Pricing Procedure 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

1- Define Access Sequences In this step you define access sequences. An access sequence is a search strategy with the aid of which the SAP System searches for valid condition records of a certain condition type. For example, you can stipulate for a price that the SAP System first searches for a price for a specific plant, and then for a generally applicable price. For condition types for which you wish to maintain conditions with their own validity period, you must assign an access sequence. With this, you define which fields the SAP System checks in searching for a valid condition record. Example: An access sequence has been assigned to condition type PB00 so that prices can be maintained in purchasing info records and contracts. No access sequence has been assigned to condition type RC00 because it does not have a validity period of its own. In the standard system, it is always maintained simultaneously with the price and is valid for the period of the price. SAP recommendation If you define your own access sequences, the key should begin with the letter Z, as SAP keeps these name slots free in the standard system. You should not change the access sequences that are included in the standard SAP system. Actions 1. Check the extent to which you can use the condition types and access sequences that are included in the standard system. 2. Create new access sequences by copying and changing similar existing ones. In doing so, enter an alphanumeric key, which can have a maximum of 4 characters, and a descriptive text. 3. Maintain the accesses for the access sequence by specifying the condition tables in the desired sequence. The sequence indicates the order of priority of the accesses. You can display and choose the defined combinations of key fields using the "possible entries" facility.

2- Define Condition Types In this step you define condition types. The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP System. These are stored in the system in condition records. You also have the option of entering conditions requiring subsequent (end-of-period rebate) settlement. A separate topic "Subsequent Settlement" in the Purchasing IMG covers this functionality. For condition types for which you wish to maintain conditions with their own validity period, you must specify an access sequence. In this way, you stipulate the fields the SAP System is to check in its search for a valid condition record. Example: An access sequence has been assigned to condition type PB00 so that prices can be maintained in purchasing info records and contracts. No access sequence has been assigned to condition type RC00 because it does not have a validity period of its own. In the standard system, it is always maintained simultaneously with the price and is valid for the period of the price. Note In a price calculation schema (which may also be termed a "pricing procedure"), you collect together all the condition types that are automatically to be taken into account by the SAP System in the process of price determination with regard to a business transaction. Note that you can only also enter manually the condition types that are contained in the calculation schema. You can alter the result of the price determination process in the purchasing document manually. You can limit the change options for a condition type in this step. SAP recommendation If you define your own condition types, the key should begin with the letter Z, as SAP keeps these name slots free in the standard system. You should not change the

condition types that are included in the standard SAP System supplied. Actions 1. Check the extent to which you can use the condition types that are included in the standard SAP system supplied. 2. Create new access sequences by copying and changing similar existing ones. In doing so, you must specify the following: o enter an alphanumeric key (which can have a maximum of 4 characters) for the condition type, together with a descriptive text. o Specify an access sequence for the condition types. (For header conditions, you need not specify an access sequence.) 3. Maintain the detail screen for the condition type. Note: To improve performance, you can optimize the accesses for a condition type. In searching for condition records, the SAP System will then initially check the header fields in the document only.

3- Define Limits In this step, you can define upper and lower limits for the value of a condition. In this way, you restrict the amounts or scale values in the relevant condition records. The limits are defined at the level of the condition type. Actions Maintain the desired limits.

4- Define Exclusion Indicators In this step, you can set exclusion indicators for condition types. The exclusion indicator prevents the use of too many condition types in the price determination process. In the standard system, it determines that either the automatic or the manual price is applied, but not both. Note: To be able to use the exclusion indicator, you must first maintain a requirement in the step Define Calculation Schema

5- Define Calculation Schema In this step, you define the calculation schemas. In the MM area, a calculation schema - a framework of steps used to calculate or determine something - is used among other things to calculate costs, prices, period-end rebates, and taxes. Note This concept is referred to in the Sales and Distribution (SD) area as a pricing procedure. In the calculation schema (pricing procedure), you specify which condition types are to be taken into account in which sequence. In the price (or cost) determination process, the SAP System automatically determines which calculation schema is valid for a business transaction and takes into account, one after another, the condition types it contains. Standard settings The following calculation schemas are predefined in the standard system. You should not change these schemas. RM0000 and RM1000 Control the price determination process in POs, quotations, and scheduling agreements. Both calculation schemas require 2 condition types for the gross price: one for automatic price determination (standard: PB00) and one for manual maintenance (standard: PBXX). RM0001 and RM1001 Determine which condition types you can enter in purchasing document headers with time-dependent conditions (e.g. contracts). RM0002, RM1002 Determine which additional condition types you can enter in purchasing document items with time-dependent conditions or in the purchasing info record. RMMP00 Defines the condition type for determining the market price which can be entered for each material. RM2000 Controls the delivery cost determination process in stock transport orders and stock transport scheduling agreements. Note In the calculation schemas RM0000, RM1000, RM0001, and RM1001, the field "Subtotal" must contain the following values in the following lines: Gross value: 9 Effective value: S If the interim total 'S' is not set, the PO values cannot be updated in the Purchasing Information System (PURCHIS). Actions 1. Check to what extent you can use the calculation schemas provided in the standard SAP System. 2. Create new calculation schemas by copying similar existing ones and changing them. o Enter a key (length max. six characters) for the schema you wish to create, and a descriptive text. o For each schema, specify the condition types in the order of their usage, and maintain the relevant data.

6- Define Schema Group In this step, you define schema groups. These allow you to group together purchasing organizations that use the same calculation schema. You can also use them to group together vendors for whom the same

calculation schema is valid. (Note: calculation schemas may also be referred to as "pricing procedures".) For example, you can define one schema group that uses a simple calculation schema with just a price and a discount, and another that works with a more complex schema containing a large number of conditions. Example: Define a schema group that uses a simple calculation schema with only one price and a discount, and a schema group that works with a more complex schema containing a large number of conditions. Activities In this step, you can: • Define schema groups for purchasing organizations and vendors • Assign schema groups to your purchasing organizations Note: You assign vendors to schema groups in the relevant vendor master records.

7- Define Schema Determination In this step, you assign purchasing transactions and processes to a calculation schema; that is, you specify the cases in which a certain schema is used. • For standard purchase orders (depending on the schema group of the vendor and the purchasing organization) • For stock transport orders (depending on the supplying plant, the document type and the schema group of the purchasing organization) • For market price determination (depending on the purchasing organization) That is, for each purchasing organization, a separate calculation schema can apply for the determination of the market price. Condition Table A condition table defines the combination of fields (the key) that identifies an individual condition record. A condition record is how the system stores the specific condition data that you enter in the system as condition records. For example, when you enter the price for a product or a special discount for a good customer, you create individual condition records. Example of a Condition Table A sales department creates condition records for customer-specific material prices. The standard version of the SAP System includes condition table 005 for this purpose. The key of table 005 includes the following fields: - Sales organization - Distribution channel - Customer - Material The first two fields identify important organizational data and the last two fields express the relationship between customers and specific materials. When the sales department creates a condition record for a material price or discount that is specific to one customer, the system automatically uses condition table 005 to define the key and store the record. The following figure illustrates the connection between the condition table and the subsequent condition records. Condition Tables from 001 to 500 are SAP Standard and you can create Ur own from 501 to 999 Condition Record Condition records are the combination of different feilds which comes through acesss sequence. Though condition record we bring the value authomatically in PO/SO it is basically key combination If you want to know the whole process then :- take an example of PB00 Go to m/06 select PB00 and check Access seq. suppose it is 0002 Now go to SPRO -- MM - cpnditions -- Automatic Document Adjustment -- Define Access Sequences their just serach for 0002 and check the accesses these acesses can be created with the help of table which is called condition table in M/03 copy from std abd select the field which you want. Then assign it to MM - conditions -- Automatic Document Adjustment -- Define Access Sequences. Now with the help of t cose you can found your key combination. Theser key combination is actually coning fron your table. and once you maintain the condition record then while creating the PO whever your combination get matched with PO it will bring the prices against PB00