|Explain the pricing procedure
used in purchase order?
We use the pricing procedure to define condition supplement for the
material price. The condition supplement specifies the:
- freight etc that we want a system every time to access material price
The total value of the material is calculated or based on all addition
and subtraction i.e. discounts, surcharge, tax freight etc.
This table defines the structure of condition record key.
This data record store conditions or condition supplements, i.e. condition
like, discount, freight, and surcharge, Tax etc.
This has different functions. In Pricing the condition types leads you
to differentiate different types of discounts, in output determination,
batch determination, difference between two output types, such as delivery
note or order confirmation, between different strategy types
This specifies the order in which system searches or access the condition
records from condition table.
The provide the framework of steps for the price determination process
to specify the discounts, surcharge, freight rebate etc.
It also determines the sequence of conditions that are to be followed
and in which sequence.
Schema Group Vendor
This is to identify or to pick the right process and conditions for
a particular vendor.
Schema Group Purchasing Organization
This the key that determines which calculation schema (pricing procedure)
is to be used in purchasing documents assigned to the relevant purchasing
This allows you to group together the purchasing organizations, which
uses the same calculation schema.
Steps to perform: -
1. Create Access sequence
2. Create condition types
3. Create pricing procedure or calculation schema
4. Link pricing procedure & access sequence to condition type
5. Create schema group for vendor
6. Create schema group for purchase organization
7. Assign schema group vendor-to-vendor master record in purchasing
8. Assign schema group purchase organization to our purchase organization
9. In inforecord purchase organization data enter condition types and
pricing or calculation procedure
SPRO -> IMG -> MM -> Purchasing -> Conditions -> Define Price Determination