> For the complete documentation index, see [llms.txt](https://developer.esw.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developer.esw.com/adobe-commerce-magento/adobe-commerce-extension-integration/getting-started/pricing-model.md).

# Pricing Model

## Configuring Pricing Model <a href="#configuring-pricing-model" id="configuring-pricing-model"></a>

Pricing model setup is native to Adobe Commerce.

* The Fixed Pricing model is used by default for a country if the Adobe Commerce base currency is equal to the current shopper display currency.
* The Calculated Pricing model is used by default for a country if the Adobe Commerce base currency is not equal to the current shopper display currency. The Calculated Pricing model works by utilizing ESW’s Pricing Advisor data to convert a retailer's Adobe Commerce global or website-level price and applying ESW’s custom formula to display the in-country prices. The process is similar to native Adobe Commerce when exchange rates are in use, with differences in module extent that logic with additional calculations.

### Setting Up for the Fixed Price Model <a href="#setting-up-for-the-fixed-price-model" id="setting-up-for-the-fixed-price-model"></a>

* To set up a Fixed Price country, add the country to Allowed Countries in Configuration  > General > Allowed Countries.
* To set up the currency to be used, add Base Currency in Configuration > Currency Setup. The same currency must be set up in Default Display Currency as well as Allowed Currencies.

### Setting Up for the Calculated Pricing Model <a href="#setting-up-for-the-calculated-pricing-model" id="setting-up-for-the-calculated-pricing-model"></a>

#### **Prerequisites**

* Pricing Advisor must be set up to use the Calculated Pricing model. Each retailer has a different configuration because the estimated duty and tax vary based on the product set and average order value in each target market.
* Pricing Advisor must be run at least once to populate the currency rates and the custom ESW data required to generate the ESW calculated price. You can run Pricing Advisor manually by Import option in the ESW> Pricing Advisor section, especially if the module has just been installed.&#x20;

{% hint style="info" %}
The configuration section for the Pricing Advisor is accessible from the main ESW Module configuration tab with default settings.
{% endhint %}

Country and currency relationships is defined in section ESW > Checkout > Country - Currency Mapping. Each country supports a single currency and the defaults are automatically setup within the installation.

* To set up the Calculated Pricing model countries, add the country to the allowed countries (Configuration > General > Allowed Countries). The allowed countries are included in the Country selector on the landing mat and footer.
* To set up the currency to be used, add the currency as the base currency (Configuration > Currency Setup).
  * If different Default Display Currency and Allowed Currencies are set up, then the Calculated Pricing model is enabled for the selected country at the website level.
  * If a different Default Display Currency cannot be set up, then the Fixed Pricing model is enabled for the selected country. However, if you want to use the Calculated Pricing model, then an override must be set in ESW> Checkout > Pricing Configuration > Force Calculated Pricing Model Countries.

{% hint style="info" %}

* A single website can support multiple countries using the Calculated Pricing model and native domestic countries.
* All currencies that are enabled at the website-level for the Calculated Price model must be enabled at the 'Default Config' level to allow the Calculated Pricing cron to update the foreign exchange rates.
* The countries for which the tax is added and displayed separately in the Totals section at the ESW Checkout can be set up using the ESW Tax on Checkout Side Only Countries option under Pricing Configuration. Typically, these countries include the USA and Canada.
  {% endhint %}


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