Condition And Alternative Formula

Explain the difference between "Condition formula for alternative calculation type" and " Alternative formula for condition base value".

Condition base value is a concept used in pricing procedure and actual term used is alternate condition base value.  This is a formula assigned to a condition type in order to promote an alternate base value for the calculation of the value.  If you have to calculate price of a material then you have to have a base value for it.  For e.g. if you want to calculate the discount of 10 % for a material then you have to have a base value on which this 10% is calculated. 

Normally, you take the condition value of the base price of the material to calculate the value.  Now, you don't want to take the base value and take other value as base value which are derived on some formula.  So you create a routine which will do the mathematical operations in the routine and derive you a value which is now used as the base value for calculating the condition value for a particular condition type. 
 

As per my understanding there is Alternative Condition Base Value.  It is a routine which is assigned to the condition type in the pricing procedure. 

Go to transaction V/08 here you select pricing procedure then go in to the control data of the pricing procedure.  Here you can find Alternative Condition Base Value in the 14th column of the pricing procedure control data. 

What is the difference between: 
1. Conditional base value 
2. Conditional value. 
3. Conditional amount 

1. Conditional base value.  When a value is derived for a condition type, based on certain calculation this value is taken as base. 

2. Conditional value.  For the number of units ordered depending on the condition amount mentioned this value is derived. 

3. Conditional amount.  This is nothing but the unit list price what you are mentioning for the line item. 

1) What is the role of alternative calculation type, condition base value, requirement in pricing procedure? 
2) Where do we define value for alternative condition base value and alternative calculation type so that system picks up different value, when the value for alternative condition base value and alternative calculation type is mention in pricing procedure?

**Alternative Calculation type** 
This function allows you use a formula as an alternative in finding the value of the condition type, instead of standard condition technique.   This can be used to calculate complex tax structures. 

**Alternative condition base value** 
The alternative condition base value is a formula assigned to a condition type in order to promote an alternative base value for the calculation of a value.
 

ALTERNATIVE CALCULATION TYPE will determine the CONDITION VALUE using a Routine rather than the FROM & TO columns in the PRICING PROCEDURE.

For example:

To calculate the PROFIT MARGIN we use the Calculation type as 11 which means the difference of Base price and Cost price.

CONDITION BASE VALUE:  It will determine the BASIS for calculating the value of condition type alternatively to the Standard.

For example:

The Header discount will be distributed to all the line items based on the value of item.  But alternatively, if you wan to distribute the value based on the Quantity you can define the routine and assign this to the CONDITION TYPE.

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