SAP HANA Tutor can be instrumental in elucidating the concept of Pricing Condition Types in SAP SD (Sales and Distribution). Through its specialized SAP tutorials and resources, it offers in-depth insights into various condition types like discounts, surcharges, taxes, and freight costs. The platform’s interactive learning approach, with real-world examples and case studies, simplifies complex pricing mechanisms, making it easier to grasp how these condition types integrate into broader sales strategies.
What Are Pricing Condition Types in SAP SD?
In SAP SD, condition types are essentially the building blocks of a pricing procedure. Each condition type stands for a particular element of pricing — be it a discount, a surcharge, a tax component, or any other price determinant. For example, condition types like PR00 (Price), K004 (Material Discount), K005 (Customer-specific Material Discount), K007 (Customer Discount) and MWST (Sales Tax) are commonly used in many businesses.
Condition types in SAP are used to represent various aspects of pricing activities, such as different kinds of prices, discounts, or surcharges. These can be defined for specific scenarios like material discounts or customer-specific discounts, calculated either as a fixed amount or a percentage. The standard R/3 System includes predefined condition types, but custom types can also be created to suit specific organizational needs.
List of Common Condition Types used in Pricing.
Here’s a table of some common condition types mentioned on the SAP page:
| Condition Type | Description |
|---|---|
| PR00 | Price |
| K004 | Material Discount |
| K005 | Customer-specific Material Discount |
| K007 | Customer Discount |
| K020 | Price Group Discount |
| KF00 | Freight Surcharge (by item) |
| UTX1 | State Tax |
| UTX2 | County Tax |
| UTX3 | City Tax |
Defining condition types in SAP Sales and Distribution (SD) is a fundamental skill for SAP professionals. This guide will walk you through the process step by step, ensuring you have a clear understanding of how to effectively manage condition types in your SAP system.
| Transaction code | SPRO |
| SAP IMG menu | Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition Types |
Step 1: Define Pricing Condition Types in SAP SD
In this step, we have to create a new condition types, and also standard condition types can be used. To define condition types for a pricing, use the transaction code V/06. Click on new Entries to create a new condition type or simply copy from the existing condition type (Recommended).
Step 2: Assigning Access Sequence to Condition Type
Access sequences determine the order in which the system searches for valid data for a condition type. Configure these sequences to ensure the system efficiently finds the relevant pricing data.
Understanding Different Fields in Condition Type (Pr00).
Condit. type and Access seq.
- Condit. type (PR00) is the unique identifier for a condition type, often representing a price, discount, or surcharge. Access seq. (PR02) indicates the sequence in which the system searches for data.
Example: PR00 could represent the standard price for goods, while PR02 ensures the system checks for customer-specific prices before general list prices.
Control Data 1
This section is pivotal in defining the characteristics of a condition type.
- Cond. class (B) indicates the category, such as prices, discounts, or surcharges.
- Calculat.type © denotes whether the condition is based on quantity, value, etc.
- Cond. category and Rounding rule dictate additional pricing parameters.
Example: For a bulk discount, you might set the condition class to ‘Discount’ and calculation type to ‘Quantity’ to apply a discount based on the amount purchased.
Group Condition
- Group cond. allows conditions to apply across multiple items, beneficial for collective discounts.
Example: If you buy 10 units of item A and 15 units of item B, a group condition could apply a discount across all 25 units.
Changes Which Can Be Made
This section specifies what changes can be made to the condition type:
- Manual entries: If checked, users can manually enter conditions in sales orders.
- Header condit. and Item condition determine where the condition can be applied.
Example: If ‘Manual entries’ is enabled for a promotional discount, sales representatives can apply it at their discretion during sales negotiations.
Master Data
Here, you define the validity and application rules for the condition type.
- Valid from and Valid to specify the time frame for the condition’s validity.
- PricingProc (PR0000) links the condition type to a specific pricing procedure.
Example: A seasonal discount might have a ‘Valid from’ date of October 1st and a ‘Valid to’ date of December 31st.
Scales
Scales determine how pricing or discounts vary based on quantities or values.
- Scale basis © can be set to ‘Quantity scale’ for bulk discounts.
- Scale type (A) allows for ascending or descending scales.
Example: A quantity scale could offer a 5% discount for 100-199 units and a 10% discount for 200+ units.
Control Data 2
The second control data section includes options for:
- Currency conv. for international transactions.
- Accruals to handle periodic posting of discounts or surcharges.
Example: For international sales, currency conversion ensures that prices are accurate in the customer’s local currency.
Exclusion
- Exclusion fields allow you to exclude certain conditions from being applied together.
Example: An exclusive promotional discount might not be combinable with other offers.
Text Determination
- This field determines the type of text that can be associated with the condition type.
Example: Text determination could link a descriptive text to a discount, explaining its terms.
How Condition Type fields Work?
Let’s consider a comprehensive example to see how all these fields work together. Imagine a company that sells beverages. They have a standard price (PR00) for their products but offer volume discounts (PR02) to incentivize bulk purchases. They define a condition type for volume discounts:
- Cond. class: ‘Discount’
- Calculat.type: ‘Quantity’
- The Group cond. is selected because the discount applies to total quantity across different beverage types.
- Manual entries is enabled to allow sales reps to apply additional discretionary discounts.
- The validity period is set from January to December to cover the whole year.
- A Scale basis is set to ‘Quantity scale’ with a Scale type of ‘Base-scale’, meaning the more the customer buys, the higher the discount.
- In Control Data 2, they enable ‘Currency conv.’ to cater to international customers.
- They also decide that volume discounts cannot be combined with any other discounts by using the Exclusion checkbox.
- Finally, they use Text Determination to attach explanatory texts to these discounts, making the conditions clear to the customer.
In practice, when a customer orders 150 units, the system checks the access sequence for any customer-specific pricing. Finding none, it applies the standard price (PR00). Next, it looks at the volume discount (PRv/06)
Step 5: Save Your Changes
After configuring your condition types, don’t forget to save your changes. This step finalizes your configurations, ensuring they are applied within your SAP environment.