The pricing waterfall in Zuora details the step-by-step process of deriving a charge's final price, breaking it into ordered layers for transparency and downstream consumption.

Instead of exposing only a single final price, the waterfall breaks pricing into ordered layers, including:

• the base price on the charge,

• segment, or price group–based pricing,

• dynamic pricing adjustments calculated by pricing rules, and

• the final effective price the customer pays.

This layered model is especially important when using Dynamic Pricing, where pricing is influenced by attributes, and rules. The pricing logic itself is executed by services such as the Dynamic Pricing Service and Offers Service. The pricing waterfall provides a consistent structure for representing the outcome of these calculations, both for transparency and for downstream consumption, for example, via structured pricing payloads.

In simple terms:

• Dynamic Pricing determines what the price should be based on attributes and rules.

• The pricing waterfall shows how that price was derived across each pricing layer.