Pricing Configuration Reference
You can change the default discovery logic and other parameters of the pricing engine through system settings. To access these settings, open the Global Menu (
) and navigate to Control Panel → System Settings → Pricing. The following settings are available:
- Pricing Calculation Key
- Price List Discovery Method
- Promotion Discovery Method
- Discount Application Strategy
Pricing Calculation Key
The default pricing calculation key is v2.0. This uses version two of the Commerce pricing engine. If you want to use the older pricing engine, replace this with v1.0 and click Save. Read Pricing Engine v1.0 Reference for more information.
Price List Discovery Method
By default, price lists use priority to apply to eligible accounts. The highest priority eligible price list takes precedence over the others. You can change this by replacing hierarchy with lowest. This chooses the eligible price list with the lowest price among other eligible price lists.
Promotion Discovery Method
By default, promotion lists use priority to apply to eligible accounts. The highest priority-eligible promotion list takes precedence over the others. You can change this by replacing hierarchy with lowest. This discovery method chooses the eligible promotion list with the lowest price among other eligible promotion lists.
You can use these discovery methods interchangeably. It is not mandatory to have the same value for both. For instance, you can set the price list discovery method as lowest and keep the promotion discovery method as hierarchy or vice-versa.
Discount Application Strategy
There are two ways to apply discounts at multiple levels: additive and chaining. By default, discounts at multiple levels are chained. This means that the subsequent discount gets calculated on the value after applying the previous discount. When it’s additive, multiple discounts are grouped together and applied all at once. See below to understand the difference.
Chaining Discounts Example
Product Price - $100
L1 Discount - 10%
Discounted Price - $100 - 10% Discount = $90
L2 Discount - 5%
Discounted Price - $90 - 5% = $85.5
Additive Discounts Example
Product Price - $100
L1 Discount - 10%
L2 Discount - 5%
Discounted Price - $90 - (10% + 5%) = $85
