Understanding Pricing Hierarchy in Sage 500

Apr 30 2014

Understanding Pricing Hierarchy in Sage 500

In Sage 500, the selling price for Items is defined in the Inventory Module. Sage 500 has the functionality and the flexibility for choosing and setting up different types of pricing to suit customer requirements.

The pricing type includes:

  • Item Pricing
  • Price Sheets
  • Inventory Price (Warehouse/Item)
  • Product Price Group (PPG)
  • Matrix Pricing (Customer Price Group (CPG)/Product Price Group (PPG))
  • Contract Pricing
  • National Account Pricing

When you have two or more of the above pricing types setup and in use, it is important to understand which pricing takes precedence and how the pricing hierarchy in Sage 500 works with permutations and combination of the pricing types.

The table below provides pricing precedence hierarchy and helps to determine which pricing is used. Contract pricing for Item/Warehouse – Customer address has the highest precedence and followed by Customer and so on.


CPG – Customer Price Group
PPG – Product Price Group

[table id=1 /]

We hope this helps you determine the pricing types you need to set up for your requirements. What challenges do you encounter in setting up different types of pricing structures? If you need assistance setting up your pricing structures in Sage 500, give us a call! Mantralogix is an authorized partner for Sage 500 ERP.


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