Siebel Deal Management Workbench User Guide > Assessing Deal Profitability >

Information in the Waterfall Graph

This topic describes how to use the Waterfall graph to view the components of pricing and revenue and evaluate the profitability of the proposed item, hypothetical prices, and quantities, using the what-if analysis. The waterfall shows the factors involved in the overall margin and profitability.

The waterfall shows the breakdown of all the adjustments (including manual discounts and overrides) taken to arrive at the different price breaks.

On the waterfall graph, the blue bars represent the different price break points for the pricing in this customer's segment, such as:

• Ceiling Price (if enabled in Siebel Deal Management). The starting price of the line item and quantity, from which all discounting occurs.
• Segment Price. The price for the line item and quantity, discounted from the ceiling price.
• Invoice Price. The price for the line item and quantity on this deal.
• Pocket Price. The price after applying any discounts to the invoice price for the line item and quantity.
• Margin. The pocket revenue minus cost.

NOTE:  Preconfigured segments can be altered for each implementation (additional pricing segments might be added).

Gray bars represent the adjustments or discounting, taken from the previous price point. To understand where the price adjustments originate, you can display the adjustment details.

A product can have multiple constraining and recommended guidelines defined in Oracle's Siebel Deal Management for each price type (segment, invoice, pocket, and so on):

• Constraining guideline. A pricing boundary that the price administrator is allowing users to work within.
• Recommended guideline. The price that the pricing administrator recommends.

Each guideline appears on the associated price bar on the waterfall graph with the name of the guideline (such as GL Min Price), the guideline price, and a red, yellow, or green line:

• Red line. Indicates that this is a constraining guideline and that deal line item price violates that guideline.
• Yellow line. Indicates that this is a recommended guideline, and that the deal line item price violates that guideline.
• Green line. Indicates that the deal line item price is within the constraining or recommended guideline (but does not indicate which type of guideline it is).

You can display Waterfall information for the entire quote, or deal, as well, enabling you to compare the line item with the overall profitability on the deal.

The Waterfall graph lets you see the effect of each discount incentive offered on this deal, and see where the discounts with overrides have lead the deal outside the pricing guidelines for the product and deal. You can optionally view the same data in the Waterfall table, which shows the same information on the graphic in a pivot table with additional metrics. For information about the Waterfall table, see Viewing the Waterfall Table.

Additional Information in the Waterfall Graph

Additional information appears on the Waterfall graph screen for each applicable price bar, see Table 9.