Condition Technique

SAP AG

SAP AG

TAMM10 4.0B

21-1

Condition Technique: Unit Objectives

At the end of unit, you will

be familiar with the various elements of the

condition technique and understand how

they interact
understand how the process of price

determination works in the system

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SAP AG

SAP AG

TAMM10 4.0B

21-2

Conditions
Conditions
Prices

Discounts and surcharges

Contract

Percentage, quantity-dependent,
or absolute discounts/surcharges

Info record
Scheduling agreement
Quotation

Freight charges
Cash discounts
End-of-period rebates

SAP AG

Conditions are stipulations agreed with vendors regarding prices, discounts and surcharges and suchlike.
The system determines the effective net purchase price in POs on the basis of these pricing elements.
Conditions can be maintained when you enter or create quotations, info records, outline purchase
agreements, and purchase orders.
MM Purchasing differentiates between the following prices:

Gross price: Price excluding any possible discounts or surcharges

Net price: Price taking discounts, surcharges, and taxes into account

Effective price: Net price less or plus delivery (incidental procurement) costs, cash discount, and
miscellaneous provisions for accrued costs or rebates.
Discounts or surcharges may be percentage-based, quantity-dependent, or absolute in nature.
You can also enter conditions that do not take effect immediately, at the time of individual transactions,
but subsequently thereto, and which require settlement at the end of a predefined period.
In MM Purchasing, a distinction is made between conditions that are valid for a certain period (timedependent conditions) and conditions for which no special validity period can be defined (timeindependent conditions).
Up to Release 3.1, the term Master conditions was used in place of the term "time-dependent
conditions", and the term Document conditions was used for "time-independent conditions".

SAP AG

TAMM10 4.0B

21-3

Time-Dependent Conditions
General conditions
Vendor
Condition group
Material type
Incoterms
Invoicing party
Other

pc

Outl. purchase
agreement

%
Conditions

$
Info record
Price 1
01.01.

Plant

Surcharge

Price 2
07.01.

12.31.

5%

From 100 pc 3%

Purch. organization

FF
FF DM
DM
$$

Upper limit

5%

Lower limit 1%

Ref. purch. organization

SAP AG

Conditions in info records and contracts are always time-dependent. You can specify in Customizing (via
the document type) whether time-dependent or time-independent conditions can be maintained in
quotations and scheduling agreements. As of Release 4.0A, the standard settings are time-dependent
conditions for both scheduling agreements and quotations.
Conditions in purchase orders are always time-independent conditions.
Time-dependent conditions can be stored on either a plant-specific or a cross-plant basis (in the latter
case, for all plants belonging to a purchasing organization). You can also use conditions negotiated by
another purchasing organization (reference purchasing organization).
In addition to time-dependent conditions that apply to individual info records, or quotation or outline
agreement items, you can also define time-dependent conditions reflecting more general pricing
arrangements (general conditions).
Time-dependent conditions can be limited to a certain validity period.
If a vendor's pricing varies according to the quantity purchased, you can enter it in the form of a
price/quantity scale.
You can specify upper and lower limits for time-dependent conditions in order to prevent agreed
maximum or minimum figures from being exceeded in the event that condition values are changed
manually in the purchase order.
In the case of time-dependent conditions, no subtotals are formed (net price, effective price).
Valid time-dependent conditions from info records or outline purchase agreements are adopted as default
values in purchase orders.

SAP AG

TAMM10 4.0B

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Header Conditions, Group Conditions, Item

Conditions

Purchase order
Item Mat. Mat. gr.
Per purchase
order: 20.00
freight surcharge

Qty.

Price

10

001

81.00

20

009

72.00

Mat. group discount:

40

009

10

63.00

5% from 100.00

Special discount for material 5

1% from 10 pc upwards

SAP AG

Item conditions are conditions relating to a single item of a document.

Header conditions are entered in the header of a document and relate to all the items of that document.
Some standard condition types can only be used as item conditions, some can only be used as header
conditions, and others can be used as both header and item conditions. Usage options are determined by
the Header condition/Item condition switch in Customizing for the condition type.
No automatic price determination process is carried out for header conditions. For this reason, you
cannot assign an access sequence to a header condition (except if it is also defined as an item condition).
Neither can you create condition records for such a condition.
A condition type can be defined as a group condition in Customizing. A group condition is a condition
relating to several items of a document. In the case of a group condition, the condition values (price,
order quantities, weight or volume) of the relevant items are added together and the resulting sum total
used as the condition basis. This allows more favorable values to be taken as a basis for the scale
computation than would be the case if individual items were considered. The grouping of item items is
carried out using the key of the condition record for the group condition or by means of a group
condition routine assigned to the condition type in Customizing.

SAP AG

TAMM10 4.0B

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Condition Types
Key

Description

Control
Condition class:
Calculation rule:
Condition cat.:
Access sequence:

Prices
Quantity-dependent
Base price
Gross price

PB00

Gross price

FRB1

Freight, absolute

Condition class:
Calculation rule:
Condition cat.:

Discount/surcharge
Fixed amount
Delivery costs

SKTO

Cash discount

Condition class:
Calculation rule:
Condition cat.:

Discount/surcharge
Percentage
Cash discount
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SAP AG

The individual conditions are described by means of condition types. There are condition types for the
gross price, various discounts and surcharges, freight charges, fixed costs, etc.
Condition types are defined together with their control parameters in Customizing.
Condition types are differentiated broadly via the condition class and more finely via the condition
category.
The calculation rule stipulates how the system calculates the condition value. For example, a discount
or surcharge can be a percentage of the gross price, a fixed amount, or a quantity-dependent amount.
The plus/minus sign determines whether a condition is treated as a negative or positive amount.
Negative amounts are discounts (deductions), positive amounts are surcharges (additions).
The reference magnitude for scales also depends on the condition type. A scale can be based on quantity
or dollar value, for example.
An access sequence may be assigned to a condition type. The access sequence is a search strategy by
means of which you specify the order in which condition tables are to be searched for relevant entries
for a condition type. In the standard system, no access sequences are assigned to the condition types for
discounts and surcharges (RA00, RA01 etc.) because they do not have separate validity periods. They
are always maintained at the same time as the gross price (PB00) and their validity period is always the
same as the validity period of the gross price.
You can define your own condition types.

SAP AG

TAMM10 4.0B

21-6

Condition Records and Condition Tables

Condition table A017 (info record with plant)
Cond. ty.

Vendor

Material

Pur. org.

Plant

...

Cond. rec. no.

PB00

1000

1000

...

1234

Condition table A018 (info record without plant)

Cond. ty.

Vendor

Material

Pur. org.

...

Cond. rec. no.

PB00

1000

...

4321

Table KONP (item conditions)

Cond. rec. no.

Cond. ty.

...

Cond. amount

...

1234

PB00

...

10.00

...

4321

PB00

...

11.00

...
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SAP AG

Conditions are stored in the system as condition records.

Condition tables reference condition records. Condition tables enable you to vary the key structure of
condition records.
There are condition tables with the following key fields, for example:

Vendor, material, purchasing organization, info record category

Vendor, material, purchasing organization, plant, info record category

Vendor, material, purchasing organization, info record category, order unit

Purchasing document, item, plant

Entries in condition tables consist of a key part and a data part. The data part contains the number of a
condition record.
Condition records are stored in the following transparent tables, for example:

KONP (time-dependent conditions)

KONH (header conditions)

KONM (quantity scales)

KONW (value scales)

SAP AG

TAMM10 4.0B

21-7

Access Sequence for Gross Price

Calculation schema
Step
1

Purch. order

Condition type
PB00

Pur. org. 1000

Vendor A

Condition type PB00

For plant 1000

Material 1

Access sequence: 0002

Access sequence 0002

No.

Tab.

Requirement

10
15
20

68
16
67

Contract item, plant-dependent

Contract item
Plant info record per order unit

25
35
45
...

17
18
28

Material info record, plant-specific

Material info record
Info record for non-stock material

Condition table

Plant info record exists,

variable order unit active
Plant info record exists
Item without material
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No. of condition record

SAP AG

The access sequence is a search strategy defining the order in which condition tables are searched for
relevant entries for a condition type. The order of accesses is determined by the order of the condition
tables in the access sequence.
A vendor's gross price for a material can depend on a variety of factors. There are different condition
tables with different combinations of key fields for the various price-influencing factors, e.g.:

Table A068: for gross prices in plant-specific outline agreement items

Table A016: for gross prices in the items of centrally agreed contracts

Table A067: for order-unit-dependent gross prices in plant-specific material info records

Table A017: for gross prices in plant-specific material info records

Table A018: for gross prices in material info records

Table A025: for gross prices in plant-specific non-stock-material info records (info records without
a material number).
As of Release 4.0A, it is possible to differentiate between gross prices, discounts and surcharges for
different variants of a configurable material.
Requirement routines are used to determine the prerequisites according to which the system searches
certain condition tables for relevant entries. Some condition tables are only accessed if the document
item fulfills certain criteria.

SAP AG

TAMM10 4.0B

21-8

Calculation Schema
Step

Counter Cond. ty.

Description

PB00

Gross price

10

RB00

Absolute discount

...

...

...

10

ZA01

...

...

...

20

...

...

...

31

FRA1

...

...

...

35

SKTO

40

Fr.

Manu.

...

Freight %

20

Cash discount

20

% Surcharge on gross

Stat

Net value incl. discount

Effective price

X
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SAP AG

In MM, the framework for determining the purchase or valuation price is the so-called "price calculation
schema", which groups together all the condition types that are relevant to this process. (Note that in the
SD area such calculation schemas may be referred to as "pricing procedures".)
Among other things, the calculation schema defines

the permissible condition types

the condition types for which conditions are adopted automatically (Manu. indicator)

the condition types for which the net price calculation is applied (Stat. indicator)

the order in which the condition types are taken into account in the calculation of the net or
effective price

the condition types for which subtotals are calculated

the requirements that must be satisfied before a certain condition type is taken into account
In addition, the From reference step for percentage conditions is defined in the calculation schema. The
From reference step can be combined with a To reference step.

SAP AG

TAMM10 4.0B

21-9

Price Determination Process: Overview

Calculation schema

Purch. order

Step
1
.
.
.

Pur. org.
Vendor

1000
A

For plant
Material

1000
1

Cond. type
. . . ...
PB00

Condition type: PB00

10 pc

Access sequence: 0002

.
.
.

Access sequence: 0002

Condition tables:
1. Contract item (excl.)
2. Plant info record (excl.)
3. Info record (excl.)
.
.
.

50.00

Condition table
Contract item
No record exists
Condition table
Plant info record
Material 1
50.00
From 500 pc 48.00

SAP AG

When you create a purchase order, a contract release order, or a delivery schedule (under a scheduling
agreement), the system searches existing info records and documents for valid conditions and adopts any
it finds as default values in the new document.
The price determination process is carried out in a number of steps:

First the relevant calculation schema is determined

Then the system searches for condition records for all condition types listed in the calculation
schema that have an access sequence assigned to them

The search for condition records is carried out in the order specified in the access sequence

The search is concluded when a valid condition record is found

Material-specific discounts and surcharges are supplementary conditions linked to the gross price
(condition type PB00). No access sequence is assigned to a supplementary condition in Customizing for
the condition type. No separate price determination is carried out for supplementary conditions. They are
found via the condition record for the gross price.

SAP AG

TAMM10 4.0B

21-10

Calculation Schema for Condition Type PB00

Calculation schema RM0000
Step
1
.
.
.

Count. Cond. type

Condition type PB00
1
PB00
Condition class
Calculation rule
Calculation schema: RM0002
.
.
.
Calculation schema RM0002

Pc.
Pc.

Info record
Valid

from 01.01.
to
12.31.

Cond. type Cond. value

PB00
.
GAU1
.
RB00
.

%
%
Conditions
Conditions

$$

Step
1
5
10
.
.
.

Count.
1
1
1

Cond. type
PB00
GAU1
RB00

Default condition
supplement
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SAP AG

A calculation schema for supplementary conditions must be assigned to condition type PB00 (or your
own, comparable condition type for the gross price). In the standard system, schema RM0002 is used
for this purpose.
Condition types of this calculation schema are discounts and surcharges (RA00, RA01 etc.), and freight
conditions (FRA1, FRB1 etc.), which can be valid for specific materials.
The list of condition types suggested to you if you choose the Default condition supplement function
when maintaining info record conditions or conditions for quotation or outline agreement items is based
on the calculation schema for supplementary conditions.
The assignment facilitates the entry of discounts, surcharges etc. on the basis of the info record or
quotation or outline agreement item.
Supplementary conditions have the same validity period as the main condition.
In the standard system, no access sequence is usually assigned to the condition types of the
supplementary calculation schema because they do not have their own validity periods and are always
maintained in conjunction with the gross price.
The structure of the calculation schema assigned to the standard purchase order should correspond to
that of the calculation schema for supplementary conditions.

SAP AG

TAMM10 4.0B

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Info Record and Order Price History

Quotation in
response to RFQ
Item Mat. Price

Info record

10.00

Condition:

10.00

Valid: 01.01. - 06.30.

Purch. order 123

Order
Orderprice
pricehistory
history
PO
no.
PO no.123:
123:10.50
10.50

Item Mat. Price

10.50

Purchase order

Purchase order

Pricing date: 06.01.

Pricing date: 07.01.

Item Mat. Price

Item Mat. Price

10.00

10.50
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SAP AG

An info record can be created either manually, or automatically (via the info update indicator).
If an info record is created manually, the gross price and supplementary conditions can be maintained for
a certain validity period. It is also possible to enter scales and upper and lower limits.
If an info record is generated from a contract, the gross price and all supplementary conditions are
adopted in the info record.
If an info record is created from a PO or scheduling agreement, the conditions are adopted not in the info
record but in the order price history.
If info record conditions exist and are valid, they are suggested (i.e. appear as default values) when a
new PO is created. The conditions from the order price history (i.e. the price and conditions of the last
PO) are only used as default values if the system was unable to find any valid info record conditions.
In info record list displays, a distinction is made between info record conditions (headword "condition")
and the conditions of the last PO (headword "purchase order").

SAP AG

TAMM10 4.0B

21-12

Condition Types PB00 and PBXX

Purchase order
Item Mat. Price
10

95.00

Info rec. conditions

PB00

100.00

RA01

5%

Conditions for item 10

PB00

100.00

RA01

5%

Calculation schema
Step Cnt. C. type
1
1
PB00
1
2
PBXX
.
.
.

Reqt.
6

Requirement 6

Purchase order
Item Mat. Price
10

Condition exclusion <> X

Conditions for item 20
PB00
PBXX

50.00

Please enter net

price

CHECK KOMP-KZNEP NE X.

Condition type PB00

...
Exclusion
=X
...
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SAP AG

If you create an info record manually or automatically, the gross price that is entered or adopted is
assigned to condition type PB00.
When a PO is created without reference to a contract or quotation, a vendor's gross price for a material
is adopted from the info record conditions (or, where appropriate, from the order price history) as the
default value for condition type PB00.
If no valid info record conditions exist and no order price history could be found, the system is not able
to suggest a price and requires the manual entry of a net price. The manually entered price is assigned to
condition type PBXX.
Two condition types for the gross price must be available in the calculation schema that is assigned to
the standard purchase order. In the standard system, these are the condition types PB00 and PBXX. An
access sequence is assigned to condition type PB00, so that the price determination process can be
carried out for this condition type. No access sequence is assigned to condition type PBXX. PB00 must
be come before PBXX in the calculation schema.
At the time a purchase order is created, if the system finds a condition record belonging to condition type
PB00 with valid conditions, condition type PBXX is irrelevant. This is determined via the calculation
schema. In the latter, it is specified that PBXX is only to be taken into account if requirement 6 (in older
SAP Releases: requirement 5) is fulfilled. Requirement 6 checks the condition exclusion indicator
(KOMP-KZNEP). If the latter indicator has the value "X", requirement 6 is not fulfilled and condition
type PBXX is skipped in the calculation schema. The condition exclusion indicator always has the value
"X" if a condition record belonging to condition type PB00 is found, because the condition exclusion
indicator "X" is always assigned to condition type PB00 in Customizing on principle.
You can also use your own, comparable condition types in place of condition types PB00 and PBXX.

SAP AG

TAMM10 4.0B

21-13

Condition Technique: Summary

Conditions are stipulations regarding prices,

discounts, surcharges and suchlike. They are

described by condition types and stored in
the system as condition records.
The access sequence is a search strategy by

means of which you specify the order in

which the system is to search for relevant
condition records for a condition type.
A calculation schema groups together all the

condition types that are relevant to the price

determination process.
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SAP AG

SAP AG

TAMM10 4.0B

21-14