Prerequisites for Automatic Pricing

For the system to automatically determine pricing, the following prerequisites must be met:

Condition records must already exist in the system for each of the condition types that you want the system to apply automatically. For further information about creating and maintaining condition records, see Condition Records .
Where necessary, data must be maintained in the corresponding customer and material master records. If, for example, you want to apply discounts to special groups of customers or materials, then the system can only carry out automatic pricing when the groups are specified within the relevant customer or material master records.

The price-related fields in the material master record can be found in the Sales: SalesOrg 1 and SalesOrg2 screens.

Tax classification: Indicates to what extent the material is liable for sales taxes.
Price material: In this field you can specify another material as a reference for pricing information. If you specify a reference, the system, uses all the condition records that apply to the reference material during automatic pricing.
Material group: Defines a group of materials for which you want to apply the same condition record. For example, using a material group, you can specify a discount that applies to a particular range of products.
Cash discount: In this field you can specify whether or not the material qualifies for a cash discount.

Most fields in the customer master record that relate to pricing appear on the Orders tab page under sales data.

Customer pricing procedure: Here you specify the pricing procedure for a customer. You create and maintain pricing procedures in Customizing for Sales and Distribution. During sales order processing the pricing procedure determines the kinds of pricing element you can use and in which sequence they are processed.
Price list: Price list types allow you to apply a material price in a particular currency to a group of customers. For example, you can specify a price list type that applies to all wholesale customers in one of your export markets.
Price group: Price groups let you apply a discount to a particular group of customers.
Tax classification: (You can find tax classification on the Billing tab page.) You can maintain tax classifications for your customers here.