Contract Pricing Rules Overview
Contract Pricing Rules are a core capability of Pricing Agreements. Vault CRM applies Contract Pricing Rules to each product depending on the commercial conditions of the Pricing Agreement and the negotiated quantities.
Contract Pricing Rules determine the list price, discounts, and net price applied to each Contract Line.
Working with Contract Pricing Rules
Contract Pricing Rules follow the concept of effective date pricing. This allows Contract Admins to create Contract Pricing Rules in Vault CRM before they go into effect using Start/End Dates. The Pricing as of Date field determines which Contract Pricing Rules apply.
The account’s Price Book rule always wins and is prioritized when tied with a product’s Contract Pricing Rule.
Contract Pricing Rule Types
Contract Pricing Rule types include:
- Contract List Price Rule - Defines the available products on a Pricing Agreement and sets the List Price per unit
- Contract Discount Rule - Defines the discount and sets the Line Discount and Net Price
Contract Pricing Rule Comparison Types
Contract Pricing Rule comparison types include:
- Product Quantity - Compares the Minimum/Maximum Quantity fields on the Contract Pricing Rule with the negotiated quantity on the Contract Line to determine if the rule applies
Contract Pricing Rules and Commercial Conditions
To apply to a Contract Line, a Contract Pricing Rule must meet the following conditions:
- Start Date - The Start Date field on the Contract Pricing Rule must be on or before the Contract object’s Pricing as of Date field
- End Date - The End Date field on the Contract Pricing Rule must be on or after the Contract object’s Pricing as of Date field
- Local Currency - The Local Currency field on the Contract Pricing Rule object must equal the Local Currency field on the Contract record
- Product - The Product field on the Contract Pricing Rule object must equal the Product field on the Contract Line object
- Status - The Status field on the Contract Pricing Rule must set to Active
Additionally, Contract Pricing Rules can be assigned per Price Book when the following conditions are met:
- The Price Book field on the Contract Pricing Rule object matches the name of an Account Partner record where the object type is Price Book. The account on the record must equal the Primary Account on the Contract.
Contract Pricing Rule Hierarchy
The Contract Pricing Rule Hierarchy prioritizes rules in a top-down hierarchy. One one Contract Pricing Rule within each object type, product, and comparison type can apply to a Contract Line. As part of this process, the first rule match is selected according to the following hierarchy:
-
Price Book – The price_book__v field on the contract_pricing_rule__v object is equal to the name__v field on the account_partner__v object on an existing price book account partner record with the account__v field on the account_partner__v object equal to the account__v field on the contract__v object
- For more information on how pricing rules are assigned if a Price Book record is selected for the order, see Price Books.
Pricing Agreements do not support selecting a Price Book on the Contract record.
- Global – No additional conditions are met
