Pricing Hierarchy Definition

Use the Preference Hierarchy Revisions form to specify the order in which the system applies the adjustment definitions. This form contains rows identifying customers and customer groups and columns identifying items or item groups. You identify the pricing hierarchy sequence by typing numbers at the intersections of the rows and columns. The pricing search begins at the intersection with the number 1, and the system searches for records you define for that customer and item combination. If the system does not find adjustment details for that combination, the system moves to the next combination in the hierarchy, which is the intersection with the number 2, and so forth.

The system automatically selects the first combination it encounters during a search; therefore, you should set up the most specific method of pricing first in the hierarchy and continue defining the hierarchy to the most general pricing.

Although you can enter as many as 21 numbers, you should limit the hierarchy to three or four numbers. Each number represents a system search and increases system processing time.

Note: If you plan to use a price matrix for pricing in the JD Edwards Blend Management system, you must set up a pricing hierarchy for All Suppliers/All Items so the adjustment definition may apply to any item and any supplier.