Item Groups

If you have large numbers of items that share common pricing policies, then you can group those items into item groups and establish standalone selling prices at the item group level.

All of the items in a group share the value established at the group level.

You can group items into an item group if they satisfy two conditions:

• All items in the group share a common pricing policy.

• The standalone selling price for each item is usually established in the form of a percentage. For example, a discount percentage.

For example, InFusion Company has the following hardware systems price list for its commercial customers:

Product Description	Model	Price Per Unit
Big Data Appliance	1187	1,200,000
Super Cluster	1902	175,000
Database Appliance	1243	250,000
Virtual Computer Appliance	1150	55,000
Storage Appliance	1102	125,000

InFusion's discount policy states that they offer automatic discounts based on the total value purchased in a single order, as shown in the following table:

Order Size Range	Discount
Less than 1,000,000	8 percent
1,000,000 to 4,999,999	10 percent
5,000,000 to 9,999,999	12 percent
10,000,000 or more	15 percent

In the example, all of the items in the list:

• Use the discount pricing policy

• Have the same eligibility criterion for discounts

• Use the Discount Percentage of Unit List Price as the revenue price representation type

Because the hardware products satisfy all of these conditions, you can group them into an item group and establish the standalone selling price at the item group level.