Configurable pricing plans
Summarize
Summary of Configurable pricing plans
Pricing Management in ServiceNow offers a default pricing plan that defines the sequence of steps to calculate and adjust product prices. This plan is active and published by default starting with the November 2024 release. Customers can choose to use this default plan or create a customized version by copying and modifying it. Only one active pricing plan is permitted per domain.
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With the May 2025 release, the default plan includes a new step called Apply Renewal Adjustment, which manages pricing changes related to contract renewals. If you have a custom plan from before this release, you should review the updated default plan and decide whether to publish it or customize your own plan accordingly.
Key Features
- Step-based pricing calculation: The default pricing plan consists of sequential steps, each performing specific actions such as initializing context, fetching costs and price list values, applying attribute and renewal adjustments, and applying configuration, contextual, and custom adjustments.
- Apply Renewal Adjustment step: This step calculates markups or markdowns related to contract renewals and halts subsequent adjustment steps unless customized otherwise.
- Adjustment matrices: Configuration Component Price Adjustment Matrix and Standard Price Adjustment Matrix enable adjustments based on product bundles and contextual factors (e.g., billing state, shipping zip code).
- Custom adjustments: Support for adjustments fetched from external systems or special scenarios via the PricingAdjustmentExtensionPoint.
- Price point and calculation type: Each adjustment step defines whether it applies to List Price or Net Price and whether the adjustment is based on the previous price point or the rolling price, affecting how multiple adjustments compound.
Customizing a Pricing Plan
To tailor pricing to your organization’s needs, you can copy the default plan and modify it by adding, changing, deleting, or reordering pricing steps. The system validates changes for correctness. Once finalized, publish the customized plan to activate it; the prior active plan will be retired.
As a pricing administrator or manager, the typical process is:
- Create a copy of the default pricing plan.
- Add or modify pricing steps including conditions and sequence.
- Delete any unnecessary steps.
- Publish the customized plan to activate it.
- Revert to the default plan anytime by republishing it.
Benefits for ServiceNow Customers
- Leverage a proven, structured pricing calculation framework out-of-the-box.
- Maintain flexibility by customizing pricing logic to match unique business requirements.
- Ensure consistent pricing application across products and contracts, including renewal scenarios.
- Integrate external pricing adjustments seamlessly via extension points.
- Simplify management by having only one active pricing plan per domain and clear version control through active and retired states.
Pricing Management provides a default pricing plan that defines the sequence of steps in which pricing calculations and adjustments are applied to determine final product prices.
How the pricing plan works
| Step | Action |
|---|---|
| Initialize Pricing Context | Starts the pricing engine context. The system gathers basic data required for subsequent calculation steps. For example, the system resolves context variable values, initializes the pricing cache, and performs basic validation of request payloads. |
| Fetch Cost | Get costs from a cost book, if your organization is using cost books in Quote Management. |
| Fetch Price List Price | Get the list price for all requested products based on the price list, unit of measurement, and data provided to the pricing API. |
| Apply Attribute Adjustments | Apply attribute adjustments based on product characteristics selected. |
| Apply Renewal Adjustment | Apply a renewal adjustment for contracts. This step determines whether a markup or markdown value, either a percentage or specific amount, such as a pricing uplift for contract renewals, is to be calculated and
applied. Note:
|
| Apply configuration component adjustment | Apply adjustments as defined in the Configuration Component Price Adjustment Matrix for child product offerings that are bundled under a parent product offering. |
| Apply contextual adjustments | Apply adjustments as defined in the Standard Price Adjustment Matrix for product offerings based on non-product characteristics, such as billing state or shipping zip code. |
| Custom adjustments | Apply custom adjustments if implemented using the PricingAdjustmentExtensionPoint to fetch adjustments from another system or for adjustments that can't be supported via a pricing matrix. |
- Price point: The price for a product or service that is calculated after the step is run, either the List Price or Net Price.
- Calculation type: Method for evaluating the impact of the adjustment at each step. The adjustment is applied to either the Previous Price Point or the Rolling Price.
- When the Calculation Type is Previous Price Point and the price point is Net Price, the previous price point is List Price. The adjustment is applied to the List Price.
- When the Calculation Type is Rolling, the adjustment calculated is based on the output of the previous step.
Example pricing plan calculations
The following example shows how multiple pricing adjustments in a pricing plan are calculated and applied to a door sensor product. The door sensor is part of the Home Automation bundled product, which is being sold to Boxeo, a customer in California. The price of the door sensor is based on the price list for Boxeo.
Customizing a pricing plan
The default pricing plan is fixed, to preserve the default pricing logic. You can copy the default plan, and add or change steps as needed for your organization. When you finish your changes, you publish the copy so that it becomes the active plan. If needed, you can revert to the default plan at any time by publishing the default plan.
- Create a configurable pricing plan (copy the default plan).
- Add or change a pricing plan step. In your configurable pricing plan, you can add one or more pricing steps for pricing adjustments, including any conditions for running the step. You can also change the sequence of the adjustment steps, if needed.
- Delete a pricing plan step, if needed.