Key Takeaways
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Pricing procedure is the backbone of SAP SD billing
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It brings structure and accuracy to your pricing logic
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Following the right steps ensures flexibility and error-free processing
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It’s easy to maintain once you understand the flow
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Real-life conditions like freight, tax, and discounts can be fully automated
If you’re in sales or billing and working with SAP, you’ve probably heard of the Pricing Procedure. But what is it really? Think of it as the brain behind how SAP calculates prices, taxes, discounts, and surcharges. Without it, your billing process can turn into a confusing mess.
What Is a Pricing Procedure in SAP SD?
A Pricing Procedure in SAP SD (Sales & Distribution) is a set of rules that tells SAP how to calculate the final price of a product or service. It includes all the elements like:
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Base price (PR00)
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Discounts (K007, K004)
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Freight (KF00)
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Taxes (MWST)
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Surcharges or manual conditions
SAP applies these step-by-step to get the final amount on the sales order or invoice.
Why Is It So Important?
Because every business has a unique way of pricing! Some offer discounts, some charge different taxes, others apply freight charges — and SAP needs to know how and when to apply each of these.
Without the right pricing setup:
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Your sales team may quote the wrong prices
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Your invoices may have calculation errors
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Your customers may lose trust due to inconsistent billing
How to Configure Pricing Procedure – Best Way
Here’s a simplified version of how to configure it:
✅ Step 1: Define Condition Types
Create or customize condition types like PR00 (price), K004 (discount), etc. These define the elements in pricing.
✅ Step 2: Define Access Sequences
Set up the logic SAP uses to search for condition records (e.g., price based on customer & material).
✅ Step 3: Create Condition Tables
These tables define the combination of fields (e.g., Sales Org + Customer + Material) used for pricing lookup.
✅ Step 4: Maintain Condition Records
Enter actual price values, discounts, or taxes using t-code VK11.
✅ Step 5: Define Pricing Procedure
This is the sequence in which condition types appear during pricing. You also define whether it’s required, statistical, manual, etc.
✅ Step 6: Assign Procedure to Sales Area
Link the pricing procedure to a combination of Sales Org + Distribution Channel + Division using document pricing procedures and customer pricing procedures.
✅ Step 7: Test with Sales Order
Create a sales order (VA01) and see if the pricing appears as expected.
Real Benefits of a Well-Configured Pricing Procedure
Configuring the pricing procedure the right way in SAP SD saves you time, prevents errors, and makes your sales process professional. Whether it’s a simple sale or a complex deal with multiple discounts and charges — a smart pricing setup makes all the difference.
| Benefit | What It Means for You |
|---|---|
| Accurate billing | No errors in prices, taxes, or discounts |
| Speed in order processing | Automated calculations save valuable time |
| Flexibility for business needs | Easily add or adjust discounts and charges |
| Better customer satisfaction | Transparent, consistent pricing builds trust |
| Smooth integration with finance | Clean data hand‑off to SAP FI for accounting |
Real-Life Example
Let’s say your company sells electronics. You want to offer:
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10% discount to repeat customers
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₹500 freight charges for out-of-city delivery
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GST at 18%
With SAP SD Pricing Procedure, you can set all of these using condition types and apply them only when needed. No manual work, no confusion.
Top 7 FAQs – SAP SD Pricing Procedure
1. What t-code is used to maintain pricing records?
Use VK11 to maintain condition records for pricing.
2. Can I apply multiple discounts in one procedure?
Yes, you can apply multiple discount types in a single pricing procedure using different condition types.
3. What’s the difference between PR00 and K007?
PR00 is the base price; K007 is a customer-specific discount.
4. What if I want a condition to appear but not affect the total?
Mark it as “statistical” in the pricing procedure.
5. What is the ‘Subtotal’ field used for?
It helps carry over pricing values to other parts of the order or for reporting.
6. How is pricing linked to the sales area?
Through the assignment of a pricing procedure to the combination of sales area, customer pricing procedure, and document pricing procedure.
7. Can I make a pricing condition mandatory?
Yes, you can flag it as “required” in the pricing procedure, so the order won’t proceed without it.
Learn SAP SD Pricing from Industry Experts
Join Ageis Technova’s SAP SD Training Program and master:
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Real-time pricing configuration
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Practical condition records setup
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Hands-on live project experience
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Interview prep & certification guidance
📞 Call: +91-74287 06064
📧 Email: info@ageistechnova.com
🌐 Visit: www.ageistechnova.com
Learn from 15+ years of SAP training expertise — only at Ageis Technova!
