Chapter 5: Pricing and Tax Determination

One of the most critical areas in Sales and Distribution is pricing, in other words, determining the price at which a sales transaction takes place. In order to arrive at the final price, there can be several elements such as a base price, discounts, and taxes, linked together in a pricing schema. In this chapter, we will study the set up of a pricing procedure.

In addition, most sales are subjected to tax, as per the law of the land. The tax structure varies from region to region. Setting up and calculating tax is therefore important from both a legal and a sales perspective. Hence, in this chapter, we will focus on basic concepts of tax determination.


A pricing procedure is a schema to arrive ...

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