scm521_conditions and price determination in mm

SCM521Conditions and Price Determination

in MMSAP Enterprise Portal

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Participant HandbookCourse Version: 81Course Duration: 3 DaysMaterial Number: 50088323

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2008 2008 SAP AG. All rights reserved. iii

About This Handbook SCM521

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iv 2008 SAP AG. All rights reserved. 2008

ContentsCourse Overview .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . .viiCourse Objectives . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . viii

Unit 1: Basics of Price Determination . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Basics of Price Determination. .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . .2

Unit 2: Condition Technique in Price Determination ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Condition Technique in Price Determination . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . 54

Unit 3: Special Functions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101Special Functions.. . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .102Header and Group Conditions .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .137

Unit 4: Maintaining Conditions ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175Maintaining Conditions. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .176

Unit 5: Special Condition Types... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Special Condition Types .. . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .212Variant Conditions in Purchasing .. . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .241

Unit 6: Price Determination in the Procurement of Services... . . . . . . . . . . . . . . . . . . .267Conditions for Services . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .268

Unit 7: Customizing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297Customizing .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .298

Unit 8: Subsequent Settlement... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .339Subsequent Settlement . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .340

Appendix 1: Frequently-Used Menu Paths ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .381

Index ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .387

2008 2008 SAP AG. All rights reserved. v

Contents SCM521

vi 2008 SAP AG. All rights reserved. 2008

Course OverviewThis course provides an extensive overview of pricing in purchasing. The core featureis the condition technique, an algorithm with which the system searches for validprices, discounts and surcharges for the individual procurement transactions. In otherwords, you save the prices, discounts and surcharges that you have agreed with yourvendors in the SAP system as condition records, which are automatically applied inprocurement transactions.

After an overview of the individual elements of the condition technique, theirmeaning and how they work together, the algorithm of the condition technique will beaddressed in greater detail. You will learn how to use the various calculation schemasand how you can direct the search for valid conditions in different tables.

In the following chapters you will learn about the different control indicators forthe condition types and special functions for pricing in purchasing, as well as whatoptions are available to you for maintaining conditions.

Target AudienceThis course is intended for the following audiences:

Project team members responsible for pricing in purchasing. Key users in purchasing Consultants

Course PrerequisitesRequired Knowledge SCM500 - Processes in Procurement

Recommended Knowledge SCM520 - Purchasing SCM550 - Cross-Functional Customizing in MM Participants should be thoroughly familiar with the Purchasing area. Ideally, they

should also have some knowledge of the Customizing functionality for this area.

2008 2008 SAP AG. All rights reserved. vii

Course Overview SCM521

Course GoalsThis course will prepare you to:

Use price determination functions in purchasing Configure the IMG settings for price determination

Course ObjectivesAfter completing this course, you will be able to:

Outline the various elements of the condition technique and describe how theyinteract

Maintain conditions on different levels and update them using collective changetransactions

Understand how price determination works in the SAP system Recognize the special condition types that you can use in price determination Describe and use the subsequent settlement process Create condition tables, access sequences, condition types and calculation

schemas, and adjust your Customizing settings according to yourcompany-specific requirements

viii 2008 SAP AG. All rights reserved. 2008

Unit 1Basics of Price Determination

Unit OverviewThis unit provides you with an overview of pricing in purchasing.

The focus of the unit is on the individual elements of the condition technique andexplanations of relevant concepts and how they interact.

Unit ObjectivesAfter completing this unit, you will be able to:

Describe the elements of the condition technique and their interaction Maintain and properly apply time-dependent and time- independent conditions Define important control parameters for condition types and calculation schemas

Unit ContentsLesson: Basics of Price Determination . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . .2

Exercise 1: Basics of Price Determination . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . 21

2008 2008 SAP AG. All rights reserved. 1

Unit 1: Basics of Price Determination SCM521

Lesson: Basics of Price Determination

Lesson OverviewThis lesson provides an overview of the basics of price determination. You willbecome acquainted with the elements of price determination and their meaning.

Lesson ObjectivesAfter completing this lesson, you will be able to:

Describe the elements of the condition technique and their interaction Maintain and properly apply time-dependent and time- independent conditions Define important control parameters for condition types and calculation schemas

Business ExampleYour purchasing department wants to store purchasing prices, including discountsand surcharges, in the system and have them applied automatically in the relevantpurchasing documents.

You use price determination to determine prices, discounts and surcharges (forexternal procurement of materials and vendor services) and the calculation of costs(for internal purposes, such as in cost accounting).

IntroductionConditions are applied to the calculation of a purchasing price. Say, for example, thatyou want to order a particular amount of a product from a particular vendor on aparticular day, the variable factors - vendor, product, order quantity, date - determinethe final price to be paid. These variable factors represent dependencies or factorsthat influence the determination of a price or discount/surcharge. Depending on theseinfluence factors, prices, discounts and surcharges can be stored as master data inthe form of condition records.

The term condition technique refers to the method/algorithm by which the systemdetermines prices, discounts and surcharges from information stored in conditionrecords. The individual elements of the condition technique are defined andconfigured in Customizing. During purchase order processing, the system uses thecondition technique to determine important pricing information. For example, thesystem automatically determines which gross price should apply and which discountsand surcharges are relevant given the conditions that apply.

The following presents the individual elements of the condition technique.


SCM521 Lesson: Basics of Price Determination

Conditions and Condition RecordsConditions are terms agreed with the vendor. These include terms of delivery andpayment as well as price agreements (gross price, surcharges, discounts). With thecondition technique, however, only prices, discounts and surcharges are mapped inthe SAP system. The system determines the price in purchase orders on the basis ofthese pricing elements.

You can maintain conditions when you create quotations, info records, outlineagreements, and purchase orders. You can also maintain conditions as generalconditions.

Figure 1: Conditions

In MM Purchasing, a distinction is made between conditions that are valid for acertain period (time-dependent conditions) and conditions for which no validity periodcan be defined (time-independent conditions).You can also enter conditions that do not take effect immediately, at the time ofindividual transactions, but subsequently thereto, and which require settlement atthe end of a predefined period.

Time-dependent conditions are stored in the system as condition records. You cancreate condition records for all the pricing elements - the prices, discounts, andsurcharges - that you want the system to take into account during automatic pricing.



By specifying a validity period, you can restrict price agreements to a specifictimeframe.

Figure 2: Condition Records

If a material's pricing varies according to the quantity purchased, you can enter itin the form of a price/quantity scale. For discounts and surcharges, too, you canmaintain the values in a condition record using quantity- or value-dependent scales.The number of scale steps is unlimited.

You can specify upper and lower limits for time-dependent conditions in order toprevent, for example, agreed maximum or minimum figures from being exceeded inthe event that condition values are changed manually in the purchase order. You candefine these upper and lower limits per condition type.

In the individual condition record or In the Customizing for all (other) condition records



Figure 3: Time-Dependent Conditions

Conditions in info records and contracts are always time-dependent. You can specifyin Customizing (via the document type) whether time-dependent or time-independentconditions can be maintained in quotations and scheduling agreements. SinceRelease 4.0A, the standard settings are time-dependent conditions for both schedulingagreements and quotations.

Conditions in purchase orders, by contrast, are always time-independent. No validityperiods and scales can be defined for these conditions.

In addition to time-dependent conditions, which apply to individual info recordsor outline agreement items, you can also map time-dependent conditions whichrefer to general price agreements (general conditions) and which can be maintainedindependently of info records, quotations and outline agreements, such as a vendordiscount.

Time-dependent conditions are always limited to a certain period of validity, whichis defined by a start date and an end date. If you do not manually enter a validityperiod, the SAP system automatically suggests a period. The proposed validity period(start and end date) is controlled through Customizing settings depending on thecondition type.

Time-dependent conditions can be stored on either a plant-specific or a cross-plantbasis (in the latter case, for all plants belonging to a purchasing organization).



In the standard, the conditions for external procurement of material are dependenton the purchasing organization. Through reference relationships, you can also useconditions negotiated by another purchasing organization (for example, a centralpurchasing organization).For time-dependent conditions, no subtotals are formed (net price, effective price).When info records or contracts are referenced, time-dependent valid conditions inthem are adopted as default values in purchase orders and delivery agreements (withtime-independent conditions) and can be changed in the standard.

Condition TypesIndividual conditions are described by condition types. There are condition types forthe gross price, various discounts and surcharges, freight charges, fixed costs, etc.

Condition types are defined together with their control parameters in Customizing.You can change the SAP standard condition types or create new condition typesaccording to your particular requirements.

Condition types are differentiated broadly using the condition class and more finelyusing the condition category. The condition category also has various controlfunctions. For example:

Condition category H defines that only one basic price (gross price) is used,that is, is active

Condition category U (for precious metal discounts and surcharges) controls theconversion between a precious metal unit of measure (for example, grams ofgold) and the order unit, as well as the updating of relevant precious metal rulingprices during goods receipt posting

Condition category E (cash discount) defines that the cash discount is derivedfrom the payment terms



Figure 4: Condition Types

The calculation type stipulates how the system calculates the condition value. Adiscount or surcharge can be a percentage of the gross price, a fixed amount or aquantity-dependent amount. You can also define discounts and surcharges in terms ofvolume or weight, for example.

The plus/minus sign in discounts and surpluses determines whether a condition istreated as a negative or positive amount. Negative amounts are discounts (deductions),positive amounts are surcharges (additions). Prices themselves a gross price, forexample cannot be negative.

The scale basis for scales also depends on the condition type. A scale can be basedon quantity or dollar value, for example.

You can assign an access sequence to a condition type. By doing so, you can, forexample, cause the program to automatically search for a valid condition record forthis condition type when you create a purchase order.

Condition TablesConditions are stored in the system as condition records. When you enter, say, amaterial price agreed with a vendor or a special discount in the system, you therebycreate a condition record (or change a previously existing one).



Condition tables reference condition records. Condition tables enable you to varythe key structure of condition records.

A condition table defines the combination of fields (key) that characterize thedependencies/factors of an individual condition record. A condition table is comprisedof a key part (with one or more partial keys) and a data part. The data part contains thenumber of the condition record, which itself is stored in another table.

Figure 5: Condition Tables

The SAP standard contains various condition tables. You can either use the standardtables or create new condition tables to meet the needs of your own organization.Condition tables are defined in Customizing.

Examples of condition tables and their key fields in addition to the Condition Typefield in the SAP standard:

Table A018: Vendor, material, purchasing organization, info record category Table A017: Vendor, material, purchasing organization, plant, info record

category Table A066: Vendor, material, purchasing organization, info record category,

order unit Table A068: Purchasing document, item, plant (for outline agreements)



Condition records are stored in the following transparent tables, for example:

KONP (time-dependent item conditions) KONH (header conditions) KONM (quantity scales for header and item conditions) KONW (vales scales for header and item conditions)

Access SequencesThe access sequence is a search strategy by means of which you specify the order inwhich condition tables are to be searched for valid condition records for a conditiontype.

The access sequence consists of one or more accesses. The sequence of those accessesdefines the sequence of the condition tables to be searched, and thereby the priority ofthe individual condition records.

Figure 6: Access Sequence

The Exclusion indicator causes the system to stop searching for additional recordsafter the first successful access of a condition record in an access sequence. In otherwords, the search for further valid entries in (other) condition tables is interrupted ifan access was successful and a relevant entry was found.

You define the preconditions according to which the SAP system searches certaincondition tables for relevant entries via requirement routines. Certain condition tablesare only accessed if the document item meets certain criteria.



A condition type must have an access sequence assigned to it if you want to maintainconditions with their own validity periods (for example, condition type PB00). In thecase of a condition type for a gross price, you can specify that the R/3 System is firstto search for a plant-specific price it is to search for a general, cross-plant priceonly if it cannot find a plant-specific one.

Some condition types for discounts and surcharges (for example, RA00 and ZA00)have no access sequences assigned to them. The conditions for these discounts andsurcharges are always maintained as supplementary conditions at the same time as thegross price (PB00) for example in the info record or in a contract item , or they areonly intended for manual entry, for instance in a purchase order. The period of themain condition of a condition type always applies to the supplementary conditions.

A condition type with the Header condit. indicator which is not simultaneouslysubject to the Item condition indicator cannot have an access sequence assigned to it.

Calculation SchemaA calculation schema constitutes a set of rules for determining the purchase price.The calculation schema groups together all condition types that exert an influence indetermining the price for a particular transaction. It defines the sequence in whichthe condition types are processed and thus the order in which they flow into thenet/effective price calculation.

Figure 7: calculation schema



In the calculation schema you can enter requirements governing the use of theindividual conditions.

In the calculation schema you define which discounts and surcharges are included inthe calculation of net price and effective price. The standard differentiates between thefollowing prices:

Gross price: Price excluding any possible discounts or surcharges (base price) Net price: Price including discounts, surcharges, and taxes Effective price: Net price less or plus delivery (incidental procurement) costs,

cash discount, and miscellaneous provisions for accrued costs or rebates

In the calculation schema you also define the basis upon which the system calculatespercentage discounts and surcharges You can define this with your entry forfrom-reference step. The from-reference step can also be combined with a to-referencestep.

In the calculation schema you define which subtotals are to be added up and for whichcondition types and levels the condition values in which fields are to be stored for thecalculation of subtotals.

In the calculation schema, a condition type can be identified as a:

required condition

You set this indicator for a condition type if it should always be used in pricedetermination. In the standard, no condition type is flagged as required forpricing in purchasing.

Manually entered condition

You set this indicator for a condition type if it is only to be entered manually. Ifa condition type is flagged as manual, the system does not search for validcondition records. Examples of this are condition types for delivery costs andfor header discounts and surcharges.

Statistical condition

You set this indicator for a condition type for a discount or surcharge if you donot want the condition type to change the value. Examples of this are conditiontypes for delivery costs and for non-deductible input taxes.

You can define different calculation schemas, for example for the individualpurchasing organizations and groups of vendors. In the standard, schema RM0000 isdesignated for price determination in purchase orders and other purchasing documentswith time-independent conditions.



Price Determination Analysis and New PriceDeterminationWhile processing purchase orders, you can obtain information about the details andorigin of conditions:

If you execute the condition details function for a condition type, the conditionclass, calculation type and other information is displayed.

For the conditions determined from a condition record, you can display thecondition record. So you can see a price-quantity scale, for example, if therehappens to be one.

Figure 8: Price Determination Analysis and New Price Determination

You can call a new price determination with the various processing options. A newprice determination with the indicator B is useful for the subsequent updating of theconditions of an info record, for instance.



The analysis of price determination enables you to obtain information about theCustomizing settings for this particular document and about the results of the pricedetermination. The analysis provides you with the following information:

The calculation schema used (for example, schema RM0000) as well as allcondition types contained within it

The access sequences of the condition types (for example, access sequence 0002for condition type PB00) and the individual condition tables (accesses) searchedby the program

The information that the program found/failed to find a valid condition record The number, the key (the combination of fields utilized) and the details on the

found condition records The information that a condition type is flagged as a manual condition Information about unfulfilled requirements

Condition SequenceThe step numbers of the condition types in the calculation schema determine thesequence (order) in which the condition types are taken into account in the calculationof the net or effective price. This sequence cannot be changed in the document even ifthe condition types are entered manually. So the program changes the sequence of,say, manually entered condition types according to the step numbers (and only thestep numbers) in the calculation schema.



Figure 9: Condition Sequence

Condition types assigned to the same step in the calculation schema are placed in thecalculation schema via a counter. With these condition types, the order of manualentry decides the point at which the condition type is taken into account in thecalculation of the net or effective price. So the program does not change the sequenceof, say, manually entered conditions for condition types of the same step.

ScalesFor each condition type, by specifying a scale basis you can define how anyprice-quantity scales you may have can be specified. You can also define the scaletype, as well as a check of whether scale amounts are to be entered in ascending ordescending order.

Quantity and Value ScalesWhen you create a condition record for a condition type, you can also define aprice-quantity scale. With a scale based on quantity, for example, you can take accountof the fact that a vendor of a particular material demands a quantity-dependent price.You can also maintain scales in the condition records for discounts and surcharges.

Scaled conditions consist of one or more scale levels. Each scale level consists of ascale value and a scale amount depending on the latter.



Figure 10: Quantity and Value Scales

The scale type and the scale basis for a scale are defined for the condition type inCustomizing. The scale type defines how the scale value or percentage is to be used.For pricing in purchasing, the following scale types can be used:

Scale type A (Base-scale)(the scale amount is valid upwards of a certain quantityor value)

Scale type B (To-scale)(the scale amount is valid up to a certain quantity or value) Scale type D (Graduated-to interval scale)(the scale amount is valid for an

interval of quantities or values)If no scale type has been assigned to a condition type in Customizing, you can specifywhether the scale is to be maintained as a From or To scale before entering the lines ofthe scale. Scale type D (interval scale) cannot be selected manually.You specify how the system is to interpret the price scale for a condition type bymeans of the scale basis. For example, the scale can relate to a money value (scalebasis B), a quantity, (scale basis C), a weight (scale basis D or E), or points.Scaled conditions are stored in the tables KONM and KONW.



Interval ScalesYou can also maintain condition records with interval scales. Using an interval scaleallows you to set different prices on each level of a pricing scale. With normal scales,by contrast, a price is determined which is dependent on the item quantity, for example.In that case, the same price applies to every unit of the item. With interval scales, theresult is that multiples prices can appear in the pricing screen for an individual item.

Figure 11: Interval Scales

The indicator for the interval scale scale type must be assigned to a condition type inCustomizing.

Exercise DataNotes on Exercises

All exercises in this course with the exception of the procurement of services dealwith the procurement of stock material. Thus you should always unless explicitlyinstructed otherwise use the following definitions:

Order type NB (standard purchase order) Item category standard Info record category standard



The first time you call the transaction Create Purchase Order Vendor/SupplyingPlant Known (transaction ME21N), configure your Personal Settings (company code1000, purchasing organization 1000 and purchasing group Z51).Also take the opportunity to work with favorites to simplify the process of calling thetransaction. Add the transactions you use frequently in the course to your favorites.To do so, select the transaction with the cursor and click the Add to Favoritesicon. These transactions include:

Execute Project (transaction SPRO)Tools Customizing IMG Execute Project

Create Info Record (transaction ME11)Logistics Materials Management Purchasing Master Data InfoRecord Create

Create Purchase Order Vendor/Supplying Plant Known (transaction ME21N)Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known

Maintain Discounts and Surcharges by Vendor (transaction MEKE)Logistics Materials Management Purchasing Master Data Conditions Discounts/Surcharges By Vendor

Create other conditions (transaction MEK1)Logistics Materials Management Purchasing Master Data Conditions Other Create



In many exercises, you will have to make or display Customizing settings as well ascall application transactions. You should therefore always work with two sessionsto simplify the process of calling individual functions.

Session 1

You should call the project in the first session (transaction SPRO). You canwork with the SAP Reference IMG or with project 200, view SCM521 PriceDetermination & Conditions.

To simplify the process of calling the Customizing structure and navigationduring exercises, you can work with the project view SCM521 PriceDetermination & Conditions.

From the SAP Easy Access screen, choose:

Tools Customizing IMG Execute ProjectYou can add Customizing projects and views to your worklist by doing thefollowing on the My Customizing Worklist screen:

Choose the icon Add to Worklist and select view SCM521 PriceDetermination & Conditions of project 200. Then choose Copy (Enter). Youcan then define this view as the standard project/view:In your worklist, select the line with the project view SCM521 PriceDetermination & Conditions, then go to the menu bar and choose:

Execute Project Default Project/View Session 2

Session 2 is where you should call the application transactions for example totest your Customizing settings.

Note also that in the exercises, in general, there is no separate instruction to end thetransaction(s). Where appropriate, you are simply informed that the subsequent taskbuilds on the same transaction or Customizing activity.

Data Used in the ExercisesType of Data Key Name of Data in the Training SystemGroup number ##Company code 1000 IDES AGPurchasing organization 1000 IDES GermanyPurchasing group Z51 SCM521 BuyerOrder type NB Standard purchase order



Type of Data Key Name of Data in the Training SystemItem category _ StandardInfo rec. cat. 0 StandardPlants 100011001200 Plant HamburgDresdenBerlinCurrency EUR EUROMaterial group ZT521 Material group SCM521Vendors T-K521A##

T-K521B##T-K521C##T-K521D##T-K521E##

Fa. Humpert u. Tchter GmbHFa.Nordspeed GmbHFa. JotachiDeutschland AGFa. KreutzschmiFa.Grosshandel-Baden

Materials T-REK##T-REL##T-REM##T-REN##T-REP##

Oil seal M1/D6 JW 57-190 HD GLADBOY Front fork Rocker bearing GE 180UK-2RS HD GLAD BOY Exhaust pipe78 dB Personal computer

Tax code0%Taxcode10%

0i1i Input tax (training course) 0% Input tax(training course) 10%

Cost centers 1000T-L## Corporate Services Procurement



Exercise 1: Basics of Price DeterminationExercise ObjectivesAfter completing this exercise, you will be able to: Describe the elements of the condition technique and their interaction Examine differences between and maintenance of time-dependent and

time-independent conditions Define important control parameters for condition types and calculation schemas

Business ExampleYour purchasing department needs a method for storing and determining the purchaseprices for materials. In the SAP system, the condition technique is used for pricedetermination in MM. You want to learn more about SAP price determination.

The technique is based on conditions that are described via condition types, storedin condition records and condition tables, found by means of access sequences, andarranged in calculation schemas.

Task 1: Purchasing Info RecordYou require material T-REK## in several plants. You have agreed to the followingconditions for this material with vendor T-K521A## and want to enter them in theSAP system.

1. Create a plant-independent purchasing info record (standard info recordcategory) with the following data:

Vendor: T-K521A##Material: T-REK##Purchasing organization: 1000 (IDES Deutschland)Planned delivery time: 10 daysPurchasing group: Z51 (SCM521 Buyer)Standard quantity: 100

EUR 9.90/PC from 1 pcEUR 9.50/PC from 100 pc

Gross price (PB00):

EUR 9.00/PC from 500 pc

Continued on next page



1 % from 1 pc upwardsDiscount % on net (RA00):2 % from 500 pc upwards

Freight (Value) FRB1: EUR 50.00

The conditions are valid until the end of next year.

Save the info record.

Info record number: __________________________________

Task 2: Vendor discountVendor T-K521A## also grants purchase organization 1000 a scaled discount on allmaterials for a limited period of time.

1. Create a condition record for this vendor discount with the following data:

- 3% from a value of 1,000 EUR upwards



The discount is valid for a period of four weeks, starting today. Save thecondition record.

Task 3: Purchase OrderCheck the adoption of conditions from the info record and the general conditions.

1. Create a new purchase order with the following data. The delivery date for bothitems is two weeks from today's date.

Vendor: T-K521A##Purchasing organization: 1000 (IDES Deutschland)Purchasing group: Z51 (SCM521 Buyer)

Item 10:Material: T-REK##Quantity: 120 PCPlant: 1000 (Hamburg plant)




Item 20:Material: T-REK##Quantity: 560 PCPlant: 1100 (Berlin)

Hint: Only save the purchase order once you have conducted thefollowing subtasks.

2. Do you have to enter a purchase order price?

3. Check the conditions for both items and determine the amounts/percentages forall condition types. Record the results in the following table.

Item 10 Item 20Gross price (per 1 pc)Discount % on NetVendor discountNet price incl. discount (per 1pc)Freight surchargeCash disc.Effective price (per 1 pc)

4. Display the origin of the condition values of both items by displaying theindividual condition records and the details of each. Record the results in thefollowing table.

Item 10 Item 20Gross priceDiscount % on Net




Vendor discountFreight surchargeCash disc.

Save the purchase order.

Purchase order number: __________________________________

Task 4: Condition TypesTake a look at the Customizing settings for the individual condition types.

1. Display the Customizing settings for the following condition types and determinethe specified control parameters. Record the results in the following table.

Conditiontype

AccessSequence

Cond.class

Calc.type

Condi-tion cate-gory

Plus/mi-nus

PB00RA00RB00RC00RL01FRB1SKTO

Display the meaning of this indicator using the F4 input values.

Exit this Customizing activity and return to the IMG structure.

Task 5: Purchasing Info RecordYou also procure material T-REL## from your vendor T-K521A## and have agreed tohe following terms, which you want to enter in the SAP system.

1. Create another plant-independent purchasing info record (standard info recordcategory) with the following data:




Vendor: T-K521A##Material: T-REL##Purchasing organization: 1000 (IDES Deutschland)Planned delivery time: 10 daysPurchasing group: Z51 (SCM521 Buyer)Standard quantity: 120 PC

For this material, you have negotiated the following conditions with your vendor,which are valid indefinitely:

Gross price: EUR 120.00/PCDiscount % on gross: 1 %

2.00 EUR/box (from 1 box)5.00 EUR/box (from 10 boxes)

Discount/quantity:

10.00 EUR/box (from 50 boxes)

Hint: Use the unit of measure BOX for boxes. Be sure to scale thediscount/quantity by box, not pieces.

Discount (Value): EUR 20.00 from 1 pcEUR 120.00 from 500 pc

Discount % on net: 1.5 %

2. What discount condition types did you use for the above conditions?

Discount % on Gross: __________________________________Discount/Quantity: __________________________________Discount (Value): __________________________________Discount % on Net: __________________________________

Was the sequence of condition types changed by the program after you enteredthem?

______________________________________________________________






Task 6: Calculation Schema(Optional)Find out which indicators the condition types from the previous task have in thecalculation schema.

1. Display calculation schema RM0000 and determine the sequence of thefollowing discount condition types as well as the data for the determination ofthe basis amount for the percentage discount.

Select all the lines with the specified condition types Select All. Record theresults in the following table.

Condition type Step Counter From ToRB00RC00RA00RA01HB01RL01RGR0

Task 7: Purchase Order(Optional)1. Create a new purchase order with the following data:

Vendor: T-K521A##Purchasing organization: 1000 (IDES Deutschland)Purchasing group: Z51 (SCM521 Buyer)Delivery date: 8 weeks from today




Order 500 pcs of material T-REL## for plant 1000.


2. Check the conditions of your purchase order item. Compare the sequence ofdiscount conditions with the sequence of these conditions in the info recordand in the calculation schema.In which sequence are the discount conditions adopted in the purchase order?

3. Is the sequence of discount conditions in the purchase order identical to thesequence of those conditions in calculation schema RM0000?

4. What conversion factor was used for the conversion between the units ofmeasure piece (PC) and box (BOX)? Where does this value come from?1 BOX = _______ PC

5. What is the effective price per piece?

______________________________________________________________





Solution 1: Basics of Price DeterminationTask 1: Purchasing Info RecordYou require material T-REK## in several plants. You have agreed to the followingconditions for this material with vendor T-K521A## and want to enter them in theSAP system.

1. Create a plant-independent purchasing info record (standard info recordcategory) with the following data:

Vendor: T-K521A##Material: T-REK##Purchasing organization: 1000 (IDES Deutschland)Planned delivery time: 10 daysPurchasing group: Z51 (SCM521 Buyer)Standard quantity: 100

EUR 9.90/PC from 1 pcEUR 9.50/PC from 100 pc

Gross price (PB00):

EUR 9.00/PC from 500 pc1 % from 1 pc upwardsDiscount % on net (RA00):2 % from 500 pc upwards

Freight (Value) FRB1: EUR 50.00

The conditions are valid until the end of next year.



a) From the SAP Easy Access screen (session 2) choose:Logistics Materials Management Purchasing Master DataInfo Record CreateEnter the following data on the initial screen:




Vendor T-K521A##Material T-REK##Purchasing organization 1000 (IDES Deutschland)Plant Leave blank

Choose the info record category Standard.

Select the Continue icon.

Choose Purch. Org. Data 1.

Enter the following data on the Purch. Org. Data 1 screen:

Planned deliv. time 10Purchasing group Z51 (SCM521 Buyer)Standard quantity 100Net price 9.90 EUR/PC

Choose Conditions.

Enter the following data on the Conditions screen:

Conditions Cond.type

Amount

Gross price PB00 9.90 EUR/PC (this amountis automatically adoptedfrom the Purch. Org. Data1 screen)

Discount % on Net RA00 1 %Freight absolute FRB1 50,00

Check the validity period. Change the validity start of validity to thecurrent date (the current date is the standard default).For the end of validity, enter 12/31 of the next year.


Maintain scale values for the gross price.




First select the Gross Price line (PB00). Choose the Details iconand check the scale type. The indicator for the scale type must be A(Base-scale).Select the Scales icon

Enter the following data:

Scale quantity Amount1 PC 9.90 EUR/PC (already the default

value)100 PC 9.50 EUR/PC500 PC 9.00 EUR/PC


Choose the Back icon to return to the main screen for conditionmaintenance.

Maintain scale values for the discount on the net.

Select the line Discount % on Net (RA00). Choose the Details iconand check the scale type. The indicator for the scale type must be A(Base-scale).Select the Scales icon


Scale Quantity Amount1 PC 1 % (is already the default value)

500 PC 2 %



For condition types PB00 and RA00, the Scales indicator is set.

Choose the Save icon.

Choose the Back icon.




Task 2: Vendor discountVendor T-K521A## also grants purchase organization 1000 a scaled discount on allmaterials for a limited period of time.

1. Create a condition record for this vendor discount with the following data:




The discount is valid for a period of four weeks, starting today. Save thecondition record.

a) From the SAP Easy Access screen (session 2) choose:Logistics Materials Management Purchasing Master DataConditions Discounts/Surcharges By Vendor

Enter the following data on the initial screen:

Purchasing organization 1000 (IDES Deutschland)Vendor T-K521A##Scope of list 0001 (note that this is already entered

as the default)

Choose the Execute icon.

Depending on whether you want to display list displays in purchasing withor without ALV Grid Control (user parameter ME_USE_GRID), differentlist displays are displayed.

List displays in purchasing without ALV Grid Control(ME_USE_GRID = '_')The condition type RL01 Vendor Discount % is displayed alongwith the key combination purchasing organization 1000 and vendorT-K521A##.

Select the row with the purchasing organization 1000 and the vendornumber T-K521A## by placing the cursor on it.

Choose the Create icon.

List displays in purchasing with ALV Grid Control(ME_USE_GRID = X)




Select the row with the vendor number T-K521A## , the purchasingorganization 1000 and condition type RL01 by placing the cursor on it.

Choose the New header comb. icon.

The following overview appears: Create Vendor Discount % (RL01): FastEntry.

The vendor number is proposed in a field on the first row. Select this rowand choose the Details icon. Check the scale type. The indicator for thescale type must be A (Base-scale). Select the Scales iconEnter the following data:

Scale quantity AmountEUR 1,000 3 %EUR 5,000 4 %EUR 9,000 5 %

Check the validity period. Change the validity start of validity to thecurrent date (the current date is the standard default).Change the end of validity date to today in four weeks.

Select the Save icon.


Task 3: Purchase OrderCheck the adoption of conditions from the info record and the general conditions.

1. Create a new purchase order with the following data. The delivery date for bothitems is two weeks from today's date.

Vendor: T-K521A##Purchasing organization: 1000 (IDES Deutschland)Purchasing group: Z51 (SCM521 Buyer)




Item 10:Material: T-REK##Quantity: 120 PCPlant: 1000 (Hamburg plant)

Item 20:Material: T-REK##Quantity: 560 PCPlant: 1100 (Berlin)


a) From the SAP Easy Access screen (session 2) choose:Logistics Materials Management Purchasing Purchase OrderCreate Vendor/Supplying Plant Known

Enter the following data in the header data of the purchase order:

Vendor T-K521A##Document date Today

Choose the Expand Header icon as appropriate.

In the header details on the Org. Data tab page, enter the following data:

Purchasing organization 1000 (IDES Deutschland)Purchasing group Z51 (SCM521 Buyer)Company code 1000 (IDES AG)

Choose the Collapse Header icon and the Expand Items icon asappropriate.

Enter the following data in the item overview area of the purchase order:




Item Material PO Quantity DeliveryDate

Plant

10 T-REK## 120 PC 2 weeks fromtoday

1000

20 T-REK## 560 PC 2 weeks fromtoday

1100

Choose the Continue icon.

2. Do you have to enter a purchase order price?

Answer: No. The purchase order price is adopted from your cross-plant inforecord.

3. Check the conditions for both items and determine the amounts/percentages forall condition types. Record the results in the following table.

Item 10 Item 20Gross price (per 1 pc)Discount % on NetVendor discountNet price incl. discount (per 1pc)




Freight surchargeCash disc.Effective price (per 1 pc)

a) Take a look at the item details. Choose the Expand Item Details icon.Choose the Conditions tab page. Choose your two items one after the other.

Item 10 Item 20Gross price (per 1 pc) EUR 9.50 EUR 9.00Discount % on Net 1 % 2 %Vendor discount 3 % 4 %Net price incl. discount(per 1 pc)

EUR 9.12 EUR 8.46

Freight surcharge EUR 50.00 EUR 50.00Cash disc. 3 % 3 %Effective price (per 1 pc) EUR 9.26 EUR 8.30

4. Display the origin of the condition values of both items by displaying theindividual condition records and the details of each. Record the results in thefollowing table.

Item 10 Item 20Gross priceDiscount % on NetVendor discountFreight surchargeCash disc.






a) In each case, select a condition type (row).Choose Condition rec.. This enables you to display the previouslycreated condition record, if the condition was determined from a conditionrecord.


Choose the Condition detail icon and then determine the value of thefield Condit. origin.


Item 10 Item 20Gross price Automatic pricing

(info record)Automatic pricing(info record)

Discount % on Net Conditionsupplement (inforecord)

Conditionsupplement (inforecord)

Vendor discount Automatic pricing(general conditions)

Automatic pricing(general conditions)

Freight surcharge Conditionsupplement (inforecord)

Conditionsupplement (inforecord)

Cash disc. Condition type STKO is not determinedvia condition records

Select the Copy icon.


Task 4: Condition TypesTake a look at the Customizing settings for the individual condition types.

1. Display the Customizing settings for the following condition types and determinethe specified control parameters. Record the results in the following table.




Conditiontype

AccessSequence

Cond.class

Calc.type

Condi-tion cate-gory

Plus/mi-nus

PB00RA00RB00RC00RL01FRB1SKTO

Display the meaning of this indicator using the F4 input values.

Exit this Customizing activity and return to the IMG structure.

a) From the SAP Easy Access screen (session 1) choose:Tools Customizing IMG Execute ProjectChoose SAP Reference IMG if necessary.In the Customizing structure, choose:

Materials Management Purchasing Conditions Define PriceDetermination Process Define Condition TypesChoose the IMG Activity icon.

In the dialog box, choose Define Condition Type. Press Choose.Place the cursor on the table entry PB00: Choose Position..., and enterPB00. Choose Continue.

Select the row with condition type PB00 and choose the Details icon.

Check the detail information below for the other condition types as well.Position the cursor on a condition type, select it and choose the Detailsicon.




Con-ditionType

Ac-cess Se-quence

Cond.class

Calc.type

Condi-tion cat-egory

Plus/mi-nus

PB00 0002 B C C __RA00 __ A A __ XRB00 __ A B __ XRC00 __ A C __ XRL01 0006 A A __ XFRB1 __ A B B __SKTO __ A A E __

Display the meanings of the individual indicators for the Control data 1group using the F4 input values.

A Discount or surchargeB Prices

Condition class:

...

A PercentageB Fixed amountC Quantity

Calculation type:

...

B Delivery costsE Cash disc.C Insurance

Condition category:

...

X NegativeA Positive

Plus/minus:

__ Positive and negative

Choose the Close icon.

Close the dialog box. Choose the Exit icon.




Task 5: Purchasing Info RecordYou also procure material T-REL## from your vendor T-K521A## and have agreed tohe following terms, which you want to enter in the SAP system.

1. Create another plant-independent purchasing info record (standard info recordcategory) with the following data:

Vendor: T-K521A##Material: T-REL##Purchasing organization: 1000 (IDES Deutschland)Planned delivery time: 10 daysPurchasing group: Z51 (SCM521 Buyer)Standard quantity: 120 PC

For this material, you have negotiated the following conditions with your vendor,which are valid indefinitely:

Gross price: EUR 120.00/PCDiscount % on gross: 1 %

2.00 EUR/box (from 1 box)5.00 EUR/box (from 10 boxes)

Discount/quantity:

10.00 EUR/box (from 50 boxes)

Hint: Use the unit of measure BOX for boxes. Be sure to scale thediscount/quantity by box, not pieces.

Discount (Value): EUR 20.00 from 1 pcEUR 120.00 from 500 pc

Discount % on net: 1.5 %

a) From the SAP Easy Access screen (session 2) choose:Logistics Materials Management Purchasing Master DataInfo Record CreateEnter the following data:




Vendor T-K521A##Material T-REL##Purchasing organization 1000 (IDES Deutschland)Plant Leave blank

Choose the info record category Standard.

Choose Purch. Org. Data 1.


Planned deliv. time 10Purchasing group Z51 (SCM521 Buyer)Standard quantity 100Net price 120 EUR/PC

Choose Conditions.


Condition Cond.type

Amount

Gross price PB00 120 EUR/PC (this amountis automatically adoptedfrom the Purch. Org. Data1 screen)

Discount % on gross RA01 1 %Discount/qty. RC00 2.00 EUR per BOXAbsolute discount RB00 EUR 20.00Discount % on net RA00 1.5 %

Hint: Use the unit of measure BOX for boxes. Be sure to scalethe discount/quantity by box, not pieces.

Check the validity period. Change the validity start of validity to thecurrent date (the current date is the standard default).




If necessary, enter end of validity 12/31/9999 (this date is the standarddefault).Select the Continue icon.

Maintain scale values for the gross price.

First select the row Discount/Quantity(RC00). Choose the Detailsicon and check the scale type. The indicator for the scale type must beA (Base-scale).Select the Scales icon


Scale quantity Amount1 BOX 2.00 EUR/BOX (already the default

value)10 BOX 5.00 EUR/BOX50 BOX 10.00 EUR/BOX

Hint: Note that the unit of measure BOX must also be enteredfor the scale quantity.



Maintain the scale values for the absolute discount. Select the line Discount(Value) (RB00).Choose the Details icon and check the scale type. The indicator for thescale type must be A (Base-scale).Select the Scales icon


Scale quantity Amount1 PC 20.00 EUR (already the default value)

500 PC EUR 120.00






2. What discount condition types did you use for the above conditions?

Discount % on Gross: __________________________________Discount/Quantity: __________________________________Discount (Value): __________________________________Discount % on Net: __________________________________

Was the sequence of condition types changed by the program after you enteredthem?

______________________________________________________________



a) You can use the following standard condition types for entering discountconditions.

Discount % on Gross: RA01Discount/Quantity: RC00Discount (Value): RB00Discount % on Net: RA00

No, the sequence of condition types corresponds to the entry sequence.

Choose the Save icon.





Task 6: Calculation Schema(Optional)Find out which indicators the condition types from the previous task have in thecalculation schema.

1. Display calculation schema RM0000 and determine the sequence of thefollowing discount condition types as well as the data for the determination ofthe basis amount for the percentage discount.

Select all the lines with the specified condition types Select All. Record theresults in the following table.

Condition type Step Counter From ToRB00RC00RA00RA01




Condition type Step Counter From ToHB01RL01RGR0

a) From the SAP Easy Access screen (session 1) choose:Tools Customizing IMG Execute ProjectChoose SAP Reference IMG if necessary.In the Customizing structure, choose:

Materials Management Purchasing Conditions Define PriceDetermination Process Define Calculation SchemaChoose the IMG Activity icon.

Display the details of calculation schema RM000. Select this schema andchoose Control in the dialog structure with a double-click.

Condition type Step Counter From ToRB00 10 1 RC00 10 2 RA00 10 3 RA01 10 4 1 HB01 10 10 RL01 10 11 1 RGR0 10 13 1

Choose the Exit icon.

Task 7: Purchase Order(Optional)1. Create a new purchase order with the following data:




Vendor: T-K521A##Purchasing organization: 1000 (IDES Deutschland)Purchasing group: Z51 (SCM521 Buyer)Delivery date: 8 weeks from today

Order 500 pcs of material T-REL## for plant 1000.


a) From the SAP Easy Access screen (session 2) choose:Logistics Materials Management Purchasing Purchase OrderCreate Vendor/Supplying Plant Known

Enter the following data in the header data of the purchase order:

Vendor T-K521A##Document date Today


In the header details on the Org. Data tab page, enter the following data:

Purchasing organization 1000 (IDES Deutschland)Purchasing group Z51 (SCM521 Buyer)Company code 1000 (IDES AG)

Enter the following data in the Item overview area of the purchase order:

Item Material PO Quantity Delivery date Plant10 T-REL## 500 PC 8 weeks from

today1000


Take a look at the item details. Choose the Expand Item Details icon.Choose the Conditions tab page.




2. Check the conditions of your purchase order item. Compare the sequence ofdiscount conditions with the sequence of these conditions in the info recordand in the calculation schema.

In which sequence are the discount conditions adopted in the purchase order?

Answer: First, all discount conditions from the info record were adopted in thepurchase order item. The sequence of the discount conditions from the inforecord was not changed.Then the vendor discount was adopted from the general condition record.

3. Is the sequence of discount conditions in the purchase order identical to thesequence of those conditions in calculation schema RM0000?

Answer: No, the discount conditions are listed in a different order in calculationschema RM0000.

4. What conversion factor was used for the conversion between the units ofmeasure piece (PC) and box (BOX)? Where does this value come from?1 BOX = _______ PC

Answer: BOX is an alternative unit of measure maintained in the materialmaster with the following conversion.1 BOX = 10 PC

5. What is the effective price per piece?

______________________________________________________________



a) The effective price is EUR 106.50 per piece.Choose the Save icon.




Lesson SummaryYou should now be able to: Describe the elements of the condition technique and their interaction Maintain and properly apply time-dependent and time- independent conditions Define important control parameters for condition types and calculation schemas


Unit Summary SCM521

Unit SummaryYou should now be able to: Describe the elements of the condition technique and their interaction Maintain and properly apply time-dependent and time- independent conditions Define important control parameters for condition types and calculation schemas


SCM521 Test Your Knowledge

Test Your Knowledge

1. are agreements on prices, discounts/surcharges, taxes,payment and delivery terms.Fill in the blanks to complete the sentence.

2. Which conditions can you use for pricing in purchasing using the conditiontechnique?Choose the correct answer(s). A Terms of delivery B Purchase prices C Cash discount D Vendor discount E Terms of payment

3. The data for conditions for prices, discounts and surcharges are stored in.

Fill in the blanks to complete the sentence.

4. The condition table is a combination of fields that constitutes the key for a.

Fill in the blanks to complete the sentence.

5. The levels on which price agreements are made are predefined in the SAP system.Determine whether this statement is true or false. True False

6. The scale basis for the maintenance of scaled conditions is defined in thecalculation schema.Determine whether this statement is true or false. True False


Test Your Knowledge SCM521

7. In the calculation schema, a condition type can be identified as a:Choose the correct answer(s). A Automatic condition type B Required condition type C Manual condition type D Statistical condition type


SCM521 Test Your Knowledge

Answers

1. Conditions are agreements on prices, discounts/surcharges, taxes, payment anddelivery terms.

Answer: Conditions

Payment and delivery terms are also conditions.

2. Which conditions can you use for pricing in purchasing using the conditiontechnique?

Answer: B, D

Purchase prices, discounts and surcharges can be applied in pricing in purchasingusing the condition technique; cash discount percentage and amount aredetermined via the payment terms; and for delivery and payment conditions,there are no fields.

3. The data for conditions for prices, discounts and surcharges are stored incondition records.

Answer: condition records

4. The condition table is a combination of fields that constitutes the key for acondition record.

Answer: condition record

5. The levels on which price agreements are made are predefined in the SAP system.

Answer: False

The levels on which price agreements are made are defined as "defaults" inthe SAP system and can be adjusted.

6. The scale basis for the maintenance of scaled conditions is defined in thecalculation schema.

Answer: False

The scale basis for the maintenance of scaled conditions can be defined percondition type.


Test Your Knowledge SCM521

7. In the calculation schema, a condition type can be identified as a:

Answer: B, C, D

For the "automatic determination of conditions", an access sequence is assignedto a condition type.


Unit 2Condition Technique in Price

Determination

Unit OverviewIn this unit you will learn about the price determination process with the conditiontechnique in more detail. One focus of this chapter is the use of different calculationschemas. You will learn how to use supplementary conditions and how you can directthe search for valid conditions in different tables.

Unit ObjectivesAfter completing this unit, you will be able to:

Describe how the calculation schema used is found Explain price determination using supplementary schemas and supplementary

conditions Create condition types and calculation schemas using the copy function and

adjust them to your enterprise-specific requirements

Unit ContentsLesson: Condition Technique in Price Determination . . . . . . . . . . .. . . . . . . . . .. . . . . . 54

Exercise 2: New Calculation Schema ... . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . 69Exercise 3: Price Determination with the New Calculation Schemas .. . . 81


Unit 2: Condition Technique in Price Determination SCM521

Lesson: Condition Technique in Price Determination

Lesson OverviewIn this lesson you will learn about the algorithm of the condition technique inmore detail. You will see how different calculation schemas can be assigned. Therelationship between supplementary schemas and supplementary conditions will beexplained and detailed information on the access sequence for the gross price willbe presented.

Lesson ObjectivesAfter completing this lesson, you will be able to:

Describe how the calculation schema used is found Explain price determination using supplementary schemas and supplementary

conditions Create condition types and calculation schemas using the copy function and

adjust them to your enterprise-specific requirements

Business Example Your purchasing policy dictates that prices should automatically default into

purchase orders whenever possible. Since you negotiate and agree prices with the vendors before the purchasing

process starts, to simplify the purchasing process you frequently create inforecords and contracts.

Price Determination OverviewA price determination takes place when you create a purchase order or a delivery planwith non-time-dependent conditions. The system determines the valid conditionsand adopts these as default values in the new document. Here, depending on thetransaction, the system searches for conditions in different data records (master dataand documents): In the case of purchase orders, the system searches for conditions in info records

and contracts (for contract release orders), and in General Conditions. For scheduling agreements with non-time-dependent conditions, the system

searches in info records and in the General Conditions (contract release ordersare only permitted for scheduling agreements with time-dependent conditions).


SCM521 Lesson: Condition Technique in Price Determination

You can also create scheduling agreements with time-dependent conditions with areference to a contract (without maintaining user-defined conditions in the schedulingagreement), so that the current conditions of the contract are always used.The price determination is conducted in several steps which will be presented in thefollowing section.

First, the relevant calculation schema is determined. For the determination of thecalculation schema the vendor and purchasing organization are called to the processtransaction (for example, Standard Purchase Order or Stock Transport Order).

Figure 12: Price Determination Overview (1-3)

The system searches for valid condition records for all condition types in thecalculation schema that are not flagged as manual conditions and whose conditionsare fulfilled.

For this the program determines for each of these condition types whether an accesssequence has been assigned and if so, which access sequence is assigned to thecondition type.




The access sequence assigned to a condition type is initially used to determine thecondition tables of this access sequence.

The system searches in the condition tables determined for a valid condition record forthe corresponding condition type. The search for condition records is carried out inthe order specified in the access sequence by the sequence number.

The search is concluded when a valid condition record is found (on the basis of theexclusive indicator).


The conditions of the valid condition record found are determined. With scaledconditions, the applicable scale level is used. In addition to the checked condition type(PB00 in the example) all supplementary conditions that may be present are adoptedfrom the condition record without a further check.

Material-specific discounts and surcharges are generally supplementary conditionsfor the gross price (in the standard solution for condition type PB00). A conditiontype that is only used as an supplementary condition does not have an accesssequence assigned in Customizing. No separate price determination is carried outfor supplementary conditions. They are always determined and adopted from thecondition record for the gross price (or for the main condition).



Determination of the Calculation SchemaYou can predefine how the calculation schema is determined for standard purchaseorders and stock transport orders, the calculation of the market price in vendorevaluation and for external services management using Define Schema Determination.

Figure 15: Schema Determination

You have the following options with regard to schema assignment for standardpurchase orders:

You can assign a generally valid calculation schema (RM0000 in the standardsystem) that is applicable for all purchase orders and other purchasing documentswith non-time-dependent conditions.

You can depending on the purchasing organization use different calculationschemas. For this you assign a schema group to each purchasing organization.The assignment of the calculation schema is conducted in dependence on thisschema group for the purchasing organization (among other factors).

You can depending on the vendor use different calculation schemas. For thisyou assign a schema group to each vendor. The assignment of the calculationschema is also conducted in dependence on this schema group for the vendor.



The schema group comprises those purchasing organizations or vendors to whomthe same calculation schema is to be assigned. Schema groups are defined inCustomizing. The assignment of purchasing organizations to schema groups is alsoconducted in Customizing, whereas the assignment of a vendor to a schema groupmust be made in the relevant vendor master record.

The assignment of the calculation schema for stock transport orders depends on theschema group of the purchasing organization, the document type and the supplyingplant.

The assignment of the calculation for the determination of the market price in vendorevaluation depends on the purchasing organization.

The calculation schema for external services management depends on the documenttype. In this regard, you should note that a uniform calculation schema per documenttype must be chosen for the document types RFQ/quotation (AN), purchase requisition(NB), and purchase order (NB).

Supplementary ConditionsIf you create a purchase order, the program initially determines the calculation schemafor documents (for example RM0000) depending on the purchasing organization andthe vendors of the document.

This calculation schema for documents must contain a condition type (PB00 oruser-defined, comparable condition type) for the gross price.

Figure 16: Calculation Schema for Condition Type PB00 (1-2)

A calculation schema for supplementary conditions must be assigned to condition typePB00 (or your own, comparable condition type for the gross price). In the standardsystem, schema RM0002 is used for this purpose.



This calculation schema for supplementary conditions must also contain the conditiontype PB00 (or the user-defined condition type for the gross price).Any number of further condition types for the supplementary conditions can also bepresent. All condition types of this supplementary schema (RM0002 in the standardsystem) should also be contained in the calculation schema for documents (RM0000in the standard system).Condition types of the calculation schema for supplementary condition are, forexample, the condition types for discounts and surcharges (ZA00, RA00, ZA01,RA01, and so on) and for freight conditions (FRA1, FRB1, and so on), for thematerial-specific conditions.

Figure 17: Calculation Schema for Condition Type PB00 (1-4)

The list of condition types suggested to you if you choose the Default conditionsupplement function when maintaining info record conditions or conditions for(time-dependent) quotation or outline agreement items is based on the calculationschema for supplementary conditions.

This supplementary schema enables the simple entry of discounts and surcharges, andso on, on the basis of the info record or the quotation or outline agreement item aswell as the simplified adoption of supplementary conditions in a purchase order withone single access to this condition record.

Supplementary conditions always have the same validity period as the main condition.



In the standard system, no access sequence (with the exception of RA01) is assignedto the condition types of the supplementary conditions because no separate conditionrecord has to be found for them. They do not have their own validity periods andare always maintained in conjunction with the gross price (or with another maincondition).The structure of the calculation schema assigned to the standard purchase order shouldcorrespond to that of the calculation schema for supplementary conditions.

Price Determination with Reference to ContractsYou can conclude vendor outline agreements for long-term purchasing relationshipsand therefore more favorable conditions.

When you create a contract, depending on the purchasing organization of the contract,the program again determines the calculation schema for documents (for example,RM0000 and thereby the standard condition types for the gross price (PB00) and thediscount from the gross (RA01).The supplementary schema RM0002 is assigned to the condition type PB00 in thestandard system. You can enter concrete conditions in the contract item for allcondition types of this supplementary schema. A condition record is created withthe gross price and any possible further supplementary conditions when creatingand saving the contract.

Figure 18: Purchase Order with Contract Reference (1)



If you create a purchase order with a reference to the contract (contract release order),then the program finds the condition record for the contract item as the first validcondition record for the gross price (in the standard system) and then adopts all validconditions (that is, including the supplementary conditions) in the purchase order.

Figure 19: Purchase Order with Contract Reference (2)

When you create a contract, the program determines the calculation schema fordocuments (for example, RM0000) as well as the standard condition type for thediscount RA01.

The supplementary schema RM0001 and also an access sequence (accesssequence KB01) are assigned to condition type RA01 in the standard system. Thissupplementary calculation schema contains all condition types that can be maintainedat contract header level such as percentage surcharges and discounts on the gross ornet price.

You can enter concrete conditions in the contract header for all condition types ofthis second supplementary schema. In this way you create another condition recordwhen saving the contract.

If you create a purchase order with a reference to the contract (contract release order),then (at item level and using access sequence KB01) the program finds the conditionrecord for the contract header as the first valid condition record for the condition typeRA01 (in the standard system) and then adopts all valid conditions in the purchaseorder.



Access Sequence for the Gross PriceThe access sequence is a search strategy with which you specify with which keysand the order in which the condition tables are to be searched for relevant entriesfor a condition type. The order of the accesses is determined using the order of thecondition tables in the access sequence.

Figure 20: Access Sequence for Gross Price

A vendor's gross price for a material can depend on a variety of factors. There areindividual condition tables with different combinations of key fields for the variousinfluencing factors, for example:

Table A068: For plant-dependent gross prices in central outline agreement items Table A016: For gross prices in outline agreement items Table A067: For order-unit-dependent gross prices in plant-specific material

info records Table A017: For gross prices in plant-specific material info records Table A018: For gross prices in material info records (plant independent) Table A025: For gross prices in plant-specific non-stock-material info records

(info records without a material number)You define the prerequisites according to which the system searches certain conditiontables for relevant entries using requirement routines. Certain condition tables areonly accessed if the document item meets certain criteria.



The conditions contained in a (possibly central) contract can be adopted in a releaseorder (purchase order with reference to contract) as well as applying to schedulingagreements with time-dependent conditions by making a reference to the contract whencreating the scheduling agreement. However, in this (second) case, the conditions ofthe contract are not adopted in the scheduling agreement, as when posting a goodsreceipt, the (possibly changed) current conditions from the contract should be applied.The access sequence for the gross price must take account of this procedure.

Hint: You can find further information on the subject of Conditions inscheduling agreement w/ref to RFQ in SAP Note 160630.

The access sequence for the gross price should contain the following accesses inthe order specified with the fields listed:

Access 10: Condition table A068 with conditions from plant-dependent contractitems and with the following fields:

EVRTN EVRTN Purchasing doc.EVRTP EVRTP ItemWERKS WERKS Plant

Access 15: Condition table A016 with conditions from contract items and withthe following fields:

EVRTN EVRTN Purchasing doc.EVRTP EVRTP Item

Access 17: Condition table A016 with conditions from scheduling agreementitems and with the following fields:

EVRTN ELPAK ContractEVRTP ELPAP Outline agreement item



Figure 21: Adopting Conditions from a Contract

1. The conditions from the contract are also adopted for the release order for thecontract. The EVRTN field contains the contract number for the access to thecondition table.

2. When you create a scheduling agreement with time-dependent conditions andwithout a reference to the contract or maintain user-defined conditions in thescheduling agreement then no contract can be called for the price determination.In this case, when posting a goods receipt with the scheduling agreement number(field ELPAK) the condition table is accessed (for scheduling agreements withtime-dependent conditions, a new price determination is always conducted forgoods receipts pricing date category 5).

3. When you create the scheduling agreement with time-dependent conditionsfor plant 1200 with a reference to the central contract and do not maintainuser-defined conditions in the scheduling agreement, the plant-dependentcontract conditions are found with access 10, for example on receipt of goods orfor list displays for the scheduling agreement. They are only called with access17 if you maintain user-defined conditions in the scheduling agreement.

Reference Purchasing OrganizationConditions are usually negotiated and maintained individually by each purchasingorganization and a vendor. However, if your SAP system has been set up appropriately,your purchasing organization can make use of the conditions negotiated by another



(the reference purchasing organization) or, conversely, make the conditions it hasnegotiated available to others. This is useful, for example, in the case of centrallyagreed (national or corporate) contracts with vendors.

Figure 22: Reference Purchasing Organization (1)

In Customizing, a link must be set up between the relevant purchasing organizations.Furthermore, you must stipulate whether:

It is permissible to issue release orders against contracts of the referencepurchasing organization

Conditions are to be adopted from info records and the general conditions ofthe reference purchasing organization

Whether conditions from info records and general conditions for the referencepurchasing organization should have priority over info records and the generalconditions of the individual purchasing organization.



Figure 23: Reference Purchasing Organization (2)

If the conditions are to be adopted from info records of the reference purchasingorganization, you must set

scm521_conditions and price determination in mm

Documents