Understanding Price Books & Price Book Entries

Here are the definitions of Price Books & Price Book Entries in Salesforce:

Price Book: This is a catalogue of Products that have associated prices. A Product can appear in multiple Price Books.

The benefits of Price Books are that you can set the pricing of a Product to be different across each Price Book. Typically, businesses will set up separate Price Books by business line, region, and/or customer.

A single Price Book can have a price for the same Product in multiple currencies if your Salesforce environment is enabled for multi-currency.

Price Book Entry: This is the object that links a Product to a Price Book and defines the specific price it has within the Price Book.

It is essential to ensure that your Products are assigned to the correct Price Books and have the correct listed price in the Price Book Entry.

When you first open the Product Manager on an Opportunity/Quote, you must select a Price Book. The Products available in the Product Manager will be those that have a Price Book Entry for the combination of the selected Price Book and the currency from the Opportunity. Therefore, it is essential to have correctly defined Price Books and Price Book Entries so that users can choose the correct Product with the proper list price every time.