Introduction 

StrataVAR PqW provides a flexible Item Type Rule engine to automatically determine the correct item type (Hardware, Software, Service, Subscription, etc.) when the source data does not clearly specify it or uses inconsistent values.

Item Type Rules are configurable logic sets that allow PqW to "read" item attributes and automatically assign the correct Item Type. This article covers:

• What Item Type Rules are, when they are used in the PqW workflow
• How they help ensure accurate pricing and reduced manual work when importing items (for example from vendor BoMs or quotes) into PqW.
• How the system determines types for BoM Items vs. Master Items.
• The step-by-step process of defining Rules and Segments in the UI.
• How to configure the global Item Type Source to ensure the right data reaches your Quote.

Why This Is Needed & Where It Fits in the User Journey

Item Type Rules are typically applied after items are imported into PqW (for example via BoM or vendor quote imports) and before quote pricing and margin logic is executed.

They sit in the middle of the process, between:

• Source ingestion (BoM, vendor quote, catalog, etc.) and
• Quote item pricing (discounts, margins, approval rules)

Item Type Rules are needed because:

• Many suppliers do not send a reliable item type for each line.
• Some suppliers use their own classification that does not match your pricing model.

PqW uses item type as a key driver for default discount and margins, approval thresholds, reporting and analytics. Without correct item types, quote items may get:

• Incorrect margins (too high or too low)
• Inconsistent treatment of similar products
• Extra manual corrections by sales or operations teams

Item Type Rules ensure that items are classified consistently, and pricing logic can run reliably.

When to Use Item Type Rules

Use Item Type Rules when:

• The source (vendor quote, BoM, integration) does not provide an item type
• The source item type is unreliable, and you want PqW to override it
• You want to standardize classification across multiple suppliers
• You rely on item–type–driven pricing (e.g., different margins for hardware vs service)

Common scenarios:

• Imports from distributors (e.g., where item type is missing or generic)
• Mixed hardware / software / service portfolios where classification needs to be enforced
• Environments where item type directly controls customer discount or margin

High-Level Flow: How Item Type Is Determined

The item type determination process in PqW follows a clear, hierarchical flow:

• Source Ingestion: An item is imported into PqW from a vendor quote, BoM, API, or file. The source may provide an item type, or it may be missing or inconsistent.
• Rule Evaluation: Item Type Rules are evaluated to set the Calculated Item Type. If a rule matches, Calculated overrides Original.
• Finalization: The Final Item Type is determined for each object (BoM Item and/or Master Item). This value is essential for downstream pricing, margin, and discount logic—quote items cannot have an undefined item type.

Relationship to BoM Items, Master Items, and Quote Items

Item Type Rules are evaluated on two internal objects: BoM Item and Master Item

Each has multiple item type–related fields:

• Original Item Type: What came directly from the source (if anything).
• Calculated Item Type: What PqW determines based on Item Type Rules.
• Item Type (Final Item Type): The effective result that will be used going forward (and passed downstream) essentially as Quote Item type.

Key behaviors:

If a rule sets a Calculated Item Type (not “undefined”), it overrides the Original Item Type for that object.

The Final Item Type is what flows from:

• Source → BoM Item
• BoM Item → Master Item (if configured)
• And finally into the Quote Item

Whether the quote item takes its item type from BoM item or the Master item depends upon the system configuration in PqW UI settings.

There is also a PqW UI setting called Item Type Source that controls which object’s item type (BoM Item or Master Item) will be used as the “source of truth” for the Quote Item’s item type.

• If Item Type Source is set to BoM Item (the default), the Quote Item will inherit its item type from the Final Item Type of the BoM Item.
• If Item Type Source is set to Master Item, the Quote Item will inherit its item type from the Final Item Type of the Master Item.

This setting is critical because it determines which item type (and thus which pricing/margin logic) will be applied to each quote line.

Prerequisites

Before relying on Item Type Rules:

• You have access to Salesforce and PqW
• Your PqW admin has enabled and configured Item Type Rules
• Defined which object(s) the rules apply to (BoM Item and/or Master Item)
• Set the Item Type Source for quote items in PqW settings

Your organization has a clear mapping of which attributes (e.g., product stack, service stack, part number pattern) identify: Hardware, Software, Services, Professional Services, Subscriptions and so on.

Step-by-Step: How Item Type Rules Work in Practice

Step 1: Source Data Enters PqW

An item is received from a source (e.g., vendor BoM, quote, integration).

The source may:

• Provide a value like “Hardware”, “Service”, etc.
• Provide an unrelated type or leave item type undefined.

At this point, Source Item Type = what came from outside, if anything.

If nothing is provided, it is treated as undefined.

Step 2: BoM Item Receives Original and Calculated Item Type Fields

When the item is stored as a BoM Item:

• Original Item Type (BoM Item) = value from the source (or “undefined” if missing).
• Calculated Item Type (BoM Item) = initially undefined.
• Final Item Type (BoM Item) = initially equal to Original (until rules run).

This gives PqW a clear record of:

• What the source said (Original), vs
• What PqW will calculate (Calculated).

Step 3: Item Type Rules Are Evaluated on the BoM Item

PqW then evaluates Item Type Rules defined for BoM Item.

Each rule includes:

• Underlying Object = BoM Item
• One or more Rule Segments (inputs), such as:
  • Product Stack = “Transition Service”
  • Service Stack = “Service Credit”
  • Part Number starts with “CON-”
• A Filter Logic expression (e.g., 1 AND 2, 1 OR 2) telling PqW how to combine segments
• A Result (output) that sets Calculated Item Type (e.g., “Professional Service”, “Service”)

Example 1 – Product/Service Stack Rule

• Segment 1: Product Stack = “Transition Service”
• Segment 2: Service Stack = “Service Credit”
• Filter Logic: 1 AND 2

Rule Result: Item Type = “Professional Service”

If both conditions are true, PqW sets:

• Calculated Item Type = “Professional Service”
• Final Item Type = “Professional Service” (takes precedence over Original)

Example 2 – Part Number Pattern Rule

• Underlying Object = BoM Item
• Segment 1: Part Number starts with “CON-”
• Filter Logic: 1

Rule Result: Item Type = “Service”

If the BoM Item’s part number starts with “CON-”:

Calculated Item Type =  = “Service”

Final Item Type = “Service”

Step 4: Master Item Receives and (Optionally) Overrides Item Type

From BoM Item, PqW may create or update a Master Item.

For Master Item:

• Original Item Type (Master Item) comes from the Final Item Type of the BoM Item
• Calculated Item Type (Master Item) may be set by a separate set of Item Type Rules defined for Master Item
• Final Item Type (Master Item) takes precedence if Calculated is defined

Example:

Source says item type = Hardware (BoM Original = Hardware)

• A BoM Item rule says: “If part number starts with ABC, Item Type = Software”
• BoM Calculated = Software
• BoM Final = Software
• Master Item Original = Software (copied from BoM Final)

A separate Master Item rule may say:

“For part number ABC, Item Type = Service”

• Then Master Item Calculated = Service
• Master Item Final = Service

Though not common in real business design, this example demonstrates that:

• BoM Item and Master Item can have different Final Item Types if rules are defined differently
• Final Item Type on each object always prioritizes the Calculated Item Type over Original

Step 5: Quote Item Item Type Source Is Determined by Configuration

When a quote item is created in PqW (from BoM Item or Master Item):

PqW consults the Item Type Source configuration in PQW UI Settings:

• If Item Type Source is BoM Item (default): Quote Item Item Type = Final Item Type (BoM Item)
• If Item Type Source = Master Item: Quote Item Item Type = Final Item Type (Master Item)

This is crucial because:

• Quote Item Item Type is required; it cannot be undefined
• Pricing rules (margins, discounts, approvals) depend on the quote item’s item type

Step 6: Pricing and Margin Logic Use Quote Item Type

Once the quote item’s item type is set (via the above flow), PqW can apply:

• Default margin (e.g., Service = 40%, Hardware = 10%)
• Customer discount policies tied to item types
• Approval and workflow rules based on item classification

If no rules exist and the source item type is missing:

• The quote item might end up with Undefined item type
• This can lead to incorrect pricing or blocked workflows

Therefore, it is highly recommended to define Item Type Rules so the item type is always determined before quote creation.

Step-by-Step: Creating Rules and Segments in UI

To implement the logic above, admins perform the following UI interactions:

Step 1:  Creating the Rule (The Header)

The Rule record defines the “Output.”

• Underlying Object: Choose BoM Item or Master Item.

• Resulting Item Type: Choose the type to apply (e.g., Software).

• Filter Logic: Enter the string to combine your conditions (e.g., 1 AND 2).

Step 2. Defining Segments (The Inputs)

Segments are created in the Related List of the Rule and define the "If" conditions.

• Field Name: Select attributes like Part Number, Product Stack, or Service Stack.
• Operator & Value: Set the criteria (e.g., Starts With | SUB-).

Step 3: Configuring the Item Type Source in PqW UI Settings

• Go to Gear icon on top right page and select Set up

• Go to PQW UI Settings under Custom Settings and click on Manage

• Locate the Item Type Source dropdown.

• Choose whether Quote Items should inherit their item type from the BoM Item or the Master Item.

This setting is critical: it determines which object’s Final Item Type is used for pricing, margin, and workflow logic in quotes.

What Happens After Item Type Is Determined

Once Item Type Rules have been applied, Renewal Managers, Sales, and Pricing teams can work with quote items that:

• Already have the correct item type
• Automatically receive the right margin/discount defaults
• Are ready for further editing, approvals, and export

The user does not usually see the internal “Original vs Calculated vs Final” fields; they simply see:

• Correct item type on quote items
• Pricing behavior that is consistent with business rules

Common Checks and Best Practices

It is recommended to:

• Confirm that imported items are getting the expected item type (Hardware, Software, Service, etc.) on quote items
• Periodically review frequent exceptions:
  • Items that still appear as Undefined
  • Items misclassified by older rules
• Work with your PqW admin to:
  • Add or update Item Type Rules when new product lines or naming patterns are introduced
  • Adjust Item Type Source if your organization’s source of truth changes (e.g., moving from BoM-based to Master Item–based governance)

What’s Next?

After Item Type Rules are in place and working:

• You can safely rely on item-type–driven pricing in PqW (default margins, discounts, approvals)
• You can explore more advanced automation, such as:
  • Different approval thresholds by item type
  • Reporting on mix of Hardware vs Services vs Subscriptions
  • Additional rule sets for specific vendors or product families

Conclusion

Item Type Rules in PqW provide a structured, configurable way to ensure that every item is correctly classified—even when source systems do not supply reliable item types:

• Capturing Original type from source
• Applying Calculated type through rules
• Surfacing the Final type into quote items via a configurable Item Type Source

PqW gives you:

• More accurate pricing and margins
• Reduced manual item classification
• Greater consistency across vendors and product lines
• A more predictable and controlled quoting process

Related Articles

• Glossary and Key Terms – Understand commonly used PqW terminology
• Overview of BoM Imports in PqW – Different methods and flows for creating BoMs
• Configuring Pricing and Margin Rules – How item type drives default discounts and margins