How SAP MM Pricing Procedure Works – Step-by-Step Guide (2025)

Understanding the SAP MM pricing procedure is essential for professionals involved in procurement and materials management. This step-by-step guide simplifies the pricing mechanism in SAP MM, helping both beginners and experienced consultants master this key configuration.

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What is Pricing Procedure in SAP MM?

The pricing procedure in SAP MM defines how the system calculates the final price of a material or service during procurement. It includes condition types such as base price, discounts, freight, taxes, etc., applied in a logical sequence during the purchase order process.

This structure ensures accurate supplier negotiations and systematic cost computation within SAP ERP.

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Basic-Level SAP MM Pricing Questions

1. What are condition types in SAP MM?

Condition types represent pricing elements:

• PB00 – Gross Price

• RA01 – Discount

• FRB1 – Freight

• MWST – Tax

Each condition type includes control data influencing value calculation.

2. What is a pricing procedure?

It is a set of condition types and steps that determine the net cost of materials or services in a purchase document.

3. What is an access sequence?

An access sequence is the search strategy used to find valid pricing records for a condition type.

4. How is a pricing procedure determined?

It’s based on:

• Vendor Schema Group (from vendor master)

• Purchasing Organization Schema Group (customizing)

Together they determine the pricing procedure via schema group assignment.

5. What is a condition record?

A condition record stores specific pricing data (e.g., a vendor discount for a material).

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Intermediate-Level SAP MM Pricing Questions

6. How is a pricing procedure configured?

Configuration steps include:

• Define condition types (T-code: M/06)

• Define access sequences (M/08)

• Maintain condition tables

• Create condition records (MEK1)

• Define calculation schema

• Assign to schema groups via OMFI

7. What is a calculation schema step?

Each step includes:

• Step number

• Condition type

• From/To (calculation range)

• Manual/Automatic indicator

• Statistical indicator

• Print flag

• Account key for posting

8. Difference between automatic and manual conditions?

• Automatic: Based on condition records and access sequences

• Manual: Entered by users directly in the PO (e.g., one-time discounts)

9. How is tax calculated in pricing?

Tax (e.g., MWST) is determined based on the tax code maintained in the purchase order.

10. What is the role of the statistical indicator?

It marks condition types for information purposes only (not used in net price calculation).

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Advanced-Level SAP MM Pricing Questions

11. How does SAP handle multiple discounts?

SAP allows sequential discounts via condition types:

• RA01 – 10%

• RA02 – Extra 5%
  Handled through From-To ranges.

12. What is a subtotal in the pricing procedure?

Subtotals act as intermediate results used for further calculations:

• Subtotal 1 – Base price

• Subtotal 2 – Price after freight

13. Function of account keys in pricing?

Account keys (e.g., FRE for Freight) map pricing conditions to G/L accounts for financial postings.

14. How do you troubleshoot pricing errors?

• Use ME23N to check PO prices

• View condition records with MEK3

• Validate access sequences via M/08

• Check schema assignment in OMFI

15. Can multiple pricing procedures exist?

Yes, different schema groups (vendor/org) can trigger different procedures (e.g., local vs international).

16. How does pricing work in service POs?

Services rely more on calculated charges. Condition types still apply but without goods receipt.

17. MM Pricing vs SD Pricing?

• MM Pricing – For vendor-side procurement

• SD Pricing – For customer-side sales, more tax- and rebate-focused

18. How does SAP scale pricing for large enterprises?

• Regional condition records

• Flexible schemas

• Multiple access sequences

• Integration with tax engines (e.g., Vertex)

19. How is freight handled in pricing?

• Vendor-paid: Included in invoice

• Company-paid: Marked statistical

• Posted using separate account keys

20. How to test a pricing procedure?

1. Create a PO in ME21N

2. Check “Conditions” tab

3. Compare with expected calculation

4. Adjust condition records/schema if needed

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Summary of Configuration Steps

• M/06 – Define condition types

• M/08 – Create access sequences

• Create calculation schema (pricing procedure)

• Assign schema groups in OMFI

• MEK1 – Enter condition records

• ME21N – Test via purchase order

Read More About : Master SAP S/4HANA MM Sourcing & Procurement | Real-Time Training with Certification

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Conclusion

Mastering the SAP MM pricing procedure is vital for accurate procurement costing and efficient vendor negotiations. This guide gives you a complete understanding—from fundamental concepts to advanced configuration—ensuring you’re fully equipped for real-world SAP MM scenarios. Mastering the SAP MM Pricing Procedure is essential for ensuring accurate and transparent procurement processes in SAP. From defining condition types and access sequences to configuring schema and testing purchase orders, understanding each step empowers SAP professionals to manage costs effectively and streamline purchasing operations. Whether you’re a fresher or an experienced consultant, a strong grasp of the SAP MM Pricing Procedure is a critical asset in any SAP MM implementation or support role.

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