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.