Pricing

Price triangulation

Reconciling the three prices that exist for one transaction — invoice price, contract price and net-net pocket price — into a single agreed number.

Every transaction carries at least three prices. The **invoice price** is what the document said. The **contract price** is what the agreement entitled the customer to. The **pocket price** is what you kept after every off-invoice reduction settled.

In most businesses these three live in three systems — order management, contract management and the rebate or claims ledger — and are never compared. Triangulation is the reconciliation: for each line, do these three agree, and if not, why.

The disagreements are the finding. A contract price above the invoice price means a customer was overcharged and will eventually deduct. An invoice price far above pocket means the concession stack is deeper than the deal assumed. Both are invisible until the three numbers are put on the same row.

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