Pricing in Sales and Distribution is used to define the calculation of prices for external vendors or customers and cost. This condition is defined as a set of conditions when a price is calculated.

Example

Consider a case when customer orders specific quantity of a product on a particular day. Various factors like customer, product, order quantity and date tells the final price to that customer. This information is stored in the system as master data in the form of condition records.

There are various pricing elements like prices, surcharges, discounts, and taxes, which are defined in SAP system as condition types. To manage pricing information for a pricing element in a system, you have to create condition records.

Manual Pricing

While processing a sales order, you can also manipulate the pricing at the item as well as the header level. Manual processing of a price screen is dependent on individual condition types. During a Sales Order processing using manual processing for a condition type, you can perform the below activities −

Deleting the pricing element.
Changing a condition amount.
Entering additional pricing elements.

How to add Pricing elements manually?

If you want to add customer discount manually in the pricing screen of a sales order, click on Add line. In Data screen, you can enter additional conditions like – customer discount in the condition type field. Enter a percentage range and then press ENTER. You can also delete pricing elements in item pricing and header screens. To do this, select the particular condition by positioning the cursor and click on delete line.

Note that all header conditions defined at header level cannot be changed at the item level, and conditions defined at this level cannot be changed at the header level. Only the Conditions that you define at both header and item conditions can only be edited at both levels.

Condition Record & Table

A Condition table is defined as a combination of keys to identify an individual condition record. A condition record is defined as how system stores the specific condition.

Example of a Condition Record − Entering the price of a product or to specify the discount for a privileged customer.

Example of a Condition Table − Condition records for a customer specific material prices are stored by a sales department. SAP system contains a conditional table 005 for this purpose. Key of table 005 includes the following field −

Customer
Material
Sales Organization
Distribution Channel

In the first two fields, the customer and material determines the relationship between customers and specific materials. The last two fields are used to identify organization data in a SAP system. Now, if sales department in an organization enters a condition record for discount to one privileged customer, the system will automatically make use of the condition table 005 to store the record and define a key. Any standard SAP system contains predefined condition tables and specifies for each access in a predefined access sequence.

Creating Condition Tables

In a SAP system, you can create or change existing condition tables. As per the new business requirement in an organization, you can create new condition tables.

Go to SPRO → IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Conditional Tables

A new window will open and then you can select from create, change or display field as per the requirement. To create a new table, you have to select create and click on

Choose.

Enter condition table in table field and then you can enter the existing table to copy the condition.

Once data is copied, you can modify the table as per the business requirement.

Condition Techniques & Types

Condition type is defined as specific features of daily pricing activities in a SAP system. Using the condition type, you can also put different condition types for each pricing, discounts on goods, tax and surcharge that occurs in business transactions.

Example

Condition type allows you to define the discount for special material. This can be specified in the system to calculate discount as an amount or it can calculate discount in terms of percentage. In case you have to use both discount types, two separate condition types have to be defined in the system.

There are predefined condition types in a standard system −

S.No	Condition Type & Description
1	PR00 Price
2	K004 Material Discount
3	K005 Customer-specific material discount
4	K007 Customer discount
5	K020 Price group discount
6	KF00 Freight surcharge(by item)
7	UTX1 State tax
8	UTX2 Country tax
9	UTX3 City tax

How to create or change an existing condition type in a system?

You can change or maintain existing condition type in a standard system. You can also create a new condition types as per business requirements in your organization.

Go to SPRO → IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition Types