Functionality of Override Course Default Payment and Pricing

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Hi All, 

At offering Level we can Override Course Default Payment and Pricing, but while doing that in Line Item it gives 2 options to choose one is List Price and List Price Adjustment, in which scenario we are using these two options respectively and if we select 'Use to Calculate Catalog Item Price in Self Service' what we are achieving in Cost reporting? Any business scenario example will really be helpful. 

 

Regards

Soumya