What is pricing procedure in SAP MM: The pricing procedure in SAP MM (Materials Management) is a crucial component that determines how the system calculates the prices of materials during the procurement process. Here’s a simplified explanation:
What is pricing procedure in SAP MM
Definition
- A pricing procedure is a set of condition types that the system uses to calculate the final price of materials or services during purchasing transactions.
Components
- Condition Types: These are individual pricing elements that represent different components of the total price, such as base price, taxes, discounts, surcharges, etc.
- Access Sequence: Determines the sequence in which the system searches for condition records to determine the price.
- Condition Tables: Store condition records that define prices for specific combinations of key fields (e.g., material, vendor, purchasing organization).
- Procedure: Defines the sequence in which condition types are applied and the calculation logic.
Configuration
- Pricing procedures are configured in SAP using transaction code SPRO (SAP IMG) under the Materials Management module.
- Configuration involves defining condition types, access sequences, condition tables, and assigning them to the pricing procedure.
Usage
- During procurement processes such as purchase order creation, the system automatically determines the price of materials based on the pricing procedure assigned to the purchasing document type.
- It retrieves condition records from condition tables using access sequences and applies condition types in the sequence defined in the pricing procedure to calculate the final price.
Customization
- Companies can customize pricing procedures to meet their specific business requirements by adding or removing condition types, changing the sequence of condition types, or modifying calculation rules.
Example
- A pricing procedure may include condition types such as net price, freight, customs duty, and tax. Based on the condition records maintained in the system, it calculates the total price by adding or subtracting these condition types.
Overall, the pricing procedure in SAP MM plays a vital role in determining the prices of materials during procurement transactions, providing flexibility and customization options to meet the diverse pricing needs of organizations.
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