PRICING PROCEDURE

Price will flow into PO from Older PO’s or PIR or Contract .

But where this is defined and how the system is taking priority like this can be achieved by access sequence.
Where we will maintain the access sequence with this condition like below.
1.     Scheduled agreement
2.     Contract
3.     PIR
4.     Older PO’s
• Based on this sequence, price will be picked in PO automatically.
• Because access sequence is always linked to condition types like PB00.
PB00 is a condition where gross price will be calculated for auto PO’s- so we need to maintain
an access sequence and link to condition type.
1  condition type can be linked to 1 access sequence only.
• Condition type defines the debit or credit or discount (+/-)
Few of the condition types are PB00- Gross price
PBXX- Gross price manually
• FRA1- Freight charges
• ZA03- Discount
• Condition types are mainly 4 types-
• Basic price
• Discount
• Tax
• Freight
PRICING PROCEDURE
If we are defining new condition type, then always copy from standard condition types Like for net/gross-
copy from PB00
• For freight related- Copy from FRA1
• For surcharge related- copy from ZA00

The price conditions flow into a PO based on Vendor and purchase organization.

Schema group : Grouping all international vendor into one group pricing condition is schema group.
• Domestic and international vendors and pricing conditions like discounts, tax are different as per their
location and net calculation and for differentiating those price we need schema group (which will be
assigned to vendor) and 1 more schema group for purchase organization.
Schema group- vendor:
Here we will define a schema group based on vendor location like either its local or international.
We need to assign the schema group to vendor in vendor master- Purchasing data-schema group.
We will be assigning to all the vendors which was created in the SAP for the procurement purpose.
Totally we will define 2 schema groups for an organization, 1 is for local and 1 is for International.
Schema determination:  Assign schema group to purchase organization
Here we will define schema group for purchase organization, in which we will assign calculation schema with schema group
Basically, we have RM0000 as a default condition and based on that we will define a new condition and assign to schema
group for purchase organization.
Assign schema group to purchase organization:
We will link schema group to purchase organization and schema condition-calculation schema.
Now, based on vendor schema group and purchase organization the condition-   calculation schema will be defined
automatically.
Schema Determination
Defining Schema Group

choose Schema Groups: Vendor

You can maintain Group 01 for Indigenous vendor

And Group 02 for foreign vendor for use in vendor master
Schema Group for Purchase Organisation

choose schema groups for purchasing organizations from main schema group menu.

Choose Assignment of Schema Group to Purchasing Organization from schema group menu.
Schema Determination

Click on the schema you want to

change
Double click the Control data
node.
Calculation Schema in SAP

Right portion of the screen

shows Usage and Application
data. We can see that usage is
to A – Pricing, and application is
set to M – Purchasing.
Contains a list of schemas and
its short description
IMG path to the available functions:
Transaction SPRO => Materials Management => Purchasing => Conditions => Define Price determ.process
Settings for Pricing Procedure

Choose the Access sequence you want to maintain (PB01 gross price).
Double click the Accesses folder in the dialog structure.
PRICING PROCEDURE
Pricing procedure in MM module is a way to determine prices in purchasing documents. The
functionality is to assign different calculation types for different needs.
STEPS
1. Create an access sequence – A search strategy with the aid of which the system searches
the condition value from condition records from a condition type
2. Assign it to condition types – Maintain condition records to Each condition type and assign
to an Access sequence
3. Condition table
4. Calculation schema
5.  Schema group
6.  Schema determination

Access sequence tells the system where to look for the condition values. It can search multiple
condition tables based on our settings. Tables have different priority, and different key fields.
Determination of the pricing procedure is practically assigning the calculation schema to a
combination of vendor schema group and purchasing organization schema group. So, you
need to enter the vendor schema group on vendor master, and assign schema group to
purchasing organization, in order for the system to find the calculation schema to be used in
the document.
Steps in Pricing procedure
Here we will define a schema condition in which all the price condition types will be
maintained.
Will define all condition types like Gross price, freight, Discount conditions
1.Step- indicates the sequence
2.counter- Indicates the sub in the sequence
3.Condition type- define the condition type required
4.from- if it’s a net/gross price- then we need to maintain the excel formula to calculi like
10:10
5. To- if it’s a net/gross price- then we need to maintain the excel formula to calculi like 10:10
or 10:20
6.Manual- Means we need to maintain the field in PO manually
7.required- It means the condition type is mandatory.
8.Statistical- It means it will be there but 0 price also, no problem.
9. printing control
10. subtotal field – press F4 and select the total number like 9.
11. Requirement
12.Cal. type
13.Bastype
14. Accrual Key- If any new account key effect is there then we can mention it here
15. Accrual account Key
Access sequence by system
• PB00 - this condition is determined via access sequence from info
record or contract or SA or RFQ etc.
• means if any record for material and vendor is defined then system
will search that record first and pull the price of PB00 in the PO
• PBXX - if you have not defined any info or contract etc then system
will suggest PBXX in PO so you can manually enter the price for PO.
• this the reason SAP has provided these conditions.
When you want Price is to be automatic in the PO it’s PB00 condition type. If you want
Price to be manual in the PO, you can use PBXX condition type. You can check PB00 &
PBXX condition types and see the difference, is that in PBOO assigned to access
sequence, which play a great role for Price to be automated in the PO.
Access methods for Access sequence
• If a record is found in first access (Contract item), meaning that if the system
finds a condition available from the Contract item, it will not search further,
and that value will be used. If not, system will follow the other accesses in
order to find appropriate entry.
• You can also set a requirement for an access method to be used. For
example, there is a requirement 35 assigned to access 10, which uses
condition table 17 - Material Info Record (Plant-Specific).
A requirement for access number 10 is 35 - Plant info record. If there is no plant info
record for the combination of the values in table 17, access 10 will not be used at all.

Select the access you want to modify.

Choose the lowest level folder in dialog structure - Fields.
Access sequence screen
You can see what is located on the details screen for access sequence PB01, access
20 and table 18.
The key fields of a condition table used in the condition access are showed here.
Condition table consists of condition fields which have certain attributes assigned
to them. When the system tries to access a condition record it uses these
attributes.

Special value source – this field contains a value to be used as default while accessing (e.g. using a fixed info
record category for the access sequence)
Init – if this box is checked system will allow initial value for this field while accessing the condition table. If
not system will not process the condition table lookup.
Atyp – processing type in access. You can specify if the field is relevant for condition access if it is part of a
free or fixed key type. Default is left blank (fixed key type).
Priority – priority of a field (characteristic), it can be set from 01 to 99. Most of the time this field is left
blank.
Condition Table
Condition table : IA 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.
Condition table is a 3-digit key, where we update the sequence of condition to be impacted in the
condition record like PB00.
• Suppose if I use Plant as condition table, then the condition record will be created for plant only.
• We can use many fields in one condition tables.
Here we will update the sequence of combination like material, vendor, plant, Purchase organization.
Once we have updated the conditions, system will check for any master data which contains price and
update the same condition in PO.
• Material
• Vendor
• Plant

• Price flow process:

• Condition fields- Material, vendor, Plant and Purchase organization
•                                           |          |                      |          |
• Condition table:                               017
•                                                                 |
• Access Sequence:                          0002      
•                                                                 |
• Condition types:                           PB00
• Calculation schema:                 ZRM0001
Condition Table
V/05 transaction is used for displaying a condition table.
V/04 transaction is used for changing a condition table.
V/03 transaction is used for creating a condition table.
Now we can define a new condition table if it is required, in order to use it in the
access sequence definition. Most of the times new access tables aren't required since
a vast number of predefined tables.
Enter t-code M/03 and execute it.
Choose your new table number (must be unused, e.g. 818).
If you want to copy an existing table into your new table, you can select the source
table here. This is useful if your table is similar to another existing table, and needs
only a simple change to fulfill the requirements.
Condition tables
A Condition table is defined as a combination of keys to identify an individual condition record. A condition record is defined as how
system stores the specific condition.
Eg of a Condition Record − Entering the price of a product or to specify the discount for a privileged customer.
we have used table 18 – Material Info Record in our example.
Execute the transaction code V/05 and on the initial screen enter our table number - 18.
In the section 2, you can see our table definition, table number, description, and two options that can be selected. First means use of the
validity period (always recommended) and the other is a check for release status of the record. If checked, only released info records will
be taken into account while searching for the condition.
Here is the list of fields you have already seen in the Define access sequence topic.
You can see how is the table defined for later use in customizing the access sequence.
Condition Tables
On the next screen, you can do all of the settings for a condition table, and generate it.
Click this button if you want to edit the description.
Choose if your table should check validity periods and release statuses.
List of current fields. You can select any field you want to remove (by single clicking it)
and choose the remove icon (List icon with a red minus sign).
You can add fields from field catalog by double clicking them.
You need to generate the table in order for it to be used by pricing functions.
Condition Types
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.

If you select multiple condition types, you can edit them all by navigating through them in the
following screen (arrow left and right or F7 and F8).
This screen has a lot of settings for a condition type.
Condition Data 1
Condition class (e.g. prices, discounts, taxes)
Calculation type (e.g. quantity, percentage, fixed amount, formula)
Condition category (e.g. basic price, input tax)
Rounding rule (e.g. commercial, round up, round down)
Plus/minus (indicates if a condition can be positive, negative or both)
Changes to Condition Type
•Manual entries (e.g. no limitations, not possible, manual entry has priority)
•Header condition (indicates if a condition can be used at header level)
•Item condition (indicates if a condition can be used at item level)
•Delete (indicates if a condition can be deleted)
•Amount/percent (can amount/percentage be changed)
•Value (can value be changed)
•Qty. relation (can conversion factor between UoMs be changed during processing)
•Calculation Type (can calculation type be changed during processing)
Changes to Condition Types
Master data section:
Valid to (default date to use)
Pricing Proc. (pricing procedure to be used for this condition type)
Delete fr. DB (deletion procedure for this condition type)
E) Scales section:
Scale basis (e.g. quantity scale, value scale)
Check value (default blank)
Scale type (controls the validity of the value/quantity)

•F) Control data 2 section:

•Currency Conv. (indicates if currency conversion is allowed)
•Accruals (if you check this box you indicate that it is a statistical condition)
•Promotion condition (is this condition relevant only for promotions)
•Quantity conversion (controls how quantity conversion will be processed)
Exclusion (condition exclusion indicator – e.g. gross price, tax code, delivery cost)
Rel.Acc.Assig (determines if the condition type is relevant for account assignment)
Condition Type : Other selections