# Price group

Price groups allow you to group Items by an arbitrary pricing classification. Every item belongs to exactly one Price group which is used to classify the item based on how it is priced - usually when calculating customer discounts or creating price lists.

An item’s Price group need not be related in any way to its Product group. The Product usually classifies an item based on what type of item it is, whereas a Price group usually classifies an item based on how it is priced