Introduction to Gross Price

Gross Price in SAP refers to the total price of a product or service before any discounts or surcharges are applied. It represents the base price in a business transaction, forming the foundation for pricing calculations in Sales and Distribution (SD) and Materials Management (MM) within SAP. Gross price is crucial for pricing strategies, financial reporting, and invoice calculations.

Key Concepts & Business Impact

Core Components

  • Base Price: The price of an item before applying discounts, rebates, taxes, or surcharges.
  • Pricing Conditions: Defined using condition types (e.g., PR00 for gross price).
  • Net Price Calculation: Gross price is adjusted based on discounts (K004, K005), freight (FRA1), and taxes (MWST).

Gross Price vs. Net Price

Gross PriceNet Price
Starting price before adjustmentsFinal price after adjustments
Used for negotiations & adsUsed for payments & invoices

Gross Price Calculation in SAP

Formula: Net Price=Gross Price−Discounts+Surcharges+Taxes

Example Calculation

ComponentAmount ($)
Gross Price (PR00)100.00
Discount (K004)-10.00
Freight (FRA1)+5.00
VAT (MWST 10%)+9.50
Net Price104.50

Configuration & Customization in SAP

Define Gross Price Condition Type

  • Transaction Code: V/06
  • Path:
    SPRO → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition Types
  • Ensure PR00 (Gross Price) is active.

Maintain Gross Price in Condition Records

  • Transaction Code: VK11 (Create), VK12 (Change), VK13 (Display)
  • Define gross price per material, customer, or distribution channel.

Assign Gross Price to Pricing Procedure

  • Transaction Code: V/08
  • Add PR00 as a mandatory condition type in the pricing schema.

Integration with SAP Processes

Sales & Distribution (SD)

  • Used in sales orders, deliveries, and billing.
  • Impacts net price determination for customers.

Materials Management (MM)

  • Represents purchase price in procurement.
  • Integrated with vendor agreements and invoice verification.

Financial Accounting (FI)

  • Supports gross vs. net revenue recognition.
  • Helps in tax compliance and reporting.

Common Issues & Troubleshooting

Incorrect Gross Price in Sales Order

  • Solution: Check condition records in VK13 and pricing analysis in VA03.

Gross Price Not Appearing in Invoice

  • Solution: Verify pricing procedure in V/08 and check VF03 (Billing Document).

Wrong Discount Applied on Gross Price

  • Solution: Ensure correct access sequence for pricing conditions in V/07.

Best Practices

  • Use Standard Condition Types: PR00 for gross price, K004 for discounts.
  • Test Pricing Procedures: Simulate calculations using PR00 before deployment.
  • Monitor Pricing Reports: Use V/LD to analyze condition records.

Key Transaction Codes & Tables

PurposeTransaction CodeKey Tables
Define Gross Price ConditionV/06T685, T682I
Maintain Condition RecordsVK11 / VK12KONH, KONP
Pricing Procedure SetupV/08T683, T683S
Sales Order Price AnalysisVA03VBAK, VBAP
Billing Document ReviewVF03VBRK, VBRP

Common Mistakes to Avoid

  1. Wrong Condition Types: Using PR00 for net price instead of gross.
  2. Incorrect Sequence: Ensure discounts are applied before taxes in pricing procedures.
  3. Outdated Records: Always update prices via VK12 to avoid errors.

FAQ

Q: Is gross price the same as list price?
A: Yes! It’s the “sticker price” before any changes.

Q: How do I find gross price in SAP?
A: Use VK13 or check table KONV where KNUMV = condition number.

Q: Can gross price include taxes?
A: Depends on the country. In the EU, VAT is usually included; in the U.S., it’s added later.

Conclusion

Mastering gross price is key for accurate pricing, invoicing, and profit analysis. In SAP, tools like VK11, VK13, and tables KONV/KONP make it easy to manage. Gross Price in SAP is fundamental for pricing, invoicing, and financial reporting. By properly configuring pricing conditions, procedures, and integration with SD/MM, businesses can ensure accurate and transparent pricing calculations.