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Pricing Administration Guide > Setting Up Component-Based Pricing > About Setting Up Component-Based Pricing >

Setting Up Summation or Roll-Up Pricing

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Use this pricing method when all of the product's components are configurable. The product has a default configuration, and the user can select nondefault components.

When you use the Pricing Designer, you must set a list price for the base product of a customizable product as well as defining pricing adjustments on components. The price that displays to the user is the sum of the list price plus the adjusted price of the customizable product's default components.

This is true for Quote, Agreement, Order, and the selection pages in a configuration session. In an eSales catalog, the user sees only the list price of the base product.

When you are using summation or roll-up pricing, there is no base product, so you set the list price of the base product to 0. Thus, 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 roll-up 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 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 19.

Table 19.  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 roll-up pricing for a customizable product

Display the components of the customizable product in the Pricing Designer, as described in Viewing a Product's Components in the Pricing Designer.
Define any needed relationship-based pricing adjustments as described in Creating a Relationship-Based Price Adjustment.
Do not enter a price in the List Price field in the Price List Item applet. Do not enter a price for the customizable product (also called the root product) in the Price List line items view.
Enter prices for all the components.

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