Introduction

1. How Pricing Procedure is determined?

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) +
Customer Pricing Procedure + Document Pricing Procedure.
2.

How Sales area is determined for Pricing Procedure?

Sales Area is determined in Sales Order Header Level.

3.

How Customer procedure is determined?

Customer Pricing Procedure is determined from Customer Master.

4.

How Document pricing Procedure is determined?

Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured).
Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found,
the price is determined. If Mandatory pricing condition is missing, system will through an error message.
We can Take the existing procedure and add the condition type or can create new procedure. Here we have taken
new Pricing procedure.
5.

What is pricing Procedure?

Pricing Procedure is used to determine the price of the product for sale with any freight charges, Excise duty
Discount to be given to customer, service tax.
We have to create multiple pricing procedure depending upon the different scenarios like domestic sales,
export sales, stock transfer from one plant to another plant.
In domestic there will be one type of price list and freight charges where for export sales there will be
another type of taxes and duties and product price.
In some cases freight charges will be there but discount will not be there for the product. Discount is the
amount we are giving to customer when selling the product. Like for example when we are purchasing Dress
or garments we are asking for discount. Store keeper give us the discount of about 5% or 10% .In some
cases there will not be any discount. Here shop keeper is giving discount upon the sales price.
Fright charges are the octroi charges when goods moved from one place to another or when selling goods
to another country there will be export charges and state taxes.
Service tax also included in some of the products.
Excise duty also levied on some products.
These above frights charges, Taxes and prices will be calculated taking the condition and condition
technique from access sequence.
So in pricing procedure we will calculate the final price of the finished goods with other tax and charges
automatically with respect to combination condition of values like sales organization, material, customer,
division, distribution channel.

Pricing Procedure
(ZSER1)
Code-V/08

We need to know what are things required for creating a pricing procedure
1) Condition Table or Technique2) Access Sequence
3) Condition
Follow the diagram as below

Condition Table- T.Code-V/03-Create

A condition table is a combination of fields that identifies the individual

condition record. A condition record is how we are saving the conditions to
fetch the price.
It means we will create a table and give the field names like division, sales
organization, and customer which will be used as a search criteria
according to which it will fetch the value of product from condition.

Type T code- V/03 to create the condition table in menu bar. Below screen
will appear.
You can take from 501 to 999.Give your table name.

<Enter>

Create Access Sequence- T Code-V/07

In Access Sequence we will assign the condition table. As we are maintaining
condition table in sequence thats why we called it Access sequence.

Create Condition Type-V/06

Here we will maintain the condition types in which we will give the access sequence.
Create Pricing procedure-V/08
Here we will create our pricing procedure in which we will give the multiple
condition conditions which will calculate the price of the product.

Assign Pricing Procedure with Sales Area-OVKK

Here we will assign the pricing procedure with respect to sales area (Sales
organization + Distribution Channel + Division), Customer Pricing Procedure and
Document pricing procedure.