Fair value pricing must be used when the business uses revenue allocation for the items before transactions.
Fair value is the rational and unbiased estimate of the potential market price of goods and services. We can can assign fair values to items and item revenue categories by setting up a fair value price list. To complete the fair value price list, we must have fair value formulas
Fair value formula :
Setup > Accounting> Fair value Formulas > New
Enter a name for the new formula
Enter Description(Optional)
Type directly in the Fair Value Formula field
Click Set
Click Save