You are here:
Cumulative Pricing Using Volume or Tier Discount Elements
Customers can apply volume or tier-based discounts to a line item based on aggregated product quantities, whether from past purchases (asset quantity) or multiple line items within the same quote or order.
Required Editions
| Available in: Lightning Experience |
| Available in: Enterprise, Unlimited, and Developer Editions of Revenue Management (formerly Revenue Cloud) with the Revenue Cloud Growth license or the Revenue Cloud Advanced license. |
This ability to aggregate quantities, from current transactions or historical purchases, is crucial for effective discounting. It allows customers to receive cumulative quantity discounts based on defined rules, incentivizing larger purchases over time and honoring negotiated pricing commitments.
By using cumulative pricing, discounts are applied based on the total quantity from past purchases or multiple line items within the same transaction, rather than just individual line item quantities. This method ensures that the pricing engine considers the full scope of a customer's purchasing activity when calculating discounts.
Applying Cumulative Quantity to Volume Discounts
When you apply cumulative pricing to the Volume Discount element, the aggregated quantity is provided through the AggregatedQuantity_std context tag. This aggregated quantity is calculated from the customer's pricing contract (when the contract's aggregation strategy is set to Cumulative) and represents the sum of quantities from past purchases.
For example, if the aggregated quantity from past purchases is 6 units and the current line item quantity is 2 units, the total cumulative quantity becomes 8 units. If your discount tier offers 10% off for 5-10 units, this discount will be applied to the currently purchased 2 units, even though only 2 items were purchased in the current transaction.
Applying Cumulative Quantity to Tier Discounts
Similarly, when you apply cumulative pricing to the Tier Discount element, it exposes the Cumulative Tier Quantity input variable. This input variable is mapped to a context tag and passed by the transaction system. This value helps the pricing engine determine which tiers are relevant.
For example, let’s assume that the cumulative tier quantity is 3 units, and the current line item quantity is 6 units. If your pricing structure has an initial tier with no discount for 1 to 3 units, this tier would be filled by the cumulative quantity of 3. The current line item quantity of 6 would then be spread across subsequent tiers such as, 4-7 units and 8-10 units, potentially leading to a higher overall discount than if only the line item quantity was considered.
