SAP CRM Pricing & Billing: Elements, Procedure, Type, Web UI

Overview

Pricing functionality within SAP CRM is provided by Internet Pricing and Configurator (IPC) application
IPC is a Java based application
The IPC is responsible for pricing throughout the entire SAP CRM application
Pricing data can be maintained within CRM system, or it can be downloaded from ERP
Possible scenarios:
Scenario without ERP integration:

Following are the elements of CRM Pricing:

Elements of CRM Pricing

Pricing in SAP CRM is based on Pricing Procedure
Pricing procedures in CRM have a source (CRM or ERP)
Pricing Procedure defines:
the valid condition types
calculation sequence of condition types in the transaction
subtotals that are created and displayed on the pricing screen
what all manual processing of pricing is possible
requirements to be fulfilled in order that a specific condition type is taken into account
The Pricing procedures are defined in Customizing:
SPRO -> Customer Relationship Management -> Basic Functions -> Pricing -> Define Settings for Pricing -> Create Pricing Procedure
You need to manually setup the determination of the pricing procedure

Pricing procedure determination is influenced by following elements:
Sales organization
Distribution channel
Document pricing procedure (assigned to transaction type)
Customer pricing procedure (assigned to business partner as billing data in sales area data)
Division (optional)

The Pricing Procedure can be determined in below customizing path:
SPRO -> Customer Relationship Management -> Basic Functions -> Pricing -> Pricing in the Business Transaction -> Determine Pricing Procedure

The Condition Type defines the characteristics and attributes of a condition
You can define a condition type for every type of price, surcharge, or discount that occurs in your business transactions
Condition type determines:
category of condition
how it is used
calculation type
scale base
It is possible to set a condition type as an automatic surcharge or an automatic discount

Condition types are defined in Customizing:
SPRO -> Customer Relationship Management -> Basic Functions -> Pricing -> Define Settings for Pricing -> Create Condition Types
Condition types in CRM have a source system:
local = CRM
other system (such as R/3)
Via CRM Middleware, it is possible to load SAP ERP condition types into the SAP CRM system. SAP CRM condition types cannot be loaded into the ERP system
Also, some of the ERP condition types cannot be used within the SAP CRM system
Within the applications, condition types are referred as Pricing Element

Access Sequence in Condition Type defines a search strategy that CRM system uses to search for valid data in a specific condition type. It comprises of one or more accesses
These accesses are each defined by a condition table
The sequence of the accesses controls the priority of the individual condition records
The accesses tell the system where to start searching after a valid condition record
Access sequences are defined in Customizing:
SPRO -> Customer Relationship Management -> Basic Functions -> Pricing -> Define Settings for Pricing -> Create Access Sequences
The combination of fields (keys) that identify an individual condition record is defined by a condition table
Thus, condition table defines the combination of fields that an individual condition record consists of
The condition table consists of a combination of search and result fields
Path to define Condition tables in customizing:
SPRO -> Customer Relationship Management -> Basic Functions -> Pricing -> Define Settings for Pricing -> Create Condition Tables
Following are name ranges defined for the condition tables:

Once defined and assigned to a transaction type in the customizing, Pricing Procedure is used to calculate the pricing for the relevant objects in the Transaction
For example below is a scenario:

Here, transaction has a product, for which Pricing Procedure found is 0CRM1
System will now run all the Condition Types within this particular Pricing Procedure
Thus, it will start with the first Condition Type, i.e., PR00, which in this scenario is calculating the price
PR00 condition type is having reference to the Access Sequence ZPR0
Thus, the Access Sequence ZPR0 is followed for the Price
This Access Sequence calls two condition Records
One of these condition types is found as not available for this particular data in the transaction
It is calculating the Price based on another Condition Record
In the similar fashion, all the Condition Types in concerned Pricing Procedure are processed
In this example, 0K07 is executed for Customer Discount and 0KA0 is executed for Sales Promotion discount
Based upon all the Condition Type executions, different components of price are found
Thus using all this data, it calculates the net price of the product in the current transaction
Customers can see the final price

Price elements can be maintained within the CRM Web UI
It is added to various roles within the CRM Web UI. For example, users having Sales Professional role can find the Prices within the Sales Operations:

Following screen within CRM Web UI helps create a new Price Element with the required and relevant data like Sales Organization, etc.

CRM billing can be used for the invoicing related to the transaction within SAP CRM
In general scenario, CRM system is connected to the ERP system for billing related processing
But SAP CRM also provides functionalities related to Billing process in the form of CRM Billing
Billing processing within CRM consists of following steps:
Input processing
Billing
Output processing
As part of the Input processing, CRM billing takes over the billing-relevant items from different business transactions. These items are stored as billing due list items
During the Billing process, CRM Billing can group the related billing due list items from different CRM transactions into a joint billing document
The billing due list can process the due list items
It can process the due list items as part of an individual billing
Also, it can process due list items as part of collective billing
Output processing consists of:
Invoice output
Transfer to SAP Financials
Retrieval in SAP BI
The Billing output is performed using the SAP SmartForms

CRM Billing documents are to various Business roles (for ex., SALESPRO) within SAP CRM Web UI
Billing Document can be found in the Sales Operations Work Center

Different data related to the Billing Document can be seen within different assignment blocks in the Billing Document OverView page:

As shown in the below screenshot, details of the individual assignment blocks

Billing Document Details: Presents general data related to the Billing Document like the Payer details and the relevant dates
Prices: This assignment block shows different price values along with the quantity relevant to this Billing Document
Items:These are the Items considered within this Billing Document for the Pricing

Other assignment blocks (screenshot below):
Transactions: CRM transactions relevant to this Billing Document
Follow-up Transactions: Transactions created as follow-up to this Billing Document
Notes: Different type of text relevant to the Billing Document