The pricing hierarchy diagram shows how prices are determined in PANTHEON (e.g. orders, invoices).
 

Setting up register of contract prices has the highest priority. If there is an entry in Contract Prices, pricing is set accordingly.

1) First, it is checked whether an entry exists in Contract Prices. If so, it is applied. Otherwise pricing is performed using a valid price index. If discount is entered, it is retrieved and accounted for. The data on contract prices or valid price index is used in formula in contract prices. If it doesn't exist, it is checked if a formula is specified in the Items register. If a formula is retrieved, the price is recalculated accordingly. Otherwise it is not changed and is used as gross price.

2) If no entry for subject and item exists in Contract Prices, it is checked if a formula is entered in the Items register. If so, the gross price is determined accordingly. In addition, If special discount (in terms of sales) is entered, it is retrieved and accounted for.

3) If price is not set, none of the abovementioned methods holds good in sales. That is, the selected customer price index will be used and gross price is retrieved from item pricing and used in sales where the supplier's price from pricing is applied.

4) Having set gross price, it checks for discount settings in Subjects:

• Contract Discount Shown Separately - Having selected this option, the following appears in field of price:
  • in purchasing: supplier's price where the purchase price margin appears in the discount field. Here it is not recommended to change discount for item!
  • in sales: the price from the selected price index; the sum total of discount from the Customers, Contract Prices and special discount from Items appears in the discount field.
• Show Discount Separately - If selected, sale price (the price from the first price index in Items) is set, while the difference from the actual purchase price is shown as item discount. Here it is not recommended to change discount for item! This calculation is only suitable for use in sales and sales orders since the sale price is the basis for discount calculation.
• Discount Included in Price - If selected, gross price is set, less the sum total of contract discount from the Customers register, Contract Prices, and special discount from the Items register. The discount field has the value 0. You can change it at will and enter positive or negative discount values. You can set this option for both sales and purchasing.

	You can set discount method in the Customers or Suppliers register in Subjects.
	Moreover, you can set how the discount will be used in Settings | Program Parameters | Items!
	Whenever you are unsure how price calculation is set, you can view pricing overview in orders and invoices.