Pricing Determination vs. Pricing Configuration

Overview of Terms

• Price Determination: Process of finding the final price of a product based on various conditions.
• Price Configuration: Setting up the system to allow for price determination by creating necessary condition records and tables.

Price Determination Process

1. Condition Record: For example, if selling 120 iPhone XRs, the price could be $999.99 each if the order exceeds 100 pieces.
2. Pricing Procedure: A function based on sales area, sales document, and sold-to party that helps in determining the price.
   • Entities Involved: Sales area, sales document, sold-to party.
   • Output: Condition types.
3. Access Sequence: Defines how to retrieve condition tables based on the condition types.
4. Condition Tables: Store the actual price information retrieved from condition records.
5. Final Price: Calculated using condition records based on the above components.

Price Configuration Process

• Purpose: Set up the necessary components for price determination, working in a reverse process compared to price determination.

Steps in Price Configuration

1. Define Condition Records: Necessary for pricing procedures to access.
2. Create Condition Tables: Store the condition records.
3. Define Condition Types: Specify how different price types interact with the pricing procedures.
4. Configure Pricing Procedures: Ensure the correct pricing procedure is utilized based on the sales area, sales document, and sold-to party.
5. Sales Document Creation: Create documents that will utilize these pricing procedures.
6. Customer Master Record Creation: Store customer information relevant for pricing.

Differences Between Price Determination and Configuration

• Direction: Price determination is a forward process; price configuration is backward.
• Dependency: Price determination relies on prior configuration done by employees in the SAP system.

Example Scenario

• A customer (e.g., customer "seman") has a standard pricing procedure identified.
• Condition types like PR00 (base price), KA00 (discount), and KZ09 (special offer) are assigned within the pricing procedure.
• Access sequence identifies which condition table to use for price determination based on currency and material.
• Condition records provide the final price output for transactions.

Summary of Steps

1. Procedure Determination: Identify sales area, sales document, and sold-to party.
2. Pricing Procedure: Specify the applicable pricing method.
3. Access Sequence: Retrieve relevant condition tables.
4. Condition Records: Output the final price based on predefined records.

Conclusion

• Configuration is essential for facilitating the determination of prices in future transactions.
• Proper setup by employees ensures that the SAP system can accurately calculate prices based on established conditions.