1. Here are the 16 pricing elements in pricing procedure and description for each..
Hope this is will be of use for you..
Define Pricing Procedure
Select the pricing procedure which is the standard and copy it and create our own pricing procedure.
Highlight it and double click the Control icon in the LHS screen.
We can see that there are 16 columns in the pricing procedure, these are going to be used by the system to control
the condition types.
The detail description of each column is given below.
Step:
Number that determines the sequence of the conditions with in a procedure.
It indicates the position of the condition type in pricing procedure.
Ex.: 10, 15 etc.
Counter:
System uses the counter to count the steps and also it can be used to count mini steps of same condition types. So
that number of steps can be reduced in the pricing procedure and hence enhancing the system performance.
Access number of the conditions with in a step in the pricing procedure.
During automatic pricing, the system takes into account the sequence specified by the counter.
Condition Type:
It represents pricing element in pricing procedure as a base price, discount, freight and tax.
The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate
between different kinds of discount; in output determination, between different output types such as order
confirmation or delivery note; in batch determination, between different strategy types.
Ex.: PR00 - Price
K004 - Material Discount
K005 - Customer/Material Discount
K007 - Customer Discount.
Description:
System copies description of condition type from its description (V/06).
From and To:
1. From: This can be used as a base to the condition type for calculating further value.
2. From and To: The range between the steps from and to can be used to specify the range between same
condition types. So that depending upon the condition type, the system deducts or adds the total value of those
condition types from specific common source.

2. Manual:
This indicator specifies whether the specific condition type can be determined manually during sales order
processing.
If we check the box then the entry is going to be manual, if we uncheck it, it is going to be automatic.
For Base Price and Taxes, the entry should be automatic.
For Discounts and Freights, The entry should be manual.
If we check the box, in VA01 when we go to conditions at the header/item level, the condition type will not be listed. If
we require we will have to manually enter it.
If we uncheck the box, in VA01 when we go to conditions at the header/item level, the condition type will be listed.
Mandatory:
This indicator specifies that particular condition type is mandatory in the pricing procedure.
If we check the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the condition
type and try to save the document then system will not allow us to do it and throws an error.
If we uncheck the box, then in VA01 at the header/item level in the conditions tab, if we delete the value in the
condition type and try to save the document then system will allow us to save it, without giving any error.
Mandatory check box should be checked in condition types which are compulsorily required in pricing procedure. Ex.:
PR00, MWST.
If the condition type is checked with mandatory option, then value should be maintained for that condition type,
otherwise the system will not allow the user to process the document.
Statistical:
This indicator if it is activated will not allow the value of the condition type to be taken into net value calculation.
It is used only for information purposes only.
This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the
value).
This is commonly used for condition types
SKTO - Cash Discount
VPRS - Cost (Moving average price/Standard Price).
Print:
The value of this field specifies whether line item can be printed or not in the sales document and at what level it is to
be printed.
Subtotal:
The value of this field determines where the values of subtotals to be captured i.e. in which table and which field.
Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of
a material) are stored.
If the same fields are used to store different condition amounts, the system totals the individual amounts.
These condition amounts or subtotals are used as a starting point for further calculations. You may, for example,
want a subtotal of all the discounts included in the pricing of a sales order.

3. Requirement:
It is a routine that is written by an ABAP consultant according to the business requirement.
By defining Requirement in condition technique we can restrict the access of condition type.
To understand the concept, we will take the example of the Rebates. Rebates are to be included during the billing
document processing and not in the sales document processing. As rebates are given on the delivered quantity and
not on the ordered quantity (in case of cut-off period for rebates).
For rebates we use the condition types BO01 to BO05, and in the Requirement column we give the value 24 which is
"Only in Billing Document".
This Requirement will ensure that these condition types will appear only during the billing document processing.
If new Requirements are to be defined we follow the procedure given below.
Go to T.Code: VOFM. - Maintain Requirements & Formulas
Click on the "Requirements" in the top menu and then click on "pricing".
We have a list of requirements, we can ask ABAP consultant to create new requirement based on the client requests.
And we assign the application type like V - Sales/Distribution etc.
AltCty - Condition formula for alternative calculation type:
It is again a Routine that is written by ABAP Consultant.
It is an alternative formula for the condition type that can be used instead of standard formulas.
For example, let us take the Profit Margin which can be both + / - , so here this routine will help us in generating the
value which can be either + or -. Profit margin is not a condition type so it cannot be classified as +ve or -ve in the
V/06.
Ex.: 950 0 Profit Margin 11.
So we assign 11 - Profit Margin.
If new routines are to be defined we follow the procedure given below.
Go to T.Code: VOFM. - Maintain Requirements & Formulas
Click on the "Formulas" and then on the "Condition Values".
We have a list of routines, we can ask ABAP consultant to create new routines based on the client requests.
And we assign the application type.
AltCBV - Alternative formula for condition base value:
Formula for determining the condition basis as an alternative to the standard.
It is again a Routine that is written by ABAP Consultant.
It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.
Ex.: Freight - KF00.
Freight is calculated based on weight, volume etc. and not on the base price. In pricing there is no entry of weight
from which the value can be referred like we do for discounts using base price. We have to get the value from the
Material master.
In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.
During pricing, the system will consider the value that is mentioned in this column and determine the freight based on
this value.
Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention 13 in this column then the
Freight condition KF00 will be calculated using the weight as 100 kgs.
AcyKy - Account Key/ Accrls - Accruals:

4. The values of the Sales Revenues, Sales Deductions, Freight Revenues, Tax Revenues, and Rebate Accruals etc.
are going to be posted in the respective G/L accounts in Fi Module.
In order to do this we assign account keys/ accruals to the different condition types based on their classification. The
classification shown below.
ERB Rebate sales deduct.
ERF Freight revenue
ERL Revenue
ERS Sales deductions
ERU Rebate accruals
For Ex.,
For all Price condition types like PR00 etc. we assign ERL - Revenue.
For all Discount condition types like K004, K005 etc. we assign ERS - Sales Deductions.
For all Freight condition types KF00 etc. we assign ERF - Freight Revenues.
For all Rebates condition types BO01 to BO05 we assign in Account key ERB - Rebates Sales deductions and for
Accruals ERU - Rebate Accruals.
This account keys and accruals are in turn assigned to respective G/L accounts. So the system posts respective
values in respective G/L accounts in Fi-Co Module.
This also one of the areas of SD - Fi Integration. SD consultants assign the account keys and Fi Consultants assign
the respective G/L accounts in T.Code:VKOA.
Explain the difference between "Condition formula for alternative calculation type" and "
Alternative formula for condition base value".
Condition base value is a concept used in pricing procedure and actual term used is alternate
condition base value. This is a formula assigned to a condition type in order to promote an
alternate base value for the calculation of the value. If you have to calculate price of a material
then you have to have a base value for it. For e.g. if you want to calculate the discount of 10 %
for a material then you have to have a base value on which this 10% is calculated.
Normally, you take the condition value of the base price of the material to calculate the value.
Now, you don't want to take the base value and take other value as base value which are derived
on some formula. So you create a routine which will do the mathematical operations in the
routine and derive you a value which is now used as the base value for calculating the condition
value for a particular condition type.
As per my understanding there is Alternative Condition Base Value. It is a routine which is
assigned to the condition type in the pricing procedure.
Go to transaction V/08 here you select pricing procedure then go in to the control data of the
pricing procedure. Here you can find Alternative Condition Base Value in the 14th column of
the pricing procedure control data.

5. What is the difference between:
1. Conditional base value
2. Conditional value.
3. Conditional amount
1. Conditional base value. When a value is derived for a condition type, based on certain
calculation this value is taken as base.
2. Conditional value. For the number of units ordered depending on the condition amount
mentioned this value is derived.
3. Conditional amount. This is nothing but the unit list price what you are mentioning for the
line item.
1) What is the role of alternative calculation type, condition base value, requirement in pricing
procedure?
2) Where do we define value for alternative condition base value and alternative calculation type
so that system picks up different value, when the value for alternative condition base value and
alternative calculation type is mention in pricing procedure?
**Alternative Calculation type**
This function allows you use a formula as an alternative in finding the value of the condition
type, instead of standard condition technique. This can be used to calculate complex tax
structures.
**Alternative condition base value**
The alternative condition base value is a formula assigned to a condition type in order to promote
an alternative base value for the calculation of a value.
ALTERNATIVE CALCULATION TYPE will determine the CONDITION VALUE using a
Routine rather than the FROM & TO columns in the PRICING PROCEDURE.
For example:
To calculate the PROFIT MARGIN we use the Calculation type as 11 which means the
difference of Base price and Cost price.
CONDITION BASE VALUE: It will determine the BASIS for calculating the value of
condition type alternatively to the Standard.
For example:
The Header discount will be distributed to all the line items based on the value of item. But

6. alternatively, if you wan to distribute the value based on the Quantity you can define the routine
and assign this to the CONDITION TYPE.