MM Pricing Procedure

Fields in Pricing Procedure: Step:

Number that determines the sequence of the conditions with in a procedure. It indicates the position of the condition type in pricing procedure. System uses the counter to count the steps and also it can be used to count mini steps of

Counter: 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. 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. Description:

System copies description of condition type from its description. This can be used as a base to the condition type for calculating further value. The range between the steps from and to can be used to specify the range between same

From and To:

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. Manual:

This indicator specifies whether the specific condition type can be determined manually If we check the box then the entry is going to be manual, if we uncheck it, it is going to be 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 ME21N when we go to conditions at the header/item level, the If we uncheck the box, in ME21N when we go to conditions at the header/item level, the

during purchase order processing. automatic.

condition type will not be listed. If we require we will have to manually enter it. condition type will be listed. Required:

This indicator specifies that particular condition type is mandatory in the pricing procedure. If we check the box, in ME21N 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 ME21N 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.

This check box should be checked in condition types which are compulsorily required in If the condition type is checked with mandatory option, then value should be maintained for

pricing procedure. Ex.: MWST. that condition type, otherwise the system will not allow the user to process the document. Statistical:

This indicator if it is activated will not allow the value of the condition type to be taken into It is used only for information purposes only. This indicator causes a surcharge or discount to be set in the document statistically (that is,

net Price calculation.

without altering the Net Price, however, the effective price will still be affected. See the last point how the calculation takes place for the Net Price and the Effective Price).

As a rule all delivery costs must be checked as statistical. In MM even if a condition is statistical, the value can still be loaded on the stock based on

your configurations of the condition type. For example if Accruals indicator is checked for the condition type, the stock will be loaded with the condition value even if it is statistical in the pricing procedure and posting will be made to the provision account.

Net Price= Basis price [-Rebates/+Surcharges] includes non-statistical conditions only Effective Price= Net price [+-]Delivery cost contains statistical conditions and non-statistical

conditions Print:

The value of this field specifies whether line item can be printed or not in the purchasing

document and at what level or at what condition it is to be printed. Subtotal:

The value of this field determines where the values of subtotals to be captured i.e. in which Controls whether and in which fields condition amounts or subtotals (for example, a discount If the same fields are used to store different condition amounts, the system totals the These condition amounts or subtotals are used as a starting point for further calculations.

table and which field. or the cost of a material) are stored. individual amounts. You may, for example, want a subtotal of all the discounts included in the pricing of a purchase order. 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. It is again a Routine that is written by ABAP Consultant.

CalTyp- Condition formula calculation rule:

It is an alternative formula for the condition type that can be used instead of standard 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 And we assign the application type. 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 Ex.: Freight FRA1. Freight is calculated based on weight, volume etc. and not on the base price. In pricing there

formulas.

client requests. BasType Condition formula for basis

FROM column.

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 Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention 13 in

determine the freight based on this value. this column then the Freight condition KF00 will be calculated using the weight as 100 kgs. AccKey:

Key that identifies different types of G/L account. The account key enables the system to post amounts to certain types of revenue account.

For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account.

This is used if Purchase Account Management (PAM) is active for the company code; else,

this has no use in MM Pricing Procedure. Accruals:

Key which identifies various types of G/L accounts for accruals or provisions. With the aid of the account key, the system can post amounts to certain types of accruals

accounts. For example, rebate accruals which are calculated from pricing conditions can be posted to the corresponding account for rebate accruals.

If certain delivery costs are required to be taken to a different provision account, you can

define your own accruals key and assign the provision account to this accruals key in OBYC

Difference between Account Key and Accruals Key in MM Pricing Procedure

Account Key in MM pricing procedure becomes relevant if Purchase Account Management(PAM) is activated for the company code in OMWO, otherwise there is no use of Account Key in MM pricing procedure. If PAM is activated in your company code, you need to maintain the account key and link it to a GL account in OBYC. The system will create a parallel entry to the accrual account (linked to the accrual key) during GR which gets offset by the purchase offsetting account assigned to the transaction key EKG. There will be no entry during IR as these accounts get offset in GR itself. Entries in the the provision accounts linked to accrual keys gets created as usual which gets nullified at the time of IR which happens even if PAM is not activated. See the examples below: Net Price=100, Freight=10 PAM Activated: GR Postings: Stock GR/IR PA PA Freight Rev. Freight Provi Accruals Key (FR1): 10IR Postings: Vendor(KBS) GR/IR Freight Provi(FR1) : PAM Not Activated : GR Postings: 10+ (WRX) : : 110100+ (BSX) (WRX) (EIN) Offset(EKG) Account Key (FRE): : : : 110+ 100100+ : 11010+

Stock GR/IR

(BSX) (WRX) 10-

: :

110+ 100-

Freight Provi Accruals Key (FR1): IR Postings: Vendor(KBS) GR/IR Freight Provi(FR1) : 10+ (WRX)

: :

110100+

When PAM is activated the above entries assumes that the purchase account is posted with the same amount as the GR/IR clearing account and the indicator Recpt Val is checked in PAM configuration. Please note that Due to special legal requirements, Purchase Account Management (PAM) function was developed specially for certain countries (Belgium, Spain, Portugal, France, Italy, and Finland). Before you use this function, check whether you need to use it in your country.