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Oracle Order Management User's Guide
Release 12.1
Part Number E13408-04
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Pricing

This chapter covers the following topics:

Overview of Pricing

Pricing adds features to Order Management to enable you to be a serious competitor where pricing plays a role. You can offer discounts from a single source rather than working with products from multiple vendors. With pricing, you can price order lines either on-line as you enter them or in batch mode and you can automatically apply discounts. In addition, you can override prices and discounts in each sales order.

Pricing enables you to:

Note: Oracle Advance Pricing provides the following benefits resulting from promotions and deals:

Note: The features described for Advanced Pricing are only available if you have licensed and installed Oracle Advanced Pricing.

For more information on Advanced Pricing features, see: Oracle Advanced Pricing User's Guide.

Pricing Security

In Oracle Applications, a basic level of security called functional security is used to manage users' access to each application and control their access to windows, functions, and reports within an application.

Typically, the System Administrator administers functional security and assigns operating unit, responsibility, and system access to users. See the Oracle E-Business Suite System Administrator's Guide Documentation Setfor more information about functional security.

Oracle Pricing provides an additional level of security called pricing security in addition to the existing functional security. Pricing security enables you to restrict pricing activities such as updating and viewing pricing entities to users granted specific access privileges.

Pricing security can be set up and maintained by a user who is assigned the Oracle Pricing Administrator responsibility. Pricing security is set up and maintained in the HTML user interface. The Oracle Pricing Administrator has the authorization to access and update all pricing entities for all functional users. Pricing entities include price lists, pricing agreements, and modifiers. See the Oracle Order Management Implementation Manual, Pricing Security section, for more information on pricing security.

See:

Overview of Price Lists

Overview of Formulas

Overview of Modifiers

Overview of Agreements

Overview of Price Lists

Price lists are essential to ordering products because each item entered on an order must have a price. Each price list contains basic list information and one or more pricing lines, pricing attributes, and secondary price lists. Basic information includes the price list name, effective dates, currency, pricing controls, rounding factor, and defaulting sources such as payment terms, freight terms, and freight carrier.

Price lists can contain item and item category prices. You can define and maintain multiple price lists.

You can define the following types of prices on price lists:

Effective Dates

Price lists can have starting and ending dates. This enables you to prepare price lists ahead of when they are valid and to ensure they will not be used until their start dates.

Inactive Price Lists

You can temporarily or permanently inactivate a price list using the Active box. Once a price list is inactivated, you can still do the following:

Adding Inventory Items

When adding inventory items to a price list, you can specify by Item Status; Item Category such as hardware or software; or a Range of Items.

You can request the price to be either zero or the items' costs in a specific inventory organization. Later, you can adjust the prices to your selling price.

The process only adds items that exist in the item validation inventory organization and that are not on the price list, even if they are inactive on the price list.

To add items from an item category, you must first select the inventory category set. When you add items from an item category, the process adds all items of the item category to the price list; it does not add the item category itself.

Changing List Prices

You can manually change the price for existing price list lines. The new price is effective for new orders as soon as you save your changes.

If you use effective dates for price list lines, you can maintain a historical record of your prices.

Adjust Price Lists

You can increase or decrease the list price of all or a group of price list lines by an amount or percentage. You can apply the increase or decrease to all lines on the price list, lines that belong to an item category, lines with items of a certain status, lines created on a specified date, or lines having a range of items.

Mass changes do not maintain price history.

Round To Factor

You can define the number of places to the right or left of the decimal point to which the pricing engine rounds prices from price lists and modifiers from modifier lists. If you enter a negative number, you increase the number of characters to the right of the decimal point. If you enter a positive number, you affect more columns to the left of the decimal point. If you enter zero, rounding occurs to whole decimals.

Rounding factor -3 indicates rounding to the nearest thousands (for example,.1007 rounds to .101). Rounding factor of +2 indicates rounding to the nearest hundred; for example 107 rounds to 100).

Note: You can limit the rounding factor value by the number of positions you specify in the extended precision format of the price list's currency - profile option QP: Unit Price Precision Type.

Secondary Price Lists

The pricing engine uses secondary price lists when it cannot determine the price for an item using the price list assigned to an order. Primary and secondary price lists have the same currency.

You can assign the same secondary price list to multiple price lists but you can not assign a secondary price list to a secondary price list. If the item that you are ordering is not in the primary price list, the pricing engine uses the highest-precedence secondary price list (the secondary price list with the lowest value for the precedence field).

Line-level discounts and modifiers that apply to the primary price list do not apply to the secondary price list

If an item appears on both the primary and a secondary price list with the same effective dates, the pricing engine uses the primary price list to price the item. If an item appears on the primary price list but is not active (the effective end date has passed), the pricing engine uses the price on the secondary price list.

If there are multiple eligible price list lines on a secondary price list, then the line with the lowest precedence value (highest precedence) is selected.

Price List Currency

For international sales, you can record transactions in different currencies by defining a price list for each currency. After entering the currency for an order or return, you must choose a price list in the same currency.

Multi-Currency Conversion Lists

For pricing in different currencies, multi-currency conversion lists enable you to maintain a single price list for multiple currencies. However, this is an Oracle Advanced Pricing feature which is available only if Oracle Advanced Pricing is fully installed and multi-currency lists are enabled.

With multi-currency lists enabled, the Oracle Pricing Price List and Agreements windows both enable system generated multi-currency conversion windows (one window per currency). For details on multi currency prices lists and agreements, see Oracle Advanced Pricing User's Guide, Multi-Currency Conversion Lists.

Maintaining Price Lists

You can maintain Price Lists in the following ways:

Price lists can also be active or inactive. If a price list is inactive, you cannot use the price list on an order or order line to select unit price for an item. Inactive price lists may be modified or activated.

Copying Price Lists

You can quickly create a new price list by copying from an existing price list. You can copy a range of lines or all lines from the original price list. Only active price list lines (those with an effective end date later than the current date can be copied.

You can choose:

See:

Creating a Price List

Copying a Price List

Adjusting a Price List

Adding Items to a Price List

Creating a Price List

Price lists contain item and item category prices. You can define and maintain multiple price lists.

You can define the following types of prices on price lists:

To create a price list:

  1. Navigate to the Price Lists window.

    The Global box is selected when the Pricing Security Control profile option is set to ON. This means that the price list can be used by all operating units for pricing transactions. If Global box is unselected, operating unit field is displayed. If Multi-Org Access is NOT enabled, the operating unit defaults from the profile MO: Operating Unit. This operating unit field is non-updateable. If Multi-Org Access is enabled, the operating unit defaults from the value of the profile MO: Default Operating Unit. You can override this default and select an operating unit that you have access to as defined by MO: Security Profile. The use of this price list is then only restricted to pricing transactions for this operating unit.

    the picture is described in the document text

  2. Enter a price list Name.

    Note: The price list Name should be unique across all PTEs (Pricing Transaction Entities) otherwise an error occurs. For example, if a price list named "Corporate" is created in the Order Management PTE, an error message displays if you create a "Corporate" price list in the Purchasing PTE.

  3. Select Mobile Download if you are using an Oracle Mobile application to download specific price lists onto a mobile device such as a laptop computer or hand-help scanning device. The Mobile Download box can be cleared or selected when creating or updating a price list.

    The default value is No.

  4. To activate the price list, select Active.

    Note: When initiating query mode functionality within the Price List window, the Active box is selected (checked) but the underlying value is Null. If you wish to query for price lists that are active, you must first clear the Active box, then reselect it.

  5. Enter a Description for the price list.

  6. Enter the price list Currency.

  7. Enter a Round To value to be applied to the price list.

    A positive Round To value such as 2 indicates the number of places to the left of the decimal point; a negative number indicates number of places to the right of the decimal point. The default is -2. The Round To value entered in the price list is stored as the rounded value while the Rounding Precision Type determines how the list price displays.

    The value returned depends on the value that was set for the profile option QP: Unit Price Precision Type:

  8. Enter default Payment Terms.

  9. Enter default Freight Terms.

  10. Enter a default Freight Carrier.

  11. Enter any Comments.

  12. Click the List Lines tab.

    Complete the remaining steps for each price list line to be created:

    Note: The Product Context is always Item.

  13. Select a Product Attribute such as Item Number or Item Category.

  14. Depending on the value of Product Attribute, select an item number or an item category for the Product Value.

  15. Select a UOM (unit of measure).

  16. Select Primary UOM if this price list line UOM is the primary pricing unit of measure for the item.

    Note: Oracle Pricing uses the primary pricing unit of measure and the Oracle Inventory unit of measure conversion information to price an order whose unit of measure does not have a price list line.

    Note: For example, a price list has two price list lines for item A11111, one with unit of measure EA; the primary UOM and one for cases (CS). When the pricing engine receives an order in unit of measure CS, it accesses the unit of measure conversion tables to convert CS to EA.

  17. Select an Application Method. Use Unit Price for inventory items and either the Unit Price or Percent Price for service items

  18. Enter Value and Formula as follows:

  19. Enter the starting and ending effectivity dates of this price list line in Start Date and End Date.

    The dates should be within the start and end effectivity dates of the price list.

  20. Enter a numeric value in Precedence; this is the product precedence.

    When the pricing engine is trying to locate a price, it uses precedence (precedence defaults but is overridable) to resolve conflicts when it selects more than one price list line from a price list.

  21. In the List Lines tab, if you have entered the Application Method as Unit Price and are going to create a price break header to determine the selling price, you can enter a dynamic formula in the Price Break window to calculate the selling price for that point or range type. For more information on creating a formula, please refer to the Creating a Pricing Formula section.

    When Application Method is Unit Price, the Dynamic Formula field in the Price Breaks window is enabled. You can enter a pricing formula or a price or both. The dynamic formula field is not enabled when the Application Method is block price or percent price.

  22. Save your work

In the Other tab:

The Other tab displays the following information, and if applicable, details about the related Sales Agreement:

To define pricing attributes:

  1. Click Pricing Attributes in the List Lines tab.

  2. Enter a Pricing Context.

  3. Enter a pricing attribute in Pricing Attribute.

  4. Select one of the following Operator values:

    =

    BETWEEN

    NOT = (for pricing attributes)

  5. Enter Value From.

  6. If Operator is BETWEEN, enter Value To.

  7. Save your work.

    Note: The pricing attributes are joined as AND conditions since they apply to one price list line.

To define secondary price lists:

  1. Navigate to the Secondary Price Lists Tab.

  2. Select a Secondary Price List.

  3. Save your work.

To delete price list information:

You cannot delete the price list header. However you can delete price list lines and pricing attributes. Alternately, you can make price list or price list lines ineffective buy changing the effective dates. To make pricing attributes ineffective, make the price list line ineffective.

See:

Copying a Price List

Adjusting a Price List

Adding Items to a Price List

Copying a Price List

You can quickly create a new price list by copying an existing price list. Only active price list lines (those with an effective end date later than the current date) can be copied.

Note: This function can be performed on effective price lists only.

To copy a price list:

  1. Navigate to the Copy Price List window.

    Select one of the following options:

    Note: You cannot use wild cards when you specify the beginning and ending item numbers. For System Items, the list of values (LOV) is not available. For these items, you may need to use an API.

    Copy Price List window

    the picture is described in the document text

  2. In the Copy From region, select the name of the price list to be copied. This can be from either a Standard (PRL) or Agreement (AGR) price list. The default Currency and Description display for the selected price list.

  3. Select an Item Category Set and Item Category of the items to add. When you add items from an Item Category, all items from the item category are added to the price list; it does not add the item category.

    Note: You must enter both Item Category Set and Item Category for this criteria to be effective.

  4. Select this to copy modifiers of type Discount List (DLT).

  5. Select Retain Effective Dates to copy the effective dates from the existing price list lines to the new price list lines. Even if Select Retain Effective Dates is selected, only the most current price list lines (current as defined by their effective dates) will be copied. Duplicate lines that have expired will not be copied.

    The process does not copy the effective dates of the price list, only the price list lines. You must enter effective dates for the new price list.

  6. In the Copy To region, enter the new name for the price list. It can be either a Standard (PRL) or Agreement (AGR) price list.

  7. If the price list you are copying from is Global (meaning available to all operating units), then the Global Check box is selected by default. You can deselect or select the Global value to disable or enable global access to the new price list.

  8. Restricts the usage of the price list to the named operating unit (if Global box is not selected). The operating unit defaults if a) you copy from an operating unit-specific price list and b) your responsibility has security access to the operating unit. If not, then the Global check box is selected instead.

  9. Click Submit to copy the price list or selected lines. The request ID is displayed in the Request ID field.

See:

Copying a Price List

Adjusting a Price List

Adding Items to a Price List

Adjusting a Price List

Use this process to adjust the prices for a price list. You can adjust prices for the entire price list or selected items, item category sets, and item categories. You can define your criteria further by selecting the item status or creation date of the items to adjust.

For example, you can specify a category so that only the price list lines for the selected category are adjusted. If you leave any of the fields blank, pricing adjusts the price list regardless of that field. You can adjust the price by either an amount or percent:

To adjust a price list:

  1. Navigate to the Adjust Price List window.

    Adjust Price List window

    the picture is described in the document text

  2. Select the Price List to be adjusted. The Currency and Description values will default.

    Complete steps 3 through 6 to select the items that you want to adjust on a price list.

  3. Enter the Items or a range of Items to adjust.

    Note: You cannot use wild cards when you specify the beginning and ending item numbers.

  4. Select an Item Category and Item Category Set to limit the items to adjust. When you select items from an item category, the process adjusts all items of the item category within the price list.

    Note: You must enter both Item Category Set and Item Category for this criteria to be effective.

  5. Select an Item Status to limit the items to adjust.

  6. Select a Creation Date to limit the items to adjust. Pricing adjusts only the items added to the price list on that date.

  7. Select Percent or Amount for Adjust By, as follows:

  8. Click Submit. The request ID is displayed in the Request ID field.

See:

Copying a Price List

Creating a Price List

Adding Items to a Price List

Adding Items to a Price List

Prerequisite

You must first define a price list header.

Note: Pricing submits a concurrent process when you add inventory items. The concurrent process only adds new items to a price list; it does not replace existing items, even if the existing items are ineffective.

To add items to a price list:

  1. Navigate to the Add Items to Price List window.

    Add Items to Price List window

    the picture is described in the document text

  2. Select the Price List.

    Complete one or more of the steps below to add selected items to the price list.

  3. Enter an Item or range of Items to add.

    Note: You cannot use wild cards when you specify the beginning and ending item numbers.

  4. Select an Item category and Item Category Set to limit the items to add. When you add items from an item category, all items of the item category are added to the price list; it does not add the item category itself.

    Note: You must enter both Item Category Set and Item Category for this criteria to be effective.

  5. Enter an Item Status to limit the items to add.

  6. Select Set List Price Equal to Cost From if Oracle Inventory is installed and you want to set the list price of the inventory item equal to its cost.

    Note: The list price becomes zero if you clear the List Price Equal to Cost From and the Inventory Organization does not use the standard costing method.

  7. If setting the price equal to cost, select an Inventory Organization to identify which organization to get the cost from.

    If an organization is not specified, the organization specified in the profile option QP: Organization ID is used.

  8. Click Submit. The request ID displays in the Request ID field.

See:

Copying a Price List

Creating a Price List

Adjusting a Price List

Querying Price List Lines

When querying price list lines, use the Find Price List Lines window to find price list lines within a specific price list. To create a new query, enter the relevant search criteria such as the product attribute context, product attribute (for example, Item Number), and product attribute value (for example, Product A), and click Find to retrieve the price list lines that match your search criteria.

To query price list lines:

  1. Display the price list in the Price Lists window.

  2. Select a price list line in the Price Lists window, click the Find icon to display the Find Price List Lines window.

    Find Price List Lines window

    the picture is described in the document text

  3. Enter only the criteria required for your search:

  4. Click Find to display the results of your query.

    Note: To clear existing search criteria, click Clear in the Find Price List Lines window.

See:

Copying a Price List

Creating a Price List

Adjusting a Price List

Overview of Formulas

Formulas are mathematical expressions that the pricing engine uses to determine the list prices of items and the discounts that apply to those items. You can use them to:

You can set up and maintain formulas based on one or more of the following formula component types:

Creating a Pricing Formula

You can set up and update formulas and formula lines in the Pricing Formulas window. A formula is a valid mathematical expression used to determine the list prices of items and the discounts applied to those items. The formula lines provide details about each part of the formula.

Note: The concurrent program Build Formula Package should be run after setting up or changing a formula to improve performance. This program can be accessed from the Tools menu within the Formulas Setup window.

The formula can contain any of the following:

Note: An operand is not a numeric constant. To use a numeric constant in a formula, you can:

For example, the valid formula (1+2*SQRT(3)) / 4 contains:

For each step number, create a formula line. In the previous formula example, four formula lines are created since the formula has four step numbers.

When Oracle Pricing calculates a formula, it does not use the face value of the step number. It refers to the formula line and evaluates it to obtain the value of the operand.

Seeded Formulas

Oracle Pricing provides seeded formulas that you can use when setting up freight charges. See the Oracle Order Management Implementation Manual for information on seeded pricing formulas.

Null Values in Formulas

If a step number could have a null value, arrange to handle it in the formula. For example, in the formula 1*2, step 2 is of type Pricing Attribute, pricing attribute context is Physical Attribute, pricing attribute is Volume, and the user supplies the volume at order entry time.

Since the user may not provide a volume, change the formula to 1* NVL(2,3). In the formula line for step number 3, arrange for a non-null value, for example a numeric constant.

If the expression does not use NVL in the expression, and the step number evaluates to NULL, the entire expression evaluates to NULL, the formula calculation fails, and the calling applications processes the failure.

See:

Creating a Pricing Formula

Updating Formula Prices

To create a pricing formula:

  1. Navigate to the Pricing Formulas window.

    Pricing Formulas window

    the picture is described in the document text

  2. Enter a Name and Description for the new pricing formula. Use a consistent, meaningful naming convention, and enter a brief description about the formula. This helps users identify the formula during query searches.

    Alternately, select a seeded formula that suits your requirements. The Seeded box is selected for seeded formulas. You can select a seeded formula for calculating freight charges. See the Oracle Order Management Implementation Manual for information on seeded pricing formulas.

  3. Enter the Effective Dates. A Start Date and no End Date will keep the formula active at all times.

    Entering an End Date will keep the formula active until the specified End Date. Since formulas cannot be deleted, you can end a formula by entering an end date.

  4. Enter the Formula expression. A formula consists of step numbers such as 1, 2, 3 used in an arithmetic equation such as 1*2. Mathematical operators such as *,+,- and ( ), /can be used.

    The step number corresponds to the step number assigned to a formula line in the Formula Lines region.

  5. Every time a formula expression is created or updated, you should run the concurrent program Build Formula Package to generate the formula package. Choose Tools > Build Formula Package to run the program.

    A Note dialog box displays a message if the formula package generation is successful.

  6. Save your work.

    In the Formula Lines region, complete the following steps for each component of the formula:

  7. Select one of the following Formula Types and enter the corresponding values:

  8. Enter the Step number for the component.

    Step numbers cannot be repeated in this region, although they can be repeated in the formula.

  9. Save your work.

Defining Factor List Details

When setting up a formula, and the Formula Type is Factor List, you can create or update the factor list details in the Factors window.

To define factor list details:

  1. In the Pricing Formulas window, click Factors to display the Factors window.

    Factors - OPTION window

    the picture is described in the document text

  2. In the Base Pricing Attributes region, complete the following steps for each base pricing attribute factor:

  3. Select a value for Base Pricing Attribute Context.

    For multiple entries, you must use the same base context in this region (to create an OR condition); the pricing engine chooses one of the entries. Use the Associate Pricing Attributes region to associate additional contexts with the base context (to create an AND condition).

  4. Select a value for Base Pricing Attribute.

  5. Select the Operator and enter the Value From and Value To as follows:

  6. Enter the Adjustment Factor. An adjustment factor enables you to adjust the price based on the options selected. For example, if you are selling cars, you could use adjustment factors to adjust the price based on the car options the customer chooses:

  7. In the Associate Pricing Attributes region, select an Associated Pricing Attribute Context and Associated Pricing Attribute to associate with the base pricing attribute context and base pricing attribute values (to create an AND condition).

  8. Select the Operator and enter the Value From and Value To as follows:

  9. Save your work.

See:

Updating Formula Prices

Updating Formula Prices

You can update formulas after they have been created or updated. Prices or changes to formulas will not be updated unless a concurrent process is run prior to any order entry activity. Not doing so, will not update or change any previously defined formula.

Note: Freight and Special Charges do not behave differently in Basic Pricing. The Modifiers window allows complete Advanced Pricing functionality for Freight and Special Charges in Basic Pricing. Dynamic Formula is not supported in Basic Pricing. Only the Static Formula is supported and the formula is supported only for the price list. Modifiers only support Dynamic Formula.

To update formula prices:

  1. Navigate to the Update Rule Prices window.

    Note: You must submit this concurrent program to properly load prices for any price list in which a Static Formulas is defined.

    Update Rule Prices window

    the picture is described in the document text

  2. Select New and Modified Lines Only of price lists to calculate formula-based prices for price list lines for formulas that have been added or changed since the process last executed. Alternately, to calculate formula-based prices for all price list lines, clear the New and Modified Lines Only of Price Lists.

  3. Select one of the following:

  4. Click Submit. The request ID displays in the Request ID field.

The process applies this choice after it selects the price list lines whose formulas you have added or changed since the process was last executed.

Note: You must remember to do this process after creating or changing any formulas in order for the engine to calculate and update the related price list lines covered by the formula.

Overview of Modifiers

Modifiers enable you to setup price adjustments (for example, discounts and surcharges) and freight and special charges that the pricing engine applies to pricing requests. Using modifiers, you can:

Modifier Concepts

You use the Define Modifier window to set up price adjustments, freight, and special charges. You can define simple discounts, surcharges, and price breaks.

Modifier lists contain one or more modifiers and each list level modifier must have one or more lines associated with it.

By defining qualifiers at the list and line levels, you define a customer's eligibility for the modifier. This enables you to create both modifiers which are product specific and modifiers which apply to all products.

When using modifiers for order amount based discounting, you must define the negative reciprocal modifier as well. For example, if your order amount is $100 or greater, then you receive 50% off your total order amount. If you do not define the negative reciprocal (-$100) and 50%, if you return the original item and the reciprocal is not defined, you would end up generating a credit of $100 instead of $50.

If an automatic modifier has been applied to a line and if you delete that modifier using the View Adjustments window, the automatic modifier will not be reapplied to the line when the line is repriced.

Modifier List Types

Using modifier lists, you can create groupings of price adjustments, and freight and special charges that you offer and report together to meet various business needs. At the list level, you define criteria that is common to all of the line level modifiers. You can use the following list types:

For each list type that you define, you associate certain line types.

Modifier Line Types

Use modifier lines to define the type of price adjustments, or freight and special charges that the pricing engine applies to pricing requests. You can associate certain line types with each list type. You can use the following line types:

The table below describes Modifier List Types and if Discounts, Surcharges, or Freight and Special charges are applicable to the List type. A value of

Application Method

You can select an application method for a modifier line that defines how the price adjustment is to be applied. You can select from the following methods:

The following table displays an example of application methods for a modifier line type of Discount:

Modifier Application Methods Compared for Discount Modifier
List Price Item Quantity Ordered Application Method Value Price Adjustment Extended Selling Price
10 Item A 200 Amount 5 5 per unit 1000
10 Item A 200 Percent 5 5% 1900
10 Item A 200 New Price 5 5 1000
10 Item A 200 Lumpsum 5 5 off 1995

See:

Creating a Modifier List

Creating Modifier Lines

Attaching Pricing Attributes

Creating a Modifier List

Using modifier lists, you can create groupings of price adjustments and freight and special charges that you offer and report together to meet various business needs. At the list level, you define criteria that is common to all of the line level modifiers.

Note: If you cannot query the modifier or update it after saving or exiting, consult with your Pricing Administrator for access privileges. Your security privileges may not allow you to access this window.

Using Discount Modifiers with Negative Unit Selling Prices

Discount modifiers can also be used with negative unit selling prices to adjust the final unit selling price. Suppose the following price list line and modifier are set up for your business:

If you enter a sales order for the item AS54888 and the Discount modifier is applied, the Unit Selling Price will be $-90.00. If the same modifier is applied against an item with a value of $100.00, the Unit Selling Price will be $90.00.

Surcharge with Negative-Priced Items

The following example shows the results when a Surcharge modifier is applied to a price list line with a negative price:

  1. Create a simple modifier (ABC-MN) with type = Surcharge of 10%.

  2. Create a price list line (ABC-N) with a value of <-$100>.

  3. Enter a sales order with price list ABC-N and the item of the price list ABC-N.

  4. Save the order.

The surcharge is applied, and the Unit Selling Price is <$-110.00>.

To create a modifier list:

  1. Navigate to the Define Modifier window.

    Define Modifier window

    the picture is described in the document text

  2. In the Main tab, select the modifier Type.

  3. Enter a Number and Name for the modifier list; the value does not have to be numeric.

    Note: The modifier Name should be unique across all PTEs (Pricing Transaction Entities) otherwise an error occurs. For example, if a modifier named "Corporate" is created in the Order Management PTE, an error message displays if you create a "Corporate" modifier in the Purchasing PTE.

    The Global box is selected when the Pricing Security Control profile option is set to ON. This means that the modifier list can be used by all operating units for pricing transactions. If Global box is deselected, operating unit field is displayed. If multi-org access is NOT enabled, operating unit defaults from profile MO: Operating Unit. This operating unit field cannot be updated by users. If multi-org access is enabled, operating unit defaults from profile MO: Default Operating Unit. Users can over-ride this default and select an operating unit that they have access to as defined by MO: Security Profile. The use of this modifier is then only restricted to pricing transactions for this operating unit.

  4. Select or clear Automatic:

  5. Enter Currency. This is an optional field.

  6. Enter the Start Date range.

    Note: If you do not enter dates (start/end), the list is effective from the creation date and does not become ineffective.

  7. Enter a Description.

In the Other tab:

Define Modifier window: Other tab

the picture is described in the document text

In the Other tab, you can view the following information including details about any related Sales Agreement:

See:

Creating Modifier Lines

Attaching Pricing Attributes

Creating List Level Qualifiers

Modifier list level qualifiers help the pricing engine to determine who is eligible for the modifier lines. If an order is not eligible for a modifier list, it is not eligible for that list's line level modifiers even if the lines have qualifiers for which the order is eligible.

To create list level qualifiers:

  1. Navigate to the QUALIFIER - Header Level Qualifiers window.

    QUALIFIER - Header Level Qualifiers window

    the picture is described in the document text

  2. In this window, you can add, change, and delete qualifiers and change the dates.

  3. Enter the Grouping Number. This is valid for Advanced Pricing, please refer to the Oracle Advanced Pricing User's Guide.

  4. Select the Qualifier Context.

  5. Select the Qualifier Attribute.

  6. View and, if necessary, adjust the Precedence Numbers that default from the qualifier definition.

    The pricing engine uses the Precedence to resolve incompatibility. If multiple modifiers are eligible within the same phase and incompatibility level, the modifier with the lowest precedence is applied.

  7. Enter the Operator, Value From, and Value To.

    The Value From Meaning field provides additional details about the selected qualifier. For example, if the qualifier context is CUSTOMER and the attribute is Ship To, Value From displays the customer name and Value From Meaning displays the site use location for the customer. If the context/attribute combination has no additional details, Value From and Value From Meaning are identical.

  8. Choose OK and save your work.

    Note: The start and end dates of the list qualifiers must be within the start and end date of the modifier list.

See:

Creating Modifier Lines

Attaching Pricing Attributes

Creating a Modifier List

Creating Modifier Lines

Use this process to create modifier lines to define how the price is adjusted. Once you have created and saved a modifier line, you cannot edit or change the Product Attribute Value for the line. To change the Product Attribute Value for a line, you should end date the existing modifier and create a new modifier.

To enter basic modifier line information:

  1. Navigate to the Define Modifier window. For more information on the different line types that you can create, please refer to the Oracle Advanced Pricing User's Guide.

  2. In the Modifiers Summary tab, Modifier No field, a default modifier number identifies the modifier line. You can change this value; however, the Modifier No for each modifier line must be unique within the modifier list.

  3. Enter the Level.

  4. Enter Modifier Type from the following:

  5. Enter the Start Date and End Date of this modifier line.

    Note: Start date and end date on the modifier line must be between the start date and end date on the modifier list. The pricing engine uses the modifier line dates to determine if this line is effective.

    Print On Invoice is reserved for future use.

  6. Select or clear Automatic. If you select it, the pricing engine automatically applies this modifier. If you clear it, someone must manually apply it to an order.

    Note: If you select Automatic at the modifier list level, Automatic for each line appears as selected but you can change it. You can allow manual application of discounts, surcharges, and freight and special charges line types.

  7. Select or clear Override.

    If selected, you can manually change how the modifier is applied for each order.

  8. The values of Pricing Phase, Incompatibility Group, and Bucket will be dependent on the modifier level chosen.

    For Basic Pricing, the Incompatibility Group will always be Level 1 Incompatibility Group, and bucket will be defaulted to 1 for line level modifiers.

  9. The Proration Type and Comparison Value fields are reserved for future use.

  10. Enter Item Number or Item Category in Product Attribute.

  11. Enter the value for the item number or item category in Product Attribute Value.

  12. Accept the default value or update value for Precedence.

    The following fields should only be entered if you are defining a Price Break Modifier Type.

  13. Enter Volume Type.

    Note: Valid types are Item Quantity and Item Amount. Period is reserved for future use.

  14. Select the Break Type. You can select Point break type.

  15. Enter Equal (=) or Between as the Operator. Enter the appropriate values in the Value From or Value To fields.

  16. Enter the unit of measure of the item or item category in UOM.

  17. Enter Value From and Value To. For example, item quantity = 5 or item quantity between 5 and 20.

    Note: If Operator is Equal (=), enter Value From. If Operator is Between, you must enter Value From and Value To is optional; if Value To is blank has no upper limit.

    To create greater than and less than conditions, leave the fields From Value and/or To Value blank. The table provides several examples for using the Operator, From Value and To Value.

    Examples of Value From and Value To
    Operator Value From Value To Meaning
    Equal (=) or Between 5 NULL value is equal to or less than 5
    Between NULL 100 value is less than or equal to 100
    Between 5 100 value is equal to or greater than 5 and less than or equal to 100
  18. Save your work.

To enter discount and surcharge information:

  1. In the Discount/Charges tab, select or clear Include on Returns.

    If selected, the pricing engine includes freight charge on returns.

  2. Select an Application Method.

  3. Enter Value of the application method.

  4. Save your work.

To enter freight charge information:

  1. Enter the following information in the Modifiers Summary tab:

  2. In the Discounts/Charges tab, enter the Charge Name.

  3. Select or clear Include on Returns. If selected, the pricing engine includes freight charge on returns. The default is selected.

    Note: When a line level freight charge with Include On Returns not checked is applied on an order line and when this order is copied to another order of Return type, then the line level freight charge of the original order is applied as a positive charge on that returned order line i.e. the customer who had returned the goods has to bear the freight charge. If the freight charge should not be applied, then a qualifier can be created for the freight for the line category code to be ORDER so that this freight charge is not applied on the returned line.

  4. Enter an Application Method to instruct the pricing engine how to apply this modifier.

  5. Enter Value.

  6. Save your work.

To enter price break information:

  1. Enter the following information in the Modifiers Summary tab:

  2. Enter Modifier Type Price Break to determine the method of calculating the price break.

    For Continuous Price Break, the pricing engine calculates according to the range in which the quantity falls. If the quantity is 150 and the continuous price break ranges are : 1-100, 100-200, 200 and above, then the discount given at the 100-200 range would be applicable for the quantity of 150.

  3. Complete the remaining entries: Product Attribute, Product Attribute Value, Buy UOM, Volume Type.

    In the Price Breaks tab:

    Define Modifier: Price Breaks tab

    the picture is described in the document text

  4. Enter Adjustment Type:

    Note: Rebate Transaction Type and Accrual Redemption Rate are reserved for future use.

  5. Click Define Details to display the Define Modifier Details window.

  6. Enter Value From/To.

    Price Breaks tab

    the picture is described in the document text

  7. Select an Application Method:

  8. Enter a Value for the selected Application Method.

  9. Save your work.

See:

Creating a Modifier List

Attaching Pricing Attributes

Creating Line Level Qualifiers

Modifier line level qualifiers help the pricing engine to determine who is eligible for the modifier lines. If an order is not eligible for a modifier line, it is not eligible for the line level modifiers even if the lines have qualifiers for which the order is eligible.

Once a qualifier is end dated, the group having that end dated qualifier becomes invalid. The modifier having that end dated qualifier will apply only if there is another group of qualifiers that satisfy the conditions and are within the valid date ranges.

To create line level qualifiers:

  1. Navigate to the Qualifier - Line Level Qualifiers window.

    Qualifier - Line Level Qualifiers window

    the picture is described in the document text

  2. In this window, you can add, update, and delete qualifiers.

  3. Enter the Grouping Number. Qualifiers with the same grouping number generate an AND condition and qualifiers with different grouping numbers generate an OR condition. For more information on grouping numbers, please refer to the Oracle Advanced Pricing User's Guide.

  4. Select the Qualifier Context.

  5. Select the Qualifier Attribute.

    Note: After you save a qualifier with Qualifier Context of Modifier List and you cannot modify or delete it. Since the pricing engine creates coupons (and a qualifier for each coupon) these coupon qualifiers are not subject to manual changes and deletions.

  6. View and, if necessary, adjust the Precedence Numbers that default from the qualifier definition.

    The pricing engine uses the Precedence to resolve incompatibility. If multiple modifiers are eligible within the same phase and incompatibility level, the modifier with the lowest precedence is applied.

  7. Enter the Operator, Value From, and Value To.

    The Value From Meaning field provides additional details about the selected qualifier. For example, if the qualifier context is CUSTOMER and the attribute is Ship To, Value From displays the customer name and Value From Meaning displays the site use location for the customer. If the context/attribute combination has no additional details, Value From and Value From Meaning are identical.

  8. Choose OK and save your work.

    Note: The start and end dates of the line qualifiers must be within the start and end date of the modifier list.

See:

Creating Modifier Lines

Attaching Pricing Attributes

Creating a Modifier List

Copying a Modifier Line

To save time when creating modifier lines, you can copy an existing modifier line. All the associated qualifiers, pricing attributes, exclude products and related modifier lines are also duplicated from the original line including the following:

All fields copied from the original can be updated except for Modifier Type and Modifier Level. The Get Product Attribute and Get Product Value fields can be updated even after clicking the Define Details button. But once the line is saved, these fields cannot be updated.

Note: For Basic Pricing Only. The profile option QP: Allow Duplicate Modifiers, which is typically set by the System Administrator, determines if duplicate modifiers are permitted.

Note: See the Oracle Order Management Implementation Manual, Pricing Profile Options section for more information on this profile option.

To copy a modifier line:

  1. Display the modifier line to be copied in the Define Modifier window.

  2. Select the modifier line to be copied.

  3. Click the New icon in the toolbar to create a new blank line beneath the original line.

  4. Choose Edit > Duplicate > Record Above to duplicate the original line. Alternately, select the SHIFT + F6 keys.

  5. Once the line is duplicated, you can modify or save it.

See:

Creating a Modifier List

Overview of Archiving and Purging Pricing Entities

Archiving pricing data enables you to copy pricing data from the pricing application tables to archive tables for long-term data storage.

You can archive:

When the archived data is no longer required or does not need to be retained for legal retention purposes, then you can use the purge feature to purge the data from the archive tables.

You can archive and purge price list lines and modifier list lines including the following modifier list line types:

By archiving and purging records, the number of pricing records that need to be queried or processed by the pricing engine is reduced, potentially resulting in improved performance. Please refer to the Oracle Advanced Pricing User's Guide for more information.

Attaching Pricing Attributes

Use this procedure to attach attributes to the items and item categories that you define in modifier lines. When the pricing engine determines eligibility for a modifier, it validates the pricing attributes along with the item number or item category.

To attach pricing attributes:

  1. Navigate to the Define Modifier window.

  2. Select the Modifiers Summary tab and select a modifier.

  3. Click Pricing Attributes to display the More Pricing Attributes window.

  4. Enter a Pricing Context.

  5. Enter a Pricing Attribute.

  6. Enter Value From and Value To.

  7. Click OK.

  8. Save your work.

See:

Creating a Modifier List

Creating Modifier Lines

Attaching Pricing Attributes

Creating a GSA Price List

A GSA Price List enables you to define a GSA Price List for your GSA customers. The GSA Price List actually uses the modifiers window and uses the new price. You create a discount that adjusts the base price of the item to the GSA price.

You can set up multiple GSA price lists that are effective during the same time period.

To create a GSA price list:

  1. Navigate to the Define Modifier - Define GSA Price window.

    Define Modifier - Define GSA Price window

    the picture is described in the document text

    Note: The Define Modifiers window is used to set up GSA prices.

  2. In the Main tab, enter Discount List in Modifier List Type. This field cannot be changed.

  3. Enter the modifier list Number. This number will be used for the GSA Discount that is created when the GSA New Price is applied. This number displays in the Modifier Number field in the View Adjustments window. Use a consistent, meaningful naming convention. You can use a combination of alphanumeric characters for the number:

  4. Enter modifier list Name.

  5. Enter a Version. You can have more than one version of a GSA price list, but only one version can be active at a time. This activity is controlled by the effective dates on the list header.

  6. Enter Currency. Pricing applies modifiers to sales orders of the same currency. The default is US dollars (USD). Other currencies are allowed because this feature can be used for price floors and not just GSA Pricing which is a USA Government regulation. Pricing applies modifiers to sales orders of the same currency.

  7. Enter the start date and end date during which the GSA price list is effective. If the date fields are blank, then this GSA Price list is effective.

  8. Enter a Description of the GSA price list.

    In the Modifiers Summary tab, enter a modifier number as an identifier for the GSA price list.

    The Level defaults to Line and the Modifier Type defaults to discount.

  9. Enter the Start and End Dates of this GSA price list line.

    Note: The Start and End Dates on the discount line must be between the start date and end date of the GSA price list. Pricing uses the discount line dates to determine if this line is effective.

  10. The Automatic box is selected (default) and cannot be changed by the user. If the customer is eligible to receive the GSA price, then the GSA price is automatically applied.

  11. Select Override to enable a user to override the GSA price for the selected price list line. Clear Override to prevent a user from overriding the GSA price for the selected price list line.

    Proration Type default is None, and cannot be changed by the user.

  12. Pricing Phase default is List Line adjustment, and cannot be changed by the user.

  13. Incompatibility Group default is Level 1 Incompatibility, and cannot be changed by user.

  14. Bucket default is 1, and cannot be changed by user.

  15. Product Attribute default is Item Number and cannot be changed by user.

  16. Select the Product Attribute Value for the Item Number product attribute.

  17. Enter Precedence. Precedence can be used to determine which new price value to apply if an item is found on more than one GSA Price List, and a GSA customer is eligible to receive both. The item value with the highest precedence (the lowest precedence number) will be applied.

    The Phase defaults to List Line Adjustment. Incompatibility defaults to Exclusive. Bucket defaults to 1.

  18. Enter the item unit of measure (UOM).

    The Application Method defaults to New price in the Discounts/Charges tab and cannot be changed.

  19. Enter the item price in Value. Do not enter the GSA discount value because this will be calculated automatically when the GSA New Price is applied.

  20. Save your work.

    In the Other tab:

  21. Select the Other tab.

    Define Modifier - Define GSA price

    the picture is described in the document text

    In the Other tab, you can view the following information including details about any related Sales Agreement:

Creating GSA List Qualifiers

The GSA flag on the customer record defines a customer's GSA status. This flag must be set for Customers to be eligible to receive a GSA Price. Using List Qualifiers in Oracle Order Management, you can define GSA Price lists that are specific to a GSA Customer. If there are no List Qualifiers defined for a GSA Price List, then all GSA customers are eligible to receive the prices on the GSA Price list. If you are using the GSA Pricing functionality to monitor price floors, then you would not define any customers as GSA, and you would not define any customers in the List Qualifiers.

To create GSA list qualifiers:

  1. You can attach multiple GSA customers as qualifiers to a GSA Price List. Complete the following steps to enter qualifiers for the GSA price list.

    Note: You can only attach customers at the list level. You cannot assign line level qualifiers.

  2. From the Define Modifier - Define GSA Price window, click List Qualifiers.

    Qualifier - Header Level Qualifiers

    the picture is described in the document text

  3. Refer to the following steps to enter qualifiers for the GSA price.

  4. Enter Grouping Number.

    Note: You can use both And or Or grouping numbers for qualifiers. Since Qualifier Context is Customer, make OR conditions by creating each qualifier with a different grouping number.

  5. Qualifier Context defaults to Customer.

  6. Qualifier attributes default to Customer name.

  7. Enter Operator: Equal, Between, or Not Equal. The operator Between cannot be used to validate alpha character ranges. It is only used for numeric values and will most likely not be used to define any of these qualifiers.

  8. Enter customer name in Value From. The values that you can select depend on the qualifier attribute:

  9. Enter start and end dates for the customer.

    Note: The start and end dates of the list qualifiers must be within the start and end date of the modifier list.

  10. When you have completed your entries, click OK to save your work.

See:

Overview of Price Lists

Overview of the Pricing Engine Request Viewer

The Pricing Engine Request Viewer window captures the pricing call from any calling application such as Order Management, and displays the inputs and outputs of the pricing call.

The information displayed by the Pricing Engine Request Viewer enables you to diagnose which lines were selected or rejected by the pricing engine to determine why certain prices and adjustments were or were not applied.

The Pricing Engine Request Viewer displays the most recent pricing request each time the pricing engine captures a new transaction. However, historical data about previous pricing requests is saved in the pricing tables.

The Pricing Engine Request Viewer window is available in Oracle Order Management using the following navigation path: Sales Orders > Tools > Pricing Engine Request Viewer.

Features available in the Pricing Engine Request Viewer window

Using the Pricing Engine Request Viewer window, you can do the following:

Process for the Pricing Engine Request Viewer

The following process outlines the series of activities when a pricing call is made:

  1. The calling application makes a call to build qualifiers and builds the contexts through sourcing.

  2. The calling application then calls the pricing engine with the attributes generated by attribute mapping.

  3. The pricing engine processes the request then searches for and evaluates eligible price list and modifier lines.

  4. If the profile option QP Debug is set to Request Viewer On, then the pricing engine inserts records into the permanent pricing debug tables and generates a unique request ID, storing the information from the calling application.

  5. The pricing request information can then be viewed by querying the request in the Pricing Engine Request Viewer from the OM Sales Order Pad or through the Pricing Manager responsibility menu.

Setting up the user profile options

QP: Debug:

Set the value of this profile option to Request Viewer On to capture pricing request details into the pricing debug tables, and debug log information into the debug log table. The debug log text file is also created. The default value is Request Viewer Off.

Values for this profile option are:

This profile option is active only for the transactions of the user who set the profile option. Other users' transactions are not affected.

QP: Set Request Name:

The profile option QP: Set Request Name is used in conjunction with the QP: Debug profile option. Set QP: Set Request Name to Yes if you want the value in the Request Name field prefixed to the OrderID. For more information on setting up profile options, see: Oracle Advanced Pricing Implementation Manual, Profile Options.

Viewing Information in the Pricing Engine Request Viewer

The Pricing Engine Request Viewer window displays detailed information about the price list lines and modifier lines that the pricing engine applied or rejected.

Pricing Engine Request window

the picture is described in the document text

Details about the transactions are displayed in one or more of the following regions of the Pricing Engine Request Viewer window.

Pricing Engine Requests Region

This region displays information about the pricing requests and associated controls sent by the calling application to help locate the problem.

For Request Type ONT only, the order number associated with the request is displayed. Depending on the version of Oracle Pricing installed, the order and line numbers for orders created in prior releases may not display in the Pricing Engine Request Viewer window. However, order and line numbers created in subsequent releases can be viewed.

Pricing Engine Request Lines region

This region displays information about the lines being priced including unit price and adjusted unit price. You can see information related to service and serviceable lines in this region.

Note: For lines of type LINE, the Line No. field displays the appropriate line number from the Order Entry page. For lines of type ORDER, the order number associated with that request displays. For requests of type PRICE, the line number for the request lines of type LINE does not display.

The Request Id + Line Index column maintains the master-detail relationship between the lines and line details. This block is used to change operand value, select/de-select modifiers, change manual modifiers and change buckets.

Pricing Engine Request Line Details Region

This region displays information regarding processed price list lines and modifiers lines selected and/discarded (eliminated/rejected) by the engine. The Priced box indicates which lines were finally selected for pricing by the pricing engine. The Applied box indicates which lines were considered in calculating the selling price.

This region also displays the information for freight and special charges, and relationships between price breaks.

Attributes Window

Select the Attributes button to display all attributes for a selected line or line detail. The region displays information about the pricing attributes that the attribute mapping function passed to the pricing engine. The pricing engine uses these attributes to qualify a line or an order for price and adjustments.

If you click the Attributes button from the Request Lines region, the attributes displayed will be attributes passed to the pricing engine.

If you click the Attributes button from the Request Line Details region, the attributes displayed will be the attributes related to the selected price list lines/modifier line.

Pricing Debug Related Lines Window

Not enabled in Basic Pricing.

Formula Step Values Window

Click Step Values from the Pricing Engine Request Viewer window to display the Formula Step Values window. The cursor needs to be in the Pricing Engine Request Line Details region.

Pricing Debug Window

You can view the debug log by clicking View Debug Log in the Pricing Engine Request Viewer window. Query a record within the debug log to display the lines directly. The results display the ten previous lines and the remaining lines of the debug file.

Overview of Agreements

Oracle Order Management enables you to establish agreements with your customers that let you define the prices, payment terms and freight terms that you negotiated in the agreement.

When pricing, the pricing engine ignores qualifiers attached to a price list associated with an agreement if the agreement is chosen at the time of order entry. The pricing engine, will however, still check for product and pricing attributes in the price list associated with the agreement.

Note: If you are using Sales Agreements in Oracle Order Management, see "Pricing tab: Setting up Sales Agreement". This setup is different than the agreement setup described in this section.

With agreements, you can:

See:

Creating a Pricing Agreement

Creating a Pricing Agreement

You can use the pricing agreement window in Oracle Pricing to create pricing agreements.

Note: See Pricing tab: Setting up Sales Agreement if you are using a Sales Agreement in Oracle Order Management to set up your pricing agreements.

To create a pricing agreement:

  1. Navigate to the Pricing Agreements window.

    Pricing Agreements window

    the picture is described in the document text

  2. Additionally, you can choose to define a new Agreement in-line or invoke the Agreement window while within the Sales Order window, Main Tab. See: Defining Sales Order Main and Other Header Information.

  3. In the Agreement tab, enter an Agreement Name.

    Use a naming convention that is consistent and meaningful. Consider using separate naming conventions for Standard Agreements versus Pricing Agreements. This helps users identify the type of agreement when searching by Agreement Name.

    The value entered for Agreement Name displays in the Sales Order Pad LOV at time of order entry.

  4. Enter an Agreement Number. A consistent, meaningful naming convention should be considered and business practices established. This field is optional.

  5. Enter a Revision number. The Revision number defaults to 1 at setup time. Additional versions of the same agreement can be maintained by updating the revision number for each new revision.

  6. Select a Revision Date. The default is the current date.

  7. If you want this Agreement to be used only for a particular customer and their related customers, enter the customer name in Customer. The customer number displays in Cust Number.

    Alternatively, you can enter the Customer number in Cust Number field and the customer's name will default to Customer field.

    If you want this agreement to be available for any customer, leave the Customer and Cust Number fields blank.

  8. Select an Agreement Type to classify agreements by type for reporting or control purposes.

  9. Enter a customer Contact for this customer. This field can be entered only if you have specified a customer.

  10. Enter starting and ending Effective Dates.

  11. Enter a name for the Sales Person. This data can be used as a defaulting source when orders are placed using this agreement.

  12. Enter a Purchase Order value for this Agreement. This field does not depend on the customer.

  13. Enter the purchase order Signature Date date when the agreement was signed or the date on the purchase order.

    The Agreement Source field (view-only) displays the source of an agreement.

  14. Select the Pricing tab.The Pricing tab differs for a Standard Agreement and a Pricing Agreement. Each type and field behavior is described in the following section:

    Pricing Agreements window: Pricing Tab

    the picture is described in the document text

  15. Select an Agreement price list type from the Price List Type field. Once a Pricing Agreement has been saved, you cannot update or change the value for Price List Type. Select from:

Pricing Agreements using Standard Price List

Pricing Agreements using Agreement Price List

  1. Select a pricing list to associate with the agreement in price list.

    Note: You cannot associate a qualifier with an agreement because the price list of an agreement is the qualifier for the agreement.

  2. Select a Currency.

  3. Enter a Round To value.

  4. Enter a price list Description.

  5. Enter a default Freight carrier.

  6. Enter default Freight Terms.

  7. Enter Comments.

    In the Payment tab:

    Pricing Agreements: Payment tab

    the picture is described in the document text

  8. Select the Payment Terms.

  9. Enter the Bill To name in Invoice To.

  10. Enter the Bill To Address.

  11. Enter the Bill To contact in Invoice Contact.

  12. In the Rules region, enter a default Accounting Rule.

  13. Enter an Invoicing rule.

    Note: Accounting and invoicing rules are set up in Oracle Receivables.

    Note: In the Override Flag region, the override boxes for the Accounting and Invoicing Rules are for information only. Create the accounting and invoicing rules in Oracle General Ledger.

    Complete the following steps for each item that you want to add to the price list:

  14. In the lower region of the window, enter a Customer Item number. Customer item is a pricing attribute.

    When you enter a customer item, pricing creates one pricing attribute and one product attribute for the agreement line for the customer item and its corresponding internal inventory item.

  15. Enter a customer Address and Address Category.

  16. Enter an inventory item number in Product Value.

    Note: You cannot enter an item category in Product Value. If you entered a customer item which is associated with more that one inventory item, you must select the correct inventory item for the agreement line.

  17. Enter a UOM (unit of measure).

  18. Select Unit Price for the Application Method.

  19. Enter base price in Value.

  20. Enter the effective Start/End Dates.

  21. Select Price List Line in Line Type.

  22. Select Primary UOM if this price list line unit of measure is the primary pricing unit of measure for the item.

    Order Management uses the primary pricing unit of measure and the Oracle Inventory unit of measure conversion information to price an order whose unit of measure does not have a price list line.

    For example, a price list has two price list lines for item A11111, one with unit of measure EA—the primary UOM—and one for boxes. When the pricing engine receives an order in unit of measure CS, it accesses the unit of measure conversion tables to convert CS to EA.

  23. Select a Line Type:

  24. Select Unit Price as the Application Method..

  25. Enter the base price in Value.

  26. Enter the effective Start and End Dates.

  27. Enter any Comments, and a Revision number.

    Note: This revision number is not dependent on the agreement revision number.

  28. Enter a revision reason in Revision Reason. You must create a list of reasons before you use this field.

  29. Enter the revision date in Revision Date.

  30. Save your work.

See:

Overview of Agreements

To define pricing attributes:

  1. Click Pricing Attributes.

  2. The values for Product Context, Product Attribute and Product Value are defaulted and not user-entered.

  3. Enter a pricing context in Pricing Context.

  4. Enter a pricing attribute in Pricing Attribute.

  5. Enter values in Value To.

    Note: You cannot enter Value To and Operator in the Pricing Attributes window.

  6. Save your work.

    Note: The pricing attributes are joined as AND conditions since they apply to one price list line.

Defining Price Breaks for an Agreement Price List

You can create price breaks or "bracket pricing" for Agreement price lists to define prices that vary depending on the quantity ordered. For example, if a customer buys 10 items the price is $20 per item, but if the customer buys more, then they get a lower per unit price.

Note: If you define a price break for an item category, all the items within the category are eligible for the price break.

The following table displays an example of a continuous price break setup:

Price Breaks window Setup
Price Break Pricing Context Pricing Attribute Value From-To Unit Price Application Method Recurring Value
1 Volume Item Quantity 0-11 $50 Unit Price -
2 Volume Item Quantity 11-99999 $45 Unit Price -

In Basic Pricing, you can use Point Break as the Price Break Type. This calculates the price based on the price break bracket in which the total quantity falls.

For example, if you ordered 16 units of Item A11111, the total quantity falls into the Price Break 2 bracket where the unit price is $45. So the price for all units is the price defined for Price Break 2. The total price is calculated as follows:

To define price breaks:

  1. Complete the Agreement header information as outlined in the preceding section.

    Note: You can create price breaks only for Agreement price lists using the Pricing Agreements window. You cannot create price breaks in the Price List window.

  2. In the Pricing tab of the agreement, ensure the Price List Type is Agreement Price List. You can only set up price breaks for an Agreement Price List.

  3. For the agreement line, complete the values (where required) for Customer Item, Address, Address Category, Product Value, Product Description, and UOM, Primary UOM, the Line Type.

  4. Select Price Break Header as the Line Type.

    The Price Break Type is Point which means the pricing engine charges each unit of volume at the price of the break within which the total falls.

  5. Select Unit Price as the Application Method.

  6. Enter the Break UOM.

  7. Enter the effective Start and End Dates.

  8. Optionally, enter any Comments.

  9. Enter a Revision (number), Revision Reason and Revision Date. You must create a list of revision reasons before you can select a Revision Reason.

    Note: The Revision number is not dependent on the agreement revision number.

  10. Save your work.

  11. Click Price Breaks in the Pricing Agreements window to display the Price Breaks window.

    Price Breaks window

    the picture is described in the document text

  12. Complete the following steps for each price break to be defined:

    The Pricing Context defaults to Volume.

  13. The Pricing Attribute defaults to Item Quantity. Optionally, select a different Pricing Attribute.

  14. Enter a Value From/To for the break range. To create no upper limit, leave the Value To field blank.

    Note: You cannot create overlapping ranges in the Value From/To fields for a price break. For example, if one break range is from 0 to 11, you cannot have another break range that is 5 to 20. The high value of one break is now the low value of the next break. For example, 11-20 is one break and 20-31 is the next break.

  15. Enter a Price for the selected range:

  16. Select an Application Method:

  17. Save your work.

Revising an Existing Agreement

To make minor changes to an existing agreement such as changing the payment terms, you can simply update the existing agreement and save your changes.

However, if significant changes are required and you want to track versions of your changes, you can create a new revision. When a revision is created, a new version of the original agreement is created. This is useful for tracking and managing multiple versions of the same agreement.

You must determine when changes warrant a new agreement version, and then you can manually create a new revision with a new revision number. It is helpful to use a logical numbering sequence such as 1, 2, and 3 to number your revisions.

Once the new agreement revision is created, you can update the agreement header information.

Note: You must end the current revision before creating a new revision. An agreement can have multiple revisions but the effective dates cannot overlap. Only one revision can be effective for a given range of effective dates.

To revise an existing agreement:

  1. Navigate to the Pricing Agreements window, and Find the Agreement to be revised.

    Note: The original agreement must have an effective End Date value and have been successfully saved before a new revision can be created. The end date can be past, current, or future.

    Note: However the effective date ranges for all revisions entered for a single Agreement cannot overlap; only one revision can be in effect for a given range of effective dates.

  2. Click Create Revision to display the Create Revision window.

    Create Revision window

    the picture is described in the document text

  3. The Agreement Name defaults from the original agreement. You can change the revision number but not the Agreement Name. The Revision Date defaults to the current date.

  4. Enter the Revision Number to identify the new version of the agreement. This is helpful in tracking and managing different revisions of the agreement.

  5. Enter the starting and ending Effective Dates for the agreement. Date ranges cannot overlap, and only one revision can be in effect for a given range of effective dates.

  6. Select a Revision Reason to describe why the agreement is being revised.

  7. Click Create to display the new agreement in the Pricing Agreements window. The new revision number displays in the Revision field.

    Note: Revisions to the agreement header do not reflect revisions on agreement lines.

See:

Overview of Agreements

Pricing Tab: Setting up Sales Agreement

Pricing information for a Sales Agreement (SA) is set up in the Pricing tab of the Sales Agreement window. You can define pricing terms such as a default price list that enable all releases against the sales agreement to receive the special sales agreement pricing. You can select from various pricing options:

If you create a new price list or simple discount modifier in the Sales Agreement window, information automatically defaults from the Sales Agreement to the related modifier or price list:

Sales Agreement Currency

You may negotiate your agreement in any currency that best suits the buying and selling parties involved. The amount of the sales agreement is represented in this currency. Sales Agreement currency can be any currency, including currencies other than the functional currency of the negotiating organization. You must specify the conversion type on the sales agreement if they allow release currencies to be different from sales agreement currency.

For Oracle Advanced Pricing Users Only

You can create range breaks across sales agreement release orders. Sales Agreements can accumulate quantities and amounts ordered against a sales agreement and use those values as a starting point for price breaks for subsequent prices and then price accordingly. Pricing does not store or maintain any accumulation values. For Sales Agreements only, accumulation values are stored as part of the sales agreement in Order Management. The accumulated values for sales agreements = Released - Returned.

You can create modifier accumulated range breaks (across release orders) for a particular Sales Agreement. Three seeded accumulation attributes are provided for use only with Sales Agreements: Sales Agreement Amount, Sales Agreement Line Quantity, and Sales Agreement Line Amount.

For example, a range break is setup for a sales agreement Line Quantity of 1000 (Item A) with a discount of 20% for all quantities ordered above 1000. Three releases are placed for a total quantity of 1000 of Item A. All subsequent releases (release orders with this Sales Agreement reference) will receive the 20% discount.

To enter pricing details for the Sales Agreement (Pricing tab):

  1. Navigate to the Pricing tab (upper tab) of the Sales Agreement window.

    Sales Agreement window: Pricing tab

    the picture is described in the document text

  2. Select a Price List as the default for the Sales Agreement. Even if a default price list is selected, you can add a new price list in the New Price List field or add Sales Agreement lines in the lower Pricing tab.

    Note: Once a Sales Agreement is active, you cannot select a different default price list. However you can change the price list values for the agreement lines.

  3. Select the Enforce Price List box to enforce the price list on the release to match the price list defined for the Sales Agreement. If selected, the Create region and lower Pricing tab will be grayed out and you cannot add discounts or add additional Sales Agreement lines in the lower Pricing tab. If cleared, you can create in-line discounts and add Sales Agreement lines.

    Note: If the pricing engine returns a secondary price list and Enforce Price List is selected, the secondary price list would not be considered for the Sales Agreement. Therefore, ensure that all the items are defined on the primary price list if Enforce Price List is selected.

    In the Create region, you can create simple in-line discounts (by percent or amount) or create a new price list directly within the Sales Agreement.

  4. To create a simple discount, enter a modifier name in the New Modifier List field. The new modifier list inherits the operating unit of the sales agreement.

  5. Enter a numeric value for one of the following:

  6. To access the related modifier, choose Actions > Price Modifiers Setup to display the Define Modifier window. See Creating a Modifier List for information on setting up a discount modifier.

  7. Enter a New Price List name to create a new price list for this Sales Agreement. You can create a new price list even if you have selected a default price list. The new price list inherits the operating unit of the sales agreement.

    Note: Once saved, the new price list and/or modifier can only be updated when accessed through the related Sales Agreement.

  8. To view the price list, click Price List Setup or Actions > Price List to display the Price Lists window.

    Note: If you click Price List Setup when a price list is already selected for this Sales Agreement, then the Price List window displays the existing price list and its details.

    See Creating a Price List for information on creating a price list.

  9. Click the lower Pricing tab to view, enter, or update the Sales Agreement (SA) lines. Price list or discount information selected in the upper Pricing tab defaults to the Sales Agreement lines. You can either accept the defaulted values, or update the Sales Agreement lines with new value.

  10. If you entered a new Sales Agreement Price List Name, and enter a Unit List Price for a Sales Agreement line, the new Price List Name displays in the Price List field.

    The Pricing UOM (unit of measure) field displays the unit of measure for the item such as each (EA) or Box.

    The Discount % or Discount Amt fields display the default value of the discount to be applied to the Sales Agreement line. You can change the value for a selected agreement line.

  11. Save your changes.

Pricing an Order

To price an order line:

  1. Enter order header details.

    Price List defaults from one of the following sources:

    Note: Note: If the order has an agreement, the price list is the one associated with the agreement. You can, however, override the price list associated with the agreement with a price list that is not of Price List type AGR (Agreement)If the order does not have an agreement, you may not specify a price list which is associated with an agreement. Multi Currency Prices lists are a feature of Oracle Advanced Pricing, and are available if you have fully installed Oracle Advanced Pricing only. For details on multi currency prices lists, see Oracle Advanced Pricing User's Guide, Multi Currency Price Lists.

  2. If you enter a price list, the currency of the order becomes the currency of the price list. If you enter a currency on the order, it limits the selection of price lists to those with the same currency.

    Note: Note: You do nothave to enter a price list at the order header or on a order line in order to price. If a price list is not entered at the header or line level, the pricing engine will determine the appropriate price list to use, based upon your pricing setup.

    Pricing date instructs the pricing engine to price the order using list prices and benefits that are valid on that day.

  3. In the Line Items tab, enter order line information. The order header price list and agreement ID may default to each order line based on the defaulting rules.

  4. After you have enter ordered Item, Qty (quantity), and UOM, the list price displays. For a service item, list price will only be displayed after you have entered the service information.

    Note: Note: If any order line for an order has the Calculate Price Flag value equal to Partial Price or Freeze Price new order level adjustments will not be applied or allowed to be overridden. The profile option OM: List Price Override Privilege controls your ability to override the unit list price. If you have this profile set to Unlimited, you may modify the unit list price by editing the current value displayed. The original list price is saved in a hidden folder field, so you can display it if necessary.

  5. Select the Pricing tab to display the Price List, Unit Selling Price, Extended Price, Pricing Quantity, and Pricing UOM. The Extended Price is automatically calculated when the Selling Price is updated, and the Pricing date defaults according to your defaulting setup. The profile option OM: Discounting Privilege controls your ability to adjust the unit selling pricing. If you have Eligible Overridable Manual Adjustments, you may modify the unit selling price by editing the current value displayed, or by selecting Eligible Manual Adjustment from the unit selling price LOV. The Extended Price is calculated by multiplying the unit selling price by the ordered quantity.

  6. Select the Calculate Price Flag: Calculate Price: Use the pricing engine to determine price. Calculate price and freight charges at the time of pricing. Freeze Price: Never use the pricing engine to determine price. Do not calculate price or freight charges. Partial Price: Use the pricing engine to determine price. Calculates only freight charges at the time of pricing.

  7. Enter the pricing attributes for the line. You can enter one pricing context directly, or enter multiple pricing contexts, but not both:

    To enter only one pricing context, enter the pricing context information in the order line.

    To enter multiple pricing contexts and attributes:

  8. Navigate to the Promotions/Pricing Attributes window, Pricing Attributes tab.

  9. Select a Pricing Context.

    Promotions/Pricing Attributes window: Pricing Attributes tab

    the picture is described in the document text

  10. Click Apply. After the order lines are entered: click Actions > Price Order. Save your work. The pricing engine calculates header-level adjustments or discounts.

Special Considerations for Pricing an Order

The unit list price always remains as an unrounded value in the database. Unit Price displays within a window as a rounded value based upon the precision defined of the currency for an order. The unit list price is also displayed on the invoice, rounded to the precision of the currency for the order.

Two profile options affect the rounding of Unit Selling Price:

Pricing UOM is the unit of measure in which the pricing engine prices a line, while pricing quantity is an order quantity expressed in the pricing unit of measure.

The term pricing quantity refers to the quantity ordered that is then converted to the items primary pricing UOM as defined within the price list selected by the pricing engine, for example:

Since price list New does not have a price list line record for the Item/UOM ordered, in this case XYZ/Dozen, the pricing engine will attempt to use the item specific UOM conversion between each and dozen for XYZ to calculate a Pricing Quantity of 12 and Pricing UOM of Each.

Invoicing will always show information based on ordered quantity and ordered UOM. If the item and its specified UOM are not listed on the eligible price lists, the pricing engine:

If you specify an agreement on an order line, the pricing engine does not validate the price list for Qualifiers.

When Unit of Measure or Pricing Date is updated, then the Calculate Price Flag is automatically set to Yes. Therefore any applicable modifiers will be applied to the line.

Negative Prices

Pricing returns negative prices only if the profile option OM: Negative Pricing is set to Yes.

See:

Pricing for Service Items

Modifying Order Pricing in Oracle Order Management

Pricing Special Orders

Repricing an Order/Order Line.

Splitting Order Lines

Order Management enables you to split order lines to meet your customer's needs. Until the product is shipped, your customer can request to change the shipping quantity or need by date for part of their order. You can meet such requests by splitting the order line into multiple shipments, via the Split Lines window. When an order line is split in this manner, it is considered a manual or user initiated split.

Note: When partial shipment is carried out, then the price is frozen internally and it does not get changed on the partially shipped lines.

To manually split an order line:

  1. Navigate to the Order Organizer window.

  2. Query the order, then select the order line to be split.

  3. Click Actions, then select Split Line to display the Split Line window. One record displays with the Request Date, Ship to and Warehouse defaulted from the original line

    Split Line window

    the picture is described in the document text

    Note: If you split an order line into multiple lines and want to retain the original price on both the original line and new lines, change your Calculate Price Flag to either Freeze Price or Partial Price before initiating a user split.

  4. Create new records per your split requirement.

  5. Select Split to confirm the split.

Configurations

You can split only at the top-level line in a configuration, i.e. you can split only a model line and not at the option or class level. You can split only a kit line and not at the included item level. When a model or kit line is split, Order Management splits each item beneath the Model proportionately.

When a configuration or kit is shipped out of proportion, the system creates remnant sets. Lines in a remnant sets are treated as stand-alone lines by shipping and fulfillment. Remnant sets can arise only out of system initiated splits.

Service

When a serviceable item line is split, Order Management will split any service item lines beneath it.

Reservations

During a split line request for reserved lines, Order Management does not follow any pre-defined rules for splitting reserved lines. This is done arbitrarily and for lot controlled items, reserved lines are split according to existing inventory reservations.

System Processing Constraints for Split Lines

System defined constraints are as follows:

Additionally to meet your specific business needs, you can set up constraints to prevent user initiated splits at earlier points in the line flow. Define the constraints against splits using the Split operation.

System Initiated Splits

Order Management automatically initiates a system split for order and return lines into multiple shipments when they are have been partially processed. This is true for all order lines except internal order lines, which are never split by the system.

Such system initiated splits occur as follows:

For both user and system initiated splits, Order Management retains all of the original line information including attachments, discounts, flow status, sales credits, reservations, taxes, and holds.

The Calculate Price Flag on the order line entity controls if pricing/charge calculations should be done on the line:

The following table shows the value of the Calculate Price Flag before and after a user or system initiated split.

Calculate Price Flag before and after a User or System-initiated Split
Calculate Price Flag Original Line before split: Calculate Price Original line before split: Partial Price Original line before split: Freeze Price
Original line after user initiated split Calculate Price Partial Price Freeze Price
New line after user initiated split Calculate Price Partial Price Freeze Price
Original line after system initiated split Partial Price Partial Price Freeze Price
New line after system initiated split Freeze Price Freeze Price Freeze Price

Pricing for each line during the split will be controlled by the “after split” value of the calculate price flag as shown in the table above.

If the value of the Calculate Price Flag is Calculate Price after the split:

If the value of the Calculate Price Flag is Partial Price after the split:

If the after split' value of the calculate price flag is Freeze Price:

Pricing for Service Items

Service items are only priced after you have entered service information in the Service tab. These items are priced just like other items processed by the pricing engine. Service item can have a list price or be defined as percent based within a price list. In Oracle Order Management the parent item is the serviceable item, and must be defined.

When pricing a service item, Order Management always passes the service item and the serviceable item to the pricing engine. When the price of the service item is percent based, the pricing engine calculates the price of the service item as a percentage of the list price of the serviceable (parent) item. The pricing engine will attempt to find the price of the serviceable item first, and then proceed to calculate the price of the service item.

The table below displays Oracle Pricing APIs that are called based upon a order header or Order Line attributes.

Oracle Pricing APIs and Order Management Attributes
Order Management Attribute Pricing API Meaning
Ordered Quantity P_Line_Tbl.Line_Quantity The quantity of service being ordered in UOM of parent item
Ordered UOM code P_Line_Tbl.Line_UOM_Code The unit of measure (time scale)
Service Duration for Service Period P_Line_Tbl.UOM_Quantity The time duration of service being ordered*

Pricing Service Line using Unit Price Example

Price list setup for unit price:

Order Management Order Line:

Unit list price returned for order line returned by pricing engine: $120.00

Pricing a Service Line Using Percent Price Example

Price list setup for percent price:

Order Management Order Line:

Unit list price for Computer Service order line returned by pricing engine: $240

See:

Modifying Order Pricing in Oracle Order Management

Pricing Special Orders

Repricing an Order/Order Line

Viewing Pricing Adjustments

You can view adjustments at the order or order line level:

To view pricing adjustments:

  1. Navigate to the Adjustments window.

    Adjustments window

    the picture is described in the document text

  2. To view, apply or update adjustments and their values, select the Adjustments tab.

    The Adjustments window displays all order level adjustments, adjustments for this line, and adjustments for a group of lines in which this line is eligible:

  3. To update the reason for the manual updates or benefits given, select the Reasons tab and enter your changes in the appropriate fields. You can create your own reason codes in the Oracle Order Management change code list.

  4. To view the pricing attributes that caused the line to be eligible for benefits, select a benefit and then click Attributes.

  5. To view information about the price break levels for a price break adjustment, click Related Items and then select the Price Break Lines tab.

    Note: The Accruals tab, which displays accrual information, is enabled only in Oracle Advanced Pricing. In Order Management, accruals are not interfaced to Invoicing/Accounts Receivables.

    Note: The Related Items button and Related Lines tab are enabled only in Oracle Advanced Pricing.

  6. Save your work.

Modifying Order Pricing in Oracle Order Management

Use this process to modify order pricing. Before changing the selling price, pricing verifies:

Batch Price concurrent program to price/re-price orders and lines

The Batch Price concurrent program is used to price/re-price orders and lines. You can submit the concurrent program with various parameters to price or re-price orders and lines. For more information please refer to Appendix D (Concurrent Programs) of this guide.

Using Manual Adjustments in Order Management

Pricing adjustments can be applied at different points in the order process such as pricing an order, before leaving the order line, or saving the order line.

The pricing engine calculates the selling price by evaluating how the discounts and benefits are grouped into buckets. The grouping helps to determine the net selling price and can be used across all pricing phases.

Currently, manual adjustments shown in View Adjustments can either be overridden (overrideable) or not overridden (non-overrideable). If a manual discount is applied from an earlier bucket, then all subsequent values will be recalculated.

In the View Adjustments window (for the Order level), you can override the existing percent level and enter a new one. This applies to the whole order and the pricing engine makes the necessary adjustments to all lines in the order. In contrast, you can also change the price of one or more lines, by overtyping the existing price with the one you want displayed. Also the View Adjustment window (Line tab) shows both Order and Line level discounts for the sake of convenience so that you don't have to go to Order Header tab if you want to apply Order Level discount.

Note: Buckets for manual adjustments is for Advanced Pricing Users only. This behavior in View Adjustments and on the Sales Order Line is specifically for Order Management.

After over-typing the selling price, a list of values displays a list of manual overrideable modifiers in the Null bucket. Alternately, to apply a manual adjustment, you can overtype the selling price.

To use manual modifiers:

Ensure that the following is selected:

Setting the profile option QP: Allow Buckets for Manual Modifiers

To enable the use of manual modifiers, the QP: Allow Buckets for Manual Modifiers must be set to Yes. When set to yes, the Bucket field in the Define Modifiers window is enabled for manual line and group of line modifiers: Discount, Surcharge, Price Breaks, and Freight and Special Charges.

Warning: You cannot set the profile option QP: Allow Buckets for Manual Modifiers to Yes, define manual modifiers in buckets, and then set the profile to No. If you do, incorrect results may display. The recommended alternative is to change or end date the manual modifier lines that are no longer required.

Scenario 1: Applying Manual Adjustments and Re-calculating Adjustments in Subsequent Buckets

If manual adjustments are assigned to a bucket, the adjustments are applied on the previous subtotal price.

You can use buckets when defining manual, overrideable modifiers to determine the calculated adjustment. So if a manual adjustment is applied that's in an earlier bucket, then all subsequent adjustments will be recalculated.

Example 1: Calculations using a Manual Adjustment

This example shows the calculations when two adjustments (A2 and O1) are applied to an order line. The initial unit list price is $100. The setup is outlined in the following table:

Line Level Adjustments assigned to buckets
Modifier Name Bucket Discount (Operand) Subtotal price Adjustment Amount Unit Selling Price after this adjustment is applied
A2 2 10% 100 10%*100 = -10 90
O1 null 5% 100 5%*100 = -5 85

After the adjustments are applied, the revised unit selling price is $85.

Now, suppose you wanted to apply a manual modifier in bucket 1. The unit selling price would be recalculated as follows:

Example of adjustments with manual adjustment included
Adjustment Bucket Discount (Operand) Subtotal price Adjustment Amount Unit Selling Price after this adjustment is applied
M1 1 10% 100 -10 90
A2 2 10% 90 -9 81
O1 null 5%
Discount in Null bucket is applied to original list price.
100 -5 $76

The adjustments are applied as follows:

Therefore, the unit selling price after the adjustments will be $76.

Example 2: Manual Adjustment applied in the same Bucket as an Automatic Adjustment

The following example compares two scenarios using a manual and automatic adjustment assigned to the same bucket:

The adjustments are assigned to the following buckets with a starting list price of $100 (the manual adjustment is not applied yet):

The selling price would be calculated as follows:

Example 2: Adjustments without the manual adjustment
Modifier Name Bucket Discount (Operand) Subtotal price Adjustment Amount Unit Selling Price after this adjustment is applied
A1 1 10% 100 -10 90
A2 2 10% 90 -9 81
O1 null 5% 100 -5 76

Now, suppose a 10% manual adjustment M1 is assigned to Bucket1, and the adjustments are applied to the unit selling price of $100. The following table shows how the unit selling price is calculated:

Example 2: Adjustments with a manual adjustment
Adjustment Bucket Discount (Operand) Subtotal price Adjustment Amount Unit Selling Price after this adjustment is applied
A1 1 10% 100 -10 90
M1 (Manual modifier) 1 10% 100 -10 80
A2 2 10% 80 -8 72
O1 null 5% 100 -5 67

The pricing engine will first apply the automatic and manual adjustments from Bucket 1 to the subtotal price. Then the adjustments in the remaining buckets are applied, followed by the null bucket.

The unit selling price is recalculated and results in a unit selling price of $67. If another manual adjustment in bucket 1 is applied, then all subsequent adjustments will be recalculated. You cannot put another manual adjustment in an earlier bucket than bucket 1.

To modify an order discount:

  1. Navigate to the Adjustments window, and select the Adjustments tab.

  2. In Modifier Name field, select the list of values to view the unapplied manual adjustments for the order.

  3. Select an adjustment and click Apply.

    Even if you are viewing line adjustments, you can apply order level and group of lines adjustments. Order level adjustments that you apply from the line level view apply to all lines and group of lines adjustments that you apply from the line level view apply to all lines that participate in the group.

  4. Re-query the order to see the new selling price.

  5. If the Override Allowed box is selected for the adjustment, enter either the new adjustment rate, the amount reduced, or a new price, along with a required reason code and click Apply.

    Note: Manual discounts are not subject to incompatibility checking.

  6. To remove an already applied overridable adjustment, delete the adjustment and click Apply.

  7. Click Apply.

    Note: If the profile option OM: Charging Privilege is set to UNLIMITED, then you can update manual non-overridable charges.

    Note: However, if you choose to update manual non-overridable charges, the update must be performed manually; manual non-overridable charges are never altered by the system, even if the order undergoes repricing.

To modify the selling price:

Complete either steps 1 and 2 or steps 3-5.

  1. Navigate to the Sales Orders window, Line Items tab.

  2. Enter a new value in Unit Selling Price.

    The pricing engine verifies that:

  3. Navigate to the View Adjustments window and review the unapplied manual adjustments for the line.

  4. Select an adjustment and save your work. Pricing applies the adjustment to the line.

  5. From the Line Items tab, navigate to the Adjustments window, Adjustments tab.

  6. In Modifier Name field, select the list of values to view the unapplied manual adjustments for the line.

  7. Select an adjustment and click Apply.

  8. To remove an already applied overridable adjustment, delete the adjustment and then click Apply.

  9. If an adjustment has Override Allowed set, you can enter either the new adjustment rate, the amount reduced, or a new price.

  10. Enter a required Reason Code.

    Note: You can enter a negative New Price for a discount if profile option OM: Negative Price is Yes.

  11. Save your work.

  12. Click Apply.

    Note: If you override the Unit selling price, the pricing engine retains all benefits that it applied before the override but only enables you to override the following benefits: Discount, Surcharge, Price Break Header, Freight and Special Charges.

    Note: Order Management will not automatically change the Calculate Price Flag in this instance. However, you can manually change the Calculate Price Flag to Freeze Price or Partial Price to keep future discounts or surcharges from applying on this line.

  13. Re-query the order to see the new Unit selling price.

    Note: A surcharge modifier can be used as discount and a discount modifier can be used as surcharge. For example, an original Unit Selling Price is 100, and you overtype it to 90. If there is more than one modifier available, the LOV will display all modifiers (regardless if the price is being reduced), such as Discount 1 and Surcharge 1. You can select Surcharge 1 (although 100 to 90 is a discount) to lower the price to 90. Similarly, if you increase the price from 100 to 110, you can select Discount 1 to increase the price.

See:

Pricing for Service Items

Pricing Special Orders

Repricing an Order/Order Line

Override the List Price

Pricing buckets control how the calculation of discounts and other benefits is sequenced. The pricing engine calculates different selling prices depending on how you group your discounts and benefits into buckets. This grouping helps to determine the net selling price and are applied across all pricing phases. Customers need to create cascading discounts, discounts that apply to the net price. This requirement has been met though the bucketing functionality within Oracle Advanced Pricing. However, historically only automatic modifiers can be defined to belong to buckets. Customers need to control the application of manual modifiers with regard to cascading of the price adjustments in the same way that they can with automatic modifiers.

Apply Manual Discounts That Have Been Setup in Buckets

You can apply manual discounts that are in buckets from the View Adjustment window. If a manual discount is applied that is in a bucket earlier than other applied discounts, then all subsequent values are recalculated.

In addition to null bucket manual modifiers, you can apply bucketed manual modifiers from View Adjustments window and see the new selling price calculated after you save or click Apply. The LOV for the manual modifier will indicate which bucket the adjustment is set for, so you will know what you are choosing. In the Line Items tab, the selling price LOV will only show NULL bucket modifiers as it is now. For more information regarding manual buckets, see the Oracle Advanced Pricing User's Guide.

Overtype the List Price

The Original List Price is maintained for reporting purposes. Only the first overriding of the list price results in saving the original list price. To track how many times list price has been changed, enable the audit trail for the Unit List Price field.

Note: The item must still be on a price list - this feature is not intended to be a way to establish a list price without putting the item on a price list; overriding does not change the list price on the price list.

Note: The only way for the user to unfreeze the list price is to clear the list price field, to call the pricing engine to get the current list price.

Note: We save the original list price (which came from the price list), so that subsequent pricing/repricing actions won't overwrite it automatically.

User Procedures

A new profile option, OM: List Price Override Privilege controls whether or not you can update the List Price. It is enabled and updated at the application, responsibility and user level. It is not user visible and updatable. The values include:

To use Override List Price:

  1. Navigate to the Sales Orders/Quick Sales Orders window.

  2. Enter the header and line information, including the ordered item and quantity, then tab to the next field. The Selling Price and List Price display.

  3. If the profile is set to Unlimited Privilege, you can enter a new list price in the List Price field. You can either proceed to the next line or save your work.

  4. You can see the new, entered list price, and if there are automatic discounts applied, they will be based on the new list price.

  5. If the folder has been modified to show the Original List Price, the original list price displays.

  6. To change the List Price again, go to the list price field and enter a new value, replacing a previously entered value. If Audit Trail is enabled for List Price and a reason is required, a window appears to enter a reason and optional comments.

    Note: Subsequent overrides of the List Price, after the order line is saved, can be captured by Audit Trail, depending on the setup of Audit Trail (entered or booked state) and any processing constraints that have been set up.

Repricing Scenarios

  1. Navigate to the Sales Orders / Quick Sales Orders window and create an order.

  2. Override the list price of one or more lines on the order.

  3. The list price of the item is changed on the Price List.

  4. Query the order and use the Price Order action from the header.

  5. The overridden price remains on the line that was overridden. It does not revert back to the original price or get the new price entered in step 3.

  6. Select the line with the overridden price and uses the Price Line action.

  7. The overridden price remains on the line that was overridden. It does not revert back to the original price or get the new price entered in step 3.

  8. Assume the line workflow contains Reprice at Shipping activity. When the line is shipped, the activity is executed.

  9. The overridden price remains on the line that was overridden. It does not revert back to the original price or get the new price entered in step 3.

To change back to the original List Price:

  1. Navigate to the Sales Orders/Quick Sales Orders window, and locate the line to reset the List Price on.

  2. Clears the List Price field and save the line. The pricing engine obtains the current list price.

  3. The Original List Price field displays as null.

To perform returns / credits after overriding the list price:

Use this procedure to credit the correct amount when the list price has been overridden.

Note: If you choose to copy at the original price (with or without calculating charges), the new price is copied. This is to make sure the copied line has the same price as the original line. The Original List Price is copied and is clearly indicated that the price has been overridden for reporting purpose. If you choose to copy with repricing, the Original Price List field is not copied, and the unit list price will be recalculated.

  1. The order has been entered, one or more list price overridden, and the order is booked, shipped, and invoiced.

  2. Create a return by copying the order to a return order type.

  3. If you copied saying to price using the original date, then the overridden price is used for the return and the original list price field is copied to the return line. If priced as of the current date, the pricing engine new price is used.

  4. Create a return by referencing the original line. The overridden price is used for the return. The original list price field is copied to the return.

    Note: To be consistent with discounting privilege profile option, you can enter a new list price if the OM: List Price Override Privilege profile option value is set to Unlimited Privilege, even if the order type says to enforce list price.

OM Impact for the Buckets for Manual Modifier in Pricing

There is a new profile QP: Allow Buckets for Manual Modifiers that you must turn on. This profile is set at the site level and will enable users to define buckets for a manual line or group of line level modifiers if the profile is set to Yes. The default value is No. If you turn this profile on and then define manual modifiers in buckets, and then set the profile to No, then you may get incorrect results. If you must turn off this functionality, you should do so by going into the Modifiers windows and change or expiring the modifier lines. Currently, manual adjustments shown in the View Adjustments window can be overrideable or non-overrideable. If a manual discount is applied that is in an earlier bucket, then all subsequent values need to be recalculated. The List of Values for Modifier Number should display the bucket number so the user knows which manual adjustment to pick prior to applying. This LOV is in the View Adjustments window, when the user selects the Unit Selling Price LOV, or if the user overtypes the selling price and selects a manual adjustment from the LOV. Adjustments are different at different points because users can change the price at the price event, before leaving the line, saving the line, etc. which may not be the case in other applications.

  1. Overtyping the selling price at the price event.

  2. Overtyping the selling price at the price event (with discounts associated in the price event).

  3. Overtyping the selling price before leaving or saving the line.

  4. Overtyping the selling price after the save.

This will affect Quick Sales Order, Classic Sales Order, HTML, and Pricing & Availability windows.

Pricing Special Orders

Use this process to price the following special order situations:

To price a copied order:

  1. Select if you want the copied order to price:

To price an imported order:

To price a return:

  1. On the sales order, choose to set the Calculate Price

  2. For return charge modifiers, select Include On Returns.

  3. If Calculate Price is Partial Price or Freeze Price, the pricing engine copies discounts, surcharges, and charges from the sales order and adds return charges modifiers.

    If Calculate Price is Calculate Price, the pricing engine prices the line as a new line.

See:

Pricing for Service Items

Modifying Order Pricing in Oracle Order Management

Repricing an Order/Order Line

Repricing an Order/Order Line

When you use Price Line, the pricing engine executes the LINE event. The seeded LINE event contains the phases List Line Base Price and List Line Adjustment. If you change a price list line or a line level modifier, Price Line reevaluates your base price and line level adjustment. However, since the LINE event does not include the phase Header Level Adjustment, Price Line does not reevaluate header level modifiers.

When the Ship Entered event is added to the phase List Line Adjustment (Phase 10), then repricing after ship confirm takes place automatically for the following line types: Standard Line Invoicing - Line flow Generic with Repricing at Fulfillment and Invoicing Line Flow Generic.

To reprice an order or an order line:

  1. Add or modify any of the following in the Sales Orders window:

  2. Save your work.

  3. Navigate to the Sales Orders window, Order Information tabbed region.

  4. Choose Actions and select Price Order.

  5. Navigate to the Sales Orders window, Line Items tab:

    1. Select an order line.

    2. Choose Actions.

    3. Select Price Line.

Repricing is also carried out when the user copies an order line to another order. All the lines in the current order will be repriced, even if a single line gets copied.

Additionally, you can choose when to reprice orders by inserting the Reprice Line workflow subprocess within your order line workflows. See: Using Oracle Workflow in Oracle Order Management.

See:

Pricing for Service Items

Modifying Order Pricing in Oracle Order Management

Pricing Special Orders

Gross Margin Display

Gross Margin is a number that represents the profit to be made when selling something. In general, higher margins are more desirable than lower ones. During order entry you may need to:

Overview of Gross Margin Display

Gross Margin is most commonly calculated by dividing the difference of the selling price and the cost by the selling price (or by unit cost). In an Order Management application it is important to know what the gross margin of an order line and an order itself is, and also to take action on orders based on business rules that use Gross Margin. Order Management uses Oracle Costing to get a cost that is consistent within the eBusiness suite.

Note: For drop-shipped items, the cost is the price from the purchase order issue. Order Management obtains that information when the purchase order is created for these items. We will attempt to get the cost from the purchase order which is our purchase price, however; this price might not be available before item is shipped. If the price is not yet available, we will get the cost from the List Price of the Purchasing tab of the Item Master in Inventory setup, specified in the financial system parameters of the Purchasing responsibility.

Note: For items shipped out of a process-enabled Inventory Organization, costs are established in Oracle Process Manufacturing.

During Order Management you might want to view the gross margin of an order or line:

If the Margin Calculation is based on price, the formula for calculating margin percent for a line is:

((Unit Selling Price – Unit Cost) / Unit Selling Price) * 100

If the Margin Calculation is based on cost, the formula for calculating margin percent for a line is:

((Unit Selling Price – Unit Cost) / Unit Cost) * 100

Order Gross Margin percent is calculated as: 'total order revenue (minus tax) minus total order cost' divided by total order revenue,' or divided by total order cost', if using the alternate formula for Gross Margin Percent.

Gross Margin Procedures

To view Gross Margin while entering orders:

  1. Navigate to the Sales Orders window.

  2. Enter order header information.

  3. Enter line information. As each line is priced, the cost is obtained and the margin is calculated. The cost and/or margin information will be displayed.

    Sales Orders Window - Gross Margin

    the picture is described in the document text

  4. While entering the order, you can go back to the Order Information tab, Other sub-tab, to check the order margin.

    Note: You can see gross margin for the following types of outbound lines -service lines, standard lines (both process or discrete), and ATO items - for which costing is enabled.

  5. When you finish entering the order, you can also view the order level margin by going back to the Order Information tab, Others sub-tab.

    Sales Orders Window - Others Tab

    the picture is described in the document text

  6. Book the order. If there is a minimum margin set up for this Order Type and the order has an overall margin percentage below the minimum, the order will be placed on hold. You will get a message saying a Gross Margin hold is being applied.

    Note: When the order margin is displayed on the order header, if one or more non-return lines have been excluded from the calculation because its cost is null, then a message displays: ‘Order margin has been calculated excluding one or more lines.'

    Note: The entire order is held if the order margin is less than the minimum margin for the order type. This will be determined at booking time. The calculation of order margin will exclude return lines and also any lines with null cost. If order changes occur that result in the order margin meeting or exceeding the minimum margin for the order type, then the hold is automatically released. The margin hold may be released manually by authorized users. If it has been manually released, then it is not applied again automatically. This order level hold, holds up return lines if the outbound lines cause the order to go on margin hold. Processing of ATO and PTO models, which are not used in the margin calculation, will also be affected if the order goes on margin hold. Also, it is possible that an order with some shipped lines may go on margin hold, if for example a line is added to the order later. In this case, the hold may hold the invoicing of lines that have been shipped.

To view Gross Margin on item without entering order:

  1. Navigate to the Pricing & Availability window.

  2. Enter the Item.

  3. Click Pricing/Availability.

  4. View Selling Price and Availability on the Summary tab.

  5. Go to the Pricing Tab to see Cost and Margin information.

    Note: This must be enabled in your folder and you must have function security for Gross Margin enabled to be authorized to see cost and margin information.

To obtain or refresh the Cost using Actions:

Orders entered before the Gross Margin feature is installed or enabled will not have costs captured and thus will not have margin visible. If you want to obtain costs for such lines or orders, you can use the Get Cost action. Costs are automatically refreshed on unshipped order lines when attributes affecting the cost (warehouse and project) change. But if you know the cost has changed in Oracle Costing, you can manually obtain a more current cost by using the Get Cost action. Cost is frozen on the order line at the time of shipping.

  1. Navigate to the Sales Orders window.

  2. Query the order to view the cost.

  3. Choose Actions, then Get Cost.

  4. Choose the Line Items tab, the cost and margin columns are refreshed.

  5. Optionally, choose the Line Items tab, go to the line to obtain the cost, and choose Actions, Get Cost. The cost and margin columns are refreshed.

Repricing at Shipment Workflow

The reprice_line workflow activity usually is placed after shipping or fulfillment. Cost is fixed at shipping, but margin can be changed by the reprice_line workflow due to selling price change. Although cost does not change after shipping, the margin can still change due to a selling price change, hence, a margin hold can be applied to this order. This margin hold is useful to prevent orders with a wrong price from going to AR. The Invoice interface workflow activity will honor this hold.

Returns and Splits

Price Book

A price book enables you to view and/or print pricing data and use it as a reference. You can also use it to see the final price that will be used in pricing an item within a category. You can add textual information, images, and other data to use as a catalog with specified effective dates, this can be done with the help of XML Publisher.

The following table outlines the Basic Pricing features available for the Price Book functionality:

Basic Pricing features Advanced Pricing Features
Search page:
  • Price Book Type prompt hidden

  • Create Delta column hidden

  • Create Price Book button is available

  • Delete button is available

Search page, all features
View Price Book lines
  • Price Book Lines sub-tab, Create Delta button hidden

  • Additional Price Calculation Criteria sub-tab, Create Delta button hidden

  • Publishing Options sub-tab, Create Delta button hidden and Send XML Message box hidden

  • Additional Price Calculation Criteria sub-tab is available

  • Break, Pricing Attributes, Status detail is available

View Price Book lines, all features
Create Price Book
  • Pricing attributes LOV restricted to basic pricing attributes

  • Publishing Options, Send XML Message box hidden

Create Price Book, all features
Create Delta page is hidden Create Delta, all features
Get Catalog XML message denied Get Catalog XML message accepted and Synch Catalog reply will be sent