For commodity-level and supplier-level contracts, tiered pricing can be either Amount Based Volume Discount or Amount Based Volume pricing, with the scope always cumulative. You cannot change the type or scope for these types of contracts.

For item-level contracts, tiered pricing can be any of the four tiered pricing types. The scope can be either cumulative or per order. You can create different tiered pricing levels or discounts for each item listed on the contract.

Preload amounts are included in calculating tier pricing only in supplier-level contracts.

When you source a non-catalog item and want to apply Quantity based volume pricing, you must remove the negotiated price and enter tiered pricing levels, starting with zero as the first tiered level.

1. For item-level contracts, select the type of discount or pricing to apply to an item:
   • Amount based volume discount, to obtain a discount percentage based on the amount of money spent
   • Amount based volume pricing, to obtain a discounted price based on the amount of money spent
   • Quantity based volume pricing, to obtain a discounted price based on the quantity ordered
   • Quantity based volume discount, to obtain a discount percentage based on the quantity ordered
2. Click Scope to specify whether the discount levels apply Per Order (to each release order) or to the Cumulative total or amount ordered during the life of the contract. Commodity-level and supplier-level contracts are always cumulative.
3. For each tier (as applicable, based on the type of discount pricing selected) specify the:
   • Minimum amount of money that must be spent to obtain the associated discount percent.
   • Minimum quantity that must be ordered to obtain the associated discount price or percent.
   • Discounted price to be received when the associated quantity is ordered. When a requisition references a contract that contains commodities or items with a discounted price, this price appears on the requisition (and subsequent release order) instead of the standard catalog price.
   • Discount percent to be received when the associated amount or quantity is ordered.
4. Click Add Row to create additional tiers.
5. Click OK to save the values, or Cancel to return to the previous screen without saving the values.