Use this activity to define a price rule. A price rule controls how a customer is charged for reported work and costs. Price rules can include multiple price rule lines defined for different Sales Groups and Cost Types, as well as a compulsory default price rule line of type All Other that applies to transactions not covered by any other specific rule.
Once defined, a price rule can be connected to a service, warranty, urgency, or a contract line.
Setting up a Price Rule
Price rules with a single rule line covering the total scope can easily be set up using the option Quick Setup for the Total Scope. You can select whether the price rule should be Usage Based, Fixed Price, or Free of Charge. Each option creates a single, preconfigured price rule line of type All Other.
If quick setup is not adequate, price rules can be defined manually. There are three types of price rule lines that can be defined through normal setup: Cost Type, Sales Group, and All Other.
In a price rule, you can create one or more price rule lines with different categories.
The available categories are:
For price rule lines of type Cost Type, the following cost types are available:
Defining a price rule line for a cost type controls the Revenue %, which defines how much of the sales price is invoiced to the customer for that cost type. A cost type line can be configured as Cost Plus, allowing you to define a markup percentage, or as a Fixed Price Line, where a sales part is specified. Fixed price lines are added as planned fixed price records on the request scope when the price rule is applied.
Only one price rule line per cost type can be defined within a price rule, unless the line is marked as a Fixed Price Line. When marked as a fixed price line, multiple price rule lines can be defined for the same cost type, and all such fixed prices will be added to the scope.
For price rule lines of type Sales Group, sales groups defined in basic data are used. Sales groups are associated with sales parts, and when sales transactions are created, the price rule is applied based on the sales group rather than the cost type.
Only one price rule line can be defined per sales group within a price rule. Sales group lines also control the Revenue % and can be configured as Cost Plus or as Fixed Price Lines, where a sales part is specified and added as a fixed price on the request scope.
The All Other price rule line is a fallback rule that applies to any transaction not covered by a cost type or sales group line.
Multiple price rule lines of type All Other can be defined only if all such lines are marked as Fixed Price Lines.
A price rule can, for example, contain the following three price rule lines:
Line 1:
Type = Cost Type
Cost Type = Personnel
Fixed Price Line = Yes
Sales Part for Fixed Price = SERVICE CHARGE
Revenue % = 0 (Personnel transactions are invoiced at zero, as the fixed price line represents the invoiced amount)
Line 2:
Type = Cost Type
Cost Type = Personnel
Fixed Price Line = Yes
Sales Part for Fixed Price = SERVICE VAN CHARGE
Revenue % = 0
Line 3:
Type = All Other (applies to all cost types not explicitly defined in the price rule, for example External)
Fixed Price Line = No
Revenue % = 100 (all other transactions are invoiced at 100% of their sales price)
When this price rule is applied, two fixed price lines (SERVICE CHARGE and SERVICE VAN CHARGE) are added to the request scope. Transactions of cost type Personnel are invoiced at zero, while all other transactions are invoiced at 100% of their sales price.
Additional Example: Fixed Price with Cost‑Based Pricing and Markup
For example, a price rule may contain the following three price rule lines:
Line 1
Type = Cost Type
Cost Type = Personnel
Fixed Price Line = Yes
Sales Part for Fixed Price = SERVICE CHARGE
Revenue % = 0
Line 2
Type = Cost Type
Cost Type = Expenses
Cost Based Pricing = Yes
Fixed Price Line = No
Revenue % = 100
Markup % = 50
Invoiced Zero Amount = Yes
Line 3
Type = All Other (applies to all cost types not explicitly defined in the price rule, for example External or Material)
Fixed Price Line = No
Revenue % = 100
In this example, the price rule combines a fixed price charge for personnel work with cost based pricing including markup for expenses, while applying a price rule for all other transactions. When this price rule is applied, one fixed price line (SERVICE CHARGE) is added to the request scope.
Transactions of cost type Personnel are invoiced at zero, because the personnel effort is covered by the fixed price SERVICE CHARGE and is therefore not billed separately.
Transactions of cost type Expenses are invoiced using cost‑based pricing with a 50% markup. Since the Revenue % is set to 100, the full calculated sales price (actual cost plus markup) is invoiced.
All other transactions (for example External or Material), which are not explicitly defined in the price rule, are invoiced at 100% of their sales price according to the All Other price rule line.
The revenue percentage can have values between 0 and 100 and controls how much of the sales price is invoiced. A revenue percentage of 100 means the full sales price is invoiced, whereas a revenue percentage of 0 means the transaction is not invoiced, although it may still appear as a zero‑price line.
All price rule lines can be included in a fixed price by enabling the Fixed Price Line option and specifying a sales part. Each line included in the fixed price is invoiced according to the price of the associated sales part. Fixed prices are applied at request scope level. Fixed price lines are created automatically from the price rule but can also be added manually as planned fixed prices on the request scope.
For more information please refer to the documentation Request Management.
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As a result of this activity, a price rule will be created.