Table 1From “What is price realization? List price is not the cash collected”
Which price is the numerator?
Table 1Which price is the numerator?
| Price object | What it answers | What it includes | What it does not establish |
|---|---|---|---|
| List or reference price | What starting amount was declared? | A published, approved, or comparison reference | That a buyer accepted or paid it |
| Invoice price | What amount was placed on the invoice after pre-invoice terms? | Explicit on-invoice discounts and terms | That off-invoice deductions or collection effects are absent |
| Pocket price | What revenue remains after declared transaction deductions? | The waterfall items assigned to the transaction | That cash has arrived in the same period |
| Collected cash | What amount was received under the stated collection rule? | Receipts included in the declared period and currency rule | That the difference from pocket price was a discount |
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Source: Table from this essay. Sources and interpretation are given in the article.

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Pricing & revenue architecture
What is price realization? List price is not the cash collected
Price realization shows what remains after transaction terms and deductions, but only a named denominator makes the rate interpretable.
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