Pricing Concepts

In this topic, we will explore how pricing is handled in SAP Business One. We look at types of prices and discounts that can be set up for items in the system. We talk about items and price lists. We will look at how those prices are associated with a business partner and how the prices are brought into a document.

Here are some key points:

1. There are 5 types of prices:  price lists, period and volume discounts, discount groups, special pricing for business partners and specific blanket agreement prices.
2. When you create a document, the system brings in the price list associated with the business partner. You can change the assigned price list in the document. 
3. The system proposes a price for each item in the document. The system looks first for the most specific price and continues until it finds an applicable price.  If a discount is found, the discount must be applied to a price.
4. The pricing hierarchy order is: specific blanket agreements, special prices for a business partner, discount groups, period and volume discounts, price list.
5. The Price Source field shows the source of prices on the row.
6. You have the option to use the Effective Price setting on the Business Partner Master Data to have the system search all the possible prices available and always choose the lowest or highest price. 
7. There is an option to use gross pricing in addition to net pricing. Both pricelists and business partners can be set to use gross pricing.

You can also download the document here for your records.