Analyzing Price Determination Basics

To create general conditions for suppliers, in the SAP Fiori Launchpad use the Maintain Conditions for Supplier app. Alternatively, in the SAP GUI on the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Master Data → Conditions → Discounts/Surcharges → By Vendor (MEKE).

To create general conditions for invoicing parties, in the SAP Fiori Launchpad use the Maintain Conditions for Invoicing Party app. Alternatively, in the SAP GUI on the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Master Data → Conditions → Discounts/Surcharges → By Invoicing Party(MEKJ).

There are conditions that are valid for a certain period, and conditions for which no definite validity period can be specified. In the latter case, the validity of the conditions corresponds to that of the purchasing document.

You can store scales in condition records for each condition type.

Note the following:

• Conditions in purchase orders are always time independent.

• Conditions in info records and purchase contracts are always time dependent.
• For purchase scheduling agreements and quotations (SAP ERP), the document type determines whether time-dependent or time-independent conditions can be created. To enable time-dependent conditions in scheduling agreements and quotations, you set the corresponding indicator in Customizing for Materials Management under Purchasing → RFQ/Quotation or Scheduling Agreement → Define Document Types.

For time-dependent conditions, you can define validity periods and scales. You can also specify a price range (upper or lower limit). If the system adopts these conditions in a PO and the condition is then changed in the PO, causing the price range to be exceeded or lowered, the system issues an error message.

The calculation schema groups together all condition types that determine the price. It also determines the sequence in which the condition types are included in price determination.

Condition types are keys defined in Customizing to control how the conditions are used. For example, in the standard system, the PB00 condition type represents a quantity-dependent gross price.

The following are other important control settings for the condition type:

• Group condition:

  This indicator indicates that a scale, for example, is to be determined not on a per item basis but across all items of a purchasing document. For the standard gross price condition type PB00, this indicator is set.

• Header condition or item condition:

  Header conditions are entered in the document header and apply to every document item. Item conditions are entered in the document item and apply only to that item. A condition type can be both a header condition and an item condition.

• Condition class:

  The condition type can be defined as a price, surcharge, or discount, for example.

• Calculation rule:

  This determines whether the condition type is a fixed amount or whether the condition type is to depend on the purchase order quantity or the purchase order value.

• Plus or minus sign:

  This determines if the condition type is calculated as a surcharge or a discount.

The condition type is also used to define the base for scales. The scale can relate to the quantity, weight, or volume, for example.

The calculation schema also defines the following:

• The subtotals that are formed with each condition type
• The condition types that are allowed in a document or info record
• The sequence in which the condition types are applied in calculating the net price
• The condition types that are displayed in the message to the supplier

You can define condition types in Customizing for Materials Management under Purchasing → Conditions → Define Price Determination Process → Define Condition Types.

You can define calculation schemas in Customizing for Materials Management under Purchasing → Conditions → Define Price Determination Process → Set Calculation Schema — Purchasing.