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Setting Up Summation or Rollup Pricing for Products With Components


Use this pricing method when all of a product's components are configurable. Although each product has a default configuration, users can select nondefault components instead of the default components.

When you use the Pricing Designer, you must set a list price for the base product of a component-based product and define pricing adjustments on components. The price that is displayed for the user is the sum of the list price and the adjusted price of the default components. This price may display to the user in a quote, agreement, order, the selection pages in a configuration session, or in a catalog.

When you are using summation (or rollup) pricing, there is no base product, so you set the list price of the base product to zero (0). This means that the price the user sees is the sum of the prices of its default components (Quote, Agreement, Order, and configuration selection pages). In an eSales catalog, the user sees a price of 0.

An example would be a desktop computer made up entirely of components that you also sell separately. To set up rollup pricing for quote users you would do the following:

  • Set the list price of the desktop computer to 0.
  • Set a price for each of the components, and specify which ones are default components.

Because the list price is 0, the default price of the desktop computer is the sum of the prices of its default components. If the user who is configuring the product picks a nondefault component, the sum is recomputed to include the price of the nondefault component. For example, for a desktop computer, you have entered a list price of 0 and the component pricing adjustments shown in Table 12.

Table 12. Desktop Computer Components
Item
List Price
Adjustment Type
Adjusted Price

1.0 Chassis (default)

$1200

Price override

$1000

2.0 Monitor

 

 

 

2.1 Small monitor (default)

$300

Price override

$200

2.2 Large monitor

$400

Price override

$300

While configuring a quote, users see an initial price of $1200 for the desktop computer (the sum of the prices of the default chassis and monitor). If the user chooses the large monitor, the sum is recomputed, and the price of the desktop computer becomes $1300.

NOTE:  The price that is displayed includes any relationship-based pricing adjustments and other adjustments to the price of the components.

To set up rollup pricing for a product with components

  1. Display the components of the product with components in the Pricing Designer, as described in Viewing a Product's Components in the Pricing Designer.
  2. Define relationship-based pricing adjustments, if they are needed, as described in Viewing and Changing the Reference Price.
  3. Do not enter a price for the root product with components in the Price List line items view.
  4. Enter prices for all the components.
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