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Condition Types Unit Overview This unit explains special condition types. In addition, it describes some statistical condition types. Unit Objectives After completing this unit, you will be able to: Create order values and net prices manually Set a minimum price for a material or a minimum value for an order Set interval scales for conditions Use customer hierarchies for price agreements Describe the effect of condition formulae 2006/Q2 O 2006 SAP AG. All rights reserved. 163

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Page 1: Condition type

Condition Types

Unit Overview This unit explains special condition types. In addition, it describes some statistical condition types.

Unit Objectives After completing this unit, you will be able to:

Create order values and net prices manually Set a minimum price for a material or a minimum value for an order

Set interval scales for conditions Use customer hierarchies for price agreements Describe the effect of condition formulae

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Page 2: Condition type

Unit 5: Condition Types TSCM62

Lesson: Special Condition Types

Lesson Overview This lesson describes some standard condition types and explains how to use the various special condition types, such as manual order value and customer hierarchy discount.

Lesson Objectives Afier completing this lesson, you will be able to:

Create order values and net prices manually Set a minimum price for a material or a minimum value for an order Set interval scales for conditions

Use customer hierarchies for price agreements Describe the effect of condition formulae Round final amounts

Business Example Your company manufactures consumer goods. The project team that implements the SAP system must meet the company's pricing requirements. As a member of the

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Page 3: Condition type

TSCM62 Lesson: Special Condition Types

Manual Pricing

Figure 51: Manual Order Value HMOO

The header condition type HMOO allows you to enter the order value manually. The new order value is then distributed proportional between the items, taking into account the previous net item value. Taxes are determined again for each item.

Figure 62: Npt Price PNOO

The PNOO condition in the standard system allows you to speci6 the net price for an item manually. The original conditions are deactivated.

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Unit 5: Condition Types TSCM62

Minimum Price Value

Figure 53: Minimum Order Values AMIW and AMK

You may create a minimum value for each order using condition type AMIW. If the value in the order header is less than this minimum order value during pricing, the

u& order

e different items

in the pricing procedure. btracting the net item

the m i n i m u a e r va@, AMIW. -

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Page 5: Condition type

TSCM62 Lesson: Special Condition Types

Figure 54: Minimum Price PMIN

You can create a minimum price for a material using condition type PMIN. If the minimum price is not met during pricing, the system determines the difference using condition type PMIN.

Scale Pricina

Figure 55: interval Price PRO2

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Unit 5: Condition Types TSCM62

You can maintain condition records with interval scales if the condition type is set to scale type D in Customizing. Interval scales cannot be used for group conditions.

Customer Hierarchy Pricing

Figure 56: Customer Hierarchy

g to determine pricing

" :*@& > >, hierarchy co0Shs of nze s .

$0 create a customer h&bar&y:

1. Craete utastsr records for each node.

2 kigaftaemdmtoaadrather. 3. Assign the customer master records to the relevant nodes.

Customer hierarchies are valid for a certain period of time. Hierarchy nodes may also be moved. If a node is moved, the system automatically reassigns all related nodes and customer master records.

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TSCM62 Lesson: Special Condition Types

Figure 57: Hierarchy Path

With customer hierarchies, you can assign price or rebate agreements to a higher level node. The agreements are then valid for customers at all subordinate levels of this

ylng group Miller. The ed in the hierarchy. The ces are also defined as

r buying group for a particular ns and ofices in the buying group.

for the northern zone. You create the head office and northern nodes. An order

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Unit 5: Condition Types TSCM62

Figure 58: Hierarchy Discount HI01

Customer 2743 belongs to the Miller northern ofice. As a result, a discount of 8% has been assigned.

In the standard system, the access sequence is set in Customizing so that the discount is initiated at the lowest hierarchy level.

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Page 9: Condition type

TSCM62 Lesson: Special Condition Types

Discounts and Surcharges

Figure 59: Pallet Discount KPOO

The pallet discount grants the customer a discount for whole units of measure only, such as a comvlete pallet. This is controlled by basic formula 22 in the pricing procedure, ~ h i c h only takes the number of complete pallets into account.

Figure 60: Incomplete Pallet Surcharge KPOI

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Unit 5: Condition Types TSCM62

In this case, the customer pays a surcharge for an incomplete pallet. This is controlled in basic formula 24 in the pricing procedure, which tests the quantity for a fractional portion.

Figure 61: Mixed Pallet Discount KP02

The mixed pallet discount accumulates the quantities of the individual items and calculates the discount for complete pallets only. This is controlled bv condition type KP02 (group condition = X, unit of measire = PAL) and the coAesponding copdition record.

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Page 11: Condition type

TSCM62 Lesson: Special Condition Types

The mixed pallet surcharge accumulates the quantities of the individual items and calculates the surcharge on any fractional portion of the total quantity. This is controlled by condition type KP03 (group condition = X, unit of measure = PAL and scale formula 23), which calculates the fractional proportion of the total quantity.

Rounding Diff

Figure 63: Rounding DIFF

rs from the rounding

ition type DIFF is a group s according to value.

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Unit 5: Condition Types TSCM62

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Page 13: Condition type

TSCM62 Lesson: Special Condition Types

Exercise 18: Selected Condition Type Configuration

Exercise Objectives After completing this exercise, you will be able to:

Test several calculations which can be accomplished using the special condition types Examine what Customizing settings enable the actions of each special condition type

Business Example SAP ERP provides special condition types which enable a wide range of calculation variations. You will analyze the special needs of your business to determine whether or not any of these condition types will be useful.

Task I: You will test the ability of order entry personnel to specify the total net value for the order and view the effect that has on the order items.

1. From the customer purchase order shown below, create a standard sales order.

ustomer that the total net value for this order will be EUR 4001 Using a header condition, enter this data into the order using condition type HMOO.

3. Activate the header pricing changes.

on next page

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Unit 5: Condition Types TSCM62

4. Review condition type HMOO for each item. What has been done with the header amount for HMOO?

5. Save the order and record the document number. / 2 v(/Y Task 2: Your company also requires that the person entering the order be able to override the net price of any line item. You will test this function of the system.

1. In an exceptional case, you agree with your customer on a one time net price of EUR 200 per piece of material T-ATI##. From the customer purchase order shown below, create a standard sales order.

2. Manually enter the item net price of EUR 200 with condition type PNOO.

TELEFAX

Customer:

PO number:

Requested delivery date:

Material

T-AT1 ##

.., . . . . ,. ,. . . e of your materials and then test n type with an order.

'

T-L67A##

##-6-2

In one week

Quantity

10

i;Y .. . . . ,. i hi, , iBe sold for less than a net price of E U R is iy$pmation, create and save a minimum I q@'@ondition type PMIN.

2*;,l :*P

2. From the customer purchase order shown below, create a standard sales order.

2$gac" >E, .: e $"$*, r~g j>"! fa g @hep~+&B'i * next page d i m ", 6: ** .a@ a ..&

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Page 15: Condition type

TSCM62 Lesson: Special Condition Types

3. What happens during pricing for the item?

4. Save the order and record the document number. / 2 (1 6 1 5 . Delete the PMIN condition record you created.

TELEFAX

Customer:

PO number:

Requested delivery date:

Material

T-ATl##

Task 4:

T-L67A##

##-6-3

In one week

Quantity

10

You will explore the behavior of interval scales by creating a special price condition record and then test its use in an order.

1. Create and save a PRO2 price condition record with an interval scale for customer T-L67A## and material T-AT%#.

Use the default validity period.

1 Reauested deliverv date: I In one week I

on next page

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Unit 5: Condition Types TSCM62

3. What gross price and value is determined in automatic pricing?

Material

T-AT2##

4. Save the order and record the document number. I 7 '/ 6%

Quantity

25

5 . What settings are necessary to use interval scales for the condition type in Customizing? Check these settings for condition type PR02.

Task 5: Being able to negotiate pricing at various levels in the organization of your larger customers is important to your company. You will test customer hierarchy pricing by assigning one of your customers to an existing hierarchy, creating the necessary condition record and viewing the effect on pricing for customer orders.

1 . Assign your customer T-L67A## to the TOPCO Buying Group customer hierarchy under the Western Europe division, node 6222.

2. An agreement is reached with TOPCO's European region for a blanket discount on material T-AT2##. Create an HI02 HierarchyIMaterial discount condition record for customer hierarchy node 6220 and material T-AT2## with a rate of EUR 50.

4. Examine the item pricing to determine whether or not the HI02 discount was taken into account.

5 . Save the order and record the document number.

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Page 17: Condition type

TSCM62 Lesson: Special Condition Types

Solution 18: Selected Condition Type Configuration

Task 1: You will test the ability of order entry personnel to specify the total net value for the order and view the effect that has on the order items.

1. From the customer purchase order shown below, create a standard sales order.

due the

TELEFAX

Customer:

PO number:

Requested delivery date:

Material

T-ATl##

T-AT2## -

for this order

T-L67A##

##-6- 1

In one week

Quantity

1

1

p rk0curnent header dett

Click the ~ & r t line button.

Enter the condition type an

3. Activate the header pricing changes.

a) Activate HMO0 by choosing Acfhtute: new clocun~ent pricing. Original prices become inactive and condition HMO0 becomes active.

on next page

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Page 18: Condition type

Unit 5: Condition Types TSCM62

4. Review condition type HMOO for each item. What has been done with the header amount for HMOO?

a) The total net order value is divided among the items according to their proportional value.

5 . Save the order and record the document number.

a)

Task 2: Your company also requires that the person entering the order be able to override the net price of any line item. You will test this function of the system.

1. In an exceptional case, you agree with your customer on a one time net price of EUR 200 per piece of material T-AT]##. From the customer purchase order shown below, create a standard sales order.

1 TELEFAX I I I

Customer: I T-L67A##

creen up to order PNOO ge either by the colors of the ion (Inactive field = Y).

PO number:

Requested delivery date:

$2 fJ next page Z&.i"

##-6-2

In one week

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Page 19: Condition type

TSCM62 Lesson: Special Condition Vpes

Task 3: For certain materials, there is a price floor which is set regardless of the discounts applicable. You will create this condition type for one of your materials and then test the condition type with an order.

1 . You require that material T-ATl## not be sold for less than a net price of EUR 300 for the next three months. With this information, create and save a minimum price condition record for this material with condition type PMIN.

a) To Create a minimum price condition record:

Select Logistics + Sales and Distribution -+ Master Data -+ Conditions -+ Select Using Condition Zjpe -+ Create.

choose condition type PMIN

2. From the customer purchase order shown below, create a standard sales order.

TELEFAX

Customer:

Material ( Quantity I

T-L67A##

PO number:

Requested delivery date:

the minimum price, the system price PMIN as the difference

oss amount after subtracting any discount amount. The net ce of the item will then correspond

##-6-3

In one week

eg;;;, f( # on next page i s . ..____I ., ( $$$P..

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Page 20: Condition type

Unit 5: Condition Types TSCM62

5 . Delete the PMIN condition record you created.

a) To Delete a condition record:

Select Logistics -+ Sales and Distribution -+ Master Data + Conditions -+ Select Using Condition o p e -' Change.

Enter condition type PMIN and choose Enter.

Enter the appropriate values for your condition record and clloose Execzrte.

Select the condition record.

Choose Delete line.

Task 4: You will explore the behavior of interval scales by creating a special price condition record and then test its use in an order.

1 . Create and save a PRO2 price condition record with an interval scale for customer T-L67A## and material T-AT2##.

Use the default validity period.

Use the following scale values for the condition record:

I pieces 1 300 1 EUR I

terval scale:

*'x;;,; y pz, -p:,:;lp , ,,, , * . B,sg~~ ?I ~ ~ s k l k . . . k r &@tt<ts choose condi type pkoz. z. , E E . . 2t3

f $8 ..is@:

lip To enter the,:%& ~ i lue s , selec dition line and choose Scales.

2. From th cwtomer purchase osdglrrthown below, create a standard sales order.

1 TELEFAX I I Customer:

PO number:

P next page

- - -

T-L67A##

##-6-4

Requested delivery date:

182 Q 2006 SAP AG. All rights resewed. 2006lQ2

-

In one week

Page 21: Condition type

TSCM62 Lesson: Special Condition Types

a)

3. What gross price and value is determined in automatic pricing?

a) Gross: EUR 292 per piece = EUR 7300

Material

T-AT2##

4. Save the order and record the document number.

Quantity

25

5. What settings are necessary to use interval scales for the condition type in Customizing? Check these settings for condition type PR02.

a) Scale type D (graduated-to interval scale) must be used.

on next page

2006lQ2 Q 2006 SAP AG. All rights reserved. 183

Page 22: Condition type

Unit 5: Condition Types TSCM62

Task 5: Being able to negotiate pricing at various levels in the organization of your larger customers is important to your company. You will test customer hierarchy pricing by assigning one of your customers to an existing hierarchy, creating the necessary condition record and viewing the effect on pricing for customer orders.

1. Assign your customer T-L67A## to the TOPCO Buying Group customer hierarchy under the Western Europe division, node 6222.

a) Logistics --t Sales and Distribution -r Master Data -+ Business Partner -t Customer Hierarchy --tEdiL

Enter: Customer hierarchy type A.

and: Customer 6200

Choose Execute.

Select Expand all.

Select the hierarchy node 6222 TOPCO Western Europe.

Choose Create assignment.

Enter the data given below.

I "Customer" field erour, I I n ~ u t data I

ve the assignment. w

2. An agreement is w h e d with TOPCO's European region for a blanket discount on material T-AT2#. Create an M02 H-hymaterial discount condition record fcar c w m w hkmrdry node 6220 and material T-AT2## with a rate of EUR 50.

a)

3. From the customer purchase order shown below, create a standard sales order.

' f " ..; I I- *. -+ next page t.:$ +$b*g$

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Page 23: Condition type

TSCM62 Lesson: Special Condition Types

4. Examine the item pricing to determine whether or not the HI02 discount was taken into account.

TELEFAX

Customer:

PO number:

Requested delivery date:

Material

T-AT2##

a) The HI02 hierarchylmaterial discount created for node 6220 is used by customer T-L67A## who is assigned to a lower node in that hierarchy.

T-L67A##

##-6-5

In one week

Quantity

1

5 . Save the order and record the document number.

a) 12y3%

20061Q2 Q 2006 SAP AG. All rights resewed. 185 Fr

Page 24: Condition type

Unit 5: Condition Types TSCM62

Lesson Summary

You should now be able to: Create order values and net prices manually Set a minimum price for a material or a minimum value for an order Set interval scales for conditions Use customer hierarchies for price agreements Describe the effect of condition formulae Round final amounts

186 8 2006 SAP AG. All rights reserved. 2006lQ2

Page 25: Condition type

TSCM62 Lesson: Statistical Condition Types

Lesson: Statistical Condition Types

Lesson Overview This lesson describes how to determine costs and cash discount amounts statistically in pricing. It also explains how expected prices transferred via ED1 are used.

Lesson Objectives After completing this lesson, you will be able to:

Determine costs and cash discount amounts statistically in pricing - Describe how expected customer prices transferred using ED1 are used

Business Example Your company manufactures consumer goods. The project team that implements the SAP system must meet the company's pricing requirements. As a member of the project team, you have been given the task of examining the pricing configuration options to provide solutions for your company's pricing requirements.

When processing a pricing procedure, it is often necessary to determine values and make these values in the procedure available for various purposes. However, these values must not change the net value of the item. This can be achieved by marking a condition type as statistical. For examvle the cost from the material master and the . &

s in the sales

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Page 26: Condition type

Unit 5: Condition Types TSCM62

Statistical Condition Types

Figure 64: Cost VPRS

In the standard version, condition type VPRS is used to retrieve the standard cost of the material. The pricing procedure uses this condition type as a statistical value.

aterial tied in

condition category T

r~cing procedure. This

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Page 27: Condition type

TSCM62 Lesson: Statistical Condition Types

Figure 65: Cash Dlscount SKTO

In the standard system, condition type SKTO is used to retrieve the cash discount rate. The pricing procedure uses this condition type as a statistical value.

Table TO52 is accessed using condition category E and an amount is calculated from the first percentage rate of the item payment terms.

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Page 28: Condition type

Unit 5: Condition Types TSCM62

You can either enter the customer expected price manually in the order or retrieve the price from the incoming IDoc in an ED1 environment.

You can use condition type ED11 to compare the net price for each item. You can use condition type ED12 to compare the overall item value, which is obtained by multiplying the net price and the quantity.

Calculation formula 9 is assigned to condition type ED11 in the pricing procedure. This formula tests for a maximum deviation of 0.05 currency units.

Calculation formula 8 is assigned to condition type ED12 in the pricing procedure. This formula tests for a maximum deviation of 1.0 currency units.

If the customer expected price differs from the automatically determined price or value by more than the maximum difference allowed, the system considers this order as incomplete when the order is saved.

You can process lists of orders having differences in prices, allowing the system to use or correct the price it determined.

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Page 29: Condition type

TSCM62 Lesson: Statistical Condition Types

Lesson Summary

You should now be able to: Determine costs and cash discount amounts statistically in pricing Describe how expected customer prices transferred using ED1 are used

2006lQ2 @ 2006 SAP AG. All rights reserved. 191

Page 30: Condition type

Unit Summary TSCM62

Unit Summary You should now be able to:

Create order values and net prices manually

Set a minimum price for a material or a minimum value for an order Set interval scales for conditions

Use customer hierarchies for price agreements

Describe the effect of condition formulae

Round final amounts

Determine costs and cash discount amounts statistically in pricing

Describe how expected customer prices transferred using ED1 are used

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Page 31: Condition type

TSCM62 Test Your Knowledge

Test Your Knowledge

1 . Which of the following is a group condition and is divided among the different items according to value? Choose the correct answer(s).

A PNOO B AMIW C PMIN D AMIZ

2. You can maintain condition records with if the condition type is set to scale type D in Customizing. Fill in the blanks to complete the sentence.

3. With , you can assign price or rebate agreements to a higher level node.

Fill in the blanks to complete the sentence.

4. What is the function of mixed pallet discount KP02 condition type?

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Page 32: Condition type

Test Your Knowledge TSCM62

7. Describe the use of calculation formulae 8 and 9.

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Page 33: Condition type

TSCM62 Test Your Knowledge

Answers

1. Which of the following is a group condition and is divided among the different items according to value?

Answer: B

Condition type AMlW is a group condition that is divided among the different items according to value.

2. You can maintain condition records with interval scales if the condition type is set to scale type D in Customizing.

Answer: interval scales

3. With customer hierarchies, you can assign price or rebate agreements to a higher level node.

Answer: customer hierarchies

4. What is the function of mixed pallet discount KP02 condition type?

Answer: The mixed vallet discount accumulates the quantities of the individual . This is ion record.

g unit, the system rounds

rs from the rounding unit, the system

Answer: Using condition category G, VPRS accesses the valuation segment of the material master locating either the standard cost or the moving average cost, as specified in the material master.

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Page 34: Condition type

Test Your Knowledge TSCM62

7. Describe the use of calculation formulae 8 and 9.

Answer: Calculation formula 9 is assigned to condition type ED1 I in the pricing procedure. This formula tests for a maximum deviation of 0.05 currency units. Calculation formula 8 is assigned to condition type ED12 in the pricing procedure. This formula tests for a maximum deviation of 1.0 currency units.

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C Unit Summary TSCM62

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Page 38: Condition type

Unit Surnmaly TSCM62

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