Pricing procedure

Question

Pricing procedure

Accepted Answer

A pricing procedure is a set of condition types and their sequence used to determine the price of a product or service in SAP MM.

A pricing procedure is defined in the system configuration and can be assigned to a sales document type or a combination of sales area, customer, and material.
It consists of condition types, which represent different pricing elements such as discounts, surcharges, taxes, etc.
The sequence of condition types in a pricing procedure determines the order in which the system applies them to calculate the final price.
Each condition type has its own calculation formula and access sequence, which determines how the system searches for condition records.
Condition records contain the actual prices or values for specific combinations of key fields like material, customer, and sales organization.
For example, a pricing procedure may include condition types for base price, quantity discounts, freight charges, and taxes.
The system uses the condition records and calculation formulas to determine the applicable prices and calculate the total price for a sales document.

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