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rid=/library/uuid/d09 867e7-84d7-2c10-b9b7-da9e3b41392a&overridelayout=true Steps for MM Pricing Procedures

Can anyone please help me on the Pricing Procedures? I have read it many times but fail to understand. Pricing Procedure : In MM module, pricing procedure is used during RFQ and PO creation. Total value of material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In this we are defining pricing procedure and linking to vendor and purchase department through the virtual schemas. Following steps for pricing procedure as, 1. Define conditions. 2. Define pricing procedure. 3. Define virtual purchase organization and vendor. 4. Info Record. Customization for Pricing Procedure : 1. Definition of Conditions : /NMEK0---condition typecondition types--- definition (define for basic price, net price, discount, surcharge, tax etc.) 2. Defining pricing procedure : /NMEK0--- calculation schema---calculation schemasNew entries (Define procedure and put the conditions like formula so that final price will be net price / total value as per company requirement) 3. Linking pricing procedure to independent condition types. /NMEK0---condition typecondition types--- definition for position for defined conditions (Enter the defined pricing procedure in the each independent conditions Pricing Procedure box) 4. Defining Schema group for Vendor : /NMEK0--- calculation schema---schema groupsvendorNew Entries.

5. Defining Schema group for Purchase Organization--- New entries. /NMEK0--- calculation schema--- schema groups---- purchasing organization--- new entries. 6. Linking Virtual Purchase Organization to actual Purchase Organization. /NMEK0--- calculation schema--- schema groups----- Assign P.Org. (in actual P.Org, enter virtual P.Org) 7. Linking Pricing procedure to virtual P.Org and virtual vendor : /NMEK0--- calculation schema--- Determine Schema--- -Standard --- New entries (Enter virtual schema and P.Org. along with pricing procedure) 8. Linking virtual vendor to actual vendor-- /NXK02 then enter schema group vendor in Purchasing Data ) 9. Info Records (/NME11)---- click on Purch. Org. data1 and enter condition types and pricing procedure Anand What are the steps in pricing determination in MM? Condition, Access sequence and schema. In the SAP MM Pricing is more important. Just yesterday I have completed the Pricing as I am doing the SAPMM now. I can give some light on this Topic, not 100%. After 2 days definitely some more I can share. The Basic thing is Condition Technique. In which there are 1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table. A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition Technique.This is a simple logic Here the Condition Type is very important like PB00, PBXX,RA01 etc. In the background every Condition Type has its own defition means the purpose of the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions. Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement.

The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement. The Pricing Schema means the calculations procedure of Condition Type. Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means RA01 is based on PB00 like that we have to define in the Pricing Schema which makes easy to use in realtime. Here PB00 has the Access Sequence - 0002. But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types. In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define. For the configuration, I may not able to explain properly through here but will give some Idea. Configuration: SPRO-IMG-Material Management- Purchasing- Conditions-Define Price Deternmination Process 1. Define Access Sequence 2. Define Condition Type 3. Defince Calculation Schema:- Here you have to define the Schema Define Schema group 1. Define Schema Group vendor 2. Define Pricing Schema group 3. Schema group for Purchase Organisation 4. Assign Schema group to Purchase Organisation Define Schema determination 1.define calculation schema for Standard purchase organisation After completion of the Schema Group, we have to assign it to Vendors. Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured by us. I think this will help you. Actually the Pricing is a vast. Becuase each Condition have its own importance and each Access Sequence have its own importance. So you need

not bother about this. First you learn how to define the Calculation Schema through the above. Here we can create many Calculation Schemas which can assign one schema to Local vendors another schema to out side vendor one more schema to foreign vendors like that we can classify. Definitely it will help you something. Because I have to do R & D on this Topic. Due to lack of time I am not able to do the Practice Properly as I am doing non-related SAPMM job.

PRICE DETERMINATION PROCESS or PRICING PROCEDURE

CONDITIONS OR PRICING PROCEDURE or PRICE DETERMINATION PROCESS
We deal with the Pricing Procedure for vendors. PB00 Gross Price (info record, contract, scheduled Agreement) PBXX Gross Price (PO) FRA1 Freight RA00 Discount on net RA01 Discount on Gross ZA00 Surcharge on net SKT0 Surcharge / discount ZPB0 Rebates MWVS Input Tax MWAS Output Tax BASB Base Amount RM0000 Calculation Schema or Pricing Procedure (PB00 & PBXX) RM0002 Calculation Schema or Pricing Procedure (PB00) PB00 --> AB00 Copy the Standard one and create new one (ours)

RM0000 contains all the condition types

Pricing Procedure (PP)

We define the pricing procedure to define condition supplement for the material price. The condition supplement specifies the discount, surcharge, freight etc that we want a system every time to access material price condition records. The total value of the material is calculated or based on all addition and subtraction i.e. discounts, surcharge, tax freight etc

Condition Table It is a table, which defines the structure of condition record key. Condition Record It is a data record used to store conditions or condition supplements, i.e. condition like, discount, freight, and surcharge, Tax etc. Condition Type It is used for different functions. In Pricing the condition types leads you to differentiate different types of discounts, in output determination, batch determination, difference between two output types, such as delivery note or orderconfirmation, between different strategy types Access Sequence It specifies the order in which system searches or access the condition records from condition table

Difference between PB00 & PBXX

1. Condition maintained in PB00 is time dependent whereas PBXX is time independent. 2. Condition type PB00 used for IR, RFQ, Contract, Schedule Agreement Condition type PBXX used for PO.

Calculation Schema The main function of calculation schema is to provide framework of steps for the price determination process to specify the discounts, surcharge, freight rebate etc. It also determines the sequence of conditions that are to be followed and in which sequence.

Schema Group Vendor The main function of it is to identify or to pick the right process and conditions for a particular vendor.

Schema Group Purchasing Organization Key that determines which calculation schema (pricing procedure) is to be used in purchasing documents assigned to the relevant purchasing organization.

Schema Group It allows to group together the purchasing organizations, which uses the same calculation schema.

Steps: 1. Create Access sequence 2. Create condition types 3. Create pricing procedure or calculation schema 4. Link pricing procedure & access sequence to condition type 5. Create schema group for vendor 6. Create schema group for purchase organization 7. Assign schema group vendor-to-vendor master record in purchasing data view 8. Assign schema group purchase organization to our purchase organization 9. In inforecord purchase organization data enter condition types and pricing or calculation procedure

CUSTOMIZE SETTINGS: SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process 1. Define access sequence 2. Define Condition type 3. Define cal. Schema 4. Define schema group o Schema group vendor o Schema group purchasing group 5. Assignment of schema group to PUR org 6. Define schema determination determine cal schema for standard PO.

Steps for MM Pricing Procedures

Posted on March 12, 2009 by sapmm

Steps for MM Pricing Procedures

Can anyone please help me on the Pricing Procedures? I have read it many times but fail to understand. Pricing Procedure : In MM module, pricing procedure is used during RFQ and PO creation. Total value of material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In this we are defining pricing procedure and linking to vendor and purchase department through the virtual schemas. Following steps for pricing procedure as, 1. Define conditions. 2. Define pricing procedure. 3. Define virtual purchase organization and vendor. 4. Info Record. Customization for Pricing Procedure : 1. Definition of Conditions : /NMEK0condition typecondition types definition (define for basic price, net price, discount, surcharge, tax etc.)

2. Defining pricing procedure : /NMEK0 calculation schemacalculation schemasNew entries (Define procedure and put the conditions like formula so that final price will be net price / total value as per company requirement) 3. Linking pricing procedure to independent condition types. /NMEK0condition typecondition types definition for position for defined conditions (Enter the defined pricing procedure in the each independent conditions Pricing Procedure box) 4. Defining Schema group for Vendor : /NMEK0 calculation schemaschema groupsvendorNew Entries. 5. Defining Schema group for Purchase Organization New entries. /NMEK0 calculation schema schema groups- purchasing organization new entries. 6. Linking Virtual Purchase Organization to actual Purchase Organization. /NMEK0 calculation schema schema groups Assign P.Org. (in actual P.Org, enter virtual P.Org) 7. Linking Pricing procedure to virtual P.Org and virtual vendor : /NMEK0 calculation schema Determine Schema -Standard New entries (Enter virtual schema and P.Org. along with pricing procedure) 8. Linking virtual vendor to actual vendor /NXK02 then enter schema group vendor in Purchasing Data ) 9. Info Records (/NME11)- click on Purch. Org. data1 and enter condition types and pricing procedure Anand What are the steps in pricing determination in MM? Condition, Access sequence and schema. In the SAP MM Pricing is more important. Just yesterday I have completed the Pricing as I am doing the SAPMM now. I can give some light on this Topic, not 100%. After 2 days definitely some more I can share. The Basic thing is Condition Technique. In which there are 1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table. A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition Technique.This is a simple logic Here the Condition Type is very important like PB00, PBXX,RA01 etc. In the background every Condition Type has its own defition means the purpose of the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions. Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement. The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement. The Pricing Schema means the calculations procedure of Condition Type.

Ex. RA01 Discoount % is caclulated on PB00 Gross Price means RA01 is based on PB00 like that we have to define in the Pricing Schema which makes easy to use in realtime. Here PB00 has the Access Sequence 0002. But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types. In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define. For the configuration, I may not able to explain properly through here but will give some Idea. Configuration: SPRO-IMG-Material Management- Purchasing- Conditions-Define Price Deternmination Process 1. Define Access Sequence 2. Define Condition Type 3. Defince Calculation Schema:- Here you have to define the Schema Define Schema group 1. Define Schema Group vendor 2. Define Pricing Schema group 3. Schema group for Purchase Organisation 4. Assign Schema group to Purchase Organisation Define Schema determination 1.define calculation schema for Standard purchase organisation After completion of the Schema Group, we have to assign it to Vendors. Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured by us. I think this will help you. Actually the Pricing is a vast. Becuase each Condition have its own importance and each Access Sequence have its own importance. So you need not bother about this. First you learn how to define the Calculation Schema through the above. Here we can create many Calculation Schemas which can assign one schema to Local vendors another schema to out side vendor one more schema to foreign vendors like that we can classify. Definitely it will help you something. Because I have to do R & D on this Topic. Due to lack of time I am not able to do the Practice Properly as I am doing non-related SAPMM job. * Rao
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Pricing Procedure - A Pricing procedure defines how values that are posted in the R/3 system are calculated. Pricing procedures are used in Profit Center Accounting to calculate transfer prices. Maintain Pricing Stipulation agreed with the Vendor. Elements of Price Determination: (To store pricing stipulation agreed with the vendor such as applicable discounts or surcharges, or stipulations regarding the payment of freight costs in the system) Condition Table

Access sequence Condition Type Calculation Schema Condition Table: (M/03) A condition table consists of one or more condition keys and a data part. The data part contains a number that refer a record in another table. (The Condition Keys are Vendor, Material, Purchase Organization and Purchasing info record category). Condition Record: The stores record that a condition, or condition supplements conditions includes: Prices, Discounts, Surcharges, Taxes etc., Possible way of creating Condition Table: u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material Group u2013

Material u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Type u2013 Material u2022 u2022 Plant u2013 Purchase Organisation u2013 Vendor u2013 Material Plant u2013 Purchase Organisation u2013 Material

Access sequence (M/07): The access sequence defines the order in which the system searches for condition records. Condition Type (M/06): The condition type represent price factor in the system. There are condition types for absolute and % discounts, freight costs, custom duties or taxes. Condition Class: Preliminary structuring of condition types e.g. discounts, surcharges or prices. Condition Category: A classification of conditions according to pre-defined categories (for ex. all condition that relate to freight costs). Calculation Type: Determines how the systems calculate Prices, Discounts, (or) Surcharges in a condition. (ex. The system can calculate Price as a fixed amt. or as a percentage based on Quantity, Volume or Weight. PB00 PBXX R000 R001 R002 R003 CUFR FRA1 FRA2 - Gross Price - Gross Price - Discount % on Gross - Discount/Quantity - Discount (Value) - Discount % on Net - Freight - Freight % - Freight % FRB1 FRC1 - Freight (Value) - Freight/Quantity ZA01 ZB00 ZC00 ZOA1 - Surcharge % on Gross - Surcharge (Value) - Surcharge/Quantity - Customs %

MWST - Input Tax SKTO - Cash Discount

CUIN - Insurance ZOB1 MWVS - Input tax manually NAVM VS15 ZA00 - Non-Deductible Tax - Factor Discount Tax - Surcharge % on Net

- Customs (Value) ZOC1 - Customs/Quantity

Exclusion Indicator: The Exclusion Indicator prevents the use of too many condition types in the Price detemination procees. Calculation schema (M/08): A Calculation Schema group together all condition types that plays a part in calculating the price. Schema Group: These allow you to group together purchasing organizations that use the same calculation schema. You can also use them to group together vendors for whom the same calculation schema is valid. Schema Determination: Assign Purchase transaction and processes to a calculation schema For Std. PO (depending on the schema group of the vendor and the purchase organization) For STPO (depending on the supplying plant, the doc. type and the schema group of the pur. org.)

For Market Price Determination (depending on pur. org. i.e. for each pur. org. a separate calculation schema can

apply for the determination of the market price) Calculation Schema should be done like this CTyp PB00 PBXX VA00 VA01 GAU1 GAU2 RB00 RC00 RA00 RA01 HB00 ZB00 ZC00 ZA00 ZA01 HB01 RL01 RGR0 MM00 MM01 REST ZVJS EDI1 Description Gross Price Gross Price Variants/Quantity Variants % Orignl Price of Gold Actual Price of Gold Discount (Value) Discount/Quantity Discount % on Net Discount % on Gross Header Surch.(Value) Surcharge (Value) Surcharge/Quantity Surcharge % on Net Surcharge % on Gross Header Disc.(Value) Vendor Discount % Group Discount % Minimum Qty (Amount) Minimum Qty (%) Account Discount % Price Mark-up Confirmed Price

EDI2 Value variance Net incl. disc. NAVS NAVM Non-Deductible Tax Non-Deductible Tax

Net incl. tax FRA1 Freight % FRB1 FRC1 RUE1 RUB1 RUC1 ZOA1 ZOB1 ZOC1 FRA2 FRB2 FRC2 1-Mar SKTO Freight (Value) Freight/Quantity Neutral % Accruals Neutr.Accruals(Val.) Neutral Accruals/Qty Customs % Customs (Value) Customs/Quantity Freight % Freight (Value) Freight/Quantity Neutral % Accruals Cash Discount

YGA1 A001 A002

CPG Rebates Rebates Material Rebate

Actual Price MWST Input Tax GRWR GWLB Statistical Value Stat. Val. LB-Comp.

@3Z@Border crossing value