Pricing Procedure and Price flow process in PO----SAP MM Consultants

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.