Maintain Condition Master Data for Pricing

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Maintain Condition Master Data for Pricing

Condition Master Data

You can use price management to calculate net values in the sales process. From quotation to contract or order, from billing to accounting: all business documents share the same source for price information.

In most cases, the pricing information in a sales document derives from the condition master data.

Condition Master Records in Pricing

If you want to create a condition master record, you have to choose the appropriate condition type first. The condition type controls the properties of the condition master record, including the following:

  • Condition class (for example, price or discount)
  • Scales (are scales allowed and is a value or quantity scale possible?)
  • Level (is the data record relevant for the header and/or item level of the document?)
  • Validity period (a default value can be proposed)

The figure, Condition Master Records in Pricing, visualizes an example of a condition master record.

Understand Pricing in Sales

Pricing (for example, the determination of relevant prices, taxes, and discounts) is performed automatically within most sales documents.

A complex set of regulations defined in the configuration of pricing controls how automatic pricing is executed. Among other things, the system checks if relevant condition master records exist and copies the corresponding values into the sales document.

Note
Depending on the settings in the pricing and authorization, you may be allowed to change values manually within the sales document (for example, to grant the customer a higher discount).

The figure, Pricing in Sales Orders, shows the possible results of automatic pricing.

Watch Sally add a discount and update pricing in a sales order.

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