The condition technique allows you to calculate anticipated values using percentage additions/deductions, prices, or absolute amounts. As with price determination in SD, you can use the condition technique to define a set of rules for calculating anticipated freight costs, for example. In the following section, you can find a description of how you can define the set of rules to suit your own valuation needs.

To supplement data that is being processed from the Sales and Distribution (SD) component or from Planning in CO-PA, define a set of rules in Customizing which you can then use to calculate the appropriate values and to post them to CO-PA. For example, you could include the following requirements for calculating values:

• You wish to assign additions/deductions (percentage or quantity-dependent) or fixed values to the corresponding value fields.
• The additions and deductions should be calculated in relation to certain combinations of characteristics that you are free to choose (such as customer and product).
• They should also be calculated using a multi-leveled callup logic. A price, for example, should first be found for special combinations of customers and products. If this price cannot be found, the system looks through the product groups for a valid price or searches at the division level.
• Instead of taking just those individual value fields that already have been filled with data in the line item as the basis for calculating additions and deductions, subtotals or value fields filled with data during valuation should also be used where applicable.
• You wish to calculate the value of goods using a condition from the material master or the goods issue document.

All these above requirements can be met using the condition technique. Before going into detail about the procedure for displaying the possible strategies, it is necessary to discuss various concepts. The possible valuation strategies are then outlined in an example, followed by a description of how to represent business requirements.

In a costing sheet, you specify which conditions should be used to calculate anticipated values. This is also where you determine the sequence in which the conditions are to be considered and the dependencies between them. For example, you can define the condition that sales commission be calculated on the basis of the sales revenue.

In Planning, you can use costing sheets from SD alongside those that you created in CO-PA.

In the costing sheet, you specify the following:

• The basis on which the additions or deductions are to be calculated
• The subtotals to be calculated
• The dependencies between conditions
• The sequence in which calculation is to occur

A condition type represents one step in a costing sheet. Condition types can

• Determine fixed amounts and calculate additions and deductions (percentage or quantity-dependent)
• Read prices (such as the standard price) from master records
• Serve as the basis for calculating additions and deductions (base conditions), or
• Find characteristic-dependent values through accessing series of condition tables (The values that are to be determined on the basis of characteristic values are stored in this case as condition records in the condition tables).

Each condition record stores the condition data maintained manually for certain combinations of characteristic values. For example, a condition record could be a price ("USD 3") for a certain product or a percentage charge or reduction ("3 %") for a certain customer.

During valuation, the system follows an access sequence to find valid condition records for a condition type. From a technical point of view, these condition records are stored in condition tables. The condition table determines the key combination (such as customer and product group) for which the condition record is to be stored and to be used in valuation.

A condition table can be used in more than one access sequence. Thus, the access sequence determines:

• The condition tables that are used to access condition records, and
• The order in which these condition tables are read

The costing sheet forms the calculation logic for valuation using conditions. Here you determine the order in which the condition types are processed. Each condition type can be assigned one access sequence (or none, depending on the condition category). This access sequence in turn can access one or more condition tables. A condition table can be used in more than one access sequence. Moreover, it can store more than one condition record.

You can use more than one costing sheet with the same valuation strategy. This makes sense if you want to calculate prices with different quantity fields.

Note that if multiple condition types are assigned to the same value field, the values are added together. This is also the case when the condition types belong to different costing sheets.

In valuation, the system never overwrites an existing value (other than "0") in any value field. This means that values transferred directly from billing documents in Sales and Distribution (SD) are not changed during valuation. Likewise, values already taken from material cost estimates cannot be overwritten with the values calculated in a costing sheet.

Values transferred from the sender document and manually entered values (other than zero) are consequently never changed during valuation. The only exception to this is in CO-PA planning, where valuation always overwrites the manually entered values.

Different valuation techniques - for example, material cost estimate or conditions - do not overwrite any value fields that are filled (value <> zero) or add values to the existing values. You can only add values within one valuation technique.