Create condition types

In this step you define condition types to use in Profitability Analysis (CO-PA).

A condition type is a key used that defines the attributes of a condition and identify the condition in the system. You can use condition types to calculate expected costs or sales deductions. For example, you can define conditions to create expected costs as a percentage of the sales revenue or based on the quantity sold. In addition, you can define price conditions to determine the standard price of the product sold. And you can define base conditions to find or calculate values to be used as a basis for calculating other conditions in a costing sheet.

The attributes of a condition type are defined by the following:

o Condition category

o Calculation type

o Condition class

o Scale basis

In addition, you can set other flags for each condition type to determine whether it can be changed during condition analysis and for condition master record maintenance.

The following contains a description of these attributes of a condition type.

Condition category

The condition category is used to classify conditions according to predefined criteria, such as whether the condition is a base value or a price.
The following condition categories can be used in CO-PA:

E Cash discount
G Transfer price
K Base value excluding tax
S Standard cost
T Moving average cost
" " (no condition category): for conditions that do not fit
into any of the above categories, such as surcharges and
deductions
For conditions of the category G, the system reads either the standard price ("S") or the moving average price ("V") of the material, depending on which price control flag is set in the material master. condition class B. No access sequence is required for this condition type. For condition category S , the system reads the standard price from the material master regardless of the price control. For condition category T , the system reads the moving average price from the material master regardless of the price control. Condition types of the categories G, S, and T do not require access sequences.
The condition category E lets you calculate a percentage from the payment key in the customer master record. Conditions of this category have has no effect unless a payment key exists in the master record of the customer you entered.
Calculation type
The calculation type determines how the system calculates the value for a condition. The result can be an absolute value (such as a price) or a percentage which refers to a quantity.
The following calculation types can be used in CO-PA:

A Percentage
B Fixed amount
C Quantity-dependent
Condition class
The condition class divides condition types into one of the following classes:

A Discounts or surcharges
B Prices
Scale basis
The scale basis determines how the system interprets scaled condition records of a condition. The scale can be based on quantities or values.
The following scale bases can be used in CO-PA:

B Value scale
C Quantity scale
Change options
The change options let you determine which parameters of the condition type can be changed during condition analysis. You can specify which of the following can be changed: amount/percent, value, calculation type, or quantity conversion. You can also allow users to delete the condition type.
Condition record maintenance
Under condition record maintenance, you can define whether the system should check scaled rates. That is, you can determine whether the scales must be defined in ascending or descending order.

The following overview shows which combinations of the parameters (condition category, calculation type, condition class, scale basis, and access sequence) are required for different condition types.

Konditionsart							CCat. CalcT. C.cl. Sc.B.  A.C. 
a) Define reference value				 K	 B	B	 -	 - 
b) Price from material master
ba) Price acc. to price control		 G	 C	B	 -	 -
bb) Standard price						S	 C	B	 -	 -
bc) Moving average price				T	 C	B	 -	 -
c) Cash discount from cust. master		E	 A	A	 -	 -
d) Percentage surcharge/reduction
da) Without scale						 -	 A	A	 -	yes
db) With value scale					-	 A	A	 B	yes
dc) With quantity scale				 -	 A	A	 C	yes
e) Quantity-dependent surcharge/reduction
ea) Without scale						 -	 C	A			yes
eb) With value scale					-	 C	A	 B	yes
ec) With quantity scale				 -	 C	A	 C	yes
f) Fixed value
fa) Without scale						 -	 B	B			yes
fb) With value scale					-	 B	B	 B	yes
 

The change options and condition record maintenance are independent of these settings.

All condition types not assigned to the categories K, G, S, T, or E, must be assigned to an access sequence. This assignment is required so that you can maintain condition records for that condition type (such as a discount of 1 USD per unit).

The following examples show how the condition types listed here need to be defined. Where an access sequence is required, it is assumed that this access sequence calls for the system to read a condition table that uses the characteristic "Material group".

Example 1

A base condition is defined for revenues from Sales and Distribution (SD). In the costing sheet you can use this base condition to calculate surcharges and reductions.

Entries
Condition type: Define tracing factor
Condition category: K, Calculation type: B, Condition class: B

Example 2

The value is read from the material master depending on the quantity. For example, if the standard price for the material M099312 is USD 100 and the imputed quantity is 5 units, a condition calculates the value USD 500.

Entries
Condition type: Allocation value according to price control
Condition category: G, Calculation type: C, Condition class: B
Condition type: Standard price
Condition category: S, Calculation type: C, Condition class: B
Condition type: Moving average
Condition category: T, Calculation type: C, Condition class: B

Example 3

The percentage for the cash discount is taken from the customer master.

Entries:

Example 4

1. You can maintain the following condition record for materials group 312:
1% surcharge/reduction (e.g. from revenue as the imputed freight or sales commissions)
Entries
Condition type: Define fixed percentage surcharge/reduction
Condition category: -, Calculation type: A, Condition class: A, with access sequence

2. You can maintain the following value stack for materials group 312:
3% surcharge/reduction (e.g. from net revenue as a rebate) starting at sales of USD 10,000
3.5% surcharge/reduction (e.g. from net revenue as a rebate) starting at USD 50,000
Entries
Condition type: Define scaled percentage surcharge

Condition category: -, Calculation type: A, Condition class: A, Scale basis B, with access sequence
3. You can define the following quantity scale for materials group 312:

1% surcharge/reduction (e.g. from net revenue as a rebate) starting at a sales quantity of 1000 units

2% surcharge/reduction (e.g. from net revenue as a rebate) starting at a sales quantity of 10,000 units

Entries
Condition type: Define percentage surcharge/reduction scaled by quantity
Condition category: -, Calculation type: A, Condition class: A, Scale basis: C, with access sequence

Example 5

1. You can define the following condition record for materials group 312:

Surcharge/reduction of USD 1 (e.g. for packaging)

Entries
Condition type: Define non-scaled quantity-based surcharge/reduction
Condition category: -, Calculation type: C, Condition class: A, Scale basis -, with access sequence
2. You can define the following value scale for materials group 312:

USD 0.10 surcharge/reduction per unit (e.g. as a customer discount) starting at revenue of USD 100
USD 0.20 surcharge/reduction per unit (e.g. as a customer discount) starting at revenue of USD 500

Entries
3. You can define the following quantity scale for materials group 312:

USD 0.10 surcharge/reduction per unit (e.g. as a quantity discount) starting at 1000 units
USD 0.30 surcharge/reduction per unit (e.g. as a quantity discount) starting at 10,000 units

Entries
4. You can define the following quantity scale for materials group 312:

USD 50.00 fixed (e.g. for additional services) starting at sales of 1000 units
USD 70.00 fixed (e.g. for additional services) starting at sales of 10,000 units

Entries

Activities

Create your CO-PA-specific condition types. Note that you must define and save your access sequences before you can assign these to your condition types and create condition records.

Further notes

You can delete condition records that are no longer valid. Once you have done this, these condition records will no longer be used in valuation. However, they still remain in the system until the next reorganization.