Pricing Procedure In Purchase Order

Explain the pricing procedure used in purchase order?

By Thomas

We use the pricing procedure to define condition supplement for the material price. The condition supplement specifies the:
- discount, 
- surcharge, 
- freight etc that we want a system every time to access material price condition records.
The total value of the material is calculated or based on all addition and subtraction i.e. discounts, surcharge, tax freight etc.
Condition Table
This table defines the structure of condition record key.
Condition Record
This data record store conditions or condition supplements, i.e. condition like, discount, freight, and surcharge, Tax etc.
Condition Type

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
Access Sequence
This specifies the order in which system searches or access the condition records from condition table.
Calculation Schema
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 organization.
Schema Group
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 data view
8. Assign schema group purchase organization to our purchase organization
9. In inforecord purchase organization data enter condition types and pricing or calculation procedure
Customize Setup:
SPRO -> IMG -> MM -> Purchasing -> Conditions -> Define Price Determination Process

See Also
KBS Account Assigned Purchase Order

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