Pricing Procedure 

Use

The main task of a pricing procedure is to define the permitted condition types in a specific sequence. It also establishes:

●      Which subtotals are displayed on the pricing screens

●      Whether manual processing is possible in pricing

●      The basis on which the system calculates discounts and reductions

●      Which conditions must be met to ensure that condition types are included

In contrast to the sales scenario, the pricing procedure is not used to determine a sales price in Leasing. In financing and leasing transactions, the pricing procedure is used to determine various condition types, such as the Amount to Be Financed, Residual Values of the Leased Object, and Financing Interest Rate. These results are transferred as parameters to financial mathematics, which uses this data to calculate the cash flow.

When you execute the various change processes, the system determines the change fees, the down payment, and the current market value.

You use the ABAP function call (in pricing) to calculate the corresponding values (purchase amount, termination fee, renewal amount) for each specific process.

Integration

Condition Function Groups

The pricing procedure reflects the structure of the lease. The different items, such as financing, option, object, and billing request items, have different business functions. Since only one pricing procedure is determined at header level in a document, the condition concept is used together with condition function groups. You define condition function groups in Customizing. A condition function group is determined for each affected item within Condition “4000” (Leasing: Conditions). This groups condition functions - that is, the business functions of condition types that you assign in Customizing. Only condition types whose condition functions are assigned to the determined condition function group are included during pricing.

Mapping

You define the mapping of dependencies between the individual items of a leasing document in Customizing. To do this, you use search strategies within flexible mapping. The search strategies evaluate the dependencies in order to determine the source items; these strategies then transfer the condition values from the source item to the target item.

The amount financed for the object item is transferred to the financing item by default. To do this, you use the basis formula 4100, Assign Conditions Using Search Strategy.

Prerequisites

●      You have defined pricing procedures in Customizing for Customer Relationship Management, by choosing Basic Functions → Pricing → Define Settings for Pricing → Create Pricing Procedure.

●      You have assigned source and target condition types to different transaction items in Customizing for

Customer Relationship Management, by choosing Financial Services → Basic Functions → Pricing → Define Condition Mapping Using Search Strategies.

Condition Function Groups

You have made the following settings in Customizing for Customer Relationship Management:

●      Define condition functions:

Customer Relationship Management → Financial Services → Basic Functions → Pricing  →  Maintain Condition Function

●      Assign condition types:

Customer Relationship Management → Basic Functions → Pricing → Define Settings for Pricing → Create Condition Types

●      Define condition function groups:

Customer Relationship Management → Financial Services → Basic Functions → Pricing → Process Condition Function Groups

Mapping

To use mapping, you must make settings in Customizing for Customer Relationship Management, by choosing

Customer Relationship Management  → Financial Services → Basic Functions → Cross-Item Functions:

●      Item Relationships

●      Search Strategies

●      Cross-Item Processing for Changes to Transaction

Example

Pricing procedure 400501 represents the foundation for standard pricing in the lease.