Configuring Pricing for Service Transactions

The following is an overview of additional standard condition types delivered by SAP related to SAP S/4HANA Service:

First, the pricing procedure itself needs to be defined. A pricing procedure contains all condition types required for pricing the service document (such as the gross price, any discounts, and so on).

In Customizing, navigate to SAP Customizing Implementation Guide → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures, choose IMG - Activity and then double-click Set Pricing Procedures.

Various default pricing procedures are available for SAP S/4HANA Service, such as S17J01 Service Order 1 (US) and A17019 Solution Quotation (US).

To be able to determine the correct pricing procedure for a transaction type in SAP S/4HANA Service, the Document Pricing Procedure field is used. Service-specific entries can be maintained for this field and then later assigned to the transaction types to which they apply.

In Customizing, navigate to SAP Customizing Implementation Guide → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures, choose IMG - Activity and then double-click Set Document Pricing Procedures.

Examples of entries for SAP S/4HANA Service are S1 Service Order, S2 Solution Quotation, and S3 Service Contract.

The determination of the correct pricing procedure is then configured using SAP Customizing Implementation Guide → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures. Choose IMG - Activity and then double-click Set Pricing Procedure Determination.

Here, you assign the pricing procedure to be used to a combination of the following fields:

• Sales Organization
• Distribution Channel
• Division
• Document Pricing Procedure
• Customer Pricing Procedure

Whether an item in a service document is relevant for pricing is determined using the item category of the item. In Customizing, navigate to SAP Customizing Implementation Guide → Service → Transactions → Basic Settings → Define Item Categories.

Choose IMG - Activity. Select the item category and navigate to the Customizing Item folder for business transaction category BUS2000115 Sales. Here, a flag called Pricing-rel. can be found, where the item category can be flagged as relevant for pricing.

Number ranges for pricing documents that are generated within the SAP S/4HANA Service component also need to be defined. Pricing documents are created internally during transaction processing in SAP S/4HANA Service, but have their own identifying ID and therefore require a separate number range. This number range may not be flagged as External because the pricing document number cannot be set manually. Only one interval must be defined and this interval must have the number range number 01. Number range object CRM_KNUMV is used for this.

In Customizing, navigate to SAP Customizing Implementation Guide → Service → Basic Functions → Pricing → Define Number Ranges for Pricing Documents.

Similar to this logic, a number range also needs to be maintained for pricing documents (also called document conditions) generated in the Sales part of SAP S/4HANA. This is done using transaction code SNRO (or through the menu path SAP Easy Access Menu → Tools → ABAP Workbench → Development → Other Tools → Number Ranges).

Enter the object name KONV and, using the Interval Editing option, an interval can be entered for number range interval 03 (for example: from number 2000000000 to number 2999999999).

Since SAP S/4HANA 2023 the pricing trace has been enabled for item price details. The parameter PRC_TRACE with value X needs to be assigned to each user that wants to use the pricing trace. Once the parameter has been enabled for a user, they can find a button called Trace in the price details of a service order item ( or a confirmation item or service contract item).

The pricing analysis function enables you to do the following:

• Get an overview of pricing procedures for service transactions.
• Display details of accesses for all condition types and check whether a condition record has been found or not for each condition type.
• Obtain more detailed information at the level of the overview tree such as condition record IDs, the input values used to search for a condition table, and in which condition table a condition record has been found.

The following is a list of some other important configuration settings related to pricing for service transactions:

• For pricing purposes, it is also possible to specify an accounting indicator in a service order item. Accounting indicators enable the differentiation between billable, non-billable, and partially billable products for pricing and controlling purposes. Non-billable and partially billable services and spare parts are, for example, those provided under warranty or in goodwill.

  To define accounting indicators in Customizing, navigate to SAP Customizing Implementation Guide → Service → Transactions → Settings for Service Transactions → Define Accounting Indicators.

  Condition types DAI1 (Accntng Ind. (Abs.)) and DAI2 (Accounting Ind. (%)) are the two standard condition types available in SAP S/4HANA Service that make use of the accounting indicator. See the previous table, where an overview is presented of additional standard condition types delivered by SAP related to SAP S/4HANA Service.

  Note

  During period end closing, an accounting indicator as used in a service order item can also be used to determine the ultimate settlement receiver of the incurred costs for the service. Separate line IDs per accounting indicator can be determined for the results analysis, or separate value fields in CO-PA.

  For example, a service is executed due to quality management issues covered by a warranty. This service needs to be reflected differently in the profitability analysis executed in CO-PA, from a service executed in case of a free-of-charge repair, where maybe the sales department is involved.

  A strategy sequence for the automatic generation of settlement rules that includes a strategy called Strategy 35 (Settlement to Receiver from Accounting Indicator) needs to be used for this.

  In Customizing, see SAP Customizing Implementation Guide → Integration with Other SAP Components → Customer Relationship Management → Settings for Service Processing → Controlling Integration → Settings for Single-Object Controlling → Strategy Sequences for automatic generation of settlement rules for more details concerning this scenario.

• Quite similar to the previous item, valuation types can also be used as a basis for the pricing of services. For example, it is possible to define different prices depending on the qualifications profile for individual service representatives, such as a junior or a senior employee.

  In Customizing, navigate to SAP Customizing Implementation Guide → Service → Transactions → Settings for Service Transactions → Define Valuation Types.

  See also the condition types SVT1 Valuation Type(Abs.) and SVT2 Valuation Type (%) in the table presented earlier in this lesson.

• For pricing, service types can be used to define an absolute or percentage markup/discount, which should be applied to a base price, based on the service type that is applicable. An example is as follows: working time in the weekend (for example, service type 0001 Weekend) is marked up by 20% and working time on a public holiday (for example, service type 0002 Public Holiday) by 50%. When a base price of 100 EUR is defined for a certain service, the service price is 120 EUR in the weekend (when service type 0001 applies) and 150 EUR on a public holiday (when service type 0002 applies).

  In Customizing, navigate to SAP Customizing Implementation Guide → Service → Transactions → Settings for Service Transactions → Define Service Types.

  The following prerequisites must be fulfilled to ensure that pricing works correctly when using service types:

  • The applicable service type must be entered in the corresponding transaction item.
  • A pricing condition type that takes the service type into account must be set up and used. See condition types SST1 Service Type (Abs.) and SST2 Service Type (%) in the table presented earlier in this lesson.