Pricing

Pricing defines reusable charges, interest rules, penalties, discounts, taxes, commissions, and other monetary rules used by products and operational workflows.

Use this guide when creating a pricing package, attaching it to a product or record, reviewing dependencies, setting rate indices, or checking why a charge was or was not calculated.

Where To Open It

Open Administration -> Financial Setup -> Pricing.

The workspace is organised around:

• price books
• item prices
• advanced pricing items
• profile links
• bindings
• overrides
• pricing line codes
• rate indices
• pricing preview

Workspace Reference

Workspace	How Users Reach It	What Users Usually Do There
Pricing	Administration -> Financial Setup -> Pricing	Maintain price books, item prices, bindings, overrides, pricing lines, rate indices, and previews.
Loan Products And Deposit Products	Loans -> Setup -> Products or Deposits -> Setup -> Products	Attach pricing profiles to product behavior.
Billing, POS, Payments, Wallets, Production, And Agriculture	Service-specific operations workspaces	Trigger configured charges, discounts, taxes, fees, settlement costs, or service pricing.
Accounting Setup	Accounting -> Setup	Confirm posting rules used by pricing profiles and pricing items.

Core Concepts

Concept	Meaning
Price book	A reusable pricing package, such as a loan pricing profile, deposit maintenance profile, POS sale-price book, or hospital tariff book.
Item price	The approved sale price for a sellable operational item, stock item, service, drug, room, meal, or facility-specific selling context.
Pricing item	One advanced monetary rule inside a profile, such as processing fee, interest, tax, penalty, discount, commission, or shared sale-price line.
Line code	The controlled business classification for a pricing item. It tells users what kind of charge or value the item represents.
Profile link	A way to include reusable pricing from another profile.
Dependency	A relationship where one pricing item depends on another, such as tax on a fee or penalty on overdue interest.
Binding	The place where a pricing profile is attached to a product, account, item, service, or other business target.
Override	A controlled change to an inherited pricing item without duplicating the entire profile.
Rate index	A maintained reference rate used by indexed pricing.
Preview	A review tool that shows the effective pricing setup before users rely on it operationally.

Price Books

A price book is the container for related prices and pricing rules.

Examples:

• retail loan pricing
• staff loan pricing
• fixed deposit pricing
• savings account charges
• POS or pharmacy sale prices
• hospital tariffs
• settlement fee pricing

Typical profile fields include:

Field	Meaning
Profile name	Business-facing name users will recognise.
Description	Purpose of the profile and when it should be used.
Active status	Whether the profile can be selected or used by workflows.
Default posting rule	Optional accounting treatment used when an item does not carry its own posting setup.

Keep profile names specific. “Kampala Clinic Cash Tariff 2026” is more useful than “Tariff”.

Creating A Price Book

1. Open the Price Books tab.
2. Click Add Profile.
3. Enter the profile name, description, and active status.
4. Select a default posting rule if the profile needs a shared accounting treatment.
5. Save the profile.
6. Open Item Prices to set prices for sellable operational items, stock items, services, drugs, rooms, or menu items.
7. Use View Items only for advanced pricing-rule setup such as interest, penalties, dependencies, or reusable calculation lines.
8. Add profile links, bindings, or overrides where needed.
9. Use Preview Context to confirm the effective pricing before go-live.

Item Prices

Item prices are the normal setup path for selling goods and services through POS, Billing, cashier desks, restaurants, pharmacies, clinics, hotels, and similar daily-sale workflows.

When adding an item price, users select:

Field	Meaning
Pricing profile / price book	The approved tariff or sale-price book that owns the price.
Pricing line	The generic calculation line. Normal item sales use SALE_ITEM_UNIT_PRICE.
Target type	Whether the price is for a stock item or an operational item/service.
Item target	The sellable stock item, service, drug, room, meal, or other operational item being priced.
Unit price	The amount charged per unit.
Quantity range	Optional tier such as 1-9 units, 10-49 units, or a bed-hour/bed-night quantity band.
Optional scope	Service, branch, register, channel, or advanced location scope where the price differs.
Effective dates	When the price starts and ends.

Users do not need to manually create a pricing profile item before adding an item price. The system resolves or creates the internal pricing item for the selected price book and pricing line.

Advanced Pricing Items

Pricing items define the actual charge, interest, fee, discount, tax, or commission.

Common item fields include:

Field	Meaning
Line code	Business classification of the item.
Line name	User-facing label shown in lists, previews, and transaction detail.
Calculation method	How the amount is calculated, such as fixed amount, percentage, indexed rate, tiered amount, or dependent amount.
Application mode	Whether the item is applied manually, by schedule, or by a workflow event.
Trigger transaction type	Optional business event that should activate the item.
Item posting rule	Optional accounting treatment for this specific item.
Active status	Whether the item should be considered for calculation.

Only create one item per business meaning. If the same fee needs different rates by product, prefer profiles, bindings, or overrides rather than duplicate unclear items.

Rate And Amount Setup

Pricing items can use different amount styles.

Setup Style	Use It When	Important Fields
Fixed amount	The amount is always the same.	Fixed amount, currency, limits where applicable.
Fixed percentage	The amount is a percentage of another amount or balance.	Rate value, basis amount, minimum, maximum.
Indexed rate	The rate follows a maintained reference index.	Rate index, spread or margin, effective date.
Tiered pricing	The amount changes by amount band, balance band, days, count, or other threshold.	Tier minimum, tier maximum, rate or amount per tier.
Dependent amount	The item depends on another item, such as tax on a fee.	Parent item, dependency type, rate or amount.

Always confirm whether a percentage is entered as a percentage value, not as a decimal fraction, according to the form label.

Limits And Review Fields

Some items support limits.

Field	Meaning
Minimum amount	The calculated result should not fall below this amount.
Maximum amount	The calculated result should not exceed this amount.
Balance basis	Which balance or amount the calculation should read when the item is balance-based.
Day count convention	How time-based pricing is prorated for interest-style calculations.

Minimum and maximum amounts are useful for service charges, capped fees, and regulated products.

Line Codes

Line codes define the business meaning of pricing items.

Examples:

• interest
• processing fee
• penalty
• tax
• discount
• commission
• maintenance fee
• settlement charge

Line codes help keep reporting, posting, and previews understandable. Administrators should avoid creating multiple line codes that mean the same thing.

Dependencies

Dependencies are used when one pricing item is based on another item.

Common dependency examples:

Dependency Example	Meaning
Tax on fee	Tax is calculated from the fee amount.
Penalty on overdue interest	Penalty is calculated from the overdue interest amount.
Discount on charge	Discount reduces a selected charge.
Percentage of parent	Child item is calculated as a percentage of a parent item.

When configuring dependencies, confirm:

• the parent item is active
• the child item uses the correct dependency type
• the parent item calculates before the child item
• the result is visible in preview

Profile Links

Profile links let administrators build larger pricing packages from reusable smaller profiles.

Use profile links when:

• several products share the same fee library
• tax or penalty rules are reused across products
• a service profile needs common charges plus product-specific items

Avoid profile links when the linked profile is unrelated. Over-linking makes pricing difficult to explain.

Bindings

Bindings attach pricing to the place where it should be used.

Examples:

• loan product pricing
• deposit product pricing
• account-specific pricing
• POS item pricing
• settlement or wallet pricing
• service-specific pricing

Before activating a binding, confirm:

• the correct profile is selected
• the target product or record is correct
• the effective dates are correct
• the business unit or service scope is correct where applicable
• no higher-priority binding overrides it unexpectedly

Overrides

Overrides let one profile adjust an inherited item without copying the whole profile.

Use overrides to:

• change a rate
• change a fixed amount
• disable an inherited item
• change an effective date
• specialise pricing for one product or service

Do not use overrides to hide a poorly structured profile. If many items need overrides, the base profile may need redesign.

Rate Indices

Rate indices are maintained reference rates for indexed pricing.

Examples:

• central bank rate
• internal base lending rate
• treasury rate
• promotional reference rate

When maintaining rate indices:

• use clear names
• enter effective dates carefully
• keep history instead of overwriting old rates
• review products that depend on the index before changing it
• confirm whether changes affect only new calculations or also future scheduled calculations

Preview Context

Use preview before enabling or changing pricing.

Preview helps confirm:

• which profile items are active
• which linked profiles contribute items
• whether dependencies calculate in the expected order
• which overrides apply
• whether rates and limits produce expected results
• which posting setup will be used
• whether any item is missing required setup

Preview is the safest way to catch pricing mistakes before users create transactions.

Accounting Impact

Pricing can affect accounting when a charge, fee, interest item, tax, penalty, discount, or commission is posted.

Administrators should confirm:

• the profile has a default posting rule where appropriate
• item-specific posting rules are used where a line needs special treatment
• taxes, discounts, and penalties post to the correct accounts
• receivable, payable, income, expense, wallet, cash, or settlement accounts are mapped correctly
• control accounts have the required detailed tracking

If a transaction calculates correctly but fails to post, the pricing may be valid while the accounting setup is incomplete.

Common Validation Problems

Problem	What To Check
Item does not calculate	Active status, binding, application mode, trigger, and effective dates.
Amount is zero	Rate, fixed amount, basis amount, tier range, or minimum/maximum setup.
Tax or penalty missing	Dependency setup and parent item result.
Wrong rate used	Rate index history, spread, effective date, and override priority.
Duplicate charge appears	Profile links and inherited items.
Posting fails after calculation	Posting rule, account mapping, currency, and sub-ledger setup.

Good Setup Practices

• Give every profile and item a business-readable name.
• Use descriptions to explain when the profile should be used.
• Keep reusable rules in shared profiles and product-specific rules in product profiles.
• Use preview after every structural change.
• Avoid duplicate line codes for the same meaning.
• Keep rate-index history clear and dated.
• Review accounting impact before activating pricing in production.

Related Pages

• GL Posting Rules
• Loan Products
• Deposit Products
• Billing Overview
• Payments Overview