What is the significance of pricing procedure in SAP SD module?

The pricing procedure in SAP SD module plays a crucial role in determining the prices for products and services in sales transactions. It is a defined sequence of condition types that are used to calculate the final price for a customer. The pricing procedure considers various factors such as discounts, taxes, surcharges, and other conditions to arrive at the net price for the product or service being sold.

By configuring the pricing procedure correctly, businesses can ensure accurate pricing calculations, maintain pricing consistency across transactions, and effectively manage discounts and promotions. This helps in improving sales efficiency, increasing customer satisfaction, and ultimately driving revenue growth in SAP SD module.