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Administrator Guide
Last Updated: 2024-09-20
Example: Create Fair Value Price List for Bundled and Unbundled Sales Items

Example: Create Fair Value Price List for Bundled and Unbundled Sales Items

This example illustrates how to create a fair value price list that specifies boundary percentages for sales items, and allocation percentages for sales item bundles.
You're a revenue administrator who wants to:
  • Specify boundary percentages for sales items to keep fair value prices within a limited range.
  • Specify allocation percentages for items within sales item bundles.
  1. First, we'll specify boundary percentages. Access the
    Maintain Fair Value Price List
     report.
  2. Click
    Add
     to create a new fair value price list.
  3. Enter header information:
    Name
    ,
    Currency
    ,
    Effective Date
    , and
    Worktag Type
    .
  4. On the
    Percent
     tab, click
    Add Row
    .
  5. Enter the
    Sales Item
    ABC Software
    .
  6. For the
    Fair Value Price Method
     field, select
    Boundary
    .
  7. Enter a
    Lower Range Percentage
     of 80, and an
    Upper Range Percentage
     of 120.
    Selecting
    Boundary
     enables you to choose lower and upper percentages that determine the minimum and maximum fair value prices for that sales item.
    Because the ABC Software sales item has a list price of 825, the lower and upper boundary percentages of 80% and 120% set the minimum and maximum fair value prices to 660 and 990.
    When you associate this fair value price list with a customer contract, Workday adjusts the
    FV Unit Price
     of any line item that has a unit price outside of this range. For example:
    • If the contract line unit price is 700, which is within the fair value price range, the FV Unit Price is the same as the contract line unit price.
    • If the contract line unit price is 600, Workday adjusts the FV Unit Price to 660.
  8. Now we'll add a bundled sales item. Access the
    Maintain Fair Value Price List
     report again, and edit the fair value price list you created earlier.
  9. Add the
    Sales Item
    ABC Software & Laptop Bundle
    .
  10. Click the number
    4
     in the
    Bundle
     column to open the list of sales items in the bundle.
  11. Allocate percentages and amounts to the sales items in the bundle as follows:
    Sales Item
    Percent
    Percent of
    Price Type
    Amount
    ABC Software
    50
    Bundle
    Net
    Software Maintenance
    20
    Bundle
    Net
    Training Manual
    0
    200
    Laptop
    90
    Sales Item
    List
    Selecting
    Bundle
     enables you to choose whether to apply the percentage you entered to the list price of the bundle or net price of the bundle (which is the contract line unit price). Selecting
    Sales Item
     applies the percentage to the list price of that sales item only.
    When you associate this fair value price list with a customer contract, Workday uses the
    FV Extended Amount
     (which is equal to
    FV Unit Price
     *
    Total Quantity
    ) to prorate the
    Revenue Override Amount
     for the 4 sales items in the bundle, so that the total of the revenue override amounts is equal to the net price of the bundle.