Knowledge Management

Question:
Hi,
Could someone please explain to me in layman's terms how pricing is configured in the MM module and what are concepts like calculation schema, schema group, schema determination, condition table, etc all about?
Rgds,
John Doe
Answer:
Hi,
Set out below are some basic definitions with regard to MM Pricing topic.
1) Conditions are stipulations agreed with the vendor regarding prices, discounts and surcharges. The system determines the price in purchasing on the basis of these pricing elements.
2) Conditions are stored in the system as condition records. Conditions records allow you to store and retrieve data in the system. You create the condition records for all pricing elements - the prices, discounts and surcharges - that the system takes into account during automatic pricing. You can define as many conditions records as you want for the different pricing elements. During the document processing, the system transfers data from the condition records and determines the amounts for individual pricing elements (prices, discounts and surcharges).
3) There has been distinction between conditions that are valid for a certain period (time-dependent conditions) and conditions for which no validity period can be specified (time-independent conditions).
4) A condition type is a representation in the system of some aspect of your daily pricing activities. You can have different condition types for each kind of price, discount or surcharge that occurs in your business transactions.
5) A condition table defines the combination of fields (the key) that identifies an individual condition record. A condition record is how the system stores the specific condition data that you enter in the system as the condition records.
6) An access sequence is a search strategy that the system uses to find the valid data for a particular condition type. It determines the sequence in which the system search for data. A condition type must have an access sequence assigned to it if you want to maintain the conditions with their own validity periods.
7) A calculation schema groups together all condition types that play a part in calculating the prices.
Since this is a very diverse subject, if you are interested in getting further clarification, e-mail me your specific questions to my address ha.tran@holcim.com
and I will get back as soon as possible to you.
Cheers,
HT
Answer:
Hi Ha Tran,
Thank you for your reply. How does the system know which condition records to use for pricing for a given vendor for a given material? Also, do the purchase order type and purchasing organisation have any role to play in this process?
Rgds,
Aniruddha
Answer:
Hi,
How does the system know which condition records to use for pricing for a given vendor for a given material?
The system will recognize it dependent on the value that you have maintained in your condition record. When the purchasing document is created, the system will make the automatic pricing determination in accordance with the calculation schema that you have defined for either your particular purchasing organization or your vendor. Since the master condition record is only applicable to those condition types to which the access sequence is assigned, these time-dependent condition type will be determined in accordance with both condition records and sequence of the access.
do the purchase order type and purchasing organisation have any role to play in this process?
They will 'play a role' in this process in case they have been selected as the 'Selected fields' of the condition record table.
Cheers,
HT
Answer:
Hi,
You can also look at the documentation for pricing on the SD side. It is very thorough and the same concepts apply to the MM side.
Regards,
dt