Pricing in SAP is common to both procurement and sales. In fact the same pricing components are used at both places in SAP. Only the context in which they are used get changed. In SAP S&D, pricing components (condition types) are used inside pricing schemas on sales documents. In SAP MM, they are used on purchase documents.
General pricing condition types are easy to understand. For example, condition type PB00 (gross price) is used to keep gross price value for any material or service. But there are complex condition types also used in pricing procedures for keeping values of prices which vary, accumulate or have negative or positive values.
In this post, i will elaborate on this topic.
Some condition types used for freight charges, discount, reward points etc. have unique properties. One property is that they can vary depending on weight, volume or value of purchase. So on the same PO (purchase order) you can have different values for them for different amounts of purchase made. Suppose, you have entered quantity of a material as 15 on line item one, 60 on line item two and 120 on line item three. Now suppose the vendor offers discount of 5% on goods sold for quantities from 15 to 50, 7% on goods sold for quantities from 51 to 100 and 10% on goods sold for quantities 101 and above. In such a case, a discount of 5% for line item one, 7% for line item two and 10% for line item three is applicable.
How this scenario is captured in SAP?
For this scenario in SAP there are 2 characteristics for condition types. One is called group condition and another is called scales. the group condition once assigned a value will have this value through different purchase documents. This is useful when you want to assign a value to a group condition type and have this value available for all purchase documents wherever those documents use this group condition type. For example, you can have a group condition for a tax and whenever the tax rate gets changed, you change value of the tax condition type and this new value will be available to all documents when you create them.
The rate change functionality as per value, weight or volume works with scales. You can create scales and assign them to a condition type with different prices for each scale range. Now depending on the ordered quantity or value or volume, the price will be different.
In the next post i will discuss about reward points.