ERP

Pricing in Sales and Distribution (SD)

Companies have developed numerous pricing and discount strategiessome unencumbered by any logical methodology

SAP has developed the Condition Technique as a structured but flexible approach to setting conditions: prices, discounts, surcharges and taxes

The Condition Technique has proven itself to be such a good programming concept that it has been applied to other areas in SAP

Condition Technique Overview

SalesDocument

PricingProcedure

ConditionTypes

AccessSequence

ConditionTable

ConditionRecord

How Priceis Determined

How Conditionis Calculated

How tofind data

Location ofcondition data

Actual Condition Data(price, discount, etc.)

Condition Technique Overview

SalesDocument

PricingProcedure

ConditionTypes

AccessSequence

ConditionTable

ConditionRecord

How Priceis Determined

How Conditionis Calculated

How tofind data

Location ofcondition data

Actual Condition Data(price, discount, etc.)

Income Tax Analogy:
Choosing Form

1040EZTaxable income below $100,000 Single or Married Filing Jointly Under age 65 No dependents Interest income of $1,500 or less

1040ATaxable income below $100,000 Capital gain distributions, but no other capital gains or losses Only tax credits for child, education, earned income, child and dependent care expenses, adoption, elderly and retirement savings contributions Only deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees No itemized deductions

1040Taxable income of $100,000 or more Itemized deductions Self-employment income Income from sale of property

Sales DocumentPricing Procedure

SalesDocument

PricingProcedure

Document PriceProcedure (code)

SalesDocument

Customer PriceProcedure (code)

SalesArea

Condition Technique Overview

SalesDocument

PricingProcedure

ConditionTypes

AccessSequence

ConditionTable

ConditionRecord

How Priceis Determined

How Conditionis Calculated

How tofind data

Location ofcondition data

Actual Condition Data(price, discount, etc.)

Income Tax Analogy:
Form (1040EZ)

Form 1040 EZ(pricing procedure)specifies data from W-2 Form(condition type)

Income Tax Analogy:
Form W-2 (condition type)

Pricing ProcedureCondition Type

Pricing Procedure

Condition Types

Pricing Procedure specifies Condition Typesand processing sequence

Condition Technique:
Condition Type

Condition Typedetermines howcondition (price, in this case) is calculated

Tax Calculation

24,955

24

24,979

7,950

17,029

2,547

547

2,196

261

Price Calculation