An introduction to price type

Price type is a classification of price that could be defined for an item. An item can be associated with more than one price, for example, along with the base price, there can be additional prices like installation fee, activation charges, monthly fee, cancellation charges and so on. There could be such multiple prices associated with an item. Some of these prices are invoiced at the time of order creation, and some can be invoiced at regular intervals, where as some are can be created only for informational purpose. A pricing organization can define different price types for items based on the business need and requirement.

The price type management process involves the following steps:

Creating a price type.
Associating items to the price type.
Associating categories to the prices type.

Note: It is recommended that an administrator creates a pricing rule with separate non billable charge category for all the price types that are created for informational propose.

For example, if the administrator creates two price types, namely installation fee that would be invoiced at the time of order and cancellation fee for information purpose only, then, it is recommended that there is a separate pricing rule that targets installation fee and has a billable charge category and another pricing rule that targets cancellation fee with a non billable charge category.

An administrator can only create or modify a price type, add items and categories to a price type only if the context organization is a pricing organization.