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title: Understand Penny Perfect Pricing
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description: Learn the architecture of Penny Perfect Pricing and how schemas, templates, search strategies, and keys interact to calculate precise order prices.
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  - Consumer Goods
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---
# Understand Penny Perfect Pricing

Learn the architecture of Penny Perfect Pricing and how schemas, templates, search strategies, and keys interact to calculate precise order prices.

Penny Perfect Pricing ensures financial accuracy by using a structured chain of logic that replicates your backend ERP’s pricing behavior. The building blocks of the pricing engine work together to retrieve specific pricing conditions for every line item.

The _calculation schema_ is a list of steps for calculating the price. You create these steps for each order scenario you need—based on markets, customer types, volume discounts, and so on. If you need more than one calculation schema, create a schema determination table to select pricing schema based on information such as customer pricing type, order pricing type, and market.

Each calculation step within the schema is linked to a Pricing Condition Template that defines the information needed for the step (for example, a base price or a specific customer discount):

- A key type representing a combination of key attributes. For example: customer group plus product ID, to price a product for a specific group of customers.
- A search strategy that determines a sequence of places to look based on the keys

At order time, the key values are pulled from the live order, then used to look up a value in the database. This value is the pricing condition used in the calculation step.

When you create these building blocks, it’s easiest to start with the smallest components (key attributes and key types) and work your way up to the calculation schema and the schema determination.

- **[Calculation Steps and Pricing Condition Templates in Penny Perfect Pricing](https://help.salesforce.com/s/articleView?id=ind.cg_concept_calculation_steps.htm&release=264.0.0&type=5)**  
    A calculation step is a container for a pricing condition template, which determines the behavior of the step and how to retrieve the data required to perform the calculation.