Use

All of the pricing elements that you use in your day-to-day pricing procedures - the prices, surcharges, discounts, freight charges, and taxes - are defined in the R/3 system as condition types. This section gives you an overview of the pricing elements and their corresponding condition types that appear in Sales & Distribution (SD). When you create or maintain pricing information for a particular pricing element in the system, you create condition records. For more information about the tasks of creating and maintaining conditions, see Working with Condition Records .

Further Information

The task of actually defining condition types is part of system configuration and maintenance. For further information on condition types, see Introduction to the Condition Technique .

Pricing Elements in the Standard Version

Pricing elements are divided into four categories:

Prices

Surcharges and Discounts

Freight Costs

Sales Taxes

When entering sales orders, the system can carry out an automatic check. During sales order entry, the system can calculate prices automatically by finding a gross price, deducting all the relevant discounts and adding any surcharges such as freight and sales tax. The following figure illustrates how the system represents various pricing elements of everyday business.

In the figure, you can see that the price of a material is represented by one condition type (PR00). However, the price of a material can be based on different kinds of pricing records. The price can come from a price list; it can be specific to a particular customer, or it may be a simple material price. On the other hand, each discount, surcharge, freight charge, and tax is defined by its own condition type.