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Oracle Financials for India User Guide
Release 12.1
Part Number E13658-03
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India Local Advanced Pricing

This chapter covers the following topics:

Advanced Pricing Overview

Oracle Advanced Pricing provides the flexibility to meet the needs of complex pricing situations for a range of demanding industry business requirements. It provides advanced pricing capabilities that enable you to set up your pricing information and to model complex data relationships to determine the correct price.

You can perform the following functions with Oracle Advanced Pricing:

Oracle application has built many advanced features on pricing. This includes defaulting of prices for a transaction based on specified rules and procedures. The functionalities related to pricing not only includes price defaulting based on the item, Item category but also defaulting the appropriate price based on advanced pricing features like modifiers, qualifiers etc. Oracle Application also has built in functionalities for recalculation of prices at various business events.

Assessable Value

As per the current India localization functionality, the assessable value price lists need to be defined for every item. India Localization assessable value functionality supports creation of price list only with product attribute as Item Number. The standard price list functionality support creation of price list based on different attributes like Item number, Item category, all items etc. There were enhancement requests from customers to enhance the current India Localization functionality on assessable values where an assessable value can be defined either based on an item or an item category. The current India Localization functionality on assessable value need to be enhanced where the user should be allowed to associate a price list with product attribute as item category as an assessable value list. If the user opts as assessable value derived from a price list which is based on product attribute as Item category, the assessable value defined for the item category would be applicable for all the items classified under the specified Item category. This helps to derive the same assessable value for all the items classified under an item category. As per the current functionality, you need to create a price list with product attribute as item number, set up the price for every item and then associate the price list as an assessable value price list and associate to the parties. Once the Assessable value price list is associated to the party, for computation of taxes, system refers only the assessable value price list created for the tax regime for the party. With the current enhancement, user can associate an item category based price list as an assessable value list so that for tax computation purposes, system will fetch the price for all items classified under an item category.

Assessable Value Price Based on Item Category

India Localization assessable value functionality support creation of price list with Item or Item Category. If you create a price list with product attribute as item number, you will set up the price for each item and then associate the price list as an assessable value price list and associate to the parties. Once the Assessable value price list is associated to the party, for computation of taxes, system refers only the assessable value price list created for the tax regime for the party. However, if you create a price list with an item category based price list as an assessable value list; for tax computation purposes, system will fetch the price for all items classified under an item category.

Tax Assessment

India localization solution can compute taxes based on the line price or on the assessable value. India Localization computes taxes once the order is saved and support recalculation of taxes whenever the prices are altered. The assessable value based computation is available for taxes falling under Excise and VAT regime. Multiple Tax assessable value price lists can be created using the standard price list functionality and associate the price list to a party site (customer site or supplier site). If an assessable value list is associated to a party, taxes for those items included in the list would be computed only based on the tax assessable value list ignoring the tax precedence logic. The assessable value list can be associated to every party for both Excise and VAT regimes.

For sales order lines derived out of a modifier, the system computes taxes based on the assessable values captured for the modifier. If the assessable values are not available for a modifier, the system assumes that no tax is applicable on the sales order line derived from the modifier. If assessable values are not defined for the modifier, taxes get defaulted based on the normal tax precedence logic which is derived based on the line price.