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What are the best practices for pricing configuration?

A reader states, "our pricing and contract management is a mess" in SA. Expert Srini Katta offers some general suggestions for determining a pricing configuration.

Our pricing and contract management is a mess within SAP. Is there a best practice-pricing configuration we should consider? We are centralizing all our pricing and contract processes, but I think we need to look deeper into our configuration.
It is very difficult to answer your question without having full details of your current challenges, but the following are the best practices for pricing configuration:
  1. Put a flow chart with pricing details and controls
  2. Map them with the SAP standard out of box functionality.
  3. Find and record the gaps.
  4. Check what are the available and SAP supported functionalities to fill the gaps.( Routines, Formulas, User Exits etc).
  5. The best of the best practice is to stay within SAP supported functionality.

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