Pricing Matrix

Use a pricing matrix to apply conditional logic on a pricing entity according to the value of an attribute that you specify.

A pricing matrix is an array that specifies conditions and results.

• The array contains rows and columns.

• Condition columns specify the condition to test, such as Customer Size equals Small.

• Result columns specify what to do when the condition is true, such as use the Corporate Segment.

• Each row specifies a separate condition and result.

Here's an example of a pricing matrix that assigns a pricing segment.

This matrix includes three rows. Each row specifies a rule that contains a condition and a result.

Row	Condition	Result
1	If Revenue Potential is Very high, and: Customer Size is Large, and Cost to Serve is Very High, and Customer Value is Very High, and Customer Rating is Very High	Assign the Corporate Segment.
2	If Revenue Potential is High, and: Customer Size is Medium, and Cost to Serve is High, and Customer Value is Medium, and Customer Rating is High	Assign the International Segment.
3	If Revenue Potential is Low, and: Customer Size is Small, and Cost to Serve is Low, and Customer Value is Low, and Customer Rating is Medium	Assign the Domestic Segment.

At runtime, Pricing evaluates each row until it finds a match. If it doesn't find a match, then it sets a default value.

Here are the pricing entities where you can add a pricing matrix.

• Pricing strategy assignment

• Pricing segment

• Price list

• Cost list

• Currency conversion list

• Shipping charge list

The conditions and results are different for each type of pricing entity.

For example:

Pricing Entity	Conditions	Results
Pricing segment	Depending on the values of. Revenue Potential Customer Size Cost to Serve Customer Value Customer Rating	Set the. Pricing Segment
Pricing strategy assignment	Depending on the values of. Channel Method Pricing Segment Transaction Type	Set the. Pricing Strategy
Price list	Depending on the value of. Geography	Set the. Adjustment Type Adjustment Amount

Add Conditions and Results in Pricing Matrixes

You can add up to 25 conditions and results in a pricing matrix when you create a pricing rule. You can use this capability to include more attributes from your customer, product hierarchy, or transaction when you set up your pricing rules. It also provides a wider variety of attributes that can you use to help analyze pricing in your reports.

• Use the Pricing Administration work area, file-based data import, or REST API to manage your matrix when you need to adjust attribute values on price lists or discounts lists.
• Use the Pricing Administration work area or REST API to assign the pricing strategies and manage the pricing segments that you use with these rules.
• Use the Pricing Administration work area to manage adjustment values for attributes on a price list or discount list, to manage pricing segments, assign pricing strategies, and create pricing guidelines.
• You can add up to only 10 conditions and results through Application Development Framework Desktop Integration (ADFDI). For details, see Use Spreadsheets to Manage Pricing.