Pricing Procedure and Price flow
process in PO-- SAP MM::
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Pricing procedure: pricing procedure defines the price
flow process in purchasing document like PO, we can define a pricing conditions
as per our needs and requirements and maintain +/- accordingly.
Price flows into purchase documents with the help of
access sequence- where access sequence is a 3-digit key and consists of
sequence of some purchase documents like Contract, PIR with plant, scheduled
agreement.
Based on the access sequence the price will go and
enter in PO from contract or PIR or scheduled agreement.
few basic concepts need to know before entering in to
pricing procedure.
1.
Access sequence
2.
Condition types
3.
Condition table
4.
Calculation schema
5.
Schema group
6.
Schema determination
On what basis pricing conditions flow into PO.
Based on Vendor and purchase organization.
4.Schema group
Schema group:
grouping all international vendor into one grouping pricing condition called as
schema group
Explanation:
we
all know, in procurement we will deal domestic and international vendors and
pricing conditions are different as per there location like discounts, tax and
net calculation and for differentiating those price we need schema group(which
will be assigned to vendor) and 1 more schema group for purchase organization.
SPRO-
Materials Management-
Purchasing-
Conditions-
Define
price determination process-
Define
schema group-
Schema group-
vendor
Schema group-
purchase organization
5.Schema
determination: Assign schema group to
purchase organization
Schema group-
vendor:
Here we will
define a schema group based on vendor location like either its local or
international.
We need to
assign the schema group to vendor in vendor master-Purchasing data-schema
group.
We will be
assigning to all the vendors which was created in the SAP for the procurement
purpose.
Totally
we will define 2 schema groups for an organization, 1 is for local and 1 is for
International.
Schema group-
purchase organization:
Here we will define
schema group for purchase organization, in which we will assign calculation
schema with schema group
Basically, we
have RM0000 as a default condition and based on that we will define a new
condition and assign to schema group for purchase organization.
Assign schema
group to purchase organization:
We will link
schema group to purchase organization and schema condition-calculation schema.
Now,
based on vendor schema group and purchase organization the condition- calculation schema will be defined automatically.
Pricing flow procedure-
from contract, Outline agreement and PIR Overview:
1.Access
Sequence:
SPRO-
Materials Management-
Purchasing-
Conditions-
Define
price determination process-
Define
Access sequence-
We all know,
price will flow into PO from Older PO’s or PIR or Contract.
But where
this is defined and how the system is taking priority like this, this can be
achieved by access sequence.
Where we will
maintain the access sequence with this condition like below.
1.
Scheduled agreement
2.
Contract
3.
PIR
4.
Older PO’s
Based on this
sequence, price will be picked in PO automatically.
Because
access sequence is always linked to condition types like PB00.
PB00 is a
condition where gross price will be calculated for auto PO’s- so we need to
maintain an access sequence and link to condition type.
1
condition type can be linked to 1
access sequence only.
2. Condition
types-
SPRO-
Materials Management-
Purchasing-
Conditions-
Define
price determination process-
Define
Condition types-
Condition
type defines the debit or credit or discount (+/-)
Few of the
condition types are PB00- Gross price
PBXX- Gross
price manually
FRA1- Freight
charges
ZA03-
Discount
Condition
types are mainly 4 types-
Basic price
Discount
Tax
Freight
If we are
defining new condition type, then always copy from standard condition types
Like for
net/gross- copy from PB00
For freight
related- Copy from FRA1
For surcharge
related- copy from ZA00
3.Calculation
schema:
SPRO-
Materials Management-
Purchasing-
Conditions-
Define
price determination process-
Define
Calculation schema -
Here we will
define a schema condition in which all the price condition types will be maintained.
Will define
all condition types like Gross, friend, Discount conditions
1.Step-
indicates the sequence
2.counter-
Indicates the sub in the sequent
3.Condition
type- define the condition type required
4.from- if it’s
a net/gross price- then we need to maintain the excel formula to calculi like
10:10
5. To- if
it’s a net/gross price- then we need to maintain the excel formula to calculi
like 10:10 or 10:20
6.Manual-
Means we need to maintain the field in PO manually
7.required-
It means the condition type is mandatory.
8.Statistical-
It means it will be there but 0 price also, no problem.
9. printing
control
10. subtotal
field – press F4 and select the total number like 9.
11.
Requirement
12.Cal. type
13.Bastype
14. Accrual
Key- If any new account key effect is there then we can mention it here
15. Accrual
account Key
3.Condition table:
Condition table
is a 3-digit key, where we fill update the sequence of condition to be impacted
in the condition record like PB00.
Here we will update
the sequence of combination like material, vendor, plant, Purchase organization.
Once we have updated
the conditions, system will check for any master data which contains price and
update the same condition in PO.
Material
Vendor
Plant
Purchase organization
Final
Overview to understand the pricing procedure:
Price flow
process:
Condition fields-
Material, vendor, Plant and Purchase organization
| | | |
Condition table: 017
|
Access
Sequence: 0002
|
Condition
types: PB00
Calculation
schema: ZRM0001
Price will
flow from condition fields which will be maintained in condition table.
Access sequence
tells from which sequence price should take either from contract or PIR
Condition
types will be always linked to access sequence, so PB00 – linked to 0002
Calculation schema
would be implemented by vendor and purchase organization setup.
Thank you boss..👌
ReplyDeleteYou’r welcome
Deletein implemention project we are configuring domestic pricing procedure or international pricing procedure
ReplyDeleteUsually domestic! however, it always depends on customer requirement. for instance, a company has its support center in India and all other operations are happen thru out the global, [i mean no business operation in india] then implementation will take international operation..
Deleteyou wil configure as per your requirements
ReplyDeleteboth are possible in many ways
Thank you Rama krishna garu.
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