Setting Up Pricing Strategies

The administrator begins the pricing process, which includes:

• Gives the internal price. 
• Develops attractive pricing for sales opportunities or quotes. 
• Implement proper customer discounts.
• Offers reliable customer pricing.

SAP pricing differs based on the calculation of many conditions. SAP calls it the condition technique. The condition technique breaks down a pricing procedure, condition by condition, to find the favorable price. The system accesses a sequence or searches for a strategy. The system searches for the proper condition, locates it, and then moves to the next condition on the pricing procedure list.

Let's check the pricing components:

• Pricing components form an infrastructure that helps define master data and configure its determination. The system persists the master data, called condition records, in condition tables. To configure the determination, it uses the pricing components pricing procedure, condition type, and access sequence.
• The master data includes product and business partner prices, discounts, surcharges, and so on. The system uses this master data to calculate a net value in a sales document.
• The pricing procedure defines the calculation sequence for the net value by specifying the order of condition types and subtotals. Subtotals are intermediate results of the price calculation, such as the sum of discounts.
• The condition type defines a price, a discount, and so on. Condition types control the process from the definition of master data to the calculation of net value in a sales document. For most condition types, administrators define condition records for combinations of price-relevant attributes and their values.

For typical pricing activities, the standard SAP system offers two standard pricing procedures, many condition types, and access sequences. For each component, administrators use the standard versions. The administrator copies and changes them or creates entirely new definitions to suit business needs and requirements.

Standard pricing procedures:

• PPOPP1, Opportunity Pricing Procedure
• PPSTD1, Standard Pricing Procedure

Highlight each pricing procedure to show the steps of its condition technique. The system starts at step 1 and works its way down, condition by condition, until it subtotals values and amounts. See the manual flag. If this flag is on, the business user manually assigns or changes the condition during pricing. When the flag is off, the business user can't change the condition's value.

Choose the "money bag" icon under Actions and navigate to the next tab, Condition Type.

 A condition type assigns an access sequence (except for condition types configured as a header condition).​ Define every access in an access sequence using a condition table. A condition table is a combination of fields that form the key for a condition record.

• If an access sequence includes more than one access, the accesses usually descend from specific to general.
• The access sequence defines the order in which the system searches for data and the technical source (condition table) that it searches.
• The access sequence includes one or more accesses. Their sequence determines which condition records have priority over others.
• The accesses tell the system in which table to look first, second, and so on, until it finds a valid condition record. Configure whether the system only finds one valid condition record or several valid condition records.
• In Pricing Configuration, specify an access sequence for each condition type created in the condition records. Use the same access sequence for various condition types.
• Assign one access sequence to the condition type.
• The standard version of the system includes standard access sequences for each standard condition type.
• As a best practice, access sequence names often match the condition types they support.

An administrator creates condition tables to specify the fields and uses the combination to create condition records. Customer-specific condition tables enable the storage and retrieval of condition records for a new condition type.​ The master data records for pricing are condition records, and the condition tables store them.

• A condition table defines the key fields used by a condition record. Each line or access in an access sequence mentions a condition table.
• A condition table defines the combination of fields that specifies the validity of an individual condition record.
• The Validity includes a valid start and end date, a condition type, and price-relevant attributes (such as price rate, currency, and UoM). It also has sales document-relevant attributes (such as business partner, product, and so on).
• Technically, all these fields are key fields for the corresponding condition table.
• If creating a condition record, the system saves the validity information in the corresponding condition table.

The system reads the condition type and its access sequence.

• The sequence of condition tables shows the search strategy for finding the relevant condition record. It's the combination of fields that unlocks the condition record.
• When the fields match, the key fits, and the system copies the condition into the sales document. When fields don't match, the key fails, and the system either searches the next access or skips the condition type because a condition record is missing.

Each condition table has one access that allows the creation of a condition record using the specified key.

The administrator defines their own condition tables in the Pricing Configurations section in the Administrative Console.

As an SAP best practice, create an own access sequence by copying a similar one and changing it to the needs. Copy a similar access sequence by selecting the copy icon in the upper-right corner.

For example, selecting and copying the 7DS0 Overall Customer Discount access sequence copies the information, allowing change as needed rather than manual data entry.

Name the Access Sequences

When naming the access sequence, SAP recommends using the same name as the condition type it relates to.

For example, you see from the previous screen that the access sequence's ID matches the condition table.

Understand the Access Sequences

The system needs an access sequence only for the corresponding condition type, and condition records determine the condition amount.

• In the condition types, enter the condition amount manually (for example, header discounts). They don't need an access sequence.
• The access sequence defines the order in which the system searches for data and the technical source (condition table) used when it does so.
• The access sequence includes one or more accesses.
• Their sequence determines which condition records have priority over others.
• The accesses tell the system in which table to look first, second, and so on, until it finds a valid condition record.
• Configure whether the system only finds one valid condition record or several valid condition records.
• In Pricing Configuration, specify an access sequence for each condition type for which it creates condition records.
• Use the same access sequence for various condition types. Since it's a search strategy, arrange the sequence of accesses from specific cases at the beginning to generic cases at the end. Once the system finds a condition table that meets the search criteria, it stops the search and returns that condition's amount.
• The standard version of the system includes standard access sequences for each standard condition type. Access sequence names usually align with the condition types that they support.

SAP recommends creating new pricing procedures by copying existing ones and adapting them to new requirements.

Create Pricing Procedures

Change Pricing Procedures by:

1. Adding extra condition types or subtotals.
2. Deleting unnecessary rows.

Pricing procedures define which condition types and subtotals apply to specific business contexts. Sales documents have price conditions or subtotals as price elements. Each procedure row determines how the sales document calculates price elements.

Furthermore, a pricing procedure gives the sequence in which the condition types contribute to the net price calculation.

The pricing procedure also gives the following:

• Subtotals calculated during pricing. Sales documents show these subtotals.
• Whether the system determines a document condition automatically or adds it manually, either through a user or an external process.
• The base that the system uses to calculate percentage discounts and surcharges.
• Whether the system prints the price element at the item level as the total of all items or not at all.
• Whether a condition is necessary when the system applies the pricing procedure.

The standard system includes standard pricing procedures that define used condition types and their corresponding access sequences. Create custom pricing procedures from scratch. Standard procedures keep locked.

Pricing procedure determination is based on sales area and document type.

Assign higher numbers to condition types and subtotals that depend on calculations from other condition types or subtotals.

A condition type is a representation in the system of some aspect of your daily pricing activities.

For example, define a separate condition type for each type of price, discount, or fee that happens during business transactions.

The standard system includes standard condition types. View them in the Pricing Configuration. Also, create condition types that suit the organization's needs in Pricing Configuration.

Price condition calculations for condition types in business documents include:

• Determination of a condition amount from the condition recorded in pricing
• Calculation of condition value from condition amount
• Quantity conversions
• Determination of pricing date

Check whether the calculation of a condition value is based on all items in the sales document or on each item separately. Do various changes to a price condition in a sales document.

The system automatically corrects condition amount signs and price condition signs in sales documents when the system only allows positive or negative values.

Access the Determination Rules for Pricing from the Settings.

Decide the right pricing procedure for sales documents when using Determination Rules.

Prices and price determination differ across sales organizations, distribution channels, or divisions. Assign different pricing procedures to each sales area. It guarantees the system determines the right price for that area.

The example shows that the Best Run Business Sales Organization and Direct Sales Distribution Channel use the NEW Pricing procedure, independent of the product Division. It also shows the NEW Pricing Procedure with the NEW access sequence matched with the NEW condition type. The system uses the table only when pricing NEW sales opportunities.

The SAP system automatically determines the pricing procedure valid for the respective sales process and sales area during pricing for a sales document.

Access the Upload Pricing Components feature from Settings.

As an administrator, do the following:

• Upload pricing configurations from external SAP systems to SAP Sales Cloud Version 2.
• Replicate pricing master data from SAP S/4HANA.

To use the price components and descriptions from sales orders replicated from an external system, map the fields and define the determination rules for them.

In the Field Mappings tab, upload the pricing procedure downloaded from SAP S/4HANA or SAP S/4HANA Cloud Private Edition.

In the Upload External Data tab, select the spreadsheet with pricing components from SAP S/4HANA or SAP S/4HANA Cloud Private Edition.

In the Maintain Determination Rules tab, define which rules the system uses.

Native pricing enables the system to support two maintenance modes for the document type: Internal and External. For these sales documents, the system calculates prices using the uploaded pricing configurations and the replicated pricing master data.

Access data related to external pricing configuration upload operations, including Field Mappings and Upload Logs.

This section provided detailed instruction on the following important configurations:

• Pricing Components and Process: Explore how the key components build pricing in SAP Sales Cloud Version 2. Also, it includes pricing procedures, condition types, access sequences, and condition tables. It helps to deliver correct and comparable prices for sales opportunities and quotes.
• Internal Pricing Configuration: Highlights how administrators set up product pricing, apply discounts and surcharges, and manage condition records to guarantee flexible and precise pricing. It includes the ability to create new pricing components as needed.
• Condition Types, Access Sequences, and Condition Tables: Define and manage condition types (prices, discounts, surcharges, set up access sequences, and determine search order for pricing data. Create condition tables to specify key pricing attributes.
• Pricing Procedures and Determination Rules: Configure or copy pricing procedures, add or remove condition types, assign procedures to specific sales areas, and document types using determination rules.
• External Pricing Integration: Upload and map pricing configurations and master data from SAP S/4HANA or SAP S/4HANA Cloud Private Edition, enabling native pricing for integrated sales documents.
• Best Practices and Administration: Recognize SAP Best Practices for copying and changing standard pricing components, setting up admin roles and permissions, and using the Administrative Console for all pricing configurations.