The customer pricing Procedure in SAP represents the collection of condition types specified for a customer buying the goods or services. The SAP system process these condition types to determine the price of goods and services for that customer.

The Customer Pricing Procedure (CPP) is a vital component in SAP’s pricing mechanism. It represents a collection of condition types that specify how prices, discounts, surcharges, taxes, and other price-related factors are determined for a customer purchasing goods or services. This mechanism ensures tailored pricing strategies that accommodate diverse customer needs and business scenarios.

Defining Customer Pricing Procedure in SAP

Creating a Customer Pricing Procedure (CPP) in SAP involves defining a key that helps determine the appropriate pricing procedure during sales document processing. This key is assigned to the customer master record and plays a crucial role in pricing determination.

Steps to Create a Customer Pricing Procedure:

  1. Access the Define Customer Pricing Procedure Screen:
    1. Navigate through the SAP menu: SPRO → SAP Reference IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define and Assign Pricing Procedure → Define Customer Pricing Procedure.
    2. Alternatively, use Transaction Code OVKP to directly access the screen.
  2. Create a New Customer Pricing Procedure:
    1. In the “Change View ‘Customer Pricing Procedures'”: Overview screen, click on “New Entries”.
    2. Enter a unique identifier (e.g., ‘T’) and a descriptive text for the new customer pricing procedure.
    3. Save your entries to create the new CPP.
  3. Assign the Customer Pricing Procedure to a Customer:
    1. Go to the customer master record using Transaction Code XD02 (Change Customer) or VD02 (Change Customer for Sales Area).
    2. Navigate to the “Sales Area Data” tab, then to the “Sales” sub-tab.
    3. In the “Pricing” section, locate the “Cust.pric.proc.” field and enter the newly created CPP identifier (e.g., ‘T’).
    4. Save the customer master record to apply the changes.
Creating a Customer Pricing Procedure (CPP) in SAP

Important Considerations:

  • Integration with Pricing Procedure Determination:
    • The Customer Pricing Procedure is a key component in determining the overall pricing procedure during sales order processing.
    • The system uses a combination of Sales Area (Sales Organization, Distribution Channel, Division), Document Pricing Procedure, and Customer Pricing Procedure to determine the appropriate pricing procedure.
    • Ensure that the new CPP is appropriately assigned in the pricing procedure determination settings to achieve the desired pricing behavior.
  • Testing:
    • After configuration, test the setup by creating a sales order for the customer to verify that the correct pricing procedure is applied and that pricing conditions behave as expected.

By following these steps, you can create and assign a Customer Pricing Procedure in SAP, enabling tailored pricing strategies for different customers.