Cost Books and Price Books

Salesforce Pricing provides a predefined standard price book; however, you can create your own standard price book using the Price Management app. An organization must have a price book to track its products, but a cost book is optional.

It’s important to distinguish between cost books and price books. The primary difference is:

• Cost Books focus on internal expenses incurred by the business.
• Price Books define the selling prices of products and services for various customer segments or channels.

• Define Costs in Cost Books
  A cost book acts as a detailed expense tracker for your products. Think of it as the place where you record every cost associated with creating or delivering a product or service. Within a cost book, you create individual entries for each specific expense, such as the cost of raw materials, manufacturing, or shipping. These detailed cost entries are then linked directly to the corresponding product in your catalog, giving you a clear, itemized view of what it truly costs to bring that item to market.
• Define Prices in Price Books
  A price book is essentially your company's master product catalog, containing a complete list of your products and services along with their specific selling prices.