SAP Pricing Procedure Overview

The major concept of pricing procedure has come from a combination of various types of charges like the gross price, discount, freight and surcharge, etcetera. We use the pricing procedure tool to accommodate all these different types of charges into one procedure by following which we can calculate the sub-total for the net amount.

When it comes to SAP, we use this process of Pricing Procedure in the SAP MM module. The SAP MM module controls the Material Management (MM) division. It has several sub-components including the Inventory, Purchasing and Master Data. This Pricing Procedure tool helps in determining the price of the purchasing documents. It also guides us to assign various types of calculation for various needs. You can define the entire pricing procedure by developing an access sequence. This access sequence can be assigned to the various condition types. The access sequences consist of all the details of the system and it will also help us to find out the condition values.

You can search various multiple tables based on the settings of the access sequence. There are different tables which have different key fields and different priority. Therefore, the role of the pricing procedure is to determine and practically assign the schema of calculation and combine the various vendor schema groups into a total purchasing organization schema. In order to do all of this, firstly you need to enter the vendor schema group. Enter this vendor schema group through vendor master and assign a particular schema group to the purchasing organization. In doing so, you can set up a system which will make it easier for you to trace the calculation schema which you, later on, need to use in your documents.

How to set up a pricing procedure?

To set up a pricing procedure for all your purchasing documents, you need to follow these customizing features to access it.

Follow this particular IMG path to reach the available functions:

Go to ‘Transaction SPRO’ and click on ‘Materials Management’. A drop-down menu will appear from which you need to select ‘Purchasing’. From the ‘Purchasing’ list, select ‘Conditions’. Under the ‘Conditions’ list, click on ‘Define Price Determination Process.’

By following these instructions step by step you can avail all the functions that are required to maintain the pricing procedure of the purchasing documents. There is, however, availability of various other settings on the regulation of pricing procedure, but the most used ones are stated below:

  1. Define Access Sequences.
  2. Define Condition Types.
  3. Define Limits.
  4. Define Exclusion Indicators.
  5. Define Calculation Schema.
  6. Define Schema Group.
  7. Define Schema Determination.

You can learn more about Pricing Procedure if you opt for a certificate course on SAP. Once you get the entire overview of the SAP, you will come across various modules out of which SAP MM is one component. On specialising in SAP MM module, you can work as a consultant and earn up to Rupees 6 lacs per annum. To know more about this course, you can visit the website and learn about the program in-depth. If you are interested in Material Management and application development, then this course is ideal for you!

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