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What is Pricing in SAP – Pricing Procedure in SAP SD

In this SAP SD tutorial you will learn what is pricing in SAP and overview of pricing procedure in SAP SD (sales and distribution) module.

The pricing of goods and services are determined based on certain conditions like cost of materials, manufacturing, shipping, sales tax, etc. In the Sales and distribution (SAP SD) module, the price of goods and services are determined by the pricing functions.

What is Pricing in SAP – Overview of Pricing Procedure

During the sales documents processing, the SAP system automatically calculates the net values of documents by considering the condition values of different pricing elements. The prices are calculated based on conditions techniques.  A condition technique is the process of determining the condition records into sales documents. The pricing procedure in SAP as follows

  • Condition technique consists of condition records and condition records are stored in condition tables.
  • Condition tables will be placed in access sequences.
  • Access sequences are assigned to condition type.
  • Condition types will be placed in pricing procedure.

You can configure pricing in SAP system as per the requirements of clients. Pricing procedure consists the following configurations.

  1. Condition Records
  2. Condition Tables
  3. Access Sequence
  4. Condition Types
  5. Pricing Procedure
  6. Pricing procedure determination

Condition Records : – It is also called as condition master, it is the master data for pricing. You can maintain condition master record by using transaction code VK11.

Condition Tables : – It is the combination of fields which are used to maintain condition records. You can maintain condition tables in SAP using transaction code V/03.

Access Sequence : – It is a search strategy used to search for valid condition records from most specific to most general. You can maintain access sequence in SAP using transaction code V/07.

Condition type : –  It controls the pricing components and pricing elements.  You can define condition types in SAP using transaction code V106.

SAP system automatically determines the gross prices of goods/ services by calculating the charges and discounts on a particular vendor on a basis of price procedure condition type.