Pricing Modification
Table of Contents
Use Case:
Organizations need to monitor manual changes to pricing conditions to ensure discounts, rebates, and other adjustments are appropriately justified and comply with company policies. While manual pricing changes may be necessary to support legitimate negotiations or customer arrangements, they can also create opportunities for favoritism, fraud, bribery, or control circumvention. For example, a manually entered discount without a clear business justification may warrant further review to confirm that it was properly authorized.
The Pricing Modification analytic identifies transactions where specific pricing conditions, such as discounts or rebates, were manually created or altered. By highlighting transactions involving manual pricing changes, the analytic helps organizations review potentially unusual adjustments, confirm that required approvals and documentation are in place, and identify activity that may indicate policy violations or improper benefits.
| Description | Identifies transactions where pricing conditions, such as discounts or rebates, were manually created or modified |
| Domain(s) | Customer Revenue |
| Analysis Type | Flag |
| Focus Area | Setting |
| Score Methodology | The transaction value (billing value) |
Default Scoring Criteria
Importance: 4 (default)
Enabled: True (default)
| Risk Result | Default Value | Notation |
|---|---|---|
| Weak | $100 | Value (USD) |
| Moderate | $500 | |
| Strong | $5000 | |
| Auto | Not set |
Unique Configuration
The Pricing Modification analytic identifies two types of manual pricing changes:
- Manually Adjusted: an existing pricing condition, such as a price or discount, was manually modified after it was initially applied. For example, a user changes the unit price or discount on a transaction.
- Manually Originated: a pricing condition, such as a discount or rebate, was manually added and was not included in the original transaction or preceding document.
These checks rely on indicators provided by the source system that identify whether a pricing condition was manually adjusted or manually created.
Exclusions
You can configure the analytic to include only specific pricing conditions for evaluation. To improve the relevance of results, it is recommended to configure at least one of the following for each check type:
- Manually Adjusted: Condition Type
- Manually Adjusted: Condition Category
- Manually Originated: Condition Type
- Manually Originated: Condition Category
Condition categories group similar pricing conditions into standardized classifications, such as Discount, Pricing, Tax, Insurance, Cost, and Shipping/Freight.