Configuring product pricing

Release version: Washingtondc

Updated April 12, 2024

2 minutes to read

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Summary of Configuring Product Pricing

The Pricing Management application allows you to create price lists, define pricing adjustments, and manage pricing features for product offerings. This is essential for sales and order agents when generating quotes and sales orders. As a pricing administrator or manager, you collaborate with the product catalog administrator to set up and extend pricing configurations effectively.

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Key Features

Create and publish a price list: Establish the basic pricing structure, including currency and applicable customer accounts.
Create a price list line: Add specific product offerings with their list prices to the price list.
Control default price list: Use the Price List Defaulting Matrix to specify conditions for default price list usage during transactions.
Pricing adjustments: Define adjustments based on product characteristics, non-product attributes, and bundled products.
Create a cost book: Establish a cost book to manage unit costs for product offerings, aiding in cost margin calculations.
Create pricing matrix versions: Update published pricing matrices when necessary by creating new versions.
Manage pricing processing: Control how pricing calculations are handled.
Custom context variables: Create and map custom variables for use in pricing matrices.
Extension points: Leverage external pricing information or extend pricing logic.
Export and import pricing entities: Facilitate the transfer of pricing entities between ServiceNow instances.

Key Outcomes

By utilizing the Pricing Management application effectively, you can streamline pricing configuration, ensure accurate pricing for sales transactions, and enhance the overall efficiency of your sales processes. This enables your organization to adapt to changing pricing requirements and maintain competitive pricing strategies.

Use the Pricing Management application to create the price lists and price list lines, define pricing adjustments, and manage other features that control pricing for product offerings. Product pricing is used by your sales and order agents when creating quotes and sales orders in Sales and Order Management.

Pricing configuration overview

As a pricing administrator or pricing manager, you complete various configuration tasks and work with your product catalog administrator to set up the pricing for products and services sold by your organization. The following example workflow shows the pricing configuration tasks and how they fit within product catalog and product offering configuration. You can also work with your administrator to extend certain pricing features, such as setting up pricing extension points to access pricing information from external sources.

Workflow infographic that shows the main pricing configuration steps described in the following table, which also identifies other pricing features that can be configured — Figure 1. Product catalog and pricing configuration workflow

Starting with the May 2024 release of Sales and Order Management applications, you can use the CSM Configurable Workspace to configure product offering catalogs, product offerings, and product offering relationships.

Note:

Check your entitlements to determine if you have access to these features.

Table 1. Configuration tasks for Pricing Management
Configuration task	Description
Create and publish a price list	Define a price list that identifies basic pricing features, such as the currency used or the customer account to which the price list applies.
Create a price list line	Add line items to a price list. A price list line identifies the list price for a product offering.
Control the default price list on transaction header or header line	Specify the conditions that control when a default price list is used for an opportunity, quote, or order by using the Price List Defaulting Matrix.
Create and publish a product attribute-based pricing adjustment	Define pricing adjustments based on certain product characteristics.
Create and publish a cost book	Create a cost book that identifies the currency of the unit costs defined for a set of product offerings.
Create a cost book line	Add line items to a cost book. A cost book line defines the unit cost for a product offering. This feature is used in Quote Management, which uses unit costs to provide cost margins for products in sales quotes.
Create a non-product attribute pricing adjustment	Define pricing adjustments for products based on non-product characteristics such as shipping zip code, location, sales channel, or account segment by using the Standard Price Adjustment Matrix.
Create pricing adjustments for bundled products	Define the pricing adjustments for child product offerings in a bundled product by using the Configuration Component Price Adjustment Matrix.
Create a price matrix version	Create a version of a published price matrix when you need to update the matrix, for example to add or delete a context variable used in the price matrix.
Set properties to control pricing processing	Manage the processing of pricing features, such as how certain pricing calculations are made.
Create a pricing context variable	Create a custom variable that represents an attribute that can be used in a pricing matrix, for example to create a non-product attribute adjustment.
Map a custom context variable to a transaction entity	Associate a custom pricing context variable to a particular transaction entity type in Sales and Order Management.
Use extension points in Pricing Management	Apply pricing extension points to use pricing information from external sources or extend the pricing engine logic on how list prices or adjustments are calculated.
Export and import pricing entities	Export and import pricing entities between ServiceNow instances. For example, you can promote pricing entities such as price lists from a non-production instance to a production instance.