Product and Price Overview

Products, Price Lists, and Prices

The following figure represents how price lists, prices, and products relate to one another and how you can use them in line fields. Figure: Price Lists, Prices, and their Referenced Products.

Products

A product represents one or more deliverable that includes services that you sell or purchase for a price that is determined in a price list. Consider the following points about products.

• A product can consist of a single deliverable such as a license; or a bundle of multiple deliverable such as a license and support agreement that is sold at a single price.
• A product can have many different prices that are associated with it, although each product can only be represented once in a price list.
• Certain attributes of a product determine how it is renewed, such as if default renewal terms are generated or a replacement product is used.
• Products are further classified by a product class.

Price Lists

A price list represents a list of price values that you apply to specified products. Consider the following points about price lists.

• Price lists are classified by various factors such as currency and whether they are used for buying or selling purposes.
• You sell or purchase by a list price and optionally apply a discount.
• Multiple price lists for the same product line can be required. For example, based on geographical region or customer type.
• A price list can contain prices for many products; however, each unique product can be represented only once within a price list.

Prices

The price represents the value amount that you apply to a product within a price list. Consider the following points about prices.

• Prices can be fixed, tiered (quantity-based), or based on a percentage of the price of another line in the contract.
• Several prices comprise a price list, and each product can have several prices that are associated with it across multiple price lists.

Percentage-based Pricing

in percentage-based pricing, the unit price of a product is based on a percentage of the unit price of another product that is specified within another line.

While selecting a product for a line, if the price of the product is percentage-based, you must also select the existing line that contains the base price.

Consider the following points while using percentage-based pricing.

• A contract must contain a line with the base price before you can add a percentage-based pricing product.
• The options that are selected by the administrator determine whether the base price used in the price is before or after applying discounts.
• To change the established base line of a percentage-based line, delete the percentage-based line, add a base line, and add the percentage-based line again.