Pricing Procedure
✓ The Pricing Procedure in SAP MM determines how the system calculates the price of a material
during purchasing.
✓ It defines a structured sequence of conditions (such as gross price, discounts, freight, and taxes)
that influence the final value in a purchase order.
Configuration Steps
1. Maintain condition tables
2. Define access sequences for purchasing
3. Define Condition Types
4. Set Calculation Schema
5. Define Schema groups
6. Define Schema determination
Maintain Condition tables:
✓ SPRO→IMG→Material Management→Purchasing→Condition→Maintain Condition tables
✓ A condition table defines the key field combination used to store condition records.
Example key combinations: Vendor, Vendor Plant, Vendor Material, Vendor Plant Material,
Purchasing Organization, etc.
✓ So when you create a condition record, it is stored using that specific field combination.
✓ This helps the system find the correct price related data during PO creation.
Define access sequences for purchasing:
✓ SPRO→IMG→Material Management→Purchasing→Condition→Define access sequences for
purchasing
✓ An access sequence is a search strategy the system uses to find a valid condition record for a
condition type.
✓ One access sequence can contain one or more condition tables, in a specific order.
✓ The system checks the first condition table, if no record is found it moves to the next table, and
continues until it finds a valid record.
✓ Condition tables are assigned inside the access sequence.
✓ The access sequence is then assigned to the condition type.
Define Condition Types:
✓ SPRO→IMG→Material Management→Purchasing→Condition→Define Condition Types→Set
pricing condition type purchasing
✓ Condition types represent different pricing elements like price (PB00), discount (RA01), freight, tax,
and surcharges.
✓ A condition record is created for a specific condition type using the key combination from the
condition table.
✓ Example: If a price condition record is created for condition type PB00 with Vendor and Material,
then whenever you create a PO with the same vendor and material, the system can automatically
pick the price from that condition record (based on the access sequence search).
Common fields and controls in condition type:
➢ Condition Class → Price, Discount, Freight, Tax.
➢ Calculation Type → Percentage (%), Fixed Amount, Per Unit.
➢ Condition Category → Used to control special behavior (for example freight, tax, etc.
depending on setup).
➢ Access Sequence → Link to the condition record search.
➢ Scales → Quantity or value based pricing.
➢ Manual Entries → Allow entry or change in PO manually (if permitted).
➢ Validity → Effective From and To dates for the condition record.
Set Calculation Schema:
✓ SPRO→IMG→Material Management→Purchasing→Condition→Price Determination→Set
Calculation Schema
✓ In the calculation schema (pricing procedure), you arrange the required condition types in a
sequence.
Example: Gross Price, Discounts, Freight, Surcharges, Taxes, Net Price.
✓ Different countries or different business processes may use different schemas because the pricing
structure and tax handling can vary.
✓ Using Excel to draft the sequence is a good way to explain the logic clearly before showing it in SAP,
especially for new users.
Important Fields in Schema:
➢ Step / Counter → Order of calculation and how conditions are arranged within the step.
➢ From / To → Range used when subtotal is calculated across multiple lines.
➢ Requirement → Rule that controls when the condition should apply.
➢ Subtotal → Stores intermediate results for later calculation.
➢ Mandatory → Condition must exist in the document (based on setup).
➢ Manual → User can maintain or change in PO (based on setup).
Define Schema groups:
✓ SPRO→IMG→Material Management→Purchasing→Condition→Define Schema groups
✓ Here we are going to create the keys:
schema group for supplier
schema group for purchasing organisations
assign schema group to purchasing organisations
SPRO→IMG→Material Management→Purchasing→Condition→Define Schema groups→schema group for
supplier→new entry→schema group→description→enter→save
→ schema group for purchasing organisations→new entry→schema [Link]
group→description→enter→save
→assign schema group to purchasing organisations→our purchase organisations→schema group→save
Define Schema determination:
✓ Schema determination is the rule that decides which calculation schema (pricing procedure) should
be used in the PO.
✓ It is determined by the combination of schema group for purchasing organisation and schema
group for supplier.
✓ SPRO→IMG→Material Management→Purchasing→Condition→Define Schema
determination→determine calculation schema for standard purchase order→new entry→schema
group [Link]→schema group supplier→pricing procedure→enter→save
BP:
✓ Connecting with BP.
✓ BP→our vendor name→enter→click edit
→change BP role[vendor maintained]→purchasing data→schema group→new schema
group→enter→save
✓ Vendor schema group is maintained in vendor purchasing data (in BP). Purchasing organisation
schema group is assigned in customizing. Both together decide the pricing procedure in the PO.