What is calculation type in SAP SD - Sales and Distribution?

SAP Term: calculation type

• Component: SD

• Component Name: Sales and Distribution

• Description: A rule that specifies if the condition rate is defined as an absolute amount, as an amount referring to a quantity, weight or volume, or as a percentage value, for conditions in pricing.

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• Key Concepts: 
  Calculation type is a feature in SAP Sales and Distribution (SD) that allows users to define different pricing conditions for different sales documents. It is used to determine the pricing procedure for a particular sales document, such as an invoice or a quotation. The calculation type is determined by the combination of the customer's pricing conditions and the document type. 
  
  How to use it: 
  In order to use the calculation type feature, users must first define the pricing conditions for each customer in the system. This can be done by creating a customer master record and assigning a pricing procedure to it. Once this is done, users can then assign a calculation type to each sales document. This will determine which pricing procedure will be used for that particular document. 
  
  Tips & Tricks: 
  When assigning calculation types to sales documents, it is important to ensure that the correct pricing procedure is being used. This can be done by checking the customer master record and making sure that the correct pricing procedure is assigned to it. Additionally, it is important to ensure that the calculation type is correctly assigned to each document in order to ensure accurate pricing. 
  
  Related Information: 
  For more information on how to use calculation types in SAP SD, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use this feature in SAP SD.