How "Pricing Source" Affects Amendments and Renewals?
When an Asset is amended or renewed in Agentforce Revenue Management (ARM), one key field determines how pricing is calculated:
Pricing Source
This field answers a simple question:
When this asset is amended or renewed, where should the price come from?
Understanding this field is essential because it directly impacts whether customers retain their negotiated pricing or are repriced using current list prices.
The field contains two values:
- LastTransaction - Last Transaction
- PriceBookListPrice - Price Book or List Price
If the field is left blank, ARM behaves as if PriceBookListPrice is selected.
Recommendation: Always set this field explicitly in your order-to-asset automation rather than relying on the default behavior.
Example Scenario
Consider the following product sale:
| Detail | Value |
|---|---|
| Product | Analytics Pro |
| List Price | $1,000 per seat |
| Negotiated Discount | 20% |
| Net Price | $800 per seat |
| Quantity | 5 seats |
| Initial Order Total | $4,000 |
After order activation, ARM creates an Asset with:
UnitPrice = $800
TotalPrice = $4,000
PricingSource = <configured value>
Six months later, the customer wants to add 3 additional seats through an amendment, and eventually renew the subscription.
The pricing outcome depends entirely on the Asset's PricingSource value.
Option 1: PriceBookListPrice
How It Works
When PricingSource is set to PriceBookListPrice, ARM ignores the negotiated price stored on the Asset and retrieves pricing from the current Price Book Entry. In other words, pricing is recalculated using the latest list price whenever an amendment or renewal occurs.
Example Outcome
Current Price Book price: $1,000 per seat
Amendment
Customer adds 3 seats: 8 seats × $1,000 = $8,000
Renewal
Renewal quote is generated using the current Price Book price:
8 seats × $1,000 = $8,000
Option 2: LastTransaction
How It Works
When PricingSource is set to LastTransaction, ARM uses the Unit price from the most recent transaction.
This is effectively the customer's last negotiated price.
Example Outcome
Asset UnitPrice: $800 per seat
Amendment
Customer adds 3 seats: 8 seats × $800 = $6,400
Renewal
Renewal quote is generated using the Asset price:
8 seats × $800 = $6,400
Result
- Original negotiated price retained - No
- Current Price Book price used - Yes
- Customer discount preserved - No
The customer originally purchased at $800 per seat, but future amendments and renewals are priced using the current list price of $1,000 per seat.
Result
- Original negotiated price retained - Yes
- Current Price Book price used - No
- Customer discount preserved - Yes
The customer continues to receive the originally negotiated rate of $800 per seat during both amendments and renewals.
When Should You Use Each Option?
Use PriceBookListPrice when
- Customers should always pay the latest list price.
- Historical discounts should not be retained.
- Pricing continuity is not important.
- Products are sold as standard catalog offerings.
Use LastTransaction when
- Negotiated pricing must be honoured.
- Subscription pricing consistency is required.
- Customers expect amendments and renewals to follow the original commercial agreement.
- Renewal uplift strategies are being used.
Final Thoughts
The Pricing Source behavior discussed in this article reflects the standard ARM functionality and demonstrates a basic use case. In real-world implementations, pricing strategies often vary from one organization to another based on their business processes and commercial requirements.
One of the most common customizations is to configure amendments to retain the customer's existing discounted price, while renewals are priced using the current price list. Such scenarios can be achieved by customizing the pricing procedure to align with the organization's pricing policies and renewal strategy.
Understanding the standard behavior is the first step, but the true flexibility of ARM lies in its ability to support organization-specific pricing models through configuration and customization.
