A synthetic price realization waterfall
Trace a reference price through deductions, pocket price, and collected cash before naming a realization rate.
| Waterfall step | Amount (synthetic units) | What it represents |
|---|---|---|
| List or reference price | 1,200 | Declared starting reference |
| Order-size discount | -60 | Pre-invoice transaction term |
| Negotiated discount | -60 | Customer-specific invoice term |
| Invoice price | 1,080 | Amount shown after the two invoice deductions |
| Prompt-payment credit | -20 | Transaction-specific payment term |
| Service credit | -15 | Declared service-related deduction |
| Freight absorption / concession | -25 | Commercial absorption of delivery cost |
| Pocket price | 1,020 | Revenue remaining after the listed waterfall items |
| Uncollected balance | -20 | Amount not received in the declared collection period |
| Collected cash | 1,000 | Receipt under the example's collection rule |
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Reference & Evidence
Source: Author's synthetic reconciliation grounded in Marn and Rosiello (1992). Values are illustrative units, not a benchmark, recommendation, or observed ratio.
Each line is a claim from the register this journal publishes against, resolved from the register at build time.
- A Marn and Rosiello make net realized price for each order or transaction the object of transaction price management Marn and Rosiello (1992), full-text receipt ·
T01-MR92-C1 - A Their pocket-price waterfall moves from list price through invoice price and transaction-specific deductions to pocket price Marn and Rosiello (1992), full-text receipt ·
T01-MR92-C2 - A Prompt-payment discounts, annual or retroactive volume rebates, cooperative advertising or marketing allowances, freight, and other items can sit after invoice price in the waterfall Marn and Rosiello (1992), full-text receipt ·
T01-MR92-C3 - B List or reference price, invoice price, pocket price, and collected cash answer different questions Author taxonomy ·
T01-OWN-C2 - B The synthetic example produces 90.0% invoice-to-list, 85.0% pocket-price-to-list, 94.4% pocket-to-invoice, and 98.0% cash-to-pocket rates Author synthetic arithmetic ·
T01-OWN-C4
Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.
Related exhibits
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Which price is the numerator?
From the essay What is price realization? List price is not the cash collected
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The synthetic price-corridor ranges
From the essay What is a price corridor? A defensible range before a point price
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The synthetic price-fairness record
From the essay What is price fairness? A reference and process problem