What is price group in SAP SD - Sales and Distribution?

SAP Term: price group

• Component: SD

• Component Name: Sales and Distribution

• Description: The grouping of customers for the purpose of pricing. For example, price groups can differentiate between wholesale customers and retail customers.

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• Key Concepts: 
  Price groups are used in SAP Sales and Distribution (SD) to group together materials with similar prices. This allows for easier pricing maintenance and faster access to pricing information. Price groups are assigned to materials and customers, and can be used to determine the price of a material for a particular customer. 
  
  How to use it: 
  To use price groups, first create a price group in the Customizing application. Then assign the price group to the relevant materials and customers. When creating sales orders, the system will automatically assign the correct price group based on the customer and material combination. 
  
  Tips & Tricks: 
  When creating price groups, it is important to consider how they will be used in the future. For example, if you plan to use them for discounts or promotions, make sure that the price groups are set up accordingly. 
  
  Related Information: 
  For more information on price groups in SAP SD, refer to the SAP Help Portal or contact your local SAP consultant.