SPA Pricing Glossary

This topic provides a definition of terms as they pertain to the SPA pricing functionality in the Service Management system.


Term	Definition
Price	The amount that a customer pays you for an item (Selling Price).
Cost	The amount that you pay for an item from the vendor (Buying Price).
SPA	Special Pricing Agreements. Arrangements that have been set up between you and a vendor to determine the price of an item based on a special cost given from the vendor.
Plan Cost	The estimated cost of an item. This value will be used to calculate a planned margin. For purchased items this will be the value from the vendor's price book.
Accounting Cost	This is the actual cost associated with an item as it is taken out of inventory. This is the amount that posts to the general ledger. It can vary from the Plan Cost due to accounting rules surrounding FIFO and LIFO costing.
Product Code	Grouping of items to assist in setting the price or buying cost by a set of like items.
Customer/Item Cross Reference	Special pricing for a customer for a specific item.
Customer/Product Code Cross Reference	Special pricing for a customer for a group of items.
Item SPAs	Special or promotional pricing for a customer for a specific item when purchased from a specific vendor.
Product Code SPAs	Special or promotional pricing for a customer for a group of items when purchased from a specific vendor.