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What is Pricing Procedure – Define Pricing Procedure in SAP

In this SAP tutorials, you will learn what is pricing procedure and how to define pricing procedure in SAP SD using transaction code V/08.

What is Pricing Procedure in SAP

Pricing Procedure determines the price of goods and services in SAP system. When you are processing sales documents the system calculates the documents price by considering the condition types. Each pricing procedure in sap consists its own set of condition types to determines the prices of goods and service for the respective customer categories.

Purpose of configuration

In this activity you define customer pricing procedure to calculate the value of goods & service. We need to place the condition types in a sequence order. The SAP system determines the pricing procedure on the basis of

  • Customer master data
  • Sales data
  • Sales document.

How to define pricing procedure in SAP

Navigation

SAP R/3 Role MenuMaintain pricing procedure
Transaction CodeV/08
SAP IMG PathSPRO -> Implementation Guide for R/3 Customizing (IMG) > Sales and distribution > Basic functions > Pricing > Pricing control > Define and assign pricing procedure.

Note : – You define new customer pricing pro

Step 1 : – Execute tcode “V/08”.

maintain pricing procedure tcode SAP

Step 2 : – On change view procedures overview screen, click on new entries for creation of  pricing procedure in SAP.

what is pricing procedure in SAP

Step 3: – On new entries pricing procedures screen, update the following details.

  • Procedure : – Enter the key that defines as pricing procedure in SAP.
  • Description : – Enter the description of pricing procedure.

Define Pricing Procedure in SAP SD

Now click on save button and save the configured pricing procedure details in SAP system.

Step 4 : – Select the pricing procedure and double click on control tab.

SAP Pricing procedure control data

Click on new entries button and specify the required condition types in required order.

Pricing Procedure control new entries SAP

Update the following details.

Step : – It specifies the sequential number of condition type in pricing order.

CTyp : – Update the required condition types

Description : – The description of condition type will be automatically updated by SAP system.

Manual : – It enables to determine conditions during pricing in sales documents either if they are entered manually or from other application.

Required : – If you check this option for condition type, it becomes mandatory during pricing in sales documents.

Reqt : – The requirement specifies condition type has to be determined during pricing in the sales document. If a condition type to be determined in to sales document, the requirement specified here must be specified.

create pricing procedure in SAP SD

After maintaining all the required details, click on save button and save the configured details.

Successfully we have maintained pricing procedure in SAP SD.