Understanding Price Rounding Methods

Sales pricing takes into account different rules based on currency, rounding, and exceptions to produce a final base price. The rules are based on two different types of rounding methods:

• Mathematical rounding

  Use mathematical rounding to calculate a final price by rounding to the nearest value. This rounding method rounds values that fall within a certain range to the nearest value. You define both the range and the value. For example, you might want to round prices to the nearest tenth or hundredth, depending on the currency.

• Price point rounding

  Use price point rounding to convert prices to values that appear to provide a better value to the buyer. For example, a buyer may think that an item with a price of 9.99 USD is a better value than the same item with a price of 10.00 USD.

Use the Rounding Method program (PCW18) to create a list of rounding values for several ranges of prices based on either mathematical or price point rounding. The system applies the rounding values to the price list. The system stores rounding methods in the Rounding Methods table (FCW35).

For price point rounding, you specify a value that is calculated for a particular price range. For example, prices between 12.00 USD and 15.00 USD are rounded to 14.99 USD. You can specify multiple price ranges.

Mathematical rounding enables you to specify the unit used for rounding a range of prices. For example, for prices from 0.00 USD to 10.00 USD, the system rounds prices to the nearest dollar.