# What is a Pricing Rule?

A pricing rule is employed to modify the prices of an item in an order based on certain conditions. These conditions determine how prices are retrieved in select sales and purchase modules, namely Sales Order, Invoice, and Sales Receipt. So, when the condition of a pricing rule is met, the corresponding price is applied to the item(s) in the order. Therefore, when the conditions outlined by a pricing rule are met, the corresponding price is automatically applied to the item(s) in the order.

Pricing rules serve to enhance operational efficiency by eliminating the need for manual price adjustments for different entities (customer or vendor). Instead of manually changing prices for different items, the pricing rule ensures that prices are updated automatically for the relevant entities. This not only saves time but also reduces the margin for errors.

For example, a business may decide to offer certain items to a long-term customer at a discounted price. In such a scenario, a pricing rule can be created to specify the discounted price when selling to that particular customer.

When the customer is retrieved in the sales order module, the system checks for the applicable pricing rule, and the updated prices are automatically applied to the order. This automated process ensures consistency and accuracy in pricing adjustments, contributing to a more streamlined and error-resistant pricing strategy.


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