What is pricing in SAP SD ?

• SAP SD Pricing elements such as list price, discounts or surcharges,freight and taxesare used to
determine the final price that is charged to the customer. In this article, we will cover SAP SD pricing

Key Pricing Elements:

• List Price: Base price of the product. (SP)
• Discounts and Surcharges: Reductions offered to customers based on quantity, promotions, or
customer-specific agreements, while surcharges are additional charges applied for special conditions,
such as rush orders or handling fees. (SP)
• Freight: Costs for transporting goods, which can vary based on factors like weight, distance, or
delivery method (SH)
• Taxes: Applied based on the product and location of the customer. ( like SGST,CGST,UTGST,IGST)
SH
How is pricing done in SAP SD ?
• The Condition Technique
in SAP is a method used to
determine prices, taxes,
discounts, and other
conditions during sales
proccess

• It automates pricing
calculations by applying
predefined condition records
based on several factors like
customer, product, and sales
organization.
Condition Techinique

Access Pricing
Conditio Conditio
Sequenc procedur
n Table n Type
e e
Condition Tables
• A condition table in SAP SD (Sales and Distribution) is a combination of fields used to maintain
condition records. These tables are essential for pricing, as they define the structure for storing and
retrieving condition records.
• This is a three-digit numeric code. Custom pricing conditions are usually Started by a 5 (i.e.,
501,502, etc.).
• Why Choose Condition Table Numbers Above 500 :
SAP reserves numbers below 500 for standard tables. Custom condition tables should use numbers
500 and above to avoid conflicts with SAP’s standard tables and for easier maintenance.
•T code : v/03
•Conf: Go to the IMG path: SPRO -> SAP Reference IMG -> Sales and Distribution -> Basic
Functions -> Pricing -> Pricing Control -> Define Condition Tables.
Field catalogue
• A field is a single piece of information, like a customer or product, used to organize
data in a table.

• The fields chosen from the catalog impact how the system applies pricing conditions

(e.g., Customer-specific discounts, Material-specific surcharges).

• The maximum number of fields that can be assigned to a condition table is 20 fields.
This includes both key fields and non-key fields. Out of these, up to 4 fields can be
defined as key fields

• Total no. of Fields in field catalogue 244.

Item Field :
• It determines how conditions are applied to documents and items in the pricing procedure.

• The system checks whether the condition is relevant for the entire document (header) or for each line
item.

Text Field :
• It is used for entering descriptions and notes related to pricing conditions.

• It provides additional context or explanation about the condition, which can be helpful for reporting
or
Why A before Table no.
• When you create a new condition table, SAP assigns an internal technical name
starting with "A" to uniquely identify that table within the pricing functionality.

• SAP uses "A" for all condition tables to easily identify them as pricing-related
tables in the system.

• For example, A005 might represent a standard condition table for

Customer/Material pricing

• While custom tables like A900 could be user-defined.

Access Sequence
• The access sequence enables the system to access the condition data records in a particular
sequence until it finds valid data.
• we can define which table to look up first based on priority so that It helps optimize pricing
for the system
• Access sequences This is a four-digit alphanumeric code.
• Access Sequence Configuration :

Menu Path: IMG >> Sales and Distribution >> Basic functions >> Pricing >> Pricing
Control >>Define Access Sequence.
• T-code: V/07
If you go to utilities
The same usage and
application will be seen in
Pricing procedure Tab (v/08)
Generate Access Sequence in V/07
1. Usage:
Defines the type of conditions: (A = Pricing B = Output)
2. Application:
Specifies the functional area:(V = Sales & Distribution M = Materials Management)
3. Access Sequence:
Defines the number of the access sequence, which determines the search strategy.
Example: 001
4. Online Generation:
• Checked: Access sequence generated immediately
• Unchecked: Generated later (background/batch job)
• Purpose:
Automates access sequence creation based on predefined settings.
• Example Use Case:
Generate a new access sequence for pricing (Usage: A, Application: V) with predefined settings,
ensuring consistency and efficiency.
• Access Sequence Requirements are more about controlling the selection of condition records, which is a prior
step before pricing calculation.

• In Pricing Procedure Requirements are related to conditions (such as discounts, surcharges, etc.) applied during
the calculation phase.

Key Difference :
• Placement in Access Sequence: Controls the condition records that will be considered during pricing (access to
condition records).
• Placement in Pricing Procedure: Controls if and how the condition types should apply once the condition
records are found.
600 usd
400 usd
500 usd
1.Const. Value Source:
Specifies a constant value for the field, instead of fetching it dynamically from the transaction.
2.Init (Initial Indicator):
If it is checked, the field is initialized to a blank/default value when no data is found. This allows the
condition lookup to proceed.
3.Access Control:
Defines how the field is handled during condition lookup:
B: Allows blanks during lookup.
C: Field must have a value, or the lookup fails.
4.Priority:
Search order for fields:
Lower numbers (e.g., 0) mean higher priority.
System checks higher priority fields first in the access sequence.
Condition Type
• A condition type is a pricing element like discounts,
surcharges, or taxes. It defines how pricing will be
calculated in the system
• This is a four-digit alphanumeric code condition.
• Condition Type Configuration

Menu Path: IMG >> Sales and Distribution >>Basic

functions >> Pricing >> Pricing Control >> Define
Condition type.
• T-code: V/06
Defines the category of the condition (e.g., price, discount)

Specifies how the condition is calculated (percentage, fixed amount, etc.)

Specifies the type of condition, like a freight, rebate, or tax
Specifies whether the
Determines the rounding method for the condition value value can be positive,
negative, or both.
implies how the condition is used in a pricing structure of BOM

It defines at which point in the pricing procedure the system should consider the condition type during the sales
document creation

Indicates if the condition is applied at the group Defines a formula routine to apply the
level condition in group contexts (Weight)
Manages rounding differences for group conditions
Specifies if manual entries are allowed

Indicates if the condition is a header Links the condition to quantity-based

condition data
Defines if the condition is applied at the item Specifies whether the value of the
level condition type can be changed
during document processing

Defines if the condition can be

updated
Maintenance of Condition record
• Controls the system behavior during maintenance of condition records.
Use
• You can configure how the system reacts during maintenance of condition records.
• Note that condition records for obsolete condition types should not be created or
changed anymore.
• You have the following options:
1. initial: The condition records can be maintained without any restrictions.
2. A: Condition records for the condition type can be displayed.
If the user tries to create or change condition records for the obsolete condition type, a
warning message is being displayed which informs the user that changes should not be
performed anymore.
3. B: Condition records for the condition type can only be displayed.
Creating or changing the condition records for the obsolete condition type is not
possible anymore
Indicates what kind of scale is used
Specifies the unit of measure for
Describes if the scales are ascending or descending.
scaling
Defines the base scale type, such as price or discount scaling

Exclusion: Defines if the condition is excluded under certain scenarios.

Currency Conversion: Allows for currency conversion in the condition.
Quantity Conversion: Determines if quantity conversion is involved.
Accruals: Indicates if the condition is posted as an accrual.
•Condition Update in SAP SD plays a crucial role in the
Order-to-Cash (OTC) process, especially in scenarios
where certain conditions (such as discounts, rebates, or
surcharges) need to be tracked or limited over a period.

Condition
• Tracks Discounts & Rebates: Keeps track of
Update & cumulative discounts or rebates to ensure limits aren’t
exceeded.
Its Importance • Quota Management: Ensures that conditions with
in OTC quotas (e.g., discounts) are enforced during pricing.
• Accurate Pricing: Condition updates keep pricing
accurate by recalculating values for each order or
invoice.
• Rebate Settlements: Tracks rebates retroactively for
correct payout during settlements.
Example - Discount for First 5 Orders
Step 1: Create Discount Condition Type (ZDIS)
Step 2: Set Up Condition Table (Track Customer and Order Count)
Step 3: Assign to Pricing Procedure (V/08)
Step 4: Apply Discount to First 5 Orders (Condition Update Active)
Step 5: After 5th Order, Discount Stops

Overview

Condition Type (ZDIS): 10% discount for first 5 orders.

Condition Update: Tracks number of orders, stops after 5.
Order Flow: Discount is applied to each order until limit is reached.
Thank you
Pricing Procedure in SAP
SD

Overview, Fields, Routines, and Impact of Currency

AGENDA

• Routines in Pricing Procedure

• Currency’s Impact on Pricing Procedure & Conversion
Introduction to Pricing
procedure
How does SAP SD determine pricing procedures?

Pricing Procedure is determined Configuration of Pricing Procedure Determination

using: Menu path: IMG >> Sales and Distribution >>Basic
functions >>Pricing >> Pricing Control >> Define and
• The Sales Area (sales organization, Assign Pricing Procedures >> Define Pricing Procedure
distribution channel, and division) Determination

T-code: OVKK
• The Document Pricing Procedure
(DoPr) code from the document type

• The Customer Pricing Procedure

(CuPr) code from the customer
master record
Menu Path: IMG >> Sales and Distribution >>Basic Functions >>Pricing >>Pricing Control
>>Define and assign Pricing Procedure.

T-Code: V/08
16 Fields in Pricing Procedure
1) Step :

Determines the sequence in which condition types (e.g., base price,

discounts, taxes) are calculated.

Steps are numbered sequentially (10, 20, 30) and processed in

ascending order during pricing.

2) Counter :

It is a sub-step within a main step, used to evaluate multiple condition

types at the same step.

Counters provide granular control by assigning a unique number to

each condition within the same step (e.g., Counter 1, Counter 2).
3) Condition Type :
This specifies the kind of price component (e.g., base price, discounts, taxes)
being evaluated in that step and determines the nature of the pricing component.
Examples:
PR00: Base price
K007: Customer discount
MWST: Sales tax
KF00: Freight cost

4&5) From & To :

It defines the range of steps for calculating or applying condition types and Useful
for referencing previous step results
Example: For taxes (MWST), "From Step 10 To Step 20" references the subtotal
of Step 10.
For net values etc
Only from to is used to use that PARTICULAR STEP as base value and
calculate
6) Manual
This determines if a condition type can be entered manually in a sales
document and allows users to override or manually enter condition types, often
for discounts or special charges.
7) Required (Mandatory) Checkbox
This field purpose is to ensures the condition type is mandatory in the pricing
procedure; prevents document processing without it and this is used for critical
conditions like base price (PR00) or taxes.
Example: PR00 (Base Price) marked as required; if not found, an error
prevents document completion.
8) Statistical
This marks a condition as informational (statistical) without affecting the final
net price and it is used for reporting, such as cashback or internal profit
margins.
Example: Cashback conditions are recorded for info but not added to the final
invoice.
9) Relevant Account Determination
• The process of mapping pricing condition types (e.g., sales revenue, discounts, taxes) to General
Ledger (G/L) accounts.
• It Ensures correct financial posting by integrating the SD module with Financial Accounting (FI).
• Account keys and access sequences link condition types to the correct G/L accounts.
• Examples:
• PR00 (Base Price): Account Key ERL (Sales Revenue), posts to revenue G/L account.
• MWST (Sales Tax): Account Key MWS (Tax), posts to tax payable G/L account.
10) Print Indicator:

• This flag determines whether the condition type should be printed on the customer's invoice or
other relevant documents.

• This is used for some condition types (like internal costs) are marked not to be printed on
customer-facing documents.
11) Sub total:

• This field is used to store the result of a pricing step in a specific subtotal. The subtotal field allows the system
to reuse or refer to the result in later steps (e.g., calculating taxes based on a subtotal).

• This helps in accumulating pricing values for further calculation. For instance, a subtotal could be used to store
the cumulative value of all discounts applied.
12) Requirements
Specifies conditions that must be met for a condition type to be applied, ensuring certain criteria (e.g.,
customer region or order value) are fulfilled before applying the condition.

13) Alternative Condition Calculation Type

Allows a custom calculation method for a condition type, overriding standard logic to suit specific
business rules, such as using total weight instead of quantity for freight charges.

14) Alternative Condition Base Value

Enables the use of a different base value (e.g., subtotal or net price) instead of the standard base
(e.g., material price) for calculating conditions like taxes or discounts.
15) Account Key
Determines how condition values (e.g., freight, taxes) are posted to specific General
Ledger (G/L) accounts in financial accounting

16) Accrual Key

Defines how conditions (e.g., freight or commissions) are recorded for accruals,
ensuring certain revenues are deferred and not immediately posted.
Routines • Custom ABAP code used to modify or enhance pricing calculations
beyond standard logic.
in pricing • Allows complex pricing rules (e.g., customer-specific discounts,
procedure weight-based freight).
• Adjusts condition values based on business-specific logic.

Types of routines :
• Pricing Routines: Used to calculate the value of conditions (e.g.,
discounts, surcharges, etc.).
• Access Routines: Control whether a condition type is applied based
on certain criteria.
Note : Routines integrate with other modules like Sales and
Distribution (SD) and Financial Accounting (FI) to implement complex
business rules.

They are routines in 3 fields out of 16 fields : Requirements, Alt

calc cndn amnt & Alt cndn base value
Routines in
Requirements

1. Item pricing (2)

2. Different payer (1)
3. Foreign currency doc (3)
4. Cost (4)
5. Condition exclusion<>’X’(6)

Notes: 148 routines in total

1) Item pricing (2) :
This Routine checks if the Item
category of the item in the line is
relevant for pricing, and pricing
will be done only when it is
relevant
2) Different payer (1) :
This routine checks if the payer in the
sales document is different from the
sold-to party (customer).
3) Foreign currency doc (3) :
The system uses an access
sequence to determine the
price of a material. One of the
accesses in the sequence
contains the requirement "in
foreign currency."
The system only uses the table
behind this access if the sales
order for which the price must
be calculated is in a foreign
currency
If the currency is same
3)Cost (4):
• This routine calculates costs related to
the goods or services in the sales
document, such as freight or
production costs
• This requirement is met if the sales
document item category has been
configured to determine costs.
• It also verifies that the plant is set, the
valuation area company code and the
sales organization's company code are
identical, and that the item is not a
down payment item.
Note : Generally this requirement having
Cond.Types are marked as Stastical
Non stock item
Stock item
5)Condition Exclusion <> ‘X’ :

Condition This routine in SAP SD controls whether certain

Exclusion
pricing conditions should be excluded from the
pricing calculation. It ensures that specific
conditions are bypassed when exclusion criteria are

<> ‘X’ met, helping to prevent redundant or conflicting

pricing entries from being applied.
Routines in Alternate
Calculation condition
amount
1. Net value (2)
2. Net value + tax (4)
3. Cost dialogue (5)
4. Expected price (9)
5. Best price (14)
6. Actual metal price (6)
7. Variable costs (100)

Notes : 232 routines in total

Net Value (2): Uses the net value for condition calculation, excluding
taxes or surcharges.

Net Value + Tax (4): Adds both net value and taxes for condition
calculation.

Cost Dialogue (5): Allows manual entry of costs during pricing

determination.

Expected Price (9): Ensures the price matches the customer's expected
price, often derived from agreements or contracts.

Best Price (14): Selects the lowest possible price for the customer by
comparing different conditions.

Actual Metal Price (32): Bases the price on the actual, up-to-date price
of metal commodities.

Variable Costs (100): Reflects variable costs like production or

transportation, impacting the pricing calculation.
Routines in Alternate
condition base value

1. 100% Discount (28)

2. Volume (1)
3. Net price, Gross weight & Net weight
(3,12&13)
4. Cash Discount Base (11)
5. Whole number (22)
6. Basis=0(163)
7. Deal adds-on (701)

Note : 95 routines in total

100% Discount (28): Applies a full discount, setting the condition value to
zero.

Volume (1): Calculates condition value based on the volume of goods,

useful for volume-sensitive charges like freight.

Net Value, Gross Weight, Net Weight (2, 3, 12, 13): Use net value or
weight to calculate the condition base, affecting freight or cost calculations.

Cash Discount Base (11): Sets the base for cash discount eligibility.

Whole Number (22): Rounds base values to whole numbers, simplifying

pricing.

Basis = 0 (163): Nullifies the condition by setting the base to zero.

Currency
In SAP SD (Sales and Distribution) pricing, the currency used in
pricing conditions is usually the local currency (company code
currency) or a currency defined for the sales organization or customer

System uses exchange rates from SAP tables to convert between

currencies for calculations and reporting.

Currency is determined in sales by : Pricing

Custome Sales
Procedu
r Master Order
1. Sales Organization Level: You can define the default currency re
for a sales organization in Customizing (IMG).
2. Master Data (Material/Customer): You can maintain a currency The currency maintained in the
in the material master or the customer master, which might pricing condition (condition
override the sales organization default. currency) is used for price
calculations
•Exchange Rates (OB08)
Exchange Rate Types: SAP uses exchange
rate types to maintain and convert currencies.
Standard Exchange Rate: If a specific
exchange rate type isn't maintained, the
system defaults to a standard exchange rate
(e.g., 'M' for system-calculated rates).
• Conversion
 The system uses exchange rates to convert
prices from the condition currency to the
document currency for calculations within
documents, like sales orders and invoices
Currency Conversions in Pricing

Step 1: Currency in Step 3: Exchange

Step 2: Condition
Sales Document Rate (OB08)
Records (Stored in
(Customer's (Conversion based
different currencies)
currency is set) on exchange rates)

Step 4: Pricing
Step 5:
Calculation (System
Rounding/Adjustme
converts all values
nts (Adjust for
to the document
differences after
currency for final
conversion)
pricing)
Currency’s Impact on Pricing Procedure
A flow of how currency impacts pricing:
Sales Order Creation ➜ Currency Determination ➜ Condition Records in Different Currencies
➜ Pricing Calculation in Local and Document Currency

•Currency in Pricing: Condition records can be maintained in various currencies. Pricing

adapts based on the currency set in the sales document.
•Exchange Rate: The system uses exchange rates (OB08) to convert between currencies if
needed.
•Rounding Differences: Currency conversions might cause rounding differences in the final
price.
•Impact on Discounts/Taxes: Conditions like discounts or taxes are recalculated in the sales
document currency.
Note :
• SAP converts prices automatically using exchange rates from OB08.
• Pricing accuracy is dependent on exchange rate accuracy.
Thank you