About Performance-based Pricing RulesAbout Performance-based Pricing RulesYou add pricing rules for IT assets to a price schedule in the Customer Agreements (SP) application. You can create several types of pricing rules, including those based on count, performance, and usage.
Use sales orders to bill fees for IT assets you manage. On the sales order, identify the IT assets for which you are billing. Specify the billing criteria and calculation method. Then you apply the pricing rules of the price schedule to determine the fees to bill to this customer.
Create performance-based pricing rules on the Asset Performance subtab of the IT Asset subtab of the Pricing Rules subtab. The Pricing rules subtab is on the Price Schedules tab of the Customer Agreements (SP) application.
When creating performance-based pricing rules for IT assets, you specify the Key Performance Indicator (KPI) by which you measure and price performance. Then, specify the price for each KPI parameter:
the price when performance is in the target range for this KPI
the price when performance is in the caution range for this KPI
the price when performance is in the alert range for this KPI
A price can be positive (for incentive revenue) or negative (for penalty payments). When the pricing rule is applied, it calculates the line price on the sales order by comparing the KPI measure on the sales order to the ranges on the KPI record. Then, it selects the price specified on the pricing rule.
For more information about sales orders, see the Sales Orders (SP) help.