5.2 Condition Types, Calculation Types, Scales, and Condition Classes

Condition Types, Calculation Types, Scales, and Condition Classes

Every line item in an SAP pricing procedure is governed by a Condition Type. The condition type dictates how an individual pricing component behaves: whether it represents a price, a surcharge, a discount, or a statutory tax; how its amount is entered and calculated; whether it supports tiered pricing scales; and whether sales representatives are permitted to override its value manually.

All condition types are defined in customizing transaction V/06 and stored in database table T685A.

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Anatomy of Condition Type Customizing (V/06)

Transaction V/06 contains four primary control clusters that dictate how the pricing engine processes a condition type.

+-------------------------------------------------------------------------+
| Customizing Transaction V/06 (Table T685A)                             |
+-------------------------------------------------------------------------+
| 1. Control Data 1:                                                      |
|    • Condition Class (KOAID)      • Calculation Type (KRECH)            |
|    • Condition Category (KNTYP)   • Plus/Minus Sign                     |
|                                                                         |
| 2. Changes which can be made:                                           |
|    • Manual Entries (KMANU)       • Amount/Percent Changeable           |
|    • Deletion Allowed             • Value Changeable                    |
|                                                                         |
| 3. Master Data:                                                         |
|    • Valid-From / Valid-To Defaults • Reference Condition Type          |
|                                                                         |
| 4. Scale Data:                                                          |
|    • Scale Base Type (KZBZG)      • Scale Type (Scale Type D = Interval)|
+-------------------------------------------------------------------------+

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1. Condition Class (KOAID)

The Condition Class categorizes the pricing element into high-level functional groups:

• A = Discounts / Surcharges: Reductions or additions to gross price (e.g., K004, K007, KF00).
• B = Prices: Baseline prices from which discounts and surcharges are calculated (e.g., PR00, PB00).
• C = Expense / Rebate: Historical rebate agreements or accrual-related condition types.
• D = Taxes: Statutory output taxes calculated according to tax jurisdiction or country code (e.g., MWST).
• E = Extra pay: Used in specialized applications rather than standard sales pricing.

2. Calculation Type (KRECH)

The Calculation Type dictates how the pricing engine interprets the condition rate entered in master data or on the sales order screen:

• A = Percentage: Rate is entered as a percentage (e.g., 5.000 = 5% discount). Calculated against a base value step.
• B = Fixed Amount: Rate is a flat monetary value regardless of the quantity ordered (e.g., $50.00 expedited processing fee for the line item).
• C = Quantity Dependent: Rate is an amount per condition pricing unit (e.g., $12.50 per 1 EA, or $120.00 per 1 CS).
• D = Gross Weight: Rate per weight unit (e.g., $2.00 per 1 KG gross weight).
• E = Net Weight: Rate per weight unit calculated on net product mass.
• F = Volume: Rate per volume unit (e.g., $15.00 per 1 M3).
• G = Formula: Condition value is computed dynamically by an ABAP formula routine configured in VOFM.
• H = Percentage included: The percentage is treated as already contained in the base value.
• J = Per mille: The rate is in thousandths (‰) of the base value, like a percentage with a finer unit.

3. Condition Category (KNTYP)

The Condition Category groups condition types that need special system behavior:

• D = Taxes: Tax condition types such as MWST.
• E = Cash discount: SKTO; the system reads the first cash discount percentage of the item's payment terms (table T052) instead of condition records.
• G = Cost: VPRS; the system reads the material's valuation segment and uses the standard price or the moving average price, whichever the material master specifies.
• S = Standard price and T = Moving average price: Variants of a cost condition that always read the standard price or always read the moving average price.

4. Plus/Minus Sign

Controls which sign the condition amount may have:

• Blank: positive and negative amounts are allowed.
• A: only negative amounts are allowed, as for discounts such as K004, K005, and K007.
• X: only positive amounts are allowed, as for prices and surcharges.

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Standard SAP Condition Types

SAP S/4HANA delivers standard, preconfigured condition types that serve as best-practice templates:

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Manual Changes Options

In V/06, the Changes which can be made section controls operational governance over pricing overrides in transactions VA01 / VA02:

• Manual entries (KMANU):
  • Blank: No limitations. Condition can be determined automatically via access sequence OR entered manually.
  • A: Free entry permitted (no access sequence needed; purely manual entry).
  • B: Automatic determination has priority. If the system finds a condition record, manual entry is disallowed.
  • C: Manual entry has priority. If entered manually, subsequent repricing will not overwrite the manual entry.
  • D: Not possible to process manually. The condition type cannot be entered, edited, or deleted manually. It must be determined automatically by the system.

Use setting D for condition types that must never be keyed or changed by users, such as an internal cost condition. Check the delivered settings in your system before relying on them in an exam scenario.

Additionally, granular checkboxes govern specific actions:

• Amount/percentage: Checkbox permitting manual rate adjustments.
• Value: Checkbox permitting manual absolute value entry.
• Delete: Checkbox allowing users to delete the determined condition line from the pricing screen.

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Pricing Scales: Standard vs. Graduated (Interval)

Pricing scales enable enterprises to incentivize bulk purchasing by granting lower prices or higher discounts as order volume increases.

Scale Base Types (KZBZG)

The scale base determines the unit of measurement used to evaluate scale tiers:

• C = Quantity Scale: Evaluated based on line item order quantity (e.g., 1–49 EA, 50–99 EA, 100+ EA).
• B = Value Scale: Evaluated based on total currency value (e.g., orders over $1,000.00, $5,000.00, $10,000.00).
• D = Gross Weight Scale: Evaluated based on total gross weight in KG or LB.
• E = Net Weight Scale: Evaluated based on net weight.
• F = Volume Scale: Evaluated based on volume in M3 or FT3.

Scale Types: The Critical Distinction

SAP supports two fundamentally different scale calculation mechanisms:

+-------------------------------------------------------------------------+
| Base Scale (Scale Type A, 'From' amounts)                               |
| Entire order volume gets the rate of the achieved tier threshold.       |
| Tier 1: 1-19 EA  --> \$100.00 / EA                                      |
| Tier 2: 20-49 EA -->  \$85.00 / EA                                      |
| Tier 3: 50+ EA   -->  \$70.00 / EA                                      |
|                                                                         |
| Order of 65 EA:                                                         |
| 65 EA * \$70.00 = \$4,550.00 (All 65 units priced at \$70.00)           |
+-------------------------------------------------------------------------+
                                     vs
+-------------------------------------------------------------------------+
| Graduated / Interval Scale (Scale Type D)                               |
| Order volume is split into brackets; each bracket is priced separately. |
| Bracket 1: First 19 EA   --> \$100.00 / EA = \$1,900.00                 |
| Bracket 2: Next 30 EA    -->  \$85.00 / EA = \$2,550.00                 |
| Bracket 3: Remaining 16  -->  \$70.00 / EA = \$1,120.00                 |
|                                                                         |
| Order of 65 EA:                                                         |
| Total Price = \$1,900.00 + \$2,550.00 + \$1,120.00 = \$5,570.00          |
+-------------------------------------------------------------------------+

The Purchasing Anomaly of Standard Scales

In a standard "From" scale, notice the dangerous "cliff effect" between Tier 2 and Tier 3:

• An order of 49 units costs: $49 \times \text{\textdollar}85.00 = \mathbf{\text{\textdollar}4{,}165.00}$
• An order of 50 units costs: $50 \times \text{\textdollar}70.00 = \mathbf{\text{\textdollar}3{,}500.00}$

A customer ordering 50 units pays $665.00 less than a customer ordering 49 units! In business-to-business commerce, savvy buyers exploit this by ordering extra units just to throw them away or return them.

Why Graduated Scales (Scale Type D) Solve the Problem

In a graduated (interval) scale configured with Scale Type D in transaction V/06 (in the standard system, condition type PR02 uses it):

• The first 19 units are always $100.00 ($19 \times 100 = \text{\textdollar}1{,}900$).
• Units 20 through 49 are always $85.00 ($30 \times 85 = \text{\textdollar}2{,}550$).
• Every unit from the 50th onward is $70.00.

Under Scale Type D:

• 49 units cost: $\text{\textdollar}1{,}900 + (30 \times \text{\textdollar}85) = \mathbf{\text{\textdollar}4{,}450.00}$
• 50 units cost: $\text{\textdollar}1{,}900 + \text{\textdollar}2{,}550 + (1 \times \text{\textdollar}70) = \mathbf{\text{\textdollar}4{,}520.00}$

The anomaly is eliminated: each additional unit always increases the total value, while customers still receive lower unit prices for higher volumes.

Two rules from the official pricing course apply to interval scales. First, interval scales cannot be used for group conditions. Second, make the last scale level a number larger than will ever occur in production, so the last part of a line item quantity is always covered. In the standard pricing procedure, PR02 (scale type D) follows PR00; when both find records, only the later price stays active.