• Understand the complete pricing solution from SAP
• Master pricing with Materials Management and Sales and Distribution, as well as condition techniques and industry-specific coverage
• Explore case studies and practical, real-life examples throughout

Master the most important issues around pricing in SAP ERP with this one-stop, comprehensive reference. You’ll learn about the key elements of pricing in Sales and Distribution and Materials Management, and discover complete, step-by-step instructions on how to configure pricing. This book provides you with a practical perspective on the entire process, with coverage that includes basic and advanced configuration and condition techniques, as well as integration points with other SAP tools, such as Financial Accounting and Cost Accounting. Each chapter provides real-world examples, case studies, and practical tips to help you understand and master pricing in SAP ERP.

Key Concepts and Terminology
Discover the concepts and terminology of pricing with SAP ERP and how you can use these elements to help your pricing processes run smoothly.

Sales and Distribution and Materials Management
Learn the specific step-by-step SD and MM configuration details you need to optimize your SAP ERP implementation for pricing processes.

Integration with Financial Accounting
Get an in-depth look at how to align pricing with your Financial Accounting system, and understand the tools, benefits, and challenges of the integration.

Industry-Specific Information
Find useful insight on pricing that is specific to the apparel and footwear, high-tech, and retail industries.

Real-World Scenarios and Examples
Use the expert advice and examples throughout to help you with your own pricing processes.

Highlights 

• Condition techniques
• Price performance
• Data migration
• User exits
• Cutover planning
• Variant configuration
• Integration with Financial Accounting
• Pricing reports
• Internet pricing
• Industry-specific scenarios

The Authors

D. Rajen Iyer is founder at Kryaa and cofounder at Krypt, a Trade and Logistics solutions provider. Rajen has authored several SAP PRESS books on SD and GTS, and is a frequent conference speaker. Suresh Veeraraghavan is a Senior Manager with Capgemini, and has 16 years of experience delivering SAP implementations in various capacities.

Table of Contents

• ... Acknowledgments ... 17
• ... Preface ... 19
• 1 ... Pricing Overview ... 23
• 1.1 ... Overview of Pricing ... 24
• 1.1.1 ... Sales Organizational Structure ... 24
• 1.1.2 ... Purchasing Organizational Structure ... 26
• 1.1.3 ... Pricing Maintenance ... 26
• 1.1.4 ... Pricing Types Overview ... 27
• 1.2 ... Condition Technique Overview ... 29
• 1.3 ... Summary ... 33
• 2 ... Pricing in Sales and Distribution Documents ... 35
• 2.1 ... Pricing Procedure Overview ... 36
• 2.1.1 ... Control Data ... 38
• 2.1.2 ... General Pricing Configurations ... 39
• 2.2 ... Pricing Procedure Applicable to SD Documents ... 40
• 2.2.1 ... SD Document Pricing Procedure ... 42
• 2.2.2 ... Assign SD Document Pricing Procedures to a Document Type ... 43
• 2.2.3 ... Define Pricing Procedure Determination ... 44
• 2.2.4 ... Standard Pricing Procedures ... 46
• 2.2.5 ... Pricing Procedure in Intercompany Sales Orders ... 49
• 2.3 ... Custom Pricing Procedures ... 50
• 2.3.1 ... Defining New Pricing Procedures ... 51
• 2.3.2 ... Activating the Pricing Item Category ... 52
• 2.4 ... Customer Hierarchies ... 52
• 2.4.1 ... Defining Master Data for Condition Type HI01 ... 55
• 2.4.2 ... Activating Hierarchy Pricing Elements on the Sales Order ... 56
• 2.5 ... Summary ... 57
• 3 ... Condition Techniques in Sales and Distribution Documents ... 59
• 3.1 ... How Pricing Works in Sales and Distribution ... 59
• 3.2 ... Setting Up Pricing in SD ... 60
• 3.3 ... How Pricing Condition Types Work ... 61
• 3.3.1 ... Control Data 1 ... 62
• 3.3.2 ... Group Condition ... 65
• 3.3.3 ... Changes Which Can Be Made Section ... 67
• 3.3.4 ... Master Data Section ... 68
• 3.3.5 ... Scales Section ... 72
• 3.3.6 ... Control Data 2 ... 74
• 3.3.7 ... Text Determination ... 77
• 3.4 ... Access Sequences ... 79
• 3.5 ... Condition Tables ... 81
• 3.6 ... Condition Fields ... 83
• 3.6.1 ... Creating a Custom Field for the Pricing Table ... 84
• 3.7 ... Requirements, Condition Values, and Condition-Based Formulas ... 87
• 3.7.1 ... Condition Values ... 90
• 3.7.2 ... Condition-Based Values ... 91
• 3.8 ... Condition Exclusions Procedures ... 91
• 3.8.1 ... Condition Types Belonging to the Same Condition Group ... 93
• 3.8.2 ... Condition Types Belonging to Multiple Condition Groups ... 93
• 3.9 ... Master Data and Pricing ... 96
• 3.9.1 ... Pricing Condition Records ... 96
• 3.9.2 ... Pricing Upper and Lower Limit Values ... 100
• 3.10 ... Pricing Applications in Documents ... 102
• 3.10.1 ... Contract Pricing ... 102
• 3.10.2 ... Quotation Pricing ... 103
• 3.11 ... Header versus Line Item Pricing ... 104
• 3.11.1 ... Header Pricing ... 105
• 3.11.2 ... Line Item Pricing ... 105
• 3.11.3 ... Pricing Analysis in Sales and Distribution Documents ... 105
• 3.12 ... Printing Pricing Conditions ... 108
• 3.13 ... Pricing Procedure Settings ... 109
• 3.14 ... Summary ... 112
• 4 ... Special Topics in SD Pricing ... 113
• 4.1 ... Promotional Pricing and Sales Deals ... 114
• 4.1.1 ... Promotions ... 114
• 4.1.2 ... Sales Deals ... 118
• 4.1.3 ... Condition Type Groups ... 120
• 4.2 ... Rebate Agreements ... 124
• 4.2.1 ... Rebate Agreement Types ... 125
• 4.2.2 ... Rebate Agreement Overview Screens ... 128
• 4.2.3 ... Rebate Agreement Activation ... 129
• 4.2.4 ... Reorganizing Rebate-Relevant Data from Billing Documents ... 130
• 4.2.5 ... Retroactive Rebate Processing ... 130
• 4.2.6 ... Master Data Settings for Rebate Agreements ... 132
• 4.3 ... EDI Pricing ... 138
• 4.4 ... Special Conditions ... 140
• 4.4.1 ... Group Conditions ... 140
• 4.4.2 ... Minimum Order Values ... 141
• 4.4.3 ... Cumulative Condition Types ... 142
• 4.4.4 ... Variant Pricing ... 143
• 4.4.5 ... Referential Pricing ... 143
• 4.5 ... Free Goods ... 145
• 4.5.1 ... Configuring Free Goods ... 145
• 4.5.2 ... Free Goods Master Data ... 146
• 4.6 ... Summary ... 149
• 5 ... Price Performance and Technical Aspects ... 151
• 5.1 ... Optimizing Pricing Access in Sales Documents and Purchasing Documents ... 152
• 5.1.1 ... Pricing Procedures Condition Types ... 152
• 5.1.2 ... Exclusive Indicator for Access Sequences ... 153
• 5.1.3 ... Access: Preprocessing ... 153
• 5.1.4 ... Splitting Access Sequences and Tables ... 155
• 5.2 ... Technical Aspects of Pricing ... 156
• 5.2.1 ... User Exits, Alternative Condition Value, and Formulas ... 156
• 5.2.2 ... Condition Records Changes ... 156
• 5.2.3 ... Optimizing Sales and Distribution Pricing ... 157
• 5.3 ... SD Pricing Tables and Structures ... 157
• 5.3.1 ... Pricing Tables: Application and Usage ... 157
• 5.3.2 ... Pricing Structures ... 158
• 5.4 ... SD Pricing User Exits ... 159
• 5.4.1 ... USEREXIT_PRICING_PREPARE_TKOMK ... 159
• 5.4.2 ... USEREXIT_PRICING_PREPARE_TKOMP ... 160
• 5.4.3 ... USEREXIT_FIELD_MODIFICATION ... 160
• 5.4.4 ... USEREXIT_FIELD_MODIFIC_KZWI ... 161
• 5.4.5 ... USEREXIT_FIELD_MODIFIC_KOPF ... 161
• 5.4.6 ... USEREXIT_FIELD_MODIFIC_LEER ... 161
• 5.4.7 ... USEREXIT_PRICING_CHECK ... 162
• 5.4.8 ... USEREXIT_PRICING_RULE ... 162
• 5.4.9 ... USEREXIT_CHANGE_PRICING_RULE ... 163
• 5.4.10 ... USEREXIT_XKOMV_BEWERTEN_INIT ... 164
• 5.4.11 ... USEREXIT_XKOMV_BEWERTEN_END ... 164
• 5.4.12 ... USEREXIT_XKOMV_ERGAENZEN ... 164
• 5.4.13 ... USEREXIT_XKOMV_ERGAENZEN_MANU ... 164
• 5.4.14 ... USEREXIT_XKOMV_FUELLEN ... 164
• 5.4.15 ... USEREXIT_XKOMV_FUELLEN_O_KONP ... 164
• 5.4.16 ... USEREXIT_PRICING_COPY ... 165
• 5.5 ... Materials Management Pricing Technical Considerations ... 165
• 5.5.1 ... MM Pricing Tables: Usable and Application ... 165
• 5.5.2 ... Materials Management Pricing Structures ... 166
• 5.5.3 ... Materials Management Pricing User Exits ... 167
• 5.6 ... Pricing and External Systems Integration Using User Exits ... 168
• 5.6.1 ... Vertex Overview ... 168
• 5.7 ... Summary ... 169
• 6 ... Data Migration and Cutover Planning ... 171
• 6.1 ... Data Migration Steps ... 171
• 6.1.1 ... Data Discovery and Extraction ... 172
• 6.1.2 ... Data Cleansing and Validation Stage ... 174
• 6.1.3 ... Data Conversion Stages ... 175
• 6.1.4 ... Data Consolidation Stage ... 176
• 6.1.5 ... Data Load and Validation Stage ... 176
• 6.2 ... Pricing Data Migration and Cutover ... 177
• 6.2.1 ... Prerequisites ... 177
• 6.2.2 ... Steps for LSMW ... 178
• 6.3 ... Cutover Planning Key Points ... 185
• 6.4 ... Summary ... 186
• 7 ... Pricing with Materials Management Documents ... 189
• 7.1 ... Materials Management Pricing Documents Overview ... 189
• 7.1.1 ... Purchasing Organization Structure ... 190
• 7.2 ... Pricing Procedures: Calculation Schema ... 192
• 7.2.1 ... Defining Schema Group Vendors ... 194
• 7.2.2 ... Defining Schema Groups for the Purchase Organization ... 195
• 7.2.3 ... Assigning Purchasing Organizations to the Schema Group Purchasing Organization ... 195
• 7.2.4 ... Assigning Pricing Procedures to the Schema Group Purchasing Organization and Schema Group Vendor ... 196
• 7.2.5 ... Calculation Schema for Stock Transport Purchase Orders ... 197
• 7.3 ... Pricing in Purchasing Documents ... 199
• 7.3.1 ... Pricing in Purchase Quotations ... 199
• 7.3.2 ... Pricing in Purchase Contracts ... 200
• 7.3.3 ... Pricing in Schedule Agreements ... 200
• 7.3.4 ... Pricing in Purchase Info Records ... 201
• 7.3.5 ... Pricing in Purchase Orders ... 205
• 7.3.6 ... Market Prices for Purchasing Organizations ... 207
• 7.4 ... Summary ... 209
• 8 ... Pricing Condition Techniques in Materials Management Documents ... 211
• 8.1 ... Configuration Steps for Pricing in Materials Management ... 211
• 8.2 ... Pricing Condition Types in Materials Management ... 212
• 8.2.1 ... Control Data 1 ... 213
• 8.2.2 ... Changes Which Can Be Made ... 218
• 8.2.3 ... Master Data ... 219
• 8.2.4 ... Scales ... 222
• 8.2.5 ... Control Data 2 ... 224
• 8.2.6 ... Sales Pricing ... 227
• 8.2.7 ... Text Determination Procedure ... 228
• 8.3 ... Access Sequences in Materials Management ... 231
• 8.3.1 ... Condition Type ... 231
• 8.3.2 ... Access Sequence and Requirements ... 233
• 8.3.3 ... Check Pricing or Exclusion Indicator ... 234
• 8.4 ... Condition Tables and Fields ... 236
• 8.4.1 ... Condition Tables ... 237
• 8.4.2 ... Condition Fields ... 238
• 8.5 ... Calculation Schema in Materials Management ... 242
• 8.6 ... Requirements, Formula Condition Values, and Condition-Based Formula ... 242
• 8.6.1 ... Requirements ... 243
• 8.6.2 ... Formula Condition Values ... 244
• 8.6.3 ... Condition-Based Value ... 246
• 8.7 ... Condition Exclusion Procedures ... 247
• 8.7.1 ... Condition Types Belonging to the Same Condition Group ... 248
• 8.7.2 ... Condition Types Belonging to Multiple Condition Groups ... 249
• 8.7.3 ... Create a Purchase Order ... 251
• 8.7.4 ... Pricing Condition Records ... 252
• 8.7.5 ... Header versus Line Item Pricing ... 257
• 8.8 ... Printing Pricing Conditions ... 259
• 8.8.1 ... Manual ... 261
• 8.8.2 ... Required ... 261
• 8.8.3 ... Statistics ... 261
• 8.8.4 ... Subtotals ... 261
• 8.8.5 ... Account Key ... 263
• 8.8.6 ... Accruals ... 263
• 8.9 ... Summary ... 264
• 9 ... Special Topics in Materials Management Pricing ... 265
• 9.1 ... Taxes, Planned Delivery Costs, and Foreign Currency ... 265
• 9.1.1 ... Taxes ... 266
• 9.1.2 ... Planned Delivery Costs ... 271
• 9.1.3 ... Foreign Currency ... 274
• 9.1.4 ... Weight-Dependent or Volume-Dependent Pricing ... 276
• 9.1.5 ... Conditions Dependent on Purchase Order Price Unit ... 277
• 9.2 ... External Services Management ... 278
• 9.2.1 ... Service Master ... 279
• 9.2.2 ... Service Master Pricing Conditions ... 281
• 9.2.3 ... Pricing Procedure Determination for Services ... 283
• 9.3 ... Summary ... 286
• 10 ... Variant Configuration Pricing ... 287
• 10.1 ... Variant Configuration Terms ... 288
• 10.2 ... Variant Configuration Pricing Parameters ... 290
• 10.2.1 ... Set Up the Configurable Material Master ... 290
• 10.2.2 ... Setting Up the Configuration Profile ... 295
• 10.2.3 ... Setting Up Variant Conditions ... 297
• 10.2.4 ... Setting Up Variant Pricing Conditions ... 299
• 10.2.5 ... Setting Up Object Dependencies ... 300
• 10.3 ... Variant Configuration Modeler and Sales Order Pricing ... 312
• 10.3.1 ... Assigning Pricing Variant Conditions Directly ... 315
• 10.3.2 ... Sales Order Variant Pricing ... 316
• 10.4 ... Summary ... 318
• 11 ... Sales and Distribution Pricing Integration with Financial Accounting ... 319
• 11.1 ... Revenue Account Determination Overview ... 320
• 11.2 ... Revenue Account Determination Configuration ... 321
• 11.2.1 ... Master Data Relevancy for Account Assignment ... 322
• 11.2.2 ... Define Dependencies of Revenue Account Determination ... 323
• 11.2.3 ... Define Condition Types and Access Sequences ... 324
• 11.2.4 ... Define and Assign the Revenue Account Determination Procedure ... 325
• 11.2.5 ... Define and Assign Account Keys ... 326
• 11.2.6 ... Assign General Ledger Accounts to Revenue Account Keys ... 328
• 11.2.7 ... Master Data Setup for Customers and Materials ... 334
• 11.3 ... Accruals ... 335
• 11.4 ... Summary ... 336
• 12 ... Materials Management Pricing Integration with Financial Accounting ... 339
• 12.1 ... Account Determination Overview ... 339
• 12.1.1 ... Key Concepts ... 341
• 12.2 ... Financial Accounting Postings for Materials Management ... 343
• 12.2.1 ... Purchase Account Management ... 348
• 12.2.2 ... Activation of Purchase Account Management at the Company Code Level ... 348
• 12.3 ... Summary ... 350
• 13 ... Pricing Reports in Sales and Distribution and Materials Management ... 353
• 13.1 ... Pricing Reports and Lists ... 353
• 13.1.1 ... Net Price List ... 356
• 13.2 ... Custom SD Pricing Reports ... 359
• 13.3 ... Standard Materials Management Pricing Reports ... 363
• 13.4 ... Customizing Materials Management Pricing Reports ... 367
• 13.4.1 ... Step 1: Define Sequence ... 367
• 13.4.2 ... Step 2: Define Scope of List Parameters ... 368
• 13.4.3 ... Step 3: Assign Scope of List to Conditions ... 369
• 13.5 ... Summary ... 371
• 14 ... Internet Pricing ... 373
• 14.1 ... Introduction to Internet Pricing ... 373
• 14.2 ... Internet Pricing Architecture ... 374
• 14.2.1 ... Business Execution Layer ... 374
• 14.2.2 ... Interaction Layer ... 375
• 14.2.3 ... Presentation Layer ... 376
• 14.2.4 ... B2B and B2C Scenarios ... 376
• 14.3 ... Internet Sales Master Data Set Up ... 376
• 14.3.1 ... Contact Persons and Customer Master (Sold-to, Bill-to, Ship-to) ... 377
• 14.3.2 ... Product Catalog ... 379
• 14.4 ... Pricing and Configuration ... 382
• 14.4.1 ... Web Shop ... 382
• 14.4.2 ... Pricing Procedure Determination ... 383
• 14.4.3 ... Customer Pricing Procedure ... 384
• 14.5 ... Summary ... 386
• 15 ... Key Function Review and Industry-Specific Scenarios ... 387
• 15.1 ... Purchase and Sales Price Condition ... 388
• 15.1.1 ... Condition Value ... 389
• 15.1.2 ... Access Sequences ... 391
• 15.2 ... Pricing Reports, Condition Maintenance, and Special Conditions ... 393
• 15.2.1 ... Pricing Reports and Condition Maintenance ... 393
• 15.2.2 ... Special Condition ... 394
• 15.3 ... Apparel and Footwear Sector-Specific Pricing ... 398
• 15.4 ... SAP High-Tech Pricing ... 402
• 15.4.1 ... Price Protection ... 403
• 15.4.2 ... Distributor Reseller Management (DRM) ... 404
• 15.5 ... SAP Retail Pricing ... 405
• 15.5.1 ... Merchandise Category Hierarchy ... 406
• 15.5.2 ... Reference Article ... 406
• 15.5.3 ... Characteristics ... 406
• 15.5.4 ... Purchasing Pricing ... 407
• 15.5.5 ... Sales Pricing ... 408
• 15.6 ... Chapter Summary ... 411
• 15.7 ... Book Conclusion ... 411
• ... The Authors ... 415
• ... Index ... 417