Within the SAP business transactions, sales and use tax calculations make use of the pricing procedure and condition technique.

A pricing procedure consists of several condition types. If a condition type is activated during the pricing procedure execution, the condition type returns an amount back such as material price, discount, surcharge, freight, tax amount and so on. In turn, the amounts returned can be part of the total item sales price depending on the how the condition types are customized.

There are several ways to activate a condition type within a pricing procedure. One approach is using condition records. The parameters of a condition record are defined in the access sequence for the condition type. When the condition record is read, it usually returns a value for its condition type in the pricing procedure. This value can be defined during the condition record maintenance or determined using condition value formula configured in the pricing procedure.