Pricing Administration Guide > Pricing in the Run-Time Application > Contract-Based Pricing >
About Hierarchical Contract-Based Pricing
You can configure the product to create hierarchical contract-based pricing.
After you have set up hierarchical contract-based pricing, if you give a pricing entitlement to a parent account, it will be inherited by all its children accounts. If you give a pricing entitlement to a child account, it will be combined with any entitlements for its parent account.
For example, when you give a global account a 10 percent discount on all surgical products, you also give a local account that is a child of that global account a 10 percent discount on scalpels. When the child account buys scalpels, it has an entitlement for a 19 percent discount, because it inherits a 10 percent discount from its parent account. and also receives a 10 percent discount on the 90 percent of the list price that it must pay after the inherited discount.
For more information about configuring the product to create hierarchical contract-based pricing, see Siebel Order Management Infrastructure Guide.