Price/Rate Generation

The Price Sale tier employs automated price generation derived from sales transaction data. Prices are calculated for defined timeframes based on sales data occurring within those periods.

Price Generation Period Type

Defines the temporal granularity for price calculation:

• Week
• Month
• Quarter

Price Generation Strategy

Determines the calculation methodology applied to sales data within each period:

• Average: Calculates a volume-weighted average price
• Minimum: Applies the lowest price observed during the period
• Maximum: Applies the highest price observed during the period

Freight Handling

The system generates two distinct price points to accommodate different shipping terms:

• Price excluding freight (FOB pricing)
• Price including freight (Delivered pricing)

Price Generation Look-back Period

Function: Enables the system to reference historical pricing when current period data is unavailable.

Behavior:

• Does not influence price calculation for periods with active sales data
• Does not populate periods lacking sales data with interpolated or estimated prices
• Searches backward N periods to identify the most recent valid price for application

Average Sale Price Change Tolerance

Function: Establishes a threshold for price recalculation to prevent unnecessary updates from marginal data changes.

Behavior:

• Below Threshold: New sales data causing price variations within the configured tolerance percentage will not trigger recalculation
• Above Threshold: Sales data resulting in price changes exceeding the tolerance percentage will invalidate the current period price and generate a corrected value

Calculation Example

Configuration Assumptions:

• Period Type: Monthly
• Product: 5432
• Company: XYZ
• Sales Data Timeline:

April 5: Sales transaction recorded at $10.00/case

April 15: Delivery date on claim (claim processed in May)

April 25: Sales transaction recorded at $20.00/case