When using a Price adjustment clause in the price, we can use an adjustment factor to update the price without changing the actual price maintained at price level. For example, we have maintained a price of $2 and for the next 2 months the price must be increased to $2.5. In this case, instead of manually changing all the price keys, we can maintain a price adjustment clause with an adjustment factor of 1.25. this way we will be able to adjust the price on all price keys indirectly where this adjustment clause is maintained. We can perform multiplication, addition or both when configuring a price adjustment clause. Price Adjustment Clause can be created for all price categories. To create a price adjustment clause, in the SAP configuration, navigate to the following path: SAP Utilities ➡️ Contract Billing ➡️ Billing Master Data ➡️ Rate Structure ➡️ Prices ➡️ Price Adjustment Clause ➡️ Define Price Adjustment Clause Enter the Price category, Division, Text, valid from and to dates when the adjustment should happen, Price adjustment factor and click on Save. We can also provide a flat price to be added with or without the adjustment factor. For example, if we have price of $2 maintained and provide adjustment factor of 1.25 and Added price as 1 the price will be calculated as follows: $2 x 1.25 = 2.5 2.5 + 1 = $3.5 If the "addition first" checkbox is selected, the price will be calculated as follows: $2 + 1 = 3 3 x 1.25 = $3.75 Price adjustment clause created from 02-01-2020 to 03-31-2020 Price adjustment clause maintained at price key Price of $2 is maintained. Account billed for period where Price adjustment clause is inactive: Account billed for period where Price adjustment clause is active: