While creating price book information, you have an option to choose your Pricing Model based on your business requirement. You can choose from the following options:

• No discount
• Flat Discount
• Differential Discount

To define the pricing model with no discount

1. In the Price Books module, click New Price Book.
2. In the Create Price Book page, enter a Price Book Name.
3. Select Pricing Model from the drop down list.
   By default, the Pricing Model displayed is None.
4. Click Save.

To define the pricing model with Flat or Differential discount

1. In the Price Books module, click New Price Book.
2. In the Create Price Book page, enter a Price Book Name.
3. Select Flat/Differential discount from the drop down list.
4. In the Pricing Details section, enter the From Range , To Range and Discount (%).
5. Click Add to enter more slots of pricing details and discounts.
6. Click Save.

The chart below shows a comparative study of the Flat & Differential discounts: