A bill of material (BOM) describes the different components that together create a product. The bill of material contains the item number of each component, quantity required in the manufacture of a product and the unit of measure of the item. The assembled components are displayed as higher-level items.
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Sometimes based on the other factors, system calculates the incorrect amount while creating sales order. To correct the calculated amount, invoice correction needs to be created in the system.
In some scenarios, Organization came to know that customer involved in unlawful activities or defaulted payment or not trustable etc. So, there is a need to block the customer with a blocking reason. Blocking reason can be defined as per business requirements and used to block bill creation for a customer.
In most of the cases, few/many customers place orders with same combination of materials.
Item categories are defined to provide additional control functions for the sales documents. Item categories meet the demands resulting from different business transactions. An item category specifies how the line item behaves in sales transaction.
Pricing procedure determination is assigning the calculation schema to a combination of vendor schema group and purchasing organization schema group.
An Item category is used to control the pricing of an item. All the items are not relevant for pricing. The standard pricing procedure check if the item is relevant for pricing or not.
SAP uses Condition Method technique to calculate taxes in the system. These condition method techniques not used for Withholding tax. System defined tax calculation procedure and tax codes are used in calculating the tax amount.
Condition type needs a defined key to write its value. The key might have established outside the pricing procedure. The key is called as Account Key.
In general, more than one condition type available in pricing procedure that offers a discount to the customer. In this case, customer might get receive all applicable discounts which makes customer to purchase the product at a lower price than he should. Condition Exclusion used to make sure that customer receives only the best applicable discount rather than receiving all discounts.