1. Pricing in Sales and Distribution (SD)  Companies have developed numerous pricing and discount strategies—some unencumbered by any logical methodology  SAP has developed the Condition Technique as a structured but flexible approach to setting conditions: prices, discounts, surcharges and taxes  The Condition Technique has proven itself to be such a good programming concept that it has been applied to other areas in SAP

2. Condition Technique Overview Sales Document Pricing Procedure Condition Types Access Sequence Condition Table Condition Record How Price is Determined How Condition is Calculated How to find data Location of condition data Actual Condition Data (price, discount, etc.)

3. Condition Technique Overview Sales Document Pricing Procedure Condition Types Access Sequence Condition Table Condition Record How Price is Determined How Condition is Calculated How to find data Location of condition data Actual Condition Data (price, discount, etc.)

4. Income Tax Analogy: Choosing Form 1040EZ Taxable income below $100,000 Single or Married Filing Jointly Under age 65 No dependents Interest income of $1,500 or less 1040A Taxable income below $100,000 Capital gain distributions, but no other capital gains or losses Only tax credits for child, education, earned income, child and dependent care expenses, adoption, elderly and retirement savings contributions Only deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees No itemized deductions 1040 Taxable income of $100,000 or more Itemized deductions Self-employment income Income from sale of property

5. Sales Document  Pricing Procedure Sales Document Pricing Procedure Document Price Procedure (code) Sales Document Customer Price Procedure (code) Sales Area

6. Condition Technique Overview Sales Document Pricing Procedure Condition Types Access Sequence Condition Table Condition Record How Price is Determined How Condition is Calculated How to find data Location of condition data Actual Condition Data (price, discount, etc.)

7. Income Tax Analogy: Form (1040EZ) Form 1040 EZ (pricing procedure) specifies data from W-2 Form (condition type)

8. Income Tax Analogy: Form W-2 (condition type)

9. Pricing Procedure  Condition Type Pricing Procedure Condition Types Pricing Procedure specifies Condition Types and processing sequence

10. Condition Technique: Condition Type Condition Type determines how condition (price, in this case) is calculated

11. Tax Calculation 24,955 24 24,979 7,950 17,029 2,547 547 2,196 261

12. Price Calculation