Condition Technique
Meet Complex SD Pricing Requirements More Easily

  • by Mitresh Kundalia, Director — SAP Practice, Quality Systems & Software
  • March 1, 2005
There are many ways to use the condition technique, such as complex pricing calculations, account determinations, and output determination. These examples provide ideas on how to optimize the condition technique in your business.
Key Concept
The condition technique in pricing is the methodology that the R/3 system uses to determine an item's net sale price. It is used to track various aspects of a price, which often differ among customers based on business requirements. The condition technique tells R/3 how to calculate a price rather than simply saying which numbers to use.

In the business world, pricing requirements often become complex. The condition technique helps you cope with these complexities. It is one of the most powerful and widely used tools available in SAP.

What makes the condition technique so powerful is its flexibility to meet your specific requirements, from basic addition to more complex calculations. The Sales and Distribution (SD) module uses the condition technique extensively within processes such as pricing calculations, output control, account determination, material determination, free goods determination, and more.

I will explain how the condition technique works and show how SAP uses it across logistics processes with an example from pricing. First, I'll give you an overview of the condition technique and how it works. Then I'll detail condition-technique components and how they provide versatility.

Condition Technique Basics

Let's begin with a basic example of pricing product R-100, a t-shirt. As shown in Figure 1, the product pricing has two basic elements — List Price and Customer Discount. The difference between the two, if applicable, is the net sale price of the product. In this case, the Net Sale Price is 9 USD per t-shirt.

Figure 1
Meet Complex Business Requirements with User Exits in SEM BPS

Mitresh Kundalia

Mitresh Kundalia heads the SAP practice at Quality Systems & Software (, a consulting firm specializing in SAP S/4HANA, SAP General Ledger, and complex System Landscape Optimization (SLO)-type reorganizations. Mitresh is widely acknowledged as a leading SAP expert, with multiple publications and an SAP-PRESS book to his credit. He has published more than 50 peer-reviewed articles and white papers, and he has given presentations at various SAP conferences and events. Mitresh is the chief solutions architect of General Ledger Migration Optimizer (GLMO), a leading product to accelerate and jump-start the SAP S/4HANA and SAP General Ledger initiatives; SAP Data Reorganization Optimizer (SDRO), an SLO-type product for managing complex system landscape reorganizations; and Group Currency Activation and Conversion (GCAC), a product suite to manage introduction of parallel currencies and conversion of data in a live SAP system.

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