Fields in Pricing Procedure

Define Pricing Procedure

A pricing procedure is a procedure by where in which you control the execution of condition tyoes in a sequence you would like . It not only executes the condition types but also controls the execution of condition type by the use of requirements , altcv. altcbv, account key.

In other words, Pricing procedure is a systematic and sequential use of condition types to arrive at a right value of the product.

To determine the pricing procedure SALES AREA (Sales Organization + Distribution Channel + Division) + CUSTOMER PRICING PROCEDURE (from Customer master) + DOCUMENT PRICING PROCEDURE (from Sales Doc type)

To view a select the pricing procedure in SPRO which is the standard and copy it and create our own pricing procedure.

 We can see that there are 16 columns in the pricing procedure, these are going to be used by the system to control the condition types.


The detail description of each column is given below:


1. Step:

· Number that determines the sequence of the conditions with in a procedure.

· It indicates the position of the condition type in pricing procedure.

· Ex.: 10, 15 etc.

2. Counter:

· System uses the counter to count the steps and also it can be used to count mini steps of same condition types. So that number of steps can be reduced in the pricing procedure and hence enhancing the system performance.

· Access number of the conditions with in a step in the pricing procedure.

· During automatic pricing, the system takes into account the sequence specified by the counter.

3. Condition Type:

· It represents pricing element in pricing procedure as a base price, discount, freight and tax.

· The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types.

· Ex.: PR00 - Price, K004 - Material Discount, K005 - Customer/Material Discount, K007 - Customer Discount.

4. Description:

· System copies description of condition type from its description (V/06).

5. From and 6. To:

1. From: This can be used as a base to the condition type for calculating further value.

2. From and To: The range between the steps from and to can be used to specify the range between same condition types. So that depending upon the condition type, the system deducts or adds the total value of those condition types from specific common source.

7. Manual:

· This indicator specifies whether the specific condition type can be determined manually during sales order processing.

· If we check the box then the entry is going to be manual, if we uncheck it, it is going to be automatic.

· For Base Price and Taxes, the entry should be automatic.

· For Discounts and Freights, The entry should be manual.

· If we check the box, in VA01 when we go to conditions at the header/item level, the condition type will not be listed. If we require we will have to manually enter it.

· If we uncheck the box, in VA01 when we go to conditions at the header/item level, the condition type will be listed.

8. Mandatory:

· This indicator specifies that particular condition type is mandatory in the pricing procedure.

· If we check the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the condition type and try to save the document then system will not allow us to do it and throws an error.

· If we uncheck the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the condition type and try to save the document then system will allow us to save it, without giving any error.

· Mandatory check box should be checked in condition types which are compulsorily required in pricing procedure. Ex.: PR00, MWST.

· If the condition type is checked with mandatory option, then value should be maintained for that condition type, otherwise the system will not allow the user to process the document.

9. Statistical:

· This indicator if it is activated will not allow the value of the condition type to be taken into net value calculation.

· It is used only for information purposes only.

· This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).

· This is commonly used for condition types

SKTO - Cash Discount

VPRS - Cost (Moving average price/Standard Price).

10. Print:

· The value of this field specifies whether line item can be printed or not in the sales document and at what level it is to be printed.

11. Subtotal:

· The value of this field determines where the values of subtotals to be captured i.e. in which table and which field.

· Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored.

· If the same fields are used to store different condition amounts, the system totals the individual amounts.

· These condition amounts or subtotals are used as a starting point for further calculations. You may, for example, want a subtotal of all the discounts included in the pricing of a sales order.

12. Requirement:

· It is a routine that is written by an ABAP consultant according to the business requirement.

· By defining Requirement in condition technique we can restrict the access of condition type.

· To understand the concept, we will take the example of the Rebates. Rebates are to be included during the billing document processing and not in the sales document processing. As rebates are given on the delivered quantity and not on the ordered quantity (in case of cut-off period for rebates).

· For rebates we use the condition types BO01 to BO05, and in the Requirement column we give the value 24 which is "Only in Billing Document".

· This Requirement will ensure that these condition types will appear only during the billing document processing.

· If new Requirements are to be defined we follow the procedure given below.

Go to T.Code: VOFM. - Maintain Requirements & Formulas

Click on the "Requirements" in the top menu and then click on "pricing".

We have a list of requirements, we can ask ABAP consultant to create new requirement based on the client requests.

And we assign the application type like V - Sales/Distribution etc.

14. AltCty - Condition formula for alternative calculation type:

· It is again a Routine that is written by ABAP Consultant.

· It is an alternative formula for the condition type that can be used instead of standard formulas.

· For example, let us take the Profit Margin which can be both + / - , so here this routine will help us in generating the value which can be either + or -. Profit margin is not a condition type so it cannot be classified as +ve or -ve in the V/06.

· Ex.: 950 0 Profit Margin 11.

· So we assign 11 - Profit Margin.

· If new routines are to be defined we follow the procedure given below.

Go to T.Code: VOFM. - Maintain Requirements & Formulas

·

Click on the "Formulas" and then on the "Condition Values".

We have a list of routines, we can ask ABAP consultant to create new routines based on the client requests.

And we assign the application type.

15. AltCBV - Alternative formula for condition base value:

· Formula for determining the condition basis as an alternative to the standard.

· It is again a Routine that is written by ABAP Consultant.

· It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.

· Ex.: Freight - KF00.

· Freight is calculated based on weight, volume etc. and not on the base price. In pricing there is no entry of weight from which the value can be referred like we do for discounts using base price. We have to get the value from the Material master.

· In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.

· During pricing, the system will consider the value that is mentioned in this column and determine the freight based on this value.

· Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention 13 in this column then the Freight condition KF00 will be calculated using the weight as 100 kgs.

16. AcyKy - Account Key/ Accrls - Accruals:

· The values of the Sales Revenues, Sales Deductions, Freight Revenues, Tax Revenues, and Rebate Accruals etc. are going to be posted in the respective G/L accounts in Fi Module.

· In order to do this we assign account keys/ accruals to the different condition types based on their classification. The classification shown below.

ERB Rebate sales deduct.

ERF Freight revenue

ERL Revenue

ERS Sales deductions

ERU Rebate accruals

· For Ex.,

For all Price condition types like PR00 etc. we assign ERL - Revenue.

For all Discount condition types like K004, K005 etc. we assign ERS - Sales Deductions.

For all Freight condition types KF00 etc. we assign ERF - Freight Revenues.

For all Rebates condition types BO01 to BO05 we assign in Account key ERB - Rebates Sales deductions and for Accruals ERU - Rebate Accruals.

· This account keys and accruals are in turn assigned to respective G/L accounts. So the system posts respective values in respective G/L accounts in Fi-Co Module.



· This also one of the areas of SD - Fi Integration. SD consultants assign the account keys and Fi Consultants assign the respective G/L accounts in T.Code:VKOA.

Movement Type in sap

When a goods movement in the system, we must enter a movement type to differentiate between the various goods movements. A movement type is a three-digit identification key for a goods movement.

In this step, we can change the setting of existing movement types

When you enter a goods movement, you must always enter the movement type. The movement type has important control functions in Inventory Management. It is essential for updating the quantity fields updating the stock and consumption accounts selection of the fields used for entering documents printing goods receipt/issue slips


How to create movement types? What are the steps involved? When will you recommend a new movement type?
Companies may request a new movement type to differentiate between the inventory posting transaction. For example, 551 scrap movement type. Some company may request to have it as 551 for Internal Scrap and Z51 for External Scrap.

Copy, Change Movement Types

Assuming I want to create another movement type Z01.
Transaction OMJJ
Select the standard movement type 201
Click copy, then overwrite the 201 with Z01
Click the Enter button, then click Copy all
Select the new movement type Z01
On the left hand column screen, click Reversal/follow-on movement
Fill in the reversal movement type

For the rest of the options, you can leave it alone or change it depending on your requirement

Movement Type and GL Account Determination

Any report to show which account with what movement type? As we have too many movement type with different account, we want to download it from system and check.

In transaction OMWB (it require to input material no.), go to the simulation mode, then in menu Simulation --> Go to Report. There, you can give the plants, valuation classes and movement types and execute the report. Then you can download it to excel and analyze.

or

In the initial screen input the plant, material number and movement type and then go to simulation --> report. It will take you to simulation of automatic account assignments : Inventory Management which is independent of materials and there you can get the desired report.

Account no. with movement type

Different materials will use different accounts during movement. This is defined by the Valuation Class the material is assigned to. Also, movement definition also differs with the type of movement, i.e., a consumption on a production order has a different movement than a consumption on a sales order. These movements are therefore linked to Transaction/Event Keys, which are the accounting reflection of the movement.

Call transaction OMWN, Account Grouping for Movement Types. This table will provide you with the Transaction/Event Keys for the movement. Withine a movement type, these will differ based on the movement, consumption type, etc. The tables behind this are T156X and T156W.

With this Transaction Key information, read the table T030 (OBYC) using the Val Class and the Chart of Accounts to get the GL Accounts.


How to find out how G/L account is determined with respect to movement type for various material types?

G/L a/c is decided not only by Movement type, but also material master/plant/type of transaction(transaction key). Movement type in OMJJ is contains transaction key / Account modifier which is the link for GL a/c.


In material master we maintain valuation class. Hence when we do let us say GR for Purchase order(101), the G/L account is decided as below:


Let us say movement type 101

Account modifier = space

Check in OBYC

As you are aware for any transaction there will be +ve and -V entry in GL a/c

Which a/c has to be -ve and which has to be + is decided by posting key depending on transaction. Hence When we do GR...Stock a/c will be +, GR/IR will be -Ve and any price difference(if price control is -S) will be posted to price difference account.

Inventory posting is done through BSX

Price difference will goto PRD

GR/IR will goto WRX

In OBYC, check the transaction BSX, for a given Chart of A/c, for a given valuation modifier(it is nothing but plant grouping) and valuation class, you can see the G/L account. This data is available in table T030


You can see the posting key for debit and cr. That means when we do 101, then Stock will be credited and that posting key is used, if you do reverse GR-102, then same stock a/c will get debited with that posting key


For the transaction PRD, you will get addition to the above, one more column General modifier, this is nothing but the account modifier in OMJJ for that movement type, i.e. Same transaction i.e. GR, if i define a different account modifier, I can change the G/L account so that new movement type PRD (variance) can be collected at different G/L account.


Like that WRX, in which it is maintained at client level no a/c modifier, no valuation class etc...that means GR/IR account determination will not depend on movement type/material/plant etc.

Difference Between EDI and IDOC

EDI is nothing but Electronic data interchange. SAP will support EDI through Intermediate documents (IDOCS).

EDI (Electronic Document interchange) - EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network. 

EDI is also called paperless exchange. 

Advantages: 
Reduced Data entry errors
Reduced processing time
Availabilty of data in electonic form
Reduced paperwork
Reduced Cost
Reduced inventories and better planning
Standard means of communications
Better business process

EDI has two process
1. Outbound process
2. Inbound process

OP: 

1.Application document is created.
2.IDOC is generated
3.IDoc is transferred from SAP to Operating system layer
4.Idoc is converted into EDI standards
5.Edi document is transmitted to the business partner
6.The Edi Subsystem report status to SAP

IP: 

1.EDI transmission received
2.EDI document is converted into an IDOC
3.IDOC is transferred to the SAP layer
4.The application document is created
5.The application document can be viewed.
 

IDOC: 

IDOC is a container that can be used to exchange data between any two process.
Each iDoc is assigned a unique number for tracking and future reference.
iDoc Consist of several segments,and segments contain several fields.
iDoc contains the following three type of records...
1.One Control Record.
2.One or many Data Record
3.One or many Status record.

PORT:
Port is used in the outbound process to determine the name of the EDI subsystem program,the directory path where the idoc file will be created at the operating system level,the idoc file names and the rfc desinations.

RFC Destination: 

Used to define the characteristics of communication links to a remote system on which a functions needs to be executed.

Partner Profile: 

Partner profile specified the various componets used in an outbound process ( Partner number,IDoc type,message type,Port,Process code),the mode in which it communicates with the subsystem(batch or immediate) and the person to be notified in case of errors.

Message Control 

Used in pricing,account determination,material determination,and output determination.The message control component enables you to encapsulate business rules with out having to write abap programs.

Process: 

Setup RFC destinations SM59
Port Destinations WE21
Partner Profile WE20
Message control NACE
Purchase Order ME21
Check IDOCs WE02,WE05