About Performance-based Pricing RulesAbout Performance-based Pricing RulesYou add performance-based pricing rules for IT assets to a price schedule in the Customer Agreements (SP) application.
When you bill fees for IT assets you manage on a sales order, you use a Key Performance Indicator (KPI) on the Fees and Charges table window to identify the IT performance measure for which you are billing. Then you apply the price schedule with a matching KPI in the pricing rules to determine the fees to bill to this customer.
When you create performance-based pricing rules for IT assets, you specify the 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, the line price on the sales order is calculated by comparing the KPI measure on the sales order to the ranges on the KPI record. Then, the price specified on the pricing rule is selected.