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The Processing Order of Price Adjustments

If you create more than one type of price adjustment for a price list, the order in which the price adjustments are processed can affect the final price.

For example, a product costs $100 and you give a $10 promotional discount plus a 10% volume discount if the customer buys more than ten. If a customer qualifies for both discounts:

• The unit cost would be $81 if the promotional discount is applied first. ($100 - $10 = $90, and 10% off $90 is $81.)
• The unit cost would be $80 if the volume discount is applied first. (10% off $100 is $90, and $90 - $10 = $80.)

This section describes the processing order of pricing adjustments. You should refer to this section if you create a price list that includes more than one of the pricing adjustments described in later chapters.

Because the processing order for component-based products is different, it will be described separately.

Siebel ePricer applies pricing adjustments for all products except component-based products in the following order:

• The Promotional Price Takes Precedence over the List Price. If a price list includes a promotional price for a product (in the Promotional Price field), all price adjustments apply to the promotional price. If a price list does not include a promotional price for a product, all price adjustments apply to the list price (in the List Price field).
• Promotional Deals. If there is a deal-based price, it modifies the list or promotional price. This deal-based price is used as the basis of any other price adjustments.
• Attribute Pricing. Pricing adjustments based on the attributes that users select for customizable products are processed before other pricing adjustments. Customizable products are individual line items in the quote or order, and the price of each must be resolved before Siebel ePricer can decide whether other types of price adjustments apply.
• Volume Discounts. Volume discounts are applied after attribute pricing is resolved and before pricing models are applied.
• Pricing Models for Line Item Products. Pricing models for line item products are applied after other price adjustments. You determine the order in which the pricing factors of a pricing model are applied by specifying a sequence number of a logical flow. However, you must specify the following order:
  • Single Pricing Factors. All pricing factors that apply to a single line of the quote or order must be applied first. These include single type, matrix -based type, and script-based type pricing factors.
  • Aggregate Pricing Factors. All pricing factors that apply to multiple lines of the quote or order must be applied last. These include bundling type and aggregate type pricing factors.

Siebel ePricer applies pricing adjustments for component-based products in the following order:

• The Promotional Price of Components Takes Precedence Over the List Price. If a price list includes a promotional price for a product (in the Promotional Price field) that is a component of the product, all price adjustments apply to the promotional price. If a price list does not include a promotional price for a product that is a component of the product, all price adjustments apply to the list price (in the List Price field).
• Attribute Pricing. Components of the product can have attributes. For example, the product may be a computer, and you may be able to select the color of the mouse and keyboard. Pricing adjustments based on the attributes of components that users select for customizable products are processed before other pricing adjustments. The attribute-based price of each component must be resolved before Siebel ePricer can decide whether other types of price adjustments apply.
• Component-Based Pricing Model. Pricing models that apply to customizable products are processed before other pricing adjustments. Customizable products are individual line items in the quote or order, and the price of each must be resolved before Siebel ePricer can decide whether other types of price adjustments apply.
• Volume Discounts for the Entire Component-Based Product. After the pricing of the entire component-based product is resolved, Siebel ePricer can apply volume discounts that are based on purchase of the entire component-based product. For example, a user may be purchasing computers, which are a customizable product. After resolving the price of each computer based on which components the user chooses, Siebel ePricer can apply a volume discount based on the total number of computers the customer purchases.
• Pricing Models for the Entire Component-Based Product. Pricing models for all line item products, including component-based products, are applied after other price adjustments. You determine the order in which the pricing factors of a pricing model are applied by specifying a sequence number of a logical flow. However, you must specify the following order:
  • Single Pricing Factors. All pricing factors that apply to a single line of the quote or order must be applied first. These include single type, matrix -based type, and script-based type pricing factors.
  • Aggregate Pricing Factors. All pricing factors that apply to multiple lines of the quote or order must be applied last. These include bundling type and aggregate type pricing factors.