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Setting Up Service Pricing with Adjustments Based on a Covered Product

The price of the service equals the list price of the service plus a price adjustment that depends on the primary product that it covers.

NOTE:  This method of pricing requires configuration of the pricing procedure. You must enable the Dynamic Pricing Procedure to use service pricing. For information about enabling the Dynamic Pricing Procedure, see Switching from Basic to Dynamic Pricing Procedure.

To set up service pricing with adjustments based on a product, perform the following tasks:

• Pricing a Service with Adjustments Based On a Primary Covered Product
• Associating the Service Product with Covered Products

Pricing a Service with Adjustments Based On a Primary Covered Product

Pricing administrators can set up service pricing with an adjustment based on the primary product that is covered. For example, there can be a list price for a one-year service agreement, with a 10 percent discount if the agreement covers computer system A and a 15 percent discount if it covers computer system B.

To price a service with adjustments based on a product

1. Add the service price line item, as described in Adding Price List Line Items for Service Products.
2. Add a record to the Service Pricing Details list for each product that the service covers and complete the necessary fields, as described in the following table:

   Field	Comments
   Product	Select the product to which this discount applies.
   Adjustment Type	Select the type of the adjustment that the discount will apply. Options are Discount Amount, % Discount, Markup Amount, % Markup, and Price Override.
   Target Price	Select the price to which the discount applies.
   Adjustment Value	The value in the Adjustment Type field determines how the adjustment value is applied, as follows: If the Adjustment Type is Discount Amount, then the amount in the Adjustment Value field is subtracted from the price. If the Adjustment Type is % Discount, then the amount in the Adjustment Value field is treated as a percentage and is subtracted from the price. For example, if the Adjustment Amount is 10, then 10 percent is subtracted from the price. If the Adjustment Type is Markup Amount, then the amount in the Adjustment Value field is added to the price. If the Adjustment Type is % Markup, then the amount in the Adjustment Value field is treated as a percentage and added to the price. If the Adjustment Type is Price Override, then the amount in the Adjustment Amount field is used instead of the price.

Associating the Service Product with Covered Products

When the end user creates a quote or order for products that are covered by this service, the end user must associate the service with one or more products. The price adjustment for the service depends on the primary product. For more information about how an end user creates a quote or order, see Siebel Order Management Guide.

To associate a service with covered products

1. Create a quote or order as described in Siebel Order Management Guide.
2. Add the service product as a line item of the quote or order.
3. Click the Assets view tab.
4. In the Assets list, add records and in the Asset # field, select the products covered by this service.
5. In the Asset record of the primary product covered by this service, select the Primary check box.

   The price adjustment for the service depends on the primary product.