As you can see in Price Strategies, Price Setting Package can calculate different prices based on different pricing rules. You can define many pricing strategies; for each of them you have the following configuration options in StrategyDefinition PP:

'Level' describes where the definition is valid – for a dependent or parent price list. If you want a strategy to be valid in both scenarios, you need to create two entries.
'Overridable' describes if this strategy can be manually overridden by selecting other strategy or a manual price or using exception table.
The remaining settings are used to order price strategies.

How Parent and Dependent Levels Are Calculated

Generally there is the following mechanism to calculate the prices. It is different for Parent and Dependent calculations.

Parent Price List Calculations

Parent price list:

Calculates base strategies.
Calculates standard strategies.
Removes base strategies which returned no price.

The highest level strategy will be used as price proposal. All other strategies will be available in the “Prices” pop-up and in the strategy selection drop-down (when allowed, check PSP Override Module).

Dependent Price List Calculations

Dependent price list is more complex, since it has several configuration options which tweak the strategies order:

The first strategy is "Parent Level Adjusted Price", which is a Final Price from the Parent price list for a given product adjusted by the dependency adjustment. It can be overridden by setting "No" for the "Prioritize Parent Level Price" column in the Strategy Selection Lookup PP. In this case, "Parent Level Adjusted Price" will be put at the end of strategies. It is a configuration on the product level.
Base and standard product prices are calculated. However, they come in pairs with parent level adjusted prices, if the same strategy was calculated for a given product in the parent price list.
Prices from the parent price list can be ignored on the dependent level by setting "Parent Level Only" to "Yes" in the StrategyDefinition PP.
Dependent prices come in pairs with parent level adjusted prices (with dependent before parent), unless "Parent Level Priority" is set in the StrategyDefinition PP . Parent level priority is taken into consideration only when the strategy is defined for both dependent and parent level. It has to be set by an entry on the parent level.

Note:

When strategy is calculated on the dependent level, it will use its local available data (as competition data, cost, …).
When strategy is taken from the parent level, it will take the parent level price and apply markup factor.

So you have to be careful to configure it correctly. For example, when you have Cost+ pricing strategy both for dependent and parent levels and you have the same cost, it will result in two different prices. One freshly calculated and one taken from the parent level and with an applied markup factor – which might seem unexpected.

Summary

These are your options to influence the Parent/Dependent behavior regarding importance of pricing strategies.

Flag	Where you find the flag	What it does

Flag	Where you find the flag	What it does
Prioritize Parent Level Price	PP Strategy Selection	Default is “Yes”. When you change to “No”, this will force the system to put the “Parent Level Adjusted Price” (= final approved price from parent level with the markup) to the end of the priority list.
Level	PP Strategy Definition	You can have “Parent” and “Dependent” as level in the definition of strategies. When you want to calculate them on both levels, you have to add them twice. Be aware that “calculate” means, that they are freshly calculated on the parent level. When you only want to take some price from the parent level and add a markup factor, you do not have to configure the strategy for the dependent level.
Parent Level Only		You can only set up this flag for “Level” = “Parent”. When this is done like this, it will prevent the inheritance of this parent level price to the dependent level. So with this you force a price not to be taken over to the parent level and applied with the markup factor.
Parent Level Priority		When one strategy is calculated both on the parent and dependent levels, it will appear twice in the dependent level: (Re)calculated on the dependent level base. Taken from the parent level and applied with markup factor.