A ceiling price is the highest price that participants can bid for a line item in a reverse auction. In a forward
auction, it is the floor, or lowest price. In a Dutch Auction, it marks the last price before the event closes.
It is the initial or starting bid in all types of auctions, including Dutch. The value you enter in an item/lot
Price field becomes the ceiling/floor price. Leave it empty if you do not want to set one, except in a Dutch
auction, where it is required.
The reserve price is the price at which it begins to make sense for you to award your business to a new
participant and they help to manage participant expectations. They understand that you may not award
business to bids that do not meet or improve on your reserve price.
The system can hide the reserve price until it has been met by a participant. Then it exposes the reserve price
only when the participant meets the price. Contact your Ariba customer support representative to enable this
As you might have guessed, this is how Ariba defines various price terms. Apart from these, you also have something called a "Historic Price" which is defined as the price that you paid for the commodity / service the last time that you have sourced it. While creating a Lot / Line item, it is mandatory to enter this term. If you have not sourced the respective commodity / service earlier, then you can enter '0'.
Hope this helps.