Oracle R12 Advanced Pricing

Training
Part 1

📧[email protected] 📧[email protected]
 Overview of Pricing

📧[email protected] 📧[email protected]
 Agenda
● Introduction to Advanced Pricing
● Pricing features and Concepts
● Using pricing and Pricing Engine
● Conclusion

📧[email protected] 📧[email protected]
 Objectives
After this module you should be able to:
• Explain the pricing features and functions of Advanced Pricing
• Describe how to use Oracle Advanced Pricing

📧[email protected] 📧[email protected]
 Pricing Footprint
Oracle Oracle Trade
Marketing Management
Oracle Order Management
Oracle Sales Oracle
Online Contracts

Oracle
Oracle Service for
Advanced Oracle iStore
Communication
Pricing

Oracle Service Oracle Sales for

Core Communication
Oracle Order Capture
Oracle Oracle Financial
TeleSales Service

📧[email protected] 📧[email protected]
 Review Question

Which Oracle Applications suites use pricing?

1. General Ledger and Cash Management

2. Order Management and Customer Relationship Management
3. Advanced Planning and Scheduling and Purchasing

📧[email protected] 📧[email protected]
 The Pricing Concept

The pricing engine determines selling prices for products and services.It provides answers to the
following questions:
• What is the product or service?
• Who qualifies for prices,benefits, and adjustments for this item?
• How do I adjust the order and order line prices?

📧[email protected] 📧[email protected]
 The Pricing Concept: Product Hierarchy & Pricing
Attributes
All Items of Grade - B

What is the item or service?

The product hierarchy and pricing attributes control what the

pricing engine prices

📧[email protected] 📧[email protected]
 The Pricing Concept: Qualifiers
● Customer Class/Type = Retail/Wholesale/Organization
● Order Type= Special/Holiday Sale

Who Qualifies?

Pricing qualifiers control who is eligible for certain prices and

benefits

📧[email protected] 📧[email protected]
 The Pricing Concept: Modifiers
● Different types of Discounts- like $10 off, or 2% of actual price
● Promotions and sales offer - Buy one get one free
● Get 480 ml bottle for the same price as 360 ml bottle
● Get a coupon for $10 if you buy over $300

How should I adjust the price?

Pricing modifiers control adjustments to the base price.

📧[email protected] 📧[email protected]
 The Pricing Concept

Product Hierarchy
What is the item or service?
Pricing Attributes

Who qualifies for prices,

Qualifiers
benefits, and adjustments?

How should I adjust the price? Modifiers

📧[email protected] 📧[email protected]
 Review Question
What component is not part of the pricing concept?

● Sourcing rules
● Pricing attributes
● Product hierarchy
● Modifiers
● Qualifiers

📧[email protected] 📧[email protected]
 The Pricing Concept

All Customers &

INPUT Items OUTPUT

Qualifiers Price Lists Agreements

= Final Price
Who Formulas
Base Price Modifiers
Attributes Formulas +/-
Adjustments
What
One Customer One Item

PRICING ENGINE

📧[email protected] 📧[email protected]
 The Pricing Process

Pricing Request
Sales Order: 123, Customer: 1
Qualifiers
Line 1: Shampoo
Products

Pricing Engine Attributes

Select eligible lists
Resolve incompatibility Price Lists

Agreements

Modifiers
Pricing Request Structure
Line 1: Product & qualifier hierarchy
Structure Line 2: Product

📧[email protected] 📧[email protected]
 The Pricing Process

Pricing Request Line 1: Product & qualifier hierarchy

Structure Line 2: Product & qualifier hierarchy

Price Lists

Calculate base (list) price Agreements

Pricing Engine Calculate selling price
Modifiers

Formulas
Line 1: Base price, adjustments, selling price
Return to Calling Line 2: Base price, adjustments, selling price
Application

📧[email protected] 📧[email protected]
 Review Question
Which of following are not used directly by pricing engine to derive the price?

1. Modifiers
2. Qualifiers
3. Formulas
4. Employee Hierarchy

📧[email protected] 📧[email protected]
 Lets See in System

Login into Oracle Application

In this step, user will open the link of Oracle Applications and logs into the application by providing
correct Username and Password.
1. Open Oracle Applications link and enter Username and Password.
2. Click on the Login button to log into Oracle Applications.

📧[email protected] 📧[email protected]
 Session - 2
Pricing Features

📧[email protected] 📧[email protected]
 Pricing Features
● Pricing engine
● Flexible attribute mapping
● Price lists
● Formulas
● Qualifiers
● Modifiers
● GSA pricing
● Agreements
● Reports

📧[email protected] 📧[email protected]
 Pricing Engine

Calling Application (OM, CRM)

Pricing Request

Pricing Engine

Search Engine

Phase

Calculation Engine

📧[email protected] 📧[email protected]
 Pricing Engine
Search Engine
Select Eligibility Lists
Phase Qualifiers Effectivity
Source Currency Pricing
System Attributes

Resolve Incompatibility Best Price PHASE

Precedence Exclusive

Process Benefits
Other Item Coupon Issue Item Substitution
Discount Formula Terms Substitution

📧[email protected] 📧[email protected]
 Pricing Engine
Calculation Engine

Calculate Base (List) Price

Print List Formula Price Breaks

Request Line

Calculate Selling Price

Modifiers -------- Buckets

📧[email protected] 📧[email protected]
 Flexible Attribute Mapping
Controls what the pricing engine:
– Prices
– Modifies
Map to:
– Customers
– Items
– Orders

📧[email protected] 📧[email protected]
 Price Lists
Contain prices and currencies:
– Specific products and services
– Item categories
– Product groups
– The same price for all items
The prices can be:
– Absolute values
– Percentages of other prices
– Formulas
– Positive and negative values

📧[email protected] 📧[email protected]
 Price Lists
You can apply pricesto:
• Your entire business
• A single operating unit

📧[email protected] 📧[email protected]
 Formulas
● The pricing engine uses formulas to determine price list and modifier amounts as an alternative to
Retrieving fixed amounts that you enter.
● Formulas are algebraic relationships constructed of individual terms.
● Each term can be:
– A numeric constant
– A combination of pricing attributes (for example,thickness and height) and factors
(for example,1 to 5, 5 to 10, and more than 10)
– The price of the item in a specific price list
– The price on a specific price list line
– A function that you develop

📧[email protected] 📧[email protected]
 Formulas
Apply formulas:
• Statically: Before submitting pricing requests, execute a concurrent process to evaluate
the formula and calculate a list price for the item on the pricelist.
• Dynamically: Each time the pricing engine receives a pricing request, it evaluates the
formula and calculates a list price for the item.

📧[email protected] 📧[email protected]
 Qualifiers
● State who can receive benefits and adjustments:
– Specific customers
– Customer groups
– By order type
– By amount within an order and across many orders
● Associate qualifiers with
– Price lists
– Modifiers

📧[email protected] 📧[email protected]
 Qualifier Groups
You define a qualifier within a qualifier group so that you can:
• Associate qualifiers of a common type or for a common benefit
– Easier to search for qualifiers
– Easier to assign groups to modifiers
● Create AND and OR Boolean conditions among qualifiers

📧[email protected] 📧[email protected]
 Review Question

Which pricing component can change the price for a line ?

1. Qualifier
2. Modifier
3. Flexible attribute mapping
4. Price list

📧[email protected] 📧[email protected]
 Modifiers

Discount 10% off item A

10% Surcharge for purchase of

Surcharge
under 100 units of A

Freight/Special
$40 freight cost on entire order
Charge

📧[email protected] 📧[email protected]
 Modifiers

For the price of 100 ml of item A

Item Upgrade get 200 ml of item B

Purchase over 1000 units on

entire order, receive
Terms Substitution 30/60/90 terms instead of
NET 30 terms

Other Item Discount Buy items A , B, and C; get 20%

off item A

📧[email protected] 📧[email protected]
 Modifiers

Buy one item A and one item B;

Promotional Goods get one item C at 20% off

Buy over 1000 currency units,

Coupon Issue receive a coupon for 100 currency
units off a future purchase

Price Break Point: Order 150 item A, receive

• 1-100 units item A, 100 150 item A @ 75 currency
currency units each units each
• 101-500 units item A, 75
currency units each Range: Order 150 units item A,
• More than 500 units item receive 100 item A @ 100
A, 50 currency units each currency units each and 50 item
A @ 75 currency units each

📧[email protected] 📧[email protected]
 Modifier Control Features
● Events: Periods of time within the order flow
● Phases: Groups of pricing activities performed at same time
● Incompatibility processing:Sorting out multiple modifiers that the pricing engine may not apply
sametime. The pricing engine uses precedence and exclusivity rules.
● Buckets:Groupings of modifiers that allow cascading discounts by controlling subtotals

📧[email protected] 📧[email protected]
 Events and Phases

Events
Enter Order Line Book Order Reprice Order

Modifiers
Phase Phase
0 1

Phase Phase Phase

2 3 4

📧[email protected] 📧[email protected]
 Event/Phase Mapping

Pricing Event Pricing Phase

Enter Order Line Uses 0 - List Line Base Price

1 - List Line Adjustments

Book Order Uses 2 - All Lines Base Price

3 - All Line Adjustments
4 - Header Level Adjustments

Reprice Order Uses 2 - All Lines Base Price

3 - All Lines Adjustments
4 - Header Level Adjustments
📧[email protected] 📧[email protected]
 Incompatibility

Incompatibility Groups
200 currency unit Level 4
advertising allowance

100 currency units off-invoice Level 3

Phase 1
1% special discount Level 2

5% Discount (Precedence 10) 10% Level 1

Promotion (Precedence 20)

📧[email protected] 📧[email protected]
 Exclusivity

Exclusive

200 currency unit Level 4

advertising allowance

100 currency units off-invoice Level 3

Exclusive
Phase 1 15%
Negotiated
1% special Level 2
Discount
discount

5% Discount (Precedence 10) Level 1

10% Promotion (Precedence
20)

📧[email protected] 📧[email protected]
 Precedence

Incompatibility Groups Pricing Engine Selects:

Free Printer - Level 2 Free Pro Printer-motion

Promotion 5%
Discount
Phase 1
Precedence 10) Level 1 5% Discount (Precedence 10)
10%Promotion
(Precedence 20)

Highest Precedence
(lowest precedence
numbers0

📧[email protected] 📧[email protected]
 Modifiers

Buckets
Bucket 0
10.00
List Price = 10.00 currency units
c.u.
(c.u.)

Bucket 1
7.50
• Amount Discount = 1.50 c.u.
c.u.
• Percent Discount = 10%

Bucket 2 6.75
Percent Discount = 10% c.u.

📧[email protected] 📧[email protected]
 GSA (USA General Services Administration) Price Lists
You must charge commercial customers for items on the GSA price lists a higher price for those items
than the prices on theon GSA price lists.

📧[email protected] 📧[email protected]
 Agreements
You can establish agreements with your customers that record your negotiated:
• Prices
• Freight terms
• Payment terms

📧[email protected] 📧[email protected]
 Reports
● Price List Detail Report
● Pricing Formulas Report
● Qualifier Grouping Report

📧[email protected] 📧[email protected]
 Review Question

On a price list, you can enter a price for a product or service.What other task can you perform that
results in a price on a price list ?
● Link a qualifier to a modifier
● Enter a static formula
● Map a pricing event to a pricing phase
● Assign an item upgrade

📧[email protected] 📧[email protected]
 Session - 3
Using Pricing

📧[email protected] 📧[email protected]
 Agenda
Using Pricing

📧[email protected] 📧[email protected]
 Setup Tasks
Other Oracle Applications provide pricing setup information:
• System administration
• Inventory
– Units of measure
– Item categories
– Inventory organizations
– Items
– Item relationships

📧[email protected] 📧[email protected]
 Setup Tasks
Receivables
– Customers
– Payment terms
Order Management
– Order Management lookups
– Order types
– Linetypes
Shipping Execution
– Shipping lookups
– Freight terms
– Freight cost types
General Ledger:Currencies

📧[email protected] 📧[email protected]
 Flexible Attribute Mapping Processes
● Setting up qualifier and pricing attributes
● Entering and updating conditions
● Entering and updating sourcing rules

📧[email protected] 📧[email protected]
 Price List Processes
● Creating price lists
● Defining pricing attributes
● Defining price breaks
● Attaching secondary price lists
● Defining qualifiers
● Deleting price list information
● Copying price lists
● Adjusting price lists
● Adding items to price lists

📧[email protected] 📧[email protected]
 Formula Processes
● Creating a pricing formula
● Defining factor list details
● Updating formula prices

📧[email protected] 📧[email protected]
 Qualifier Processes
● Adding qualifier groups
● Querying qualifier groups
● Modifying qualifier groups and qualifiers
● Using qualifiers with price lists
● Using qualifiers with modifiers

📧[email protected] 📧[email protected]
 Modifier Processes
● Creating modifier lists
● Creating list-level qualifiers
● Entering basic modifier line information
● Entering discount and charge information
● Entering freight charge information

📧[email protected] 📧[email protected]
 Modifier Processes
● Entering item upgrade information
● Entering terms substitution information
● Entering coupon issue information
● Entering other item discountand
● Promotions information
● Entering price break information

📧[email protected] 📧[email protected]
 Modifier Processes
● Creating line-level qualifiers
● Attaching pricing attributes
● Excluding items
● Changing modifier incompatibility
● Redeeming accruals

📧[email protected] 📧[email protected]
 Review Question
Which of the following process can you use to charge a customer extra for a small order?
● Entering and updating conditions
● Attaching pricing attributes
● Entering discount and charge information
● Using qualifiers with price lists

📧[email protected] 📧[email protected]
 GSA (USA General Services Administration) Pricing
Processes
● Creating GSA (USA General Services Administration) price lists
● Creating GSA list qualifiers

📧[email protected] 📧[email protected]
 Agreement Processes
● Creating pricing agreements
● Defining pricing attributes
● Defining price breaks

📧[email protected] 📧[email protected]
 Review Question
In which of the following areas can you not use price breaks?
● Formulas
● Price lists
● Agreements

📧[email protected] 📧[email protected]
 Session - 4
Basic Pricing Vs Advanced Pricing
Conclusion

📧[email protected] 📧[email protected]
 Agenda
Conclusion

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing
Price Lists Basic Advanced

Add Items X X

Copy Price List X X

Adjust Price List X X

GSA Price List X X

Qualifiers Defaulted in OM Unlimited

Pricing Attributes 1 Context Unlimited

Secondary Price List 1 Unlimited

Formula Static Static/Dynamic

Line Level X X

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing

Agreements Basic Advanced

Define customer items X X

Separate setup form X X

Same time create pr list X X

Version number-header & line X X

Change reason code X X

Price Breaks X X

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing

Formulas Basic Advanced

Numeric constant X X

Product attributes Item Item / category

Pricing attributes 1 Context Unlimited

Factors Multiple/ 1 Context Multiple / Unlimited

Price list line X

Customizable X

📧[email protected] 📧[email protected]
Basic and Advanced Pricing
Modifiers Basic Advanced

Discount X X

Surcharge X X

Price breaks Point Point and Range

Freight/special charges X X

Coupon issue X

Item upgrade X

Other item discount X

Terms substitution X

Promotional goods X

Ask for X

Order or ship date X

📧[email protected] 📧[email protected]
Basic and Advanced Pricing
Modifiers (continued) Basic Advanced

Price list independent X X

Order & line level X X

Group of line level X

Qualifiers Limited Unlimited

Attributes Limited Unlimited

Formulas X

Exclude Items X

Buckets X

Phases X

Incompatibility X

Accrual X

📧[email protected] 📧[email protected]
 Review Question
Which pricing function is not available in basic pricing?
● Price lists
● Formulas
● Qualifier groups
● Agreements

📧[email protected] 📧[email protected]
 Summary
In this module, you should have learned how to:
• Explain the pricing features and functions of Oracle Applications release 11i.
• Describe how to use pricing in Oracle Applications release 11i.

📧[email protected] 📧[email protected]
 Session 5
Manage Pricing

📧[email protected] 📧[email protected]
 Agenda
● Introduction
● Price lists
● Formulas
● Qualifiers
● Modifiers
● GSA Pricing
● Agreements
● Reports
● Conclusion

📧[email protected] 📧[email protected]
Setup Flow for Oracle Advanced Pricing
1 3
2 4
Perform System Set Multi-Currency
Set Profile Options Create/verify PTE
Administration Steps Profile Options
8.Create Pricing 6 5
7. Create Qualifier
context,pricing/pro Create/verify Request create/verify source
Contexts/Attributs
d attributes types system
9 10 11 12. Define item
Perform attribute Define unit of Define UOM categories and item
mapping measure (UOM) conversions category sets
15 14 13
16. Define pricing
Create item Define item Set up inventory
lookups
relationships information organization
18
17. Define order 19 20
Define shipping
management lookups Set up customer class Set up profile classes
lookups

24 23 22 21. Define customers

Define freight terms Define line type Define order type and customer sites
25 28. Create events
26 27
Define freight cost and phases
Define payment terms Enable currencies
type
30 29. Verify pricing
Set up pricing security parameter settings

Key Required with

Required Optional Optional Advanced
Defaults Pricing Specific

📧[email protected] 📧[email protected]
 Objectives
In this module, you should learn how to:
• Explain the pricing features and functions of Oracle Applications release 11i.
• Execute common pricing processes in Oracle Applications release 11i.

📧[email protected] 📧[email protected]
 Using Oracle Applications Help
1. Navigate to the Oracle Applications Navigator.
2. Select Help—>Window Help from the menu bar. The Oracle Applications Help window is displayed.
3. Enter your search criteria, enclosed within quotation marks,in the Help field and click Find. Oracle
Applications Help displays a list of topics that meet your search criteria.
4. Click a topic to view detailed information.

Note:Click Search Instructions for help with searching Oracle Applications Help.

📧[email protected] 📧[email protected]
 Using Oracle Applications Help Within a Window
1. Open a window in the application you are using.
2. Select Help—>Window Help from the menu bar.
Oracle Applications Help displays detailed information about the window you opened, including step-by-
step instructions for entering information in each field in the window.

📧[email protected] 📧[email protected]
 Agenda
Price Lists

📧[email protected] 📧[email protected]
 Price List Overview
Contain prices and currencies:
– Specific products and services
– Item categories
– Product groups
– The same price for all items
The pricescan be:
– Absolute values
-- Percentages of other prices
-- Formulas
-- Positive and negative values

📧[email protected] 📧[email protected]
 Price List Overview
You can apply pricesto:
• Your entire business
• A single operating unit

📧[email protected] 📧[email protected]
 Price List Overview
● Warranty pricing:Price is a percentage of another item’s price
● GSA ( USA General Services Administration) pricing:Uses modifiers
● Secondary price lists
● Effective dates:
– Start date
– End date

📧[email protected] 📧[email protected]
 Price Types
● Unit price: Fixed price
● Percent price: Percent of another item’s price
● Formula: Algebraic expression
● Price break (Point and range): Price varies by quantity ordered

Attribute Value ValueFrom ValueTo Price

Item# A11111 1 10 50

Item# A11111 11 45

📧[email protected] 📧[email protected]
 Currency
● Essential for international sales
● Currency must match among the following :
– Price list
– Pricing request
– Assigned customer profile class

📧[email protected] 📧[email protected]
 Rounding Factor
● Number ofplaces forrounding:
– Entering a positive number affects positions to left of decimal mark
– Entering a negative number affects positions to right of decimal mark
● Limited by the number of positions in the QP: UNIT_PRICE_PRECISION _TYPE profile option

📧[email protected] 📧[email protected]
 Pricing Primary Unit of Measure
When you specify an item price and a pricing primary unit of measure ona price list,the pricing engine:

● Converts the unit of measure on the order to the pricing primary unit of measure(Primary UOM)
● Converts quantity on the orderline to its corresponding quantity inthe pricing primary unit
Of measure (Pricing Quantity).
● Calculates the selling price using Primary UOM and Pricing Quantity
● Returns pricing information to the calling application in terms of order quantity and order
Unit of measure

📧[email protected] 📧[email protected]
 Pricing Business Scenario
● The customer places an order through Oracle Order Management,the calling application (also
known as source system)
● OrderManagement passesthe following pricing request:
– Customer: ABC Computers
– Territory: Western region
– Order lines:
– Item: Computer, Quantity:1
– Product group: Computer
– Warranty: Gold service
– Item: Monitor, Quantity:15
– Product group: Computer

📧[email protected] 📧[email protected]
 The Pricing Concept

All Customers &

INPUT Items OUTPUT

Qualifiers Price Lists Agreements

= Final Price
Who Formulas
Base Price Modifiers
Attributes Formulas +/-
Adjustments
What
One Customer One Item

PRICING ENGINE

📧[email protected] 📧[email protected]
 Practice 6: Process Miscellaneous Receipt Transaction
This practice covers entering stock into the Seattle and Boston warehouse to use in later scheduling and
shipping practices

📧[email protected] 📧[email protected]
 Price List Map

Qualifies Price List Secondary

Application
Prec. ListLines Line Type Method
Formula
Context
Pricing
Attributes
Price Break Unit Price Static
Attribute

Operator Type % Dynamic

Price Break
Value Type

Precedence

📧[email protected] 📧[email protected]
 Price List Processes
● Creating price lists
● Defining pricing attributes
● Defining price breaks
● Attaching secondary price lists
● Defining qualifiers
● Inactivating price list information
● Copying price lists
● Adjusting price lists
● Adding items to price lists
● Creating GSA price lists
● Creating GSA list qualifiers

📧[email protected] 📧[email protected]
 Creating Price Lists Process
Use the Creating Price Lists process to create and change price lists.

Use the Navigator path below to navigate to the Price Lists window and consult Oracle Applications
Help for information about performing the process.

📧[email protected] 📧[email protected]
 Practice 7: Defining a Price List
This practice covers placing items on a price list. All items that you place on sales must exist on a Price
List.

You create a price list,then restrict its availability to your XX-BigCity ElectronicsWholesale customer.

📧[email protected] 📧[email protected]
 Defining Pricing Attributes Process
Use the Defining Pricing Attributes process to enter pricing attributes for pricelist lines.

Use the Navigator path below to navigate to the Price Lists window and consult Oracle Applications Help
for information about performing the process.

📧[email protected] 📧[email protected]
 Defining Price Breaks Process
Use the Defining Price Breaks process to define the price breaks for price list lines.

Use the Navigator path below to navigate to the Price Lists window and consult Oracle Applications Help
for information about performing the process.

📧[email protected] 📧[email protected]
 Practice: Create Point and Range Price Breaks
This practice covers creating price breaks.

📧[email protected] 📧[email protected]
 Attaching Secondary Price Lists Process
Use the Defining Secondary Price Lists process to attach secondary price list to a price list.

Use the Navigator path below to navigate to the Price Lists window and consult Oracle Applications Help
for information about performing the process.

📧[email protected] 📧[email protected]
 Secondary Price Lists
● Assigned to primary price lists with the same currency
● Used when item is not on the primary price list or inactive on primary price list

📧[email protected] 📧[email protected]
 Secondary Price Lists

Main Price List

Item = AS54888
UOM - Ea @ $175
Precedence = 400

Wholesale Price List

Item = AS54888
UOM = Ea @ $125
Precedence = 300

Promotion Price List

Item = AS54888
List and Used UOM = Ea @ $100
Precedence = 200

📧[email protected] 📧[email protected]
 Defining Qualifiers Process
Use the Defining Qualifiers process to attach qualifiers to price lists.

Use the Navigator path below to navigate to the Price Lists window and consult Oracle Applications Help
for information about performing the process.

📧[email protected] 📧[email protected]
 Price List Maintenance
Youcan:
• Copy price list lines from one price list to another
• Manually add lines to a price list
• Adjust price list
• Add a new group of inventory items to a price list

📧[email protected] 📧[email protected]
 Copying Price Lists Process
Use the Copying Price Lists process to create new price lists and to add items to existing price lists by
copying from existing price lists.

Use the Navigator path below to navigate to the Copy Price List window and consult Oracle Applications
Help for information about performing the process.

📧[email protected] 📧[email protected]
 Copying Price Lists
Youcan:
• Create a new price list by copying from an existing price list.Options:
– Copy a range of lines or all lines from the original price
list
– Only active price list lines copy
– Copy active discounts from the original price list
– Copy the effective dates from the original price list lines
• Copya price list and specify an adjustment factor (percentage or amount)to create
duplicate price

📧[email protected] 📧[email protected]
 Practice : Copy Price List
This practice covers copying price lists.

📧[email protected] 📧[email protected]
 Manual Price List Changes
● Effective for pricing requests passed to the pricing engine after the change
● Use price list and price list line effectivity dates to retain history

📧[email protected] 📧[email protected]
 Adjusting Price Lists Process
Use the Adjusting Price Lists process to adjust the prices on price lists.

Use the Navigator path below to navigate to the Adjust Price List window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Adjust Price Lists
● Increase the list price of pricelist linesby:
– Amounts
– Percentages

📧[email protected] 📧[email protected]
 Adjust Price Lists
● Apply the increase or decrease to:
– All lines on the price list
– Lines that belong to an item category, for example,Computers
– Lines with items of a certain status,for example,Prototype
– Lines created on a specified date,for example, 3-Jun-2001
– Lines having a range of items, for example,AS18947 - AS54888

● Individual changes show a history of price adjustments; mass changes do not maintain price

📧[email protected] 📧[email protected]
 Practice : Adjust Price List
This practice covers adjusting price lists.

📧[email protected] 📧[email protected]
 Adding Items to Price Lists Process
Use the Adding Items to Price Lists process to add items from the item master file to price lists.

Use the Navigator path below to navigate to the Add Items to Price List window and consult Oracle the
process.

📧[email protected] 📧[email protected]
 Adding Inventory Items
Options:
• Specify an item status,for example, active or planned
• Specify an item category, for example,hardware or software
• Specify a range of items
• Price
– Zero amount
– Items’ established cost in the OM validation inventory organization

📧[email protected] 📧[email protected]
 Adding Inventory Items
● The process:
– Adds items that exist in the OM validation inventory organization (Set profile option QP:
Item Validation Organization)
– Does not override information for Items that exist on the price list,regardless of their
status.
To add items from an item category:
– Setup default inventory category set
– Specify an inventory category set for the process
– The process adds all items of the item category set chosen to the price list

📧[email protected] 📧[email protected]
 Practice: Add items To a Price List
This practice covers adding new items to an already active price list

📧[email protected] 📧[email protected]
 Session 6
Basic Pricing Vs Advanced Pricing

📧[email protected] 📧[email protected]
 Basic Pricing
● Qualifiers: Defaulted (seeded)
● Pricing attributes:15
● Secondary price lists:One
● Price breaks:No

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing
● Qualifiers: Defaulted (seeded) //Unlimited (seeded and user-defined)
● Pricing attributes:15 / 100
● Secondary price lists:One // Unlimited
● Price breaks:No //Yes

📧[email protected] 📧[email protected]
Basic and Advanced Pricing Summary

Price List Basic Advanced

Add Items X X

Copy Price list X X

Adjust price list X X

GSA price list X X

Qualifiers Defaulted in OM Unlimited

Pricing attributes 1 Context Unlimited

Secondary price list 1 Unlimited

Formula Static Static/Dynamic

Line Level X X

📧[email protected] 📧[email protected]
 Basic Pricing
● Components
– Numeric constant
– Pricing attribute
– Factor list
● Generation:
– Static for price lists and only for freight/special charges modifier

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing
● Components
– Numeric constant
– Pricing attribute
– Factor list
– Function
– List price
– Price listline
● Generation
– Static
– Dynamic

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing Summary

Formulas Basic Advanced

Numeric constant X X

Product attributes Item Item/category

Pricing attributes 1 Context Unlimited

Factors Multiple / 1 Context Multiple/Unlimited

Price list line X

Customizable X

📧[email protected] 📧[email protected]
 Basic and Advanced Pricing Modifier Functions
● Line types
– Discount
– Surcharge
– Pricebreak
– Freight/special charge
– Item upgrade
– Terms substitution
– Other item discount
– Promotional goods
– Coupon issue
● Price list independent

📧[email protected] 📧[email protected]
Modifier Feature Summary
Modifiers Basic Advanced

Discount X X

Surcharge X X

Price breaks Point Point and Range

Freight/special charges X X

Coupon issue X

Item upgrade X

Other item discount X

Terms substitution X

Promotional goods X

Ask for X

Order or ship date X

📧[email protected] 📧[email protected]
Modifier Feature Summary
Modifiers (continued) Basic Advanced

Price list independent X X

Order & line level X X

Group of line level X

Qualifiers Limited Unlimited

Attributes Limited Unlimited

Formulas X

Exclude Items X

Buckets X

Phases X

Incompatibility X

Accrual X

📧[email protected] 📧[email protected]
 Predefined Qualifier Information
● Oracle provides basic seeded qualifier contexts and attributes. The pricing engine sources
qualifier values for predefined attributes from the Oracle Application database whenever
applicable.

● You can also set up qualifier contexts and attributes to suit your own business needs

📧[email protected] 📧[email protected]
 Predefined Qualifier Information

Attributes

Customer Customer Name, Bill to, Sales Channel

Order Order Type, Shipment Date, Line Type

Terms Payment Terms, Freight Terms, Shipping Terms

Volume Order Amount, Line Volume

Modifier List Price List, Coupon Number, Promotion Number

📧[email protected] 📧[email protected]
 Qualifier Processes
● Adding qualifier groups
● Querying qualifier groups
● Modifying qualifier groups and qualifiers

📧[email protected] 📧[email protected]
 Adding Qualifier Groups Process
Use the Adding Qualifier Groups process to create new qualifier groups and their associated qualifiers.

Use the Navigator path below to navigate to the Qualifier Group window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Querying Qualifier Groups Process
Use the Querying Qualifier Groups process to query specific qualifier groups and to define new qualifier
groups.

Use the Navigator path below to navigate to the Qualifier Group window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Modifying Qualifier Groups and Qualifiers Process
Use the Modifying Qualifier Groups and Qualifiers process to update and delete qualifier groups and
associated qualifiers.

Use the Navigator path below to navigate to the Qualifier Group window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Practice: Create Qualifier Groups
This practice covers creating qualifier.

📧[email protected] 📧[email protected]
 Review Question
Which structure is not associated with qualifiers?
● Attributes
● Incompatibility
● Contexts
● Groups

📧[email protected] 📧[email protected]
 Summary
In this lesson,you should have learned how to:

● Explain the pricing features and functions of Oracle Advanced Pricing

● Execute common pricing processes in Oracle Advanced Pricing

📧[email protected] 📧[email protected]
 Manage Pricing
Part 2

📧[email protected] 📧[email protected]
 Objectives
In this module, you should learn how to:

● Explain the pricing features and functions of Oracle Advanced Pricing

● Execute common pricing processes in Oracle Advanced Pricing

📧[email protected] 📧[email protected]
 Using Oracle Applications Help Within a Window
1. Open a window in the application you are using.

2. Select Help—>Window Help from the menu bar. Oracle Applications Help displays detailed
information about the window you opened, including step-by-step instructions for entering information
in each field in the window

📧[email protected] 📧[email protected]
 Pricing Business Scenario
● The customer places an order through Oracle Order Management,the calling application (also
known as source system)
OrderManagement passesthe following pricing request:
– Customer: ABC Computers
– Territory: Western region
– Order lines:
– Item: Computer, Quantity:1
– Product group: Computer
– Warranty: Gold service
– Item: Monitor, Quantity:15
– Product group: Computer

📧[email protected] 📧[email protected]
 Modifier Overview
Modifier Lists
- Discount List
- Promotion
- Deal
-Surcharge List
-Freight Charges Product /Product
Attributes
Group
Qualifiers
Modifiers
- Discount Phase Incompatibility
- Surcharge
- Other Item Discount
- Promotional Goods Level Buckets
- Item Upgrade
- Terms Substitution
- Freight/Special Charges

Additional
Volume
Get/Buy Benefits
Breaks
Products

📧[email protected] 📧[email protected]
 Modifier Overview

Product/Product
Modifier Lists Groups
Attributes

Qualifiers Phase Incompatibility Group

- Line adjustment - Exclusive
- All adjustment - Level 1
Modifiers - Charges - Level 2

Level Buckets
- Line - Level 1
- Group of lines - Level 2
- Order

Additional
Volume Breaks Benefits
Get/Buy Products

📧[email protected] 📧[email protected]
 Deals and Promotions
● Example: Buy shampoo and conditioner, get hair styling guidebook at 20% off anda hair brush for 5
currency units

● Accruals/off-invoice:Value, weight, volume, mileage, user-defined.For example, frequent buyer

points.

📧[email protected] 📧[email protected]
 Incompatibility Processing Scenario

Modifier Phase Inc Level Precedence Applies?

5% discount 30 1 260 No

10% discount 30 1 240 Yes

Free promo printer 30 2 260 Yes

100 c.c. off-invoice 30 3 200 Yes

100 c.u. Adv allow 30 4 240 Yes

25 c.u. deal 30 1 260 Yes

C.u. - Currency Unit

📧[email protected] 📧[email protected]
 Exclusivity

Exclusivity

200 currency unit Level 4

Advertising allowance

100 currency Level 3 Exclusive

Units off-invoice 15%
Phase 30 Negotiated
Free Promotion Printer Level 2 Discount

5% Discount (Precedence 260) Level 1

10% Promotion (Precedence 240)

📧[email protected] 📧[email protected]
 Buckets and Modifiers
● Assign modifiers to buckets to create cascading price adjustments.

● The pricing engine:

– Calculates percent type modifiers using the previous bucket’s subtotal
– Sums all bucket modifier values to create a bucket subtotal

📧[email protected] 📧[email protected]
 Modifier Bucket Scenario
The following scenario shows an example of how the pricing engine uses buckets and their modifiers to
Calculate the final selling price.

In the scenario, the base list price is 10 currency units and the pricing engine calculates a final selling
price of 6.75 currency units.

📧[email protected] 📧[email protected]
 Modifier Bucket Scenario

Buckets
Bucket 0
10.00
List Price = 10.00 currency units
c.u.
(c.u.)

Bucket 1
7.50
• Amount Discount = 1.50 c.u.
c.u.
• Percent Discount = 10%

Bucket 2 6.75
Percent Discount = 10% c.u.

📧[email protected] 📧[email protected]
 Modifier Review
Time for modifier
ORDER EVENTS
Batch, Enter, Book,
Line
Events

Creating
Phase Modifier phase form
Modifiers

How to segregate modifiers Incompatibilit Modifier adjustments created by

within a phase Created by Lookup” Pricing Group Sequence
Lookup: Incompatibility Groups y Level

Establish levels of modifier

hierarchy within a level Based
Precedence
upon Phase setting = Bucket
Precedence or Best Price

📧[email protected] 📧[email protected]
 Review Question
What modifier control feature groups modifiers to create subtotals?

● Buckets
● Phases
● Incompatibility levels
● Events

📧[email protected] 📧[email protected]
 Modifier Processes
● Entering price break information
● Creating line-level qualifiers
● Attaching pricing attributes
● Excluding items
● Changing modifier incompatibility
● Redeeming accruals

📧[email protected] 📧[email protected]
 Modifier Map
Modifier list Qualifier

Modifier

Level Type Phase Level Bucket Precedence

Discount Promo Promo

Coupon Price Breaks
Order Charges Upgrade Terms

Line
Pricing
Group of Exclude Line Qualifier Details
Attributes
Line

Item

📧[email protected] 📧[email protected]
 List Type/Line Type Relationships
List Type Disc Surch Frt/Spec Promo Deal

Discount X X X

Surcharge X X X X

Freight/Special Chq X

Price Break Header X X X X

Item Upgrade X X

Other Item Discount X X

Terms Substitution X X

Promotional Goods X X

Coupon Issue X X

📧[email protected] 📧[email protected]
 Creating Line Level Qualifiers Process
Use the Creating Line Level Qualifiers process to enter modifier list line level qualifiers. Modifier line level
qualifiers help the pricing engine to determine who is eligible for the modifier lines.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Excluding Items Process
Use the Excluding Items process to mark items and item categories as excluded from application of a
modifier.

Us ethe Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Review Question
What modifier do you use if you want to give the customer an additional, bonus item if they order
another one of your items?

● Promotional goods
● Other item discount Item upgrade
● Item attribute

📧[email protected] 📧[email protected]
 Entering Discount and Charge Information Process
Use the Entering Discount and Charge Information process to enter modifier list line information specific
to discounts and surcharges.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Cross Order Volume Discount
Use cross order volume discounting to offer discounts to customers for purchasing a certain
amount of products and services over multiple sales orders

📧[email protected] 📧[email protected]
 Surcharge Modifiers

10% surcharge for purchase of under

Surcharge
100 units of item A

📧[email protected] 📧[email protected]
 Freight/Special Charge Modifiers

450 currency unit freight cost on entire

Freight/Special Charge
order

📧[email protected] 📧[email protected]
 Entering Freight Charge Information Process
Use the Entering Freight Charge Information process to enter modifier list line information specific to
freight/special charges.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Freight and Special Charges Overview
● You set up freight and special charges as pricing modifiers.
● When you save an order line,the pricing engine applies the qualified freight and special charges to
It.
● You can view the application of freight and special charges.
● Order Management captures costs at shipping and converts them to charges.
● Freight and special charges appear on invoices.

📧[email protected] 📧[email protected]
 Cost to Charge Conversion
● Before ship confirmation, Oracle Order Management uses qualifiers to:
– Estimate freight charges
– Apply them to the order
● At ship confirmation, Oracle Shipping Execution:
– Captures actual freight costs
– Applies them to the order lines
– Generates a pricing request for the SHIP event

📧[email protected] 📧[email protected]
 Cost to Charge Conversion Charge Types
● Order Management shares freight cost types with shipping for the cost to charge conversion.

● Charge types are based on the following lookup types:

– Oracle Shipping Execution FREIGHT_COST_ TYPE
– Oracle Pricing FREIGHT_CHARGES_TYPE

📧[email protected] 📧[email protected]
 Cost to Charge Conversion Qualification
The ship confirmation process qualifies freight charge modifiers that you:

• Setup with qualifierSHIPPED_FLAG = Yes

• Tieto a formula that converts cost amount to charge amount

📧[email protected] 📧[email protected]
 Cost to Charge Conversion Process
● Create a modifier list for estimated charges with different charge types.
● Create a second modifier list which converts freight costs to freight charges.
● Set up a formula for each freight cost type.
● Attach qualifiers to the modifier list(charge list) and modifier list lines.
● To make sure a correct charge is qualified,specify a list line level qualifier (Context= Order,
Attribute
= freight_cost_type_code)for all list lines in the second modifier list.

📧[email protected] 📧[email protected]
 Item Upgrade Modifiers

For the price of 100 ml of item A get 200

Item Upgrade
ml of item B

📧[email protected] 📧[email protected]
 Entering Item Upgrade Information Process
Use the Entering Item Upgrade Information process to enter modifier list line information specific to
item
upgrades.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Entering Item Upgrade Information Process
Use the Entering Item Upgrade Information process to enter modifier list line information specific to
item
upgrades.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Terms Substitution Modifiers

Purchase over 1000 currency units on

Terms Substitution entire order, receive 30/60/90 terms
instead of NET 30 terms

📧[email protected] 📧[email protected]
 Entering Terms Substitution Information Process
Use the Entering Terms Substitution Information process to enter modifier list line information specific
to terms substitutions.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Coupon Issue Modifiers

Buy over 1000 currency units, receive a

Coupon Issue coupon for 100 currency units off a
future purchase

📧[email protected] 📧[email protected]
 Entering Coupon Issue Information Process
Use the Entering Coupon Issue Information process to enter modifier list line information specific to
coupons.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Other Item Discount Modifiers

Other Item Discount Buy items A, B and C; get 20% off item A

📧[email protected] 📧[email protected]
 Entering Other Item Discount Information Process
Use the Entering Other Item Discounts and Promotions Information process to enter modifier list line
information specific to other item discounts.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Promotions Modifiers

Buy one item A and one item B; get one

Promotional Goods
item C at 20% off

📧[email protected] 📧[email protected]
 Entering Promotions Information Process
Use the Entering Other Item Discounts and Promotions Information process to enter modifier list
line information specific to promotions.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Price Break Modifiers

Price Break Point: Order 150 item A, receive 150

- 1-100 units item A, 100 item A @75 currency units each
currency units each
- 101-500 units item A,
75 Range: Order 150 Purchase over 1000 currency units
units item A, Price Break on entire order, receive 30/60/90
- More than 500 units terms instead of currency units each
item A, 50 currency units and 50 item purchase currency units
each currency units on entire order,
receive 30/60/90 terms instead of
NET 30 terms

📧[email protected] 📧[email protected]
 Entering Price Break Information Process
Use the Entering Price Break Information process to enter modifier list line information specific to price
breaks.

Use the Navigator path below to navigate to the Define Modifier window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Changing Modifier Incompatibility Process
Use the Changing Modifier Incompatibility process to review and change incompatibilities on one form.
When you query incompatibility levels for a specific phase,you see the modifier lines attached to each
Incompatibility group and can assign them to a new incompatibility level.

Use the Navigator path below to navigate to the Modifier Incompatibility Setup window and consult
Oracle Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Manual Adjustments
● In the Modifiers form:
– Clear Automatic
– Clear Override
● In the Sales Order form:
– Click Actions
– Create new line and choose Modifier Name =Manual Adjustment
– Click Apply
● In Sales Order form, Line Items tabbed region,select from the Unit Selling Price list of values

📧[email protected] 📧[email protected]
 Manual Overridable Adjustments
● In the Modifiers form:
– Clear Automatic
– Check Override
● In the Sales Order form:
– Click Actions
– Create new line and choose Modifier Name =Manual Adjustment
– Override the adjustment and enter a reason
– Click Apply
● In Sales Order form, Line Items tabbed region,over typeUnit Selling Price

📧[email protected] 📧[email protected]
 Calculate Price Flag
● In Sales Order form, Line Items tab,go to Pricing tab to find Calculate Price Flag
● Calculate Price Flag on an order line controls if pricing/charge calculate should be done on the
line:
– If it is set to Calculate Price:both pricing and freight freight charges calculation are done
– If it isset to Partial Price:only freight charges calculation is done
– Freeze Price:neither pricing nor freight charges calculation is done

📧[email protected] 📧[email protected]
 Calculate Price Flag and Split Order Lines
CalculatePrice OriginalLine Originalline Originalline
Flag beforesplit: beforesplit: beforesplit:
CalculatePrice PartialPrice FreezePrice

Originallineafter CalculatePrice PartialPrice FreezePrice

userinitiatedsplit

Newlineafteruser CalculatePrice PartialPrice FreezePrice

initiatedsplit

Originallineafter PartialPrice PartialPrice FreezePrice

systeminitiated
split

Newlineafter PartialPrice PartialPrice FreezePrice

systeminitiated
split
📧[email protected] 📧[email protected]
 Reprice Orders
● Changing some order line attributes triggers repricing; for example,Item, Ordered Quantity,
Unit of Measure, Pricing Date, Price List.
● To manually reprice:
– Click Actions.
– If you change the price on the pricelist line, select Price Line to fetch the new price and
reprice line adjustments.
– If you change the order level modifiers, select Price Order to reprice order and line
adjustments.

📧[email protected] 📧[email protected]
 Accruals
● Types:
– Monetary
– Non-monetary: For example,the customer accrues 10 airline frequent flyer credits for
each item they purchase.

● The pricing engine uses them in price calculations and passes them to the calling application.

📧[email protected] 📧[email protected]
 Accruals
● Do not affect the selling price of an order line
● Do not appear as chargeable items on invoices
● Create an adjustment record in the database
● You can:
– Assign expiration dates to accruals
– Mark accruals redeemed
– Use buckets with monetary

📧[email protected] 📧[email protected]
 Accruals Scenario
Bkt Modifier Price Adj Bkt Subtot Sell Price

100.00

1 (7.00) 93.00

2 (5.00) 88.00

3 (6.80) 81.20

Null (15.00) 66.20

1 10% accrual (10.00)

1 5% accrual (5.00)

2 10% accrual (9.30)

📧[email protected] 📧[email protected]
 Redeeming Accruals Process
Use the Redeeming Accruals process to mark accrued price adjustments as redeemed and record
redemption transaction information.In addition, you can un redeem coupons recorded as redeemed in
error.

Use the Navigator path below to navigate to the Accrual Redemption window and consult Oracle
Applications Help for information about performing the process.

📧[email protected] 📧[email protected]
 Review Question
With which modifier list type do you associate with accrual processes?

● Item substitution
● Coupon
● Terms substitution
● Other item discount

📧[email protected] 📧[email protected]
 Modifier List Lab Guide

Phase Modifier Bucket Final Value

1 10% 1 90

1 10% 1 80

1 10% 2 72

2 $13 2 85

2 5% 3 80.5

Determine what Phase 1 = Entry

is additive or not
Phase 2 = Booking

📧[email protected] 📧[email protected]
 Modifier Incompatibility Lab Guide

Level Phase Precedence Modifier Bucket Final Value

1 1 20 10% 1 90

2 1 30 10% 1 80

1 1 10 10% 2 72

1 2 $13 2 85

2 2 5% 3 80.5

Isolates Determine what Phase 1 = Entry

conflicting is additive or not
Phase 2 = Booking

📧[email protected] 📧[email protected]
 Modifier Incompatibility Lab Guide

Level Phase Precedence Modifier Bucket Final Value

1 1 20 10% 1 90

2 1 30 10% 1 80

1 1 10 10% 2 72

1 2 $13 2 85

2 2 5% 3 80.5

Isolates Determine what Phase 1 = Entry

conflicting is additive or not
Phase 2 = Booking

📧[email protected] 📧[email protected]
Thanks!
Contact us:
[email protected]
+44 207 101 9262
+ 1 212 404 1735

www.apps2fusion.com

📧[email protected] 📧[email protected]