Understanding Advanced Pricing Hierarchies

The system applies pricing adjustments to sales order prices in the order you determine on the pricing hierarchy. The system uses this pricing structure to retrieve base prices and to calculate price adjustments and updates. For this reason, you should set up the hierarchy to search from specific combinations to general combinations.

This diagram shows a typical customer pricing hierarchy:

For example, you could define the sequence for a seasonal promotion so that any customer that orders the item receives the discount. However, if you set up a slightly lower price for customers based on geographic location, you can set up the hierarchy so that the system searches for the more specific information first. In this example, the sequence could be:

• Customer group and item.

• All customers and item.

It is not necessary to create a pricing hierarchy when you use a minimum or maximum price adjustment.