SAP MM Pricing Procedure Configuration

Introduction to SAP MM Pricing Procedure

What is a Pricing Procedure in SAP MM?

The SAP MM Pricing Procedure Configuration is a critical setup that determines how the system calculates prices during procurement activities such as creating Requests for Quotation (RFQ) and Purchase Orders (PO). It ensures a consistent, rule-based method for including base prices, discounts, surcharges, taxes, and freight charges in vendor dealings.

Importance of Pricing in SAP Procurement

In the real world, no two vendor transactions are alike. Prices fluctuate based on quantity, location, vendor agreements, and various charges. The pricing procedure framework allows companies to automate this complexity, ensuring accuracy and transparency in every purchase cycle.

Key Concepts in SAP MM Pricing Configuration

Understanding the Condition Technique

SAP uses a Condition Technique for pricing which involves a systematic way to determine prices using:
  • Condition Types (e.g., PB00 for base price, RA01 for discounts)
  • Access Sequences (to determine which data the system should look for)
  • Condition Tables (storage structure for condition records)
  • Calculation Schemas (sets of condition types arranged logically)

Role of Condition Types, Tables, and Access Sequences

Each condition type has attributes defining its purpose (percentage, fixed amount, taxes, etc.), and is linked via access sequences to condition tables which store relevant pricing data.

Prerequisites Before Configuration

Basic SAP Navigation

You should be familiar with SAP GUI and menu navigation, particularly the SPRO path:
SPRO > IMG > Materials Management > Purchasing > Conditions

Authorizations Required

Roles involving access to customizing pricing procedures, vendor master data, and purchase information records.

System Settings and Master Data

Ensure that vendors and purchase organizations are already set up before starting pricing configuration.

Step-by-Step Configuration of SAP MM Pricing Procedure

Define Condition Types

T-Code: /NMEK0 → "Conditions Types"
Set up various condition types such as:
  • PB00 (Base Price)
  • RA01 (Discount %)
  • FRA1 (Freight)
Configure the calculation type, access sequence, and amount fields.

Define Access Sequences

T-Code: /NMEK0 → "Access Sequences"
Create a logical search strategy the system uses to find relevant pricing conditions in tables.

Create Condition Tables

Define structures where condition records will be stored.
Combine fields like vendor, material, and purchase organization for flexible pricing control.

Create Calculation Schema

T-Code: /NMEK0 → "Calculation Schemas"
Enter all defined condition types in sequence.
Specify dependencies using:
  • From / To
  • Subtotal Indicators
  • Statistical flags

Linking Pricing Procedure with Organizational Elements

Define Schema Group for Vendor

/NMEK0 → "Schema Groups – Vendor"
Assign this group to vendors in the Purchasing View using T-code /NXK02 or /NBP for S/4HANA.

Define Schema Group for Purchase Org

Create schema groups for local, regional, and global purchase organizations.
Use /NMEK0 → "Schema Groups – Purchasing Organization"

Assign Schema Groups

Link the schema group to the actual Purchase Org in the customization path.

Creating Virtual Schema Groups

Purpose of Virtual Purchase Organizations

Helps simulate and test schema behavior without affecting live data. Useful for differentiated pricing strategies.

Creating Virtual Vendor Schema

Define a dummy or test vendor schema group and assign it for testing pricing schema configurations.

Assigning Schema Determination in SAP MM

Linking Pricing Procedure with Virtual Schema

/NMEK0 → "Determine Schema"
Enter virtual schema, virtual vendor, and relevant calculation schema.

Assigning Virtual Org to Actual Org

In /NMEK0, map actual P. Org to the virtual P. Org in the schema group assignment section.

Info Records and Pricing Data Entry

How to Maintain Info Records in SAP MM

T-Code: /NME11
Navigate to “Purch. Org. Data1” tab and enter:
  • Relevant Condition Types
  • Pricing Procedure
  • Effective Dates

Example: Pricing Calculation Flow

Let’s consider the following configuration:
  • PB00 = Base Price (Access Sequence = 0002)
  • RA01 = Discount % (Dependent on PB00)
In the pricing schema:
Step Condition Type Description From To
10 PB00 Gross Price
20 RA01 Discount 10

SAP Transaction Codes for Pricing Configuration

T-Code Function
MEK1 Create Condition Records
MEK2 Change Condition Records
MEK3 Display Condition Records
M/06 Define Condition Types
M/08 Define Calculation Schema
ME11 Create Purchasing Info Record
XK02
BP (S/4HANA)		 Change Vendor Master Record
SPRO Access SAP Customization Implementation Guide

Navigation Tips:

Use the SPRO path:
SPRO > IMG > Materials Management > Purchasing > Conditions > Define Price Determination Process

Common Condition Types in SAP MM

Condition Type Description Notes
PB00 Base price Uses Access Sequence 0002
PBXX Manual price (without access sequence) Often entered during PO creation
RA01 Discount % Calculated on PB00
FRA1 Freight Can be dependent or independent
NAVS Tax Code Condition Usually statistical
ZR00 Custom-defined rebate condition Used in special scenarios

Usage and Dependencies:

PB00 usually forms the basis of pricing.
RA01 is dependent and does not require its own access sequence.
NAVS is typically non-statistical but not included in the invoice value.

SAP MM Pricing Best Practices

  • Use Standard Condition Types Where Possible
  • Name Schemas Meaningfully
  • Test Using Virtual Schema Groups
  • Document Every Step
  • Regular Review and Cleanup

Troubleshooting Pricing Issues in SAP MM

Common Errors:

  • Pricing Procedure Not Determined
  • Incorrect Discounts Applied
  • Missing Condition Types

Debugging Tips:

Use ME23N to analyze the PO and simulate the pricing procedure.
Cross-check condition types in the schema using M/08.

Advanced Pricing Scenarios

Foreign Vendors and Multiple Schemas

You can assign different pricing procedures based on vendor region or country.
Example:
  • ZSCH_LOCAL for domestic
  • ZSCH_INT for international
  • ZSCH_IMPORT for imports with customs and duties

Country-Specific Configurations

Taxes and surcharges vary by country and may require additional conditions (e.g., BED, CST for India).

Real-Time Application & Use Cases

Example 1: Local Vendor Purchase

PB00 = ₹100/unit
RA01 = 10% discount
FRA1 = ₹5/unit (freight)

Net Price Calculation:
PB00 = ₹100
RA01 = -₹10
FRA1 = +₹5
Net Price = ₹95

Example 2: Import Vendor Purchase

PB00 = $100/unit
ZCST = 7% customs duty
ZINS = 2% insurance

Landed Cost Calculation:
PB00 = $100
ZCST = +$7
ZINS = +$2
Landed Cost = $109

FAQs on SAP MM Pricing Procedure Configuration

Q1. What is the primary purpose of the pricing procedure in SAP MM?

To calculate the final value of a procurement transaction by combining different condition types like price, discounts, taxes, and freight.

Q2. Can we have multiple pricing procedures in the same system?

Yes. You can define multiple procedures and assign them based on vendor type, location, or material category.

Q3. What if a condition type does not have an access sequence?

It means the condition is manually entered and not automatically fetched from a condition record (e.g., PBXX, RA01).

Q4. How do we test a new pricing procedure?

Create a virtual vendor and virtual purchase organization and simulate the PO creation to verify calculations.

Q5. What is the difference between PB00 and PBXX?

PB00 uses access sequences and condition records, while PBXX is entered manually during PO creation and doesn’t use condition records.

Q6. Why is my pricing procedure not triggering in a PO?

Check if the correct schema group is assigned to both the vendor and the purchase organization, and ensure the pricing procedure is assigned to the schema combination.

Conclusion

The SAP MM Pricing Procedure Configuration is the backbone of procurement pricing in any SAP-enabled organization. It not only automates complex pricing rules but also ensures consistency and compliance. By understanding the condition technique, setting up schemas properly, and linking them to vendors and purchasing structures, businesses can streamline their purchasing processes and avoid costly pricing errors.

Price Control in MM

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