Price is only applied to purchase requirements. Pricing is applied in this manner, and in this order:

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1) If the part has tiered pricing, the pricing is taken from the tiered pricing.
2) If the part is a PPN, pricing is taken from the price setup in the PPN details.
3) If the purchase requirement does not have tiered pricing and is not a PPN, pricing is taken from the amount supplied in this field.

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In all 3 cases, price is multiplied by the qty needed.