Pricing Condition Types are foundational to the SAP Sales and Distribution (SD) module, forming the backbone of pricing procedures. They represent various elements like discounts, surcharges, taxes, or freight costs and play a crucial role in determining the final price in sales documents.

This guide provides a simplified approach to understanding and configuring condition types in SAP SD, along with practical examples and configurations.

What Are Pricing Condition Types in SAP SD?

Condition types in SAP SD define specific pricing components, such as:

  • Base Prices (PR00)
  • Discounts (K004, K007)
  • Freight Costs (KF00)
  • Taxes (MWST, UTX1)

They ensure pricing accuracy in sales orders, allowing organizations to configure their pricing strategies to meet business needs. SAP offers predefined condition types, and users can create custom ones as required.

Examples of Common Pricing Condition Types

Condition TypeDescription
PR00Base Price
K004Material Discount
K005Customer-Specific Material Discount
K007Customer Discount
KF00Freight Surcharge (by item)
UTX1State Tax
UTX2County Tax
UTX3City Tax

Step-by-Step Guide to Configuring Pricing Condition Types

Step 1: Define Pricing Condition Types

  1. Access the Configuration Screen: Navigate to:
    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition Types
    Alternatively, use Transaction Code V/06.
  2. Create a New Condition Type:
    • Click New Entries to define a new condition type or copy an existing one for ease of configuration.
    • Assign a unique identifier (e.g., ZPR0 for a custom price condition).
    Example Configuration:
    • Condition Type: PR00 (Base Price)
    • Description: Base Price for Standard Sales
    • Access Sequence: Assign a sequence (e.g., PR02) to search for data.
    Image Reference:
    Pricing Condition Types in SAP SD

Step 2: Assign Access Sequences

Access Sequences determine the order in which the system searches for valid pricing data.

  1. Assign an access sequence to your condition type:
    • Example: Assign PR02 to PR00 to ensure customer-specific prices are checked before standard list prices.
  2. Use Transaction Code V/07 to define or modify access sequences.

Image Reference:
Access Sequences in SAP SD

Step 3: Configure Fields in Condition Types

Key Fields in Condition Types:

  1. Condition Class: Defines the category (e.g., Prices, Discounts, Surcharges).
  2. Calculation Type: Specifies how the condition is calculated (e.g., Quantity, Percentage).
  3. Validity Period: Defines the time frame during which the condition applies.
  4. Rounding Rule: Controls how prices or discounts are rounded.

Example: For a bulk discount, you might configure:

  • Condition Class: Discount
  • Calculation Type: Quantity
  • Scale Basis: Quantity scale for discounts based on purchase volume.

Step 4: Group Conditions

Group conditions allow a condition to apply collectively across multiple items in a sales order.

Example: If a customer buys 10 units of Product A and 15 units of Product B, a group condition applies a discount on the combined quantity of 25 units.

Step 5: Define Scales

Scales determine pricing or discount variations based on quantities or values.

Configuration Options:

  1. Scale Basis: Quantity scale for bulk purchases.
  2. Scale Type: Ascending or descending scales.

Example:

  • 5% discount for 100-199 units.
  • 10% discount for 200+ units.

Step 6: Save and Transport Configuration

After completing the configuration:

  1. Save your condition types in a Transport Request to enable system-wide application.
  2. Test the new condition types in a sandbox environment to ensure functionality.

Image Reference:
Saving Condition Types in SAP SD

Practical Example: Beverage Company Discounts

A beverage company offers the following pricing structure:

  • Base Price (PR00): $5 per unit.
  • Volume Discounts (PR02):
    • 5% for 100-199 units.
    • 10% for 200+ units.
  • Group Condition: Discounts apply collectively across different beverage types.

Configuration:

  1. Set Condition Class to Discount.
  2. Use Quantity Scale for volume-based discounts.
  3. Enable Group Conditions for combined item discounts.
  4. Define validity from January to December.

When a customer orders 150 units, the system applies a 5% discount to the entire order.

Conclusion

Pricing Condition Types are integral to the SAP SD module, enabling businesses to configure dynamic pricing strategies. By understanding and effectively configuring these condition types, you can streamline sales processes and ensure accurate pricing in your system.

Master this process to optimize your SAP SD configurations and enhance your organization’s pricing efficiency. For more SAP tutorials, explore SAP SD Training.