IT CanvassTalk to an advisor
SAP MM · LessonBy , SAP Trainer, 10 yrs · Published · SAP S/4HANA 2023 · all levels

Pricing

Pricing in MM determines the price and conditions on purchasing documents, the net price, discounts, surcharges, freight and taxes on a purchase order, using the condition technique. Correct pricing ensures accurate procurement costs.

Quick answer

Pricing drives the value posted at goods receipt and invoice verification, so errors flow straight into inventory value and payables.

Key takeaways
  • Purchasing uses the condition technique: a calculation schema (pricing procedure) combines condition types (gross price, discounts…
  • Condition types: price, discount, surcharge, freight.
  • Calculation schema: how conditions combine.
  • Watch out: Missing/wrong condition records, incorrect PO price.

How MM pricing works

Purchasing uses the condition technique: a calculation schema (pricing procedure) combines condition types (gross price, discounts, freight, tax) to compute the net price on a PO. Condition records (e.g. a vendor’s agreed price for a material) supply the values automatically.

Key elements

  • Condition types: price, discount, surcharge, freight.
  • Calculation schema: how conditions combine.
  • Condition records: the actual values (info records, contracts).
  • Purchasing info records: vendor-material price relationships.

Why it matters

Pricing drives the value posted at goods receipt and invoice verification, so errors flow straight into inventory value and payables. The condition technique is shared conceptually with SD pricing, so learning it here transfers. Getting condition records and the schema right ensures POs cost what they should.

Common pitfalls

  • Missing/wrong condition records, incorrect PO price.
  • Misconfigured calculation schema.
  • Ignoring info records that supply prices automatically.

Practice challenge

+0 XPStreak ×0
Question 1 of 3
Which statement is true of Pricing?

Frequently asked questions

What does the term Pricing refer to in SAP?
Pricing in MM determines the price and conditions on purchasing documents, the net price, discounts, surcharges, freight and taxes on a purchase order, using the condition technique. Correct pricing ensures accurate procurement costs.
What is another point to note about Pricing?
Pricing drives the value posted at goods receipt and invoice verification, so errors flow straight into inventory value and payables.
What else is worth knowing about Pricing?
Purchasing uses the condition technique: a calculation schema (pricing procedure) combines condition types (gross price, discounts, freight, tax) to compute the net price on a PO.
What tends to go wrong with Pricing?
Missing/wrong condition records, incorrect PO price. Misconfigured calculation schema. Ignoring info records that supply prices automatically.
Already working on SAP and stuck on a live ticket?Get an expert SAP developer on screen-share to finish your daily tasks with you. Deliver on time, protect your reputation and your job. Monthly support only, no task-wise plans.Task assigned · no idea where to startStill stuck · your job on the lineExpert joins your screenDelivered on timeExplore On Job Support