ORDER TO CASH · PRICE
How does SAP build the sales price?
SAP pricing is a controlled search and calculation process. Procedure determination selects the calculation framework; condition techniques find eligible records; the resulting condition lines explain the order value.
PROCESS ROLE
Pricing converts commercial policy into explainable condition lines
A pricing procedure sequences base price, discounts, surcharges, freight, tax, statistical values, subtotals, and account keys. Access sequences search condition tables from specific to general until an eligible record is found.
PRICING MECHANISM
From business context to an order value
Each stage answers a different question. Skipping directly to a condition record often hides an earlier determination problem.
Determine the procedure
Sales area, document pricing procedure, and customer pricing procedure select the pricing procedure.
Run condition accesses
Each condition type uses its access sequence to search eligible condition tables and keys.
Read condition records
Validity, scales, currency, unit, customer, material, and exclusion rules decide which values qualify.
Calculate and subtotal
The procedure applies sequence, formulas, requirements, manual rules, subtotals, and statistical treatment.
Carry value forward
Copying and account keys help preserve or redetermine pricing and connect relevant values to billing and Finance.
OPERATIONAL FLOW
What happens in SAP
Read the sequence as one connected business event, not as isolated transactions.
Choose the calculation framework
Pricing procedure determination decides which ordered list of condition types applies to the transaction.
Find eligible commercial records
Access sequences search combinations such as customer/material, price list/material, customer group, or material alone.
Build the net value
Base price, discount, surcharge, freight, and other conditions calculate in procedure order with explicit bases and subtotals.
Prove the result
Condition analysis shows which accesses succeeded or failed, why a line was inactive, and where a manual change entered the price.
DESIGN & CONTROL
What shapes the result
These controls work together; a locally correct setting can still produce the wrong end-to-end outcome.
Determination integrity
Sales area, document pricing procedure, customer pricing procedure, and procedure assignment must agree before any condition search begins.
Condition governance
Condition tables, access sequence order, validity, scales, exclusion, manual-entry rules, and authorization protect commercial policy.
Financial hand-off
Account keys and account determination connect account-relevant pricing conditions to revenue, discount, freight, accrual, and tax postings.
DIAGNOSTIC EVIDENCE
Read the calculation like an audit trail
The visible net price is only the outcome. A reliable diagnosis traces procedure determination, access results, calculation bases, and manual intervention.
Selected procedure, procedure-determination inputs, condition sequence, requirements, formulas, and subtotals.
Condition table keys, successful and skipped accesses, validity dates, scales, currency, unit, and exclusion.
Active and inactive conditions, calculation base, rate, value, manual origin, statistical flag, account key, and copied value.
WORKED EXAMPLE
A price that can be reconstructed
A chair line finds a base value of 1,000, applies a 5% customer discount, and adds 80 freight. The net value before tax is 1,030. Condition analysis must show the source record and calculation base for every line, not merely the total.
- Base price source is visible
- Discount base equals 1,000
- Freight rule is explicit
- Net value reconciles to 1,030
See how these module capabilities connect across fulfilment branches, logistics documents, accounting entries, billing, and clearing.