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Pricing Service Programs

Use the Price Lists window in Oracle Order Entry/Shipping to define prices for your service programs. You may define a service program price as amount-based or percent-based.

Amount-Based Prices

Oracle Order Entry/Shipping prices an amount-based service program in exactly the same way that it does any other item you enter on an order. You define and apply a discount to a service program the same way you do for any other order line.

Note: Oracle Order Entry/Shipping can apply order-level price adjustments to service order lines differently from how it adjusts prices of non-service order lines.

Percent-Based Prices

You may define the price of a service program to be a percent of the list price of the product which receives service. You use the Price Lists form to define the price of the service program. In this case, you specify a percent for the price, not an amount.

When you enter an order for a service program, Oracle Order Entry/Shipping prices the service program based on the list price of the associated product order line.

Example: You have a service program named 24-hour Service. Your business practice is to charge 20% of the price of a product for this service. For this case, you define a entry in the appropriate price list for the 24-hour Service item with a value of 20 in the Percent field. You enter a sales order for a serviceable product whose list price is $100.00. When you order 24-hour Service for the product, Oracle Order Entry/Shipping calculates the list price of the service program to be $20.00 (that is, 20% of $100.00).

You apply price adjustments to a service program with a percent-based price the same way you do for any other order line. Oracle Order Entry/Shipping uses the calculated list price of a service program as a basis for any adjustments. In the example above, the list price of the service program is $20.00, so if you apply a 10% discount to this service program, the selling price is $18.00 (that is, 10% off of $20.00).

See Also

Overview of Pricing


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