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Book Review: Effective Pricing with SAP ERP ( SAP Press )

You would wonder why the hell is he publishing a book review of a SAP SD topic in CRM area. The reason is very simple. There were no books available for pricing in SAP CRM area hence I decided to accelerate my learning by purchasing this book. In fact if you have worked on projects which have a CRM and ECC integration using CRM Middleware , then most of the customizing is downloaded from ECC system to CRM, so learning SD customizations for Pricing makes perfect sense.Since I am currently working in one such project , I had a good use case to use the knowledge that I would gain from this.

I found the book a must read for any body who doesn’t have an extensive SAP Pricing experience and would like to ramp-up quickly in this area. The books claims to help you with these points

  • Understand the complete pricing solution from SAP

If you are working in SAP SD , then this statement completely holds true. This is a very good book to understand the pricing from SAP point of view. Exposes you to almost every thing related to pricing. Also exposes you to Variant Configuration and Internet Pricing .  But from a SAP CRM point of view, this would expose you only with the configuration ( which is good ) and not anything else ( which is also not the core constituency ) of the book. The book also details the User Exits which are used in SD Pricing and Routines which needs to be developed. If you are looking for a formal introduction to pricing configurations , condition techniques and various intricate details of pricing configurations then this part is satisfactory. There are finer details which is difficult to pick but this book exposes to you with that.

  • Master Pricing with Materials Management and Sales & Distribution, as well as condition technique and industry-specific coverage

Though I did go through MM Pricing portions but they were not relevant to my study hence I would not provide any review on it. Now coming to Sales&Distribution pricing. Provides a very detailed analysis on pricing , condition techniques , special topics in pricing , pricing performance enhancement and data migration and cutover planning.An example that I liked very much is it is using the pricing enhancements only that we make sure if a condition record is fetched using a particular access then no further records are fetched.It is always mentioned in topics that once a condition record is fetched using an access no further search is made but that is not possible without a customization. This book exposes you many such small details which is very necessary for real life scenarios. There are many topics which you don’t come across until you have very high exposure to SD Pricing for e.g. there are certain checks which happen on header level fields which would help optimize pricing.

  • Explore case studies and practical, real life examples and throughput.

The book uses examples to build upon the concepts. And also it goes from a simple concept to build upon the composite topics. For e.g. the condition type customizing would determine if scale based pricing is to be maintained and quantity conversion details. Once you go through this you would appreciate smaller details like this. It is this practical approach that helped a noob like me to pick the concepts faster. Actually once you see the examples in this book , you would start noticing smaller artifacts in your project system as well.

This book can be used to in many stages. First to get acquainted , them to familiarize and then to gain expertise. That also means that if you are newbie then you may have to read the books multiple times. This is a very good guide for any one and every one who is looking to make a serious career in Pricing. Why ? because you have to start some where and this is an excellent starting point. CRM consultants may argue that it doesn’t topics such as IPC , customizations specific to CRM but then there is no book on that at present and hence this would be a launch pad.

My verdict : Must read and must be read many times.

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  • Look forward to read the comparison between SAP SD Pricing and SAP CRM Pricing - the similarity, the differences, the integration and best practices for implementation in CRM.

    Thx in advance,



    • Hi Monica,

      would have to invest significant amount of time to do such an analysis.Probably could put everything in a book. 😆


      • Hi Kavindra,

        Nice post. But can you plz tell me if this book covers SAP SD taxes portion as well? I am actually a noob in this field so don't know much about Pricing & Taxes.

        Also,can you plz tell me out of these 2 books which will be better to buy so as to master pricing & taxes in SAP -

        1)Effective Pricing with SAP ERP by D. Rajen Iyer (Author), S. Veeraraghavan (Author)  

        2)The Ultimate SAP Pricing Guide: How to Use SAP's Condition Technique in Pricing, Free Goods, Rebates and Much More by Matthias Liebich

        Which will be better for a mastering of the subject in terms of SAP SD beginner?

        Thanks & Regards

        • You can try Matthias Liebich's book if you are just looking for Order Management pricing. You can check the contents of the book online if it suits you.

  • Nice post, Kavindra. My book on SAP CRM: Business Processes and Configuration was published last week by SAP Press and I have covered SAP CRM pricing concept with one example of the condition table with Z-field download. The book has information on how to set up pricing in SAP CRM system and what all steps are needed to achieve the pricing set up.
    You may find this book helpful!!


    • Hi Chandrakant ,

      Congrats on your book. Unfortunately for me it came a bit late when I have bought service , middleware , IC and ECC pricing books 🙂 . However if you are benign enough to send me a signed author copy , I would be more than happy to write a book review 🙂


          • Hi Kavindra,

            I just bought this book "Effective Pricing with SAP ERP" from SAP Press. But after reading a few pages I found something which I cannot at all understand. Can you please help me with that? I think it is an error!

            How can such a renowned book from SAP Press contain error unnoticed by readers?

            So I am in doubt whether to trust the contents of the book or not.

            Can you please help me to clear my doubts that this is not an error?


          • Hi Kavindra,

            In the book in page number 31(i am referring to the printed edition of the book and not the eBook,in the eBook it maybe a different page no.) contains the following information -

            Pricing procedure                                                                                                               

              This is usually represented by a six-digit alphanumeric code. Figure 1.6 shows some examples of pricing procedures. Custom pricing procedures usually have a Y or Z starting prefix, for example, ZVAXUS or YVAXUS. Like other custom-defined objects, the pricing object is defined or copied over from the standard start with Y or Z, so that during an upgrade, they are recognized as your own defined objects, and the SAP ERP system doesn’t overwrite them.

            Pricing conditions                                                                                                              

            This is a four-digit alphanumeric code. Figure 1.6 shows examples of pricing conditions. Custom pricing conditions usually are preceded by a Y or Z, for example, ZR00 or YR00. As explained earlier, Y or Z prefix not only helps you identify the condition type that is being custom defined but also helps you manage them during upgrades.

            Figure 1.6 Pricing Conditions

            Access sequences                                                                                                              

            This is a four-digit alphanumeric code. Figure 1.7 shows some examples of pricing access sequences. Custom pricing conditions usually are preceded by a Y or Z, for example, ZR00 or YR00.

            Figure 1.7 Access Sequences

            Now my questions are-

            a)Both "Pricing procedure" & "Pricing conditions" refers to the same Figure 1.6 above but in that figure there is nowhere shown the "6-digit alphanumeric code" for "Pricing procedure". Instead Fig 1.6 shows only  the 'Access Sequence' and 'Con.Type columns & their Descriptions. And this is the same figure as the next Figure 1.7 which the Access Sequence is referring to!!

            So I think that Fig 1.6 is wrong and it should instead show the 6-digit codes for example, ZVAXUS or YVAXUS for Pricing procedure.

            Neither figure 1.6 nor Fig. 1.7 shows any Columns having column-header as "Pricing procedure" or "Pricing conditions",instead  it says about Access Sequence. Hence I think it is the wrong figures that the adjoining text is referring to??

            Does both "Pricing procedure" & "Pricing conditions" referring to the same Figure 1.6 imply that both  "Pricing procedure" & "Pricing conditions" are one and same thing?

            b)The book says Table-fields are 30-digit alphanumeric code." Is it correct? How can a Table-field be of 30-digit long when most table-fields are like "ALAND","BELNR" etc which are only 5-digit long ?

            I hope that you can help me to understand this riddle.


          • Hi Kavindra,

            Maybe my question was silly but still since you said that you would try to help, with that hope, I posted my queries,but till now you haven't replied. So still waiting for confirmation what I stated earlier.

            So am I CORRECT in assuming that this renowned SAP-PRESS book is not flawless and has errors in it?


          • I would recommend contacting the publisher/author of the book with your errata.  It's very possible that mistake was made, based on your screenshots(I don't have a copy of the book myself), that the wrong picture was inserted.

            I would also add book reviews/blogs are always subjective opinion of the reviewer.  You don't have to take everything you read at face value 😉 .

            Take care,


          • Hi Stephen,

            The screenshots are exactly that which is in the book.Unfortunately Kavindra ,the original author of this blog has suddenly disappeared it seems 😯 He himself agreed to help me and told me to post my doubts & now he is not replying!!

            Hope he will confirm what you just said ,that the author must be wrong.I also wonder how a book costing $69.95 or Rupees 4319 in Indian Currency Notes can have such printing mistakes.

            A book costing so much ,at least shouldn't have errors in it ,even if it is hard to follow like the Glyn C. Williams book. Glyn's book is hard to follow but at least it doesn't have such mistakes and errors.

            And this book is not even a new one published in 2011,then how can authors not yet know about these mistakes ? Why has no readers till now, pointed out the authorof these errors in images?Since I am new learner in SAP ,to me it matters much as my base knowledge is not yet that strong.

            I really wonder how this book gets 5 stars in!!!

            With Regards


          • Samiran,

            I have had $200 USD textbooks with errors that were pointed out by a professor, so it does happen.  From what I understand about the editing process there should have been at least four people reviewing it(including the author), before it even made it to the printer.  Once again did you contact the publisher/author so they can correct it for future printing or avoid the mistake?

            Take care,