SAP SD Condition Technique in Pricing

As a SAP SD consultant, you need to implement the SAP system which must meet organization product pricing strategies based on many requirements. With this blog you will learn the basic foundation on pricing configuration options to build the solution for your organization. In SAP pricing, conditions are built to meet requirement of many pricing factors like basic price, surcharges, freight, discounts and taxes. These pricing factors must be determined spontaneously for healthy business transactions.

Master Data for Conditions:

Master data for conditions is kept in condition records. The stages at which pricing is most usually carried out have been predefined and shipped in the standard version.

Generally, conditions can be well-defined at any key level. Thus, you can add extra key levels if necessary. A typical field catalog comprising the fields normally used in pricing is provided within Customizing for this purpose. You can add any additional fields to the field catalog release-independently.

Conditions
Prices	Discounts/Surcharges	Freight	Taxes
- Price List - Material Price - Customer Specific - Other	- Customer - Material - Material Pricing Group - Customer/Material Pricing Group - Customer/Material - Price group / material pricing group - Other	- Incoterms, part 1 - Incoterms, part 1+2 - Other	- Departure Country/Destination Country - Domestic - Export - Other

Structure of Condition Records:

Key combination is used to define condition records that is allocated to the particular condition type. I will post about these key combinations later, as a condition table, when we discuss configuration. A condition type can also be assigned several possible key combinations, for example, in the standard condition type PR00, “Price”.

Level on which condition is defined	Condition Type:        KA00 – Special Offer Discount Sales Organization:   1000 Dist. Channel:          01 Customer:                K1 Material:                  M1
	Period 1 (March 01-April 30)	Period 2 (May 01-May 30)
	$1000                   -1% $2000                   -2% $3000                   -3% Lower Limit: -5% Upper Limit: 0%	$1000                   -2% $2000                   -3% $3000                   -4% Lower Limit: -5% Upper Limit: 0%

Apart from this, user can mention  a validity period which limiting a pricing agreement to a specific period as shown:

Example:

• Different price lists for different years

• Discounts given only for the duration of a special offer

The values in a condition record, such as price, surcharge, and discount, can be defined according to a scale. There is no limit to the number of scale levels. You can specify an upper and lower limit for each condition record. Manual changes to pricing elements determined by the system can be made only within these limits.

Example of Condition Types:

Key	Condition	Control Data	Example
PR00	Price
K007	Discount %	- Calculation Type: Percentage - Scale Base Type: Value Scale	Scale Base Type	Calculation Type
			$100	-1%
			$1000	-2%
			$10000	-4%
K029	Discount/Weight	- Calculation Type: Amount/Weight - Scale Base Type: Weight scale	Scale Base Type	Calculation Type
			100 kg	$1- per 1 kg
			1000 kg	$3-
			10000 kg	$5-

The condition type determines the category of a condition and describes how the condition is used. The calculation type and the scale base type can be controlled for each condition type.

Possible scale bases	Possible calculation types
Values	Percentage of an initial value
	Fixed amount
Quantity	Amount by unit of measure
Weight	Amount per unit of weight
Volume	Amount per unit of volume
Period	Quantity per unit of time

Condition Maintenance:

An additional maintenance interface is provided for condition maintenance in SAP R/3 Release 4.6A and later.

The new interface allows mass maintenance of conditions based on characteristics, for example, for customers.

This means that condition records can now be maintained across all condition types and condition tables. You can, for example, display and maintain the material prices and the discounts and surcharges for a customer in one step.

You can also call up the previous maintenance transaction for conditions by choosing Select Using Condition Type.