer's ship-to party.(Customers who are non-profit organizations, for example, may be exempt from paying sales tax.)
• The tax classification of the material.(Some products may not be taxed at all while others may have a reduced tax rate.)

With the help of these criteria, the tax rate per item is determined in the sales order. In Customizing, you set up a separate condition type for the tax rate (taxes on sales and purchases).

Material Tax Classification

You specify the tax classification for a material in the material master record. During sales order processing, the system automatically transfers the tax classification into the sales document.

Customer Tax Classification

You specify the tax classification for a customer in the customer master record. During sales order processing, the system automatically transfers the tax classification into the sales document.

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.

Pricing Screens in Sales Documents

Use

The system displays pricing information for all sales documents on pricing screens. There is a pricing screen that shows pricing information for the document header and a pricing screen that shows information for each item in the document. You specify the condition types that appear in the pricing screens and the sequence in which they appear is controlled in Customizing for Sales and Distribution.

Header Pricing Screen

No automatic pricing takes place at the header level of a document so the header pricing screen mostly displays a summary of the pricing calculations for all items in the document. However, the header pricing screen also includes information about special condition types that you can apply manually at the header level and that apply to all items in the document. For example, you can manually enter a discount that the system automatically distributes among the various items according to factors such as order quantity or weight. For further information on header conditions, see Freight Costs.

Item Pricing Screen

The item pricing screen displays details of each price element that applies to an item. For example, for each item in a sales order, you can see the amounts, currency, and units or measure on which the system based its calculations

Which Pricing Elements Appear in the Pricing Screens

You determine the kind and sequence of pricing elements that appear in the pricing screens in Customizing for Sales and Distribution. Your system administrator determines which condition types you can work with and in which sequence they appear.

Example

The sequence consists of various pricing elements (price, discounts, and surcharges) and subtotals. For example, all the discounts that apply in this case are subtotalled before the surcharge for freight costs is added. The system then calculates the appropriate sales tax and finally produces a net value for the order.

Statistical Pricing Elements

Statistical pricing elements - such as cash discount, cost, and profit margin - are for information only and have no effect on the net order value. They appear at the bottom of the pricing screen.

How to Select Pricing Screens

When you are working in a document, you can branch to the header and item pricing screens:

• To reach the header pricing screen, choose Header
® Pricing.
• To reach the item pricing screen, mark the appropriate item and choose Item
® Pricing.

SD Header and Item Conditions Pricing in Sales Documents

Use

The standard system includes condition types that you can only apply at the header level, the header conditions.Condition types that you can only use for items are called item conditions. The standard system also includes some condition types that can be used both at header and item level: Percent from gross (RA01)Absolute discount (RB00) Weight discount (RD00).

Header Conditions

Automatic pricing does not take header conditions into account; you can not create condition records for them in the standard system. Header conditions are entered manually in order processing. R/3 includes the following header conditions:

• Percent discount (HA00)
• Absolute discount (HB00)
• Freight (HD00)
• Order value (HM00)

Item Conditions

In the standard system, most condition types are defined as item conditions. Examples of item conditions are:

• Material discount (K004)
• Customer/material discount (K005)
• Customer discount (K007)
• Material price (PR01)

Displaying Header and Item Conditions

From the header and item pricing screens, you can branch to detailed information about each condition type that appears. From the header pricing screen, place the cursor on the condition for which you require detailed information.

• Then choose Goto
® Details. The system displays data it uses to calculate the amount of the condition (for example, the kind of pricing scale, quantity conversion, the scale base value, the document currency, and so on). From the details screen, you can choose Goto ® Condition record to see the specific condition record that the system accesses. From the item pricing screen, select the condition for which you require detailed information.
• Then choose Goto
® Details. To see the specific condition record that the system accesses, choose Goto ® Condition record.

Manual Pricing

Use

During sales order processing, you can manipulate pricing at both the header and item level. The extent to which you can enter or change condition types manually during pricing depends on how the condition types are defined in Customizing for Sales For example, the following definitions are possible:

• A condition type is not restricted with regard to its manual processing (for example, the entry of freight costs).
• Manual entries have priority over results of pricing determined automatically or vice versa.
• A condition type cannot be changed manually (for example, in the case of automatically determined sales taxes).

Making Changes During Manual Processing

Depending on the extent to which manual processing is allowed for a condition type, you can perform the following activities during sales order processing:

• You can change a condition amount.
• You can delete a pricing element.
• You can enter additional pricing elements.

If you want to add pricing elements to a sales document, you can only enter pricing elements for which corresponding condition types are defined and for which manual processing is allowed.

Adding Pricing Elements Manually

You can enter pricing elements manually at both the header and item level.

Adding an Item Condition Manually

To enter a customer discount manually in the pricing screen of a sales order item:

1. In the pricing screen of the sales order item, choose Edit
® Create.

You reach the data screen where you can enter an additional condition.

2. Enter the customer discount K007 in the Condition type field.
3. Enter a percentage rate in the Rate field.
4. Select ENTER.

The system automatically inserts the new condition according to the sequence specified in the corresponding pricing procedure.

If you choose Edit ® New pricing in the pricing screen of a sales order item, the system re-calculates the price for the item based on the current condition records. In this case, all manual entries, except header conditions, are lost.

Adding a Header Condition Manually

You add a header condition record in the same way as you add the item condition except that you must activate the pricing afterwards (choose Edit ® Activate in the header pricing screen). When you activate the header condition, the system distributes the condition value proportionally among the various items in the sales document. This distribution can be based on the order value of each individual item or on other criteria specified in Customizing for Sales. For further information on header conditions, see Requirements for Automatic Pricing.

Changing Pricing Elements in Pricing Screens

Depending on how the condition types in your system have been configured, you can change automatically determined prices in the item pricing screen. If changes are allowed, you may be able, for example, to change the following data:

• The rate (for example, the amount of a price or the percentage of a discount).
• The currency in which the amount is calculated.
• The units of measure used to calculate the amount.

Some condition types (for example, sales taxes, and cash discount) cannot usually be changed manually.

Header conditions cannot be entered or changed at the item level, and item conditions cannot be entered or changed at the header level. Conditions that are defined as both header and item conditions can be edited at both levels.

Deleting Pricing Elements in the Header and Item Pricing Screens

You can delete most conditions in the pricing screens. Whether a condition type may be deleted is determined by the condition type set in Customizing for Sales.

To delete a condition, position the cursor on the corresponding condition and choose Edit ® Delete.

The system automatically recalculates pricing for the entire document.

SD Distribution Between Header and Items SD Pricing

Use

Header conditions apply to all items in the document and are automatically distributed to the items. A header condition can be based on either a percentage or on an absolute amount. If you enter a header condition that is based on a percentage (for example, a discount of 2%) the system automatically applies this percentage to all items in the document. If the header condition is an absolute amount, there are two different ways in which the system can distribute the amount among the items in the document:

The condition value of a header condition is either

• distributed proportionally among the items or
• the amount entered at header level is duplicated for each item.

You control the distribution of absolute header conditions in the group price field per condition type. In the standard version, condition type HB00 is marked as a header condition and as group condition. Condition type RB00 is only marked as a header condition:

Condition type	Description
HB00	Header discount distributed as percentage because it is marked as a header condition and as a group condition
RB00	Assigns the header discount to every item, because it is only marked as a header condition

Example

The following figure illustrates examples of the two variations. If you enter an absolute discount with condition type RB00, the system takes the amount you enter as a header condition and copies the identical amount for each item in the document. In the example, the absolute discount of USD 90 appears in each item. The total condition value for the document is USD 270. However, if you enter an absolute discount with condition type HB00, the system distributes the amount proportionally among the various items, in this case, according to value of the items. In the example, the absolute discount of USD 90 is distributed proportionally among the items. The total condition value for the document is USD 90.

The distribution of an absolute header condition need not be based on value. For example you can specify in Customizing for Sales that the distribution is based on the weight or volume of the different items. You specify the basis of the distribution in the Alternative condition base value field in the pricing screen.

Rounding differences can occur during the distribution of absolute amounts. The system automatically evens these out by proposing the remainder to the largest item so that the value in the header is identical to the total of the values in the items.

Example:

An item has a net value 200 USD, the second item has a value of 100 USD. A header surcharge of 10 USD is to be distributed between the items. The system sets a surcharge of 6.67 USD in the first item and 3.33 USD in the second item.

SD Implementing a new Pricing Procedure

Use

You can implement a new pricing procedure in a sales or billing document. On the condition screens at header and item level, the function Update prices is available.

In many cases, it is required that the tax and freight is redetermined or that in spite of new evaluations conditions are still entered manually. You can therefore agree a pricing type for a new pricing procedure in the dialog box.

The "Update price" function can also be carried out in the menu under "Edit" without the dialog box. In this case the pricing type which has been assigned to the pricing procedure in Customizing is valid. If no value is given, the pricing type "B" applies.

Selecting a pricing type is also possible for collective changes using transaction VA05.

SD Working with Condition Records

Use

This section explains how to perform day-to-day pricing activities during sales order processing. The section explains how to create and maintain pricing information by using condition records.

Purpose of Condition Records

Condition records allow you to store and retrieve pricing data in the system. All the pricing elements of your daily business - the prices, discounts, and surcharges for freight and taxes - that you want to use for automatic pricing must be stored in the system as condition records. You can define as many condition records as you want for the different pricing elements for any validity period.

The following functions are commonly used functions in condition record processing:

Validity periods

Pricing scales

Condition supplements

Condition exclusion

Upper and Lower Limits

Reference conditions