Understanding Price Lists

Price lists are groups of date-controlled product prices that are defined by currency code and linked to related business objects or price rules. These product prices are intended to replace the product list price when they are associated with a transaction by way of the related business objects or price rules.

Price list-related business objects are objects to which a price list is associated. These business objects are a subset of the price-by fields, or entities, that are already defined for the transaction. A price list can have more than one related business object, such as customer, customer group, product ID, and business unit.

The system uses the appropriate pricing transaction to determine the available price list related business objects. The system attempts to match a particular transaction to one or more price lists based on the transaction values and the price list related business objects. For example, if you are taking an order for customer ABC and customer ABC is defined as a related business object for a specific price list, that price list applies to this order. Furthermore, if any product on the order appears on this price list, the price from the price list is used as the base price for all further pricing calculations, instead of the product's list price. If more than one applicable list is found, the price list lookup that is defined for that transaction on the Price By Key Field page determines which price is used:

  • Lookup in priority order.

    The system performs a search to match the related business objects in the defined priority order and then selects the list price with the highest priority.

    Note: This option is used in PeopleSoft Customer Relationship Management (PeopleSoft CRM).

  • Consider all prices.

    The system performs a search to match the related business objects and their price lists and then selects the lowest price.

If the system does not find a base price from the price lists, it searches for a base price in the product list price definition (assign list price). If the system does not find a product price in the transaction currency, it searches for a product price in the base currency that is defined for the transaction.

After locating the base price for the product, the system performs a separate search of the price rules to find the appropriate adjustments to that price. If you do not set up price lists, or the system fails to find the product on an active relevant list, the system uses the list price that is defined for the product as the default base price for any further price adjustments.

The system also allows the use of cost, alternate cost, and buying agreement as a default base price for calculating price adjustments.

Note: This option is used in PeopleSoft Supply Chain Management (PeopleSoft SCM).

Quantity Breaks within Price List

You can enter high and low quantity breaks for the price list. When computing the list price Enterprise Pricer will match the quantity breaks. To match the quantity break, the sum of the product by UOM for the whole order is used.

An example of a price list broken down by high and low quantity is "Buy 1–50 of Product ID 10050 at a list price of 4.00 USD each. Buy 51–99 at list price of 3.00 USD each. Buy 100 or more at 2.00 USD each."

Create a price list where the Product 10050 contains a different list price for 1–50 items, for 51–99 items, and for 100–99999 items.

Note: The quantity breaks for the same product/UOM should not overlap.

To set up the scenario on the Price List, complete these steps:

  1. Add a new price list to the system.

    • On the Add a New Value Page of the Price List Page enter a SetID, Price List ID and Currency Code.

    • Click the Add button.

  2. Type the Product ID 10050 in the Add Product field, and click the Add button.

  3. On the Pricing Information tab, enter the UOM for the quantity break. Enter EA in this example.

  4. Specify the Start and End Date for the price list.

  5. Set the low quantity to 1 and the high quantity to 50.

  6. Set the list price to 4.00 and click the Add a New Row button.

    Note: The currency for the list price is determined by the currency specified when you first created the price list.

  7. A second row appears with the same Product ID. Set the UOM to EA. Set the Low Quantity to 51 and the High Quantity to 99.

  8. Set the list price to 3.00 and click the Add a New Row button.

  9. A third row appears with the same Product ID. Set the UOM to EA. Low Quantity to 100 and the High Quantity to 9999999999.

  10. Set the list price to 2.00 and click the Add a New Row button.

  11. Click Save.

To match the quantity break, the sum of the product by UOM for the whole order is used. For example, if the customer purchases 100 units on several different lines of the sales order, they will receive the units at the 2.00 per unit price.