Pricing Procedure for Contract in Sap Mm

Pricing Procedure for Contract in Sap Mm

When it comes to managing contracts in SAP MM, one important factor to consider is the pricing procedure. This procedure determines how the system calculates prices for materials and services, and it can have a significant impact on the overall cost of a contract.

Here are the steps involved in setting up a pricing procedure for contracts in SAP MM:

1. Define access sequences: Access sequences are the key to determining which condition types are used in the pricing procedure. These sequences specify the order in which the system searches for condition records, and they can be based on various factors such as vendor, material group, or plant.

2. Create condition tables: Condition tables allow you to define the fields that will be used as keys for condition records. These tables will be linked to the access sequences that you defined in step 1.

3. Define condition types: Condition types are used to specify the various factors that will be taken into account when calculating prices. These factors can include discounts, surcharges, taxes, and more.

4. Assign condition types to access sequences: Once you have defined your condition types, you can assign them to the appropriate access sequences. This will determine which types of conditions are used and in what order.

5. Define calculation schema: The calculation schema is where you will specify how the system should calculate prices based on the condition types and access sequences that you have defined. This includes setting up subtotals and totals, as well as determining which condition types should be added or subtracted from the base price.

6. Assign calculation schema to pricing procedure: Finally, you will need to assign your calculation schema to the pricing procedure that you will use for your contracts. This will ensure that the system applies the correct pricing logic when calculating prices.

Once you have completed these steps, you can test your pricing procedure to ensure that it is working as expected. You should also regularly review your pricing procedure to make sure that it is still meeting your needs and to make any necessary adjustments.

Overall, the pricing procedure is a crucial component of contract management in SAP MM. By taking the time to set up a well-designed procedure, you can ensure that your contracts are priced accurately and efficiently, helping to maximize your organization`s profitability.

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