# Price * Volume Formulas

You can create a revenue formula (price * volume) when using a planning model, or other formulas based on lookup functions.

Consider this sales planning scenario:
• The total product sales quantity (by number) is planned by region and product (and also Time and Version). A sales revenue forecast would be calculated based on this formula:

Sales Revenue = (Sales Quantity of Product in Region) * (Price of the Product in Currency)

• Depending on the region, different products are planned.
• The Price of the product is the same in all regions.
Issues with this scenario:
Identical price for all regions

When prices are identical for all regions, you need to enter the price only once for all regions.

To accomplish this, you'll need to create an interim account to store the prices of the different products. In our scenario, the interim account is named "storedPrice/Stored Price". In the Region dimension, use the unassigned region member ("#") to store the price. The interim account is hidden so that users of the model won't see it.

The account that is used to show the price to users is named "price/Price". It retrieves its values from the "storedPrice" account using a lookup formula. This formula looks in the "storedPrice" account for the unassigned location ("#") and uses it for all regions.

LOOKUP([storedPrice] ,[d/Location] = "#" ,[d/Location] )

No Aggregation of prices

Semantically, it isn't useful to sum the prices of different types of bread:

Region
Product Switzerland Brazil
White 1 1
Whole Grain 2 2
White 1 1
Whole Grain 2 2

In this scenario, choose the aggregation type NONE for the accounts that include Price data:

Calculation Order for Price * Volume

For each type of bread, Revenue is calculated as Price * Volume.

However, for the parent item Bread, Revenue should not be calculated as Price * Volume, because there is no aggregation type for Price that would provide a meaningful value in a Price * Volume calculation. Instead, Revenue should be calculated as the sum of the child items:

Region Product Price Volume Revenue
White 1 17 17
Whole Grain 2 32 64
Whole Grain 2 45 90
Rye 3 8 24

The calculation of Revenue by multiplying the Price with Volume needs to be done before summing the volumes for the different bread types. When summing the different contributions of the regions for one product, the Volumes for these regions can be aggregated before multiplying with the price for the product:

Product Price Volume Revenue