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About the Processing Order of Price Adjustments

The order in which price adjustments are processed can affect the final price.

For example, a product costs $100 and you give a $10 promotional discount plus a 10 percent volume discount if the customer buys more than ten. If the customer qualifies for both discounts, you can calculate the final price in two ways:

  • The unit cost would be $81 if the promotional discount is applied first ($100 - $10 = $90, and 10 percent off $90 is $81).
  • The unit cost would be $80 if the volume discount is applied first (10 percent off $100 is $90, and $90 - $10 = $80).

The pricing procedure determines the processing order of discounts, but you can customize it. For information about the default processing order, see Pricing Procedures and Workflow References.

Pricing Administration Guide