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Pricing Procedure For Purchase Order


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Pricing Procedure For Purchase Order

  1. 1. Pricing procedure for purchase order <ul><li>DEFINATIONS </li></ul><ul><li>To describe how the price determination process is controlled in SAP system . </li></ul><ul><li>Gross price – without surcharges and discounts </li></ul><ul><li>Net price – with all surcharges and discounts and without delivery cost </li></ul><ul><li>Effective price – final price with all surcharges, discounts and delivery cost. </li></ul>
  2. 2. Check the dependencies under which prices, discounts, surcharges arrived at. Example: Is different conditions apply to individual material group? The basis for calculating discounts and surcharges etc., Then bring these pricing dependencies into line with the criteria for price determination in the SAP system.
  3. 3. Condition Table <ul><li>In this we define price dependencies </li></ul><ul><li>We can make prices, discounts and surcharges dependent on almost all the fields in a purchasing document </li></ul><ul><li>We define the dependencies with the aid of condition tables </li></ul><ul><li>In condition table we specify the combination of fields for which we create condition records </li></ul>
  4. 4. Access sequences <ul><li>Access sequence is a search strategy with the aid of which the SAP system searches for valid condition records of a certain condition type </li></ul><ul><li>Example: We can stipulate for a price that the SAP system first searches price for a specific plant, then for a generally applicable price. </li></ul><ul><li>For condition types for which we wish to maintain conditions with their own validity period, we must assign an access sequence. </li></ul><ul><li>With this access sequence we define which fields the SAP system checks in searching for a valid condition record. </li></ul>
  5. 5. Condition types <ul><li>Condition types used in SAP system, to represent pricing elements such as prices, discounts, surcharges, taxes, delivery costs </li></ul><ul><li>They are stored in the system in condition records </li></ul><ul><li>We can group them together in access sequence for condition types which we wish to maintain with their own validity period </li></ul><ul><li>We stipulate the fields which the SAP system is to check in its search for a valid condition record and their sequence of application of price </li></ul><ul><li>We should not change the condition types that are included in the standard SAP system supplied </li></ul>
  6. 6. Calculation Schema <ul><li>In the MM (Materials Management) area, a calculation schema is a framework of steps used to calculate or determine something - is used among other things to calculate costs, prices, period end rebates, taxes and their sequence of application in calculating prices </li></ul>
  7. 7. Schema group <ul><li>Schema group will allow us to group together purchasing organizations that use the same calculation schema </li></ul><ul><li>Schema group will allow us to group together vendors for whom the same calculation schema is applicable </li></ul><ul><li>Calculation schema is also known as pricing procedures </li></ul>
  8. 8. Schema determination <ul><li>In this step we assign purchasing transactions and processes to a calculation schema </li></ul><ul><li>In other words, we specify the cases in which a certain schema is used </li></ul><ul><li>For standard purchase orders – depending on the schema group of the vendor and the purchasing organisation </li></ul><ul><li>For stock transport order – depending on the supplying plant, the document type and the purchasing organisation </li></ul>
  9. 9. <ul><li>Condition table define the price dependencies Access sequence is a search strategy </li></ul><ul><li>Condition types are to represent price elements </li></ul><ul><li>Calculation schema is a framework of steps used to calculate price in purchase order </li></ul><ul><li>Schema group is to group together vendors, purchase organizations with same valid calculation schemas. </li></ul><ul><li>Schema determination is to assign transactions to calculation schema </li></ul>