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PRICING

Pricing is the combination of creating correct pricing procedures that map the business needs and processes such as correct pricing and discounting, and keeping to the legal requirements placed on the business, such as adhering to the tax laws of the respective country. The term pricing is used broadly to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting)

The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the Financial Accounting (FI) Module.

The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the Financial Accounting (FI) Module.

The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the Financial Accounting (FI) Module.

The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the Financial Accounting (FI) Module.

The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the invoice and the Financial Accounting (FI) Module.

Pricing is determined based on condition technique. Condition technique is the single largest configuration technique used in sales & distribution. Condition technique is the technique used by SAP to find a choice from among a number of alternatives. Condition technique is a combination of 1) Condition table 2) Access sequence 3) Condition type 4) Pricing procedure Conditions represent a set of circumstances that apply when a price is calculated . For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here - the customer, the product, the order quantity, the date - determine the final price the customer gets. The information about each of these factors can be stored in the system as master data. This master data is stored in the form of condition records.
How condition technique works?

1. The system determines the pricing procedure according to information defined in the sales document type (document pricing procedure) and the customer master record (customer pricing procedure- sales area data- sales tab page). 2. The pricing procedure defines the valid condition types and the sequence in which they appear in the sales order. The system takes the first condition type (PR00) in the pricing procedure and begins the search for a valid condition record. 3. Each condition type in the pricing procedure can have an access sequence assigned to it. The table provides the key with which the system searches for records. 4. If the first access (search) is unsuccessful, the system moves on to the next access and finds a valid record.

Pricing Procedure: - It's basically a schema or outline to arrive at the final price of a product or service, through condition technique. In general a price of a product is consists of elements like= (Basic price- Discount+ Freight +Tax)

Pricing Procedure: - It's basically a schema or outline to arrive at the final price of a product or service, through condition technique. In general a price of a product is consists of elements like= (Basic price- Discount+ Freight +Tax) Pricing Procedure: - It's basically a schema or outline to arrive at the final price of a product or service, through condition technique. In general a price of a product is consists of elements like= (Basic price- Discount+ Freight +Tax)

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