Describing Pricing (Calculation Scheme)

Objectives

After completing this lesson, you will be able to:
  • Describe pricing and its determination
  • Outline the pricing procedure determination in SD
  • Explain the Condition Type PSPB
  • Locate the customizing for pricing

Pricing and Its Determination

The image outlines key facts about pricing in SAP, including central price maintenance, pay per use pricing, and dependency on contract runtime. It also provides industry examples of condition types used for various pricing scenarios, such as recurring fees, variant configuration, hardware/services pricing, and fixed-price subscription contracts.
A subscription order for products Product Bundle BSU_Cloud_SEL_SERV with 10 items and Product License 50 with 20 items is shown. It details the pricing procedure, condition type, access sequence, and condition records for monthly subscriptions in Germany, with a valid record found for 1,000.00 Euro from 01/01/2019 to 12/31/9999.

Pricing Procedure A17024 is a Standard Procedure, which is used for Subscription Transaction (Germany). It can be used as a template for any adaptations. The main Condition Type is PSPB – Bundle Price.

Manual Fix Price PSFX

With this feature, you can create a subscription contract with a fixed price irrespective of the contract duration or subscribed quantity.

  • Maintain a manual fixed price using condition type PSFX (calculation type ‘B’) in subscription order or solution quotation.
  • FICA provider contract is created with one-time billing plan item.
  • No copy of contract fixed price to change order.
  • In case a fee is to be charged during change process, PSFX of desired value can be manually added in the change order.
  • Change of contract from recurring fee mode to fixed price, and the opposite is possible.
A solution quotation overview showing product bundles and individual items with related pricing procedures, condition types, access sequences, and condition records. Specific pricing is detailed, including a valid record for 3,100.00 Euro from 01/01/2019 to 12/31/9999.

Pricing Procedure A17020 is a Standard Procedure, which is used for Solution Quotation(Germany). It can be used as a template for any adaptations. The main Condition Type is PPR0 – Bundle Price.

The Pricing Procedure Determination in SD

This image illustrates the process of determining the pricing procedure in a sales organization, involving transaction type, document pricing procedure, customer pricing procedure, and the final pricing procedure. It includes a table detailing the sales organization, distribution channel, division, document pricing procedure, customer pricing procedure, and the corresponding pricing procedure and description.

Customizing steps for the pricing of conditions:

  1. The document pricing procedure is defined in the Implementation Guide (IMG):

    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures → Set Pricing Procedure Determination,

    or Service → Basic Functions → Pricing → Configure Pricing.

  2. Document pricing procedure is assigned to the subscription transaction types and will be considered during the pricing procedure determination in IMG:

    Service → Transactions → Basic Settings → Define Transaction Types → Select a Transaction Type → Assignment of Business Transaction Categories → Sales → Customizing header.

  3. Settings for customer pricing procedure are maintained in IMG:

    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures → Set Customer Pricing Procedures,

    or Service → Basic Functions → Pricing → Configure Pricing.

  4. You specify the customer pricing procedure in the Business Partner Customer master record for each sales area.
  5. Settings for the pricing procedure are maintained in IMG:

    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures → Set Pricing Procedures,

    or Service → Basic Functions → Pricing → Configure Pricing.

    In the pricing procedure, you define which condition types are to be taken into account and in which sequence. During pricing, the system automatically determines which pricing procedure is valid for a business transaction. The system then takes the condition types contained in the pricing procedure into account, one after the other.

    For subscription orders and contracts, pricing procedure A17023 is shipped as a sample pricing procedure, which can be adjusted to the customers' requirements. The condition PSMB is used for recurring subscription fees and PSPB for bundle prices / one-off fees. Customers build their own pricing procedures.

  6. Pricing Procedure Determination:

    The pricing procedure determination is defined in IMG:

    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures → Set Pricing Procedures,

    or Service → Basic Functions → Pricing → Configure Pricing.

You specify how the system determines pricing procedures for documents.

The document pricing procedure is derived from the transaction type. The customer pricing procedure is derived from the business partner.

Condition Type PSPB

This image explains a feature that allows transferring an individual subscription contract to a new contract, ensuring the existing contract is delimited. It lists features such as transferring items within or to new subscription contracts, defining document transfer strategies, and running transfers via UI or API.

The Access Sequence shows, in detail, the condition used for each table.

It's defined for each condition type in the Pricing Procedure. This search strategy defines the sequence in which the system reads the condition records for a condition type. Each access performed during the access sequence is made using a condition table. A condition table is a combination of fields, which form the key for a condition record. You can make an access dependent on certain requirements.

Customizing for Pricing

A screenshot of an SAP system menu showing the navigation path under Sales and Distribution to the Define And Assign Pricing Procedures option, highlighted at the bottom. The path includes Master Data, Basic Functions, Pricing, Pricing Control, and Condition Tables and Field Catalog.

Define the settings in Customizing for Sales and Distribution under Basic Functions → Pricing → Pricing Control:

  • Define Condition Tables
  • Define Condition Types
  • Define Access Sequences
  • Define And Assign Pricing Procedures

In the Customizing activity, Define and Assign Pricing Procedures,, only the following settings are relevant:

  • Set Pricing Procedures
  • Set Customer Pricing Procedures
  • Set Document Pricing Procedures
  • Set Pricing Procedure Determination

In addition, you must perform the following settings in Customizing for S/4Hana Service:

under Transactions → SPRO → Basic Settings:

  • Under Define Transaction Types, assign the pricing procedure to the relevant transactions
  • Under Define Item Categories, activate the pricing function for item categories

Browse SD Customizing Pricing

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