In standard Business Central the best price is selected when multiple prices are available; the lowest price with the highest line discount – based on the price setup, such as the assign-to types, product types, starting/ending dates, etc.
Hierarchical Price Calculation allows you to override the standard price calculation method, and prioritizing the specificity of the setup instead of the lowest effective price. For example, campaign-specific prices are used over customer-specific prices, over customer group, or general prices. This makes sure the most relevant price is applied first, giving you better control over complex pricing structures.
The hierarchical order is structured from the most specific to the most general pricing levels:
| Order | Pricing | Description |
|---|---|---|
| 1 | Campaign | If a transaction is part of a campaign, then the campaign pricing is used. |
| 2 | Customer | If there are price list lines that are specific to the customer then this price is used. |
| 3 | Customer Price Group | If there are price list lines that relate to the customer’s Customer Price/Cost Group, then this price is used. |
| 4 | All Customers | If there is a price list line that applies to All Customers then this price is used. |
Changing the default Price Calculation Method
- On Sales & Receivables Setup page, change Price Calculation Method to Hierarchical.
The Price Calculation Method field is hidden by default on this page. If it is hidden, you need to first display the field using the Personalization feature.
