# Pricing Procedure in SAP MM, with a Worked PO Example > Source: https://netray.co/erp-help/pricing-procedure-in-sap-mm-with-example > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer In SAP MM the pricing procedure is a calculation schema (standard RM0000) that lists condition types such as PB00 (gross price), discounts and freight in order, with a calculation base for each line. The schema is found from the vendor's schema group and the purchasing organization's schema group, and condition records come from the info record or from MEK1. Delivery costs are conditions on the PO item or entered in MIRO as unplanned delivery cost. ## Kind how-to ## System sap ## Erp SAP ECC / S/4HANA ## Module MM / Purchasing Conditions ## Query pricing procedure in sap mm with example ## Alternate Queries - delivery cost in sap mm - sap mm calculation schema RM0000 - sap purchasing condition types PB00 FRB1 - how to add freight to purchase order in sap ## Applies To SAP ECC 6.0 and S/4HANA on-premise purchasing. Condition type names are standard SAP examples; your system may use copies. ## Steps ### How the schema is built and used **Items:** Go to IMG, Materials Management, Purchasing, Conditions, Define Price Determination Process. The sequence is condition tables, access sequences, condition types, calculation schema, schema groups and schema determination. Define the condition types you need: gross price (PB00 for a price with a master record, PBXX for a manual price on the PO), discounts and surcharges (percentage or absolute) and delivery cost types (for example FRB1 absolute, FRC1 quantity based, FRA1 percentage). Check each type's condition class and calculation type. Each condition type uses an access sequence that tells the system where to look for a record (for example material and vendor, then vendor only). Copy standard sequences rather than editing them. Add the condition types to the calculation schema (RM0000 or your copy) in the right order, with reference steps (from and to lines) and the subtotal and requirement rules. Assign the schema through schema groups: vendor master (Purchasing data, Schema group, vendor) and purchasing organization (schema group, purchasing org). Schema determination maps the pair to the calculation schema. Maintain condition records: info record (ME11 or ME12) for vendor and material price, or MEK1 for a condition with its own validity. Create a PO in ME21N. Open the item Conditions tab and check each line, the base and the result. Net value and the item net price follow the schema. ## Sections ### Worked example with discount and freight **Body:** A PO item for 100 pieces of material MAT-1 from vendor V1. The info record has PB00 at 50.00 per piece. The vendor has a 5 percent discount (condition type RA01, percentage, on gross price) and the shipping terms add freight FRB1 of 200.00 for the whole item. Gross price: 100 x 50.00 = 5,000.00. Discount: 5 percent of 5,000.00 = minus 250.00. Net after discount: 4,750.00. Freight: plus 200.00, so the item value that goes into the PO is 4,950.00, which is an effective 49.50 per piece. Whether freight is included in the net price on the PO or only in the effective price depends on your schema subtotal rules and condition category. On goods receipt, the stock is valued according to the material's price control. With moving average price (V) the freight raises the stock value if it is a planned delivery cost to inventory; with standard price (S) the difference goes to a price difference account. Account keys and OBYC settings decide where each amount lands. **Code:** - PB00 Gross price 100 x 50.00 = 5,000.00 - RA01 Discount 5% - 250.00 - Net 4,750.00 - FRB1 Freight (absolute) + 200.00 - Effective item value 4,950.00 (49.50 / pc) ### Delivery cost in SAP MM: planned and unplanned **Body:** Planned delivery costs are conditions on the PO (FRB1, FRC1, FRA1 or customs duty types). They are accrued at goods receipt, then cleared when the carrier's invoice arrives. The condition's account key (for example FR1 for freight clearing) is posted through OBYC. Unplanned delivery costs are charges nobody put on the PO. You enter them in MIRO in the unplanned delivery costs field when posting the invoice, with a tax code and a distribution option (to the item based on value, quantity or equally). Use a separate vendor PO for freight if the carrier is a different vendor from the supplier and you want to receive the cost as a service. ### Why the PO has no price or the wrong price **Body:** If the net price is zero, no condition record was found. Check the info record validity dates, the purchasing organization and whether the info record is for the right plant or material group. The condition analysis in the Conditions tab of the PO item (analysis button) shows which access was tried. If the wrong schema is used, check the schema group on the vendor and on the purchasing organization against the schema determination table. Changing a schema group on the vendor does not reprice open POs automatically, because prices are stored on the PO item. ## Pitfalls - Editing the standard schema RM0000 instead of copying it, which complicates upgrades. - Forgetting that a PBXX price is a manual PO price without a record, so it does not update from the info record. - Mixing an absolute freight at item level with a percentage that uses a base line that excludes it, giving unexpected totals. - Posting freight on the PO without the right account key, so it lands in the wrong account at invoice. - Expecting an info record price change to reprice open POs; you reprice the item manually or with a PO price update. ## Ai Angle Pricing questions are usually 'why this price' on one PO. An assistant grounded in SAP data (ERPray, read-only, role-aware, can run on-prem) can read the item conditions from the PO tables, compare them to the info record validity and show which condition drove the net price. Schema and condition changes stay with purchasing and finance. ## Faq ### What is the pricing procedure in SAP MM? **Answer:** It is the calculation schema used for purchasing, standard name RM0000. It lists the condition types (prices, discounts, freight, taxes) in order and defines how each is calculated to reach the net price of a PO item. ### What are PB00 and PBXX in SAP? **Answer:** PB00 is the gross price condition type that uses condition records, such as from an info record. PBXX is the gross price for manual entry on the PO when no record exists. Both feed the first line of the schema. ### How is delivery cost handled in SAP MM? **Answer:** Planned delivery cost is a freight condition on the PO item and accrues at goods receipt. Unplanned delivery cost is entered in MIRO when you post the invoice. Both post to accounts defined in OBYC. ### Where do I configure the purchasing pricing schema? **Answer:** In the IMG under Materials Management, Purchasing, Conditions, Define Price Determination Process. There you maintain condition tables, access sequences, condition types, the calculation schema and the schema determination. ## Search terms pricing procedure in sap mm, pricing procedure in sap mm with example, sap mm calculation schema, sap rm0000 schema, sap pb00 condition type, delivery cost in sap mm, sap freight condition frb1, sap unplanned delivery cost miro, sap purchasing condition records mek1, sap schema group vendor --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json