Condition Technique
Use
The condition technique is used to determine the purchase price by systematic consideration of all the relevant pricing elements. A feature of the technique is the formulation of rules and requirements. By applying conditions defined by means of the condition technique, the system arrives at a suggested price for purchase transactions.
For more information on this topic, refer to the documentation SD -
Conditions and Pricing.
Prerequisites
The price determination process is set up in Customizing for Purchasing.
Features
The most important elements in price determination are the following:
Condition Type
Condition types represent price factors in the system. There are condition types for absolute and percentage discounts, freight costs, customs duties, or taxes, for example. Via the condition type, you specify how the price factor is calculated (e.g. percentage or absolute amount).
Group Condition
You can define a condition type as a group condition. If the same condition occurs in different document items, the item values are added up and the result used as the basis for determining the scale level. If the condition type is entered at header level, the value is apportioned among the items.
Supplementary Condition
Supplementary conditions are time-dependent conditions that are usually maintained for a certain condition type (main condition). Supplementary conditions are stored with their associated main condition in one data record in a condition table (=condition record).
No access sequence (see below) is assigned to condition types for supplementary conditions because no separate condition record has to be found for them. All supplementary conditions that the system is to suggest for a certain condition type must be grouped together in a separate calculation schema (see below). This calculation schema must be stored for this condition type (main condition).
Discounts/surcharges and freight costs are frequently maintained in relation to the gross price (PB00). They are therefore entered as supplementary conditions belonging to the gross price.
The supplementary conditions are grouped together in calculation schema RM0002. This schema is assigned to condition type PB00.
Condition Category
You can assign a condition category to a condition type. The condition category has various control functions. For example, condition category U (for precious metal discounts and surcharges) causes a new price determination process to be carried out at the time of goods receipt, and condition category E (for cash discount) causes the discount to be derived from the terms of payment.
The following condition categories are relevant to Purchasing:
Cat. |
Description |
Assigned to the following condition type in the standard system: |
Further information |
H |
Base price |
PB00 |
A condition type with the condition category H must always exist in the calculation schema. Exception: Stock transfers. If an access sequence is assigned to the condition type, you must assign a supplementary calculation schema to the condition type. Otherwise, the system is not able to calculate a net or effective price. If you manually enter a price in the purchasing document, it is inserted into the condition type. |
B |
Delivery costs |
FRA1 |
If you use this condition category, you can enter separate invoices for material costs and delivery costs (e.g. freight charges). You must flag the condition type as "provision-relevant". You must assign a transaction/event key in the schema (for account determination purposes). |
N |
Non-deductible input tax |
NAVS |
Depending on the tax code in the PO item and the tax calculation schema, the system calculates the non-deductible tax portion and inserts it in the condition type with the category N. The condition type has the calculation rule "absolute amount". Normally, the access sequence that regulates tax code determination is assigned to the condition type. |
d |
Vendor’s confirmed price |
EDI1, EDI2 |
If the vendor confirms a price via EDI, the system inserts the price in the condition type with category d. |
E |
Cash discount |
SKTO |
The system derives a percentage from the terms of payment and inserts it in the condition type with the category E. The condition type is included in the calculation on a statistical basis only. |
U |
Precious metal discount/surcharge |
GAU1, GAU2 |
See Daily Ruling Prices for Precious Metals |
G |
Moving average price |
P101 |
The system inserts the moving average price/valuation price of the material in the condition type with category G. This makes sense if no purchase price exists (e.g. in the case of stock transfers). |
J |
Sales price excl. taxes (only for Retail) |
MVK2 (prior to Release 4.5A, MVK1) |
The system inserts the currently valid sales price (excluding tax) for the ordering store in the condition type with category J. If sales price valuation is active in the valuation area of the store, the condition type should exist in the calculation schema used for determining the purchase price. |
W |
Sales price incl. taxes (only for Retail) |
MVK0 |
The system inserts the currently valid sales price (including tax) for the ordering store in the condition type with category W. If sales price valuation is active in the valuation area of the store, the condition type should exist in the calculation schema used for determining the purchase price. |
Condition Types in the Standard System
The condition types supplied include the following:
Condition type |
Condition class |
Description |
PB00 |
Price |
Gross price: Price without taking any possible discounts and surcharges into account |
RB00 |
Discount/surcharge |
Absolute discount |
ZB00 |
Discount/surcharge |
Absolute surcharge |
FRB1 |
Discount/surcharge |
Absolute freight amount |
ZOA1 |
Discount/surcharge |
Percentage duty amount |
SKTO |
Discount/surcharge |
Cash discount |
NAVS |
Taxes |
Non-deductible input tax |
The purchasing department has agreed with vendor Miller Co. that the latter will grant a discount of $10 on the normal price of $250 for each office chair purchased. An info record with the following conditions is created for this purpose:
PB00: 250
RB00: 10 (supplementary condition)
The system writes this information to a condition record and stores the latter in a condition table.
Condition Table
A condition table consists of one or more condition keys and a data part. The data part contains a number that references a record in another table. The latter table contains the condition records.
In the standard system, table 017 is available for the condition record created by Purchasing. This has the condition keys Vendor, Material, Purchasing organization and Purchasing info record category.
You can also create your own condition tables. How to create condition records in the latter is described in
Access Sequence
An access sequence is a search strategy by means of which the system searches for valid records in various condition tables. It consists of one or more accesses. The sequence of accesses controls the priority of the individual condition records among each other. Through the accesses, the system is told where to look first and where to look next for a valid condition record in each case.
Condition type PB00 has the access sequence 0002. The following accesses are defined within this access sequence (among others):
(a) Accessing of condition table 068 (Does a plant-specific agreement item exist?)
(b) Accessing of condition table 016 (Does a contract item exist?)
(c) Accessing of condition table 017 (Does a purchasing info record exist?)
With this access, the condition record created in the example for the condition type is found and the search ended.
There are some condition types for which no condition tables are created (for example, header discounts, which are only entered manually, or supplementary conditions). No access sequence need be specified for these condition types.
Calculation Schema
A calculation schema groups together all condition types that play a part in calculating the price. It sets out the order in which the condition types are taken into account in the calculation. In addition, the calculation schema specifies the following:
You can define a variety of calculation schemas (for individual purchasing organizations and/or vendors, for example).
In the standard system, calculation schema RM0000 is defined for determining the purchase price in purchasing documents.