Introducing the Condition Technique

Objective

After completing this lesson, you will be able to use the condition technique

Pricing Procedure

The system determines a pricing procedure. It contains control fields like the reference level of a step containing a condition type. And also its requirements.

All condition types that are permitted for a transaction in pricing are contained in the pricing procedure.

Note

You can use so-called inclusion points and sub-procedures to handle specific international sales transactions and tax requirements.

With these, you can configure the system so that during the pricing process in a business document, the system dynamically includes additional price conditions into this business document. For this purpose, you set up inclusion points, main procedures, sub-procedures, and formulas for sub-procedure determination.

For more details, please visit the SAP help portal through https://help.sap.com.

The pricing procedure is determined in Customizing according to the following criteria:

  • Sales area
  • Sales document (document pricing procedure)
  • Sold-to party (customer pricing procedure)

Pricing Procedure Attributes

Customizing for pricing procedures contains a variety of attributes that can influence the processing of individual condition types.

Some of these attributes are as follows:

  • Level (STEP):

    The level in the pricing procedure determines the sequence in which the system processes and places the conditions in the sales document (where applicable).

  • Subtotals:

    The pricing procedure can contain any number of subtotals. To define subtotals, leave the Condition Type field blank and enter a name for the subtotal in the Description field.

  • Condition formula:

    The condition formula in the pricing procedure allows you to define an alternative base for calculating the condition value and for consolidating conditions for subtotals. The default base is the current value that resulted from processing the previous condition types.

  • Requirements:

    You can specify requirements to determine how the system must use the individual condition types.

  • Specific settings:

    You can mark a condition type in the pricing procedure as a condition that is mandatory, a condition that can only be entered manually (any existing access sequence is ignored in this case), or as a condition that can be used for statistical purposes only.

Access Sequence

Note

See the following video to learn about the concept of an access sequence, and how it is used during pricing in SAP S/4HANA:

Overview of the Pricing Process Flow

A sales document with one item for 120 pieces of a material is shown.

The figure shows that an order for 120 pieces of a material is created. The system must determine the price automatically.

Pricing Overview – Determine the Pricing Procedure

For the document, the system determines a pricing procedure.

The system determines the relevant pricing procedure based on the sales area, customer, and sales document type.

Pricing Overview – Determine the Access Sequence

The pricing procedure contains various condition types.

The system reads the condition type and determines the access sequence that is assigned to this condition type. ​

Determine the Sequence of Condition Tables in Access Sequence

A condition type has an access sequence that contains the sequence in which the system searches through the condition tables searching for a valid condition record.

The system reads the access sequence. The sequence of condition tables represents the search strategy for finding the relevant condition record.

Each condition table represents one access, which can be used to create a condition record by using the specified key.

Pricing Overview – Search for a Valid Condition Record

The access sequence contains the sequence in which the system searches through the condition tables searching for a valid condition record.

The system searches for valid condition records by using the key that is specified by the condition table (accesses).

If the first access does not find a valid condition record, the system searches for the next access by using the next condition table.

Pricing Overview: Copy the Scale Base Values

A condition record can make use of scales. The quantity in the (sales) order determines the scale level that is used.

After the system finds a valid condition record for an access, the system reads the condition record and copies the value that corresponds to the scale into the sales document.

The system repeats the entire process for each condition type until the system completes the entire pricing procedure.

Manual Price Changes

Note

See the following video to learn about the possibility to change prices manually in documents:

Header Conditions

A header condition can be distributed over the items in the sales document. Distribution is (by default) done based the relative value of the items.

The standard system includes condition types that you can only apply at the header level. These are known as header conditions and are valid for all items.

Automatic pricing does not take header conditions into account; you cannot create condition records for them in the standard system. Header conditions are entered manually in order processing.

The system automatically distributes these header conditions among the items based on the net value. The basis for distributing the header conditions can be changed in the pricing procedure by selecting the appropriate routine, such as weight (12 = gross weight and 13 = net weight) and volume (01 = volume), in the Alternative Condition Base Value (AltCBV) field.

Header Condition Amount Copied into Each Item

A header condition amount can also be copied to EACH item in the sales document.

The figure shows that the header condition amount is copied to each item of the order.

Header Condition Amount Distributed Among Items

The header condition amount is distributed among the items based on the portion of the total net value, that is defined for that item.

The figure shows that the header condition amount is distributed among the items based on the portion of the total net value that is defined for that item.

New Pricing and Pricing Types

A pricing type needs to be selected whenever an update to pricing is needed. The pricing type determines what exactly needs to be updated.. An example is pricing type A: Copy pricing elements and update scales.

You can configure the pricing behavior in the pricing type.

The new pricing function in a sales document can be controlled as follows:

  • The updated prices on the condition screens are available at the header and item levels. You can choose the pricing type in the dialog box that appears.
  • To use the new pricing document function for a sales document (Edit → New Pricing Document ), assign a pricing type to the pricing procedure in Customizing. If you do not specify an entry, the system uses pricing type B (carry out new pricing).

The new pricing and pricing type functions are supported for both sales and billing documents.

Pricing in the Billing Document

When creating a billing document based on an outbound delivery, the system determines the pricing type to be used based on the copying control settings on item level.

Copying control makes it possible to handle re-pricing of billing documents based on different scenarios. While all customers will not use every pricing type, the ability to specify what will happen to pricing calculations during billing is a decision that each customer must make.

Adjust Existing Order Conditions

ExerciseStart Exercise

Enter Header Conditions

ExerciseStart Exercise

Examine the Effects of Pricing Types

ExerciseStart Exercise

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