Creating Price Rules

This chapter provides an overview of price rules and discusses how to set up price rules.

Understanding Price Rules

The price rule defines the conditions of the transaction that must be met before the adjustments are applied to the base price. The price rule is made up of one or more price conditions and one or more price formulas. The price condition defines the set of circumstances that make a price rule applicable to a transaction. The price formula defines the actions that occur when the pricing conditions are met.

Setting Up Price Rules

To set up price rules, use the Price Rule (EOEP_RULE) component.

This section discusses how to:

Establish price rule conditions.
Establish price rule formulas.

Pages Used to Set Up Price Rules

Page Name	Object Name	Navigation	Usage
Conditions	EOEP_CONDITION	Pricing Configuration, Price Rule, Conditions	Select the price by fields, values for the price by fields, and the operator (which determines how the price by fields are related to the transaction).
Formulas	EOEP_FORMULA	Pricing Configuration, Price Rule, Formulas	Define the actions that take place when the price rule conditions are met.
Search	EOEP_SEARCH_PAGE	Click the Search icon on the Conditions page.	Search for valid values for the selected price by field in the price rule condition.

Establishing Price Rule Conditions

Access the Conditions page.

Enter the conditions for the price rule in basic or advanced mode. Basic mode enables you to create price rules using the And operator. Advanced mode enables you to create more complex conditions. You can use the Or operator, in addition to the And operator. Advanced mode enables you to enter the valid values directly for the price by fields without having to go through the search or prompt page for the field.

To add a price rule condition in basic mode:

Select basic mode by clicking the Basic link on the Conditions page.
Select a transaction.

This transaction determines the valid price by field names available for the conditions.

Note. In PeopleSoft CRM installations, this field is read-only. The default value is Order Capture.
Change the default status from Pending to Deployed, Inactive, or Ready to Test.

Pending: Price rule is incomplete.

Deployed: Price rule is currently in use for pricing in the pricing system.

Ready to Test: Price rule is complete but can be used by the simulator only, not for pricing calculations.

Inactive: Price rule is no longer active. Use to inactivate a rule that was previously in use.
Enter a description for the price rule.

This is a free-form text field.
Enter a short description.

A truncated version of the long description appears by default.
Select a field name in the Rule Conditions group box.

Choose the transaction field that you want to price by. For example, if you want this rule to apply to every order in a particular business unit, select Business Unit.
Click the Search button to select values for the field names.

When you click the Search button, the system transfers you to a page from which you can search for and select valid values for the field name that you select. For example, if you selected Business Unit as a pricing key field, then you would get a list of business units to choose from. Values that were previously selected for the condition automatically appear as selected. You can restrict the search further by entering additional search data in the fields provided at the top of the page and clicking the Search button. Select one or more values that you want to apply to the rule condition and click OK.

The condition appears in the Rule Definition section. The system displays the rule definition based on the last condition that you built. If you are updating an existing condition, you may need to click the Build Rule Definition button to have the system rebuild the entire price rule condition.

To add a price rule condition in advanced mode:

Select advanced mode by clicking the Advanced link on the Conditions page.
For a new price rule, select a transaction.

This transaction determines the valid price by field names available for the conditions.

Note. In PeopleSoft CRM installations, the field is read-only and the default is Order Capture.
Change the status from Pending to Deployed, Inactive, or Ready to Test.

Pending: Price rule is incomplete.

Deployed: Price rule is currently in use for pricing in the pricing system.

Ready to Test: Price rule is complete, but is not in use for pricing in the pricing system. It can be used only in the simulator.

Inactive: Price rule is no longer active. Use to inactivate a rule that was previously in use.
Enter a description for the price rule.

This is a free-form text field.
Enter a short description.

A truncated version of the long description appears by default.
Select a field name in the Rule Conditions group box.

You may enter multiple field names by inserting a new row for each new field name.
Enter the field name values directly in the Identifier field, or click the Search button.

Enter multiple values by separating the values with commas. Alternatively, you can click the Search button. The system transfers you to a page from which you can search and select valid values for the field name that you selected for the condition. Values that were already selected for the condition automatically appear as selected. You can further restrict the search by entering additional search data in the fields provided on top of the page and clicking the Search button. Select the fields that you want to apply to the rule condition and click OK.

The field name and value conditions defined in the Rule Conditions section appear in the Combined Conditions section. The individual rows in the Combined Conditions section serve as a foundation for you to create more complex conditions.
Select the rows in the Combined Conditions section that you want to use to create a more complex condition.
Select either the And or Or operator.
Click the Build Rule Definition button to create the advanced price rule.

The system automatically inserts the new condition in the Combined Conditions section. The condition also appears in the Rule Definition section.

You can create more complex conditions by selecting new rows in the Combined Conditions section, selecting an operator, and clicking the Build Rule Definition button until you have created the desired rule definition.

Mode

Use to determine the data entry method:

Basic: Enables you to search for values for the field names that you selected. The Match These Values column is populated with the description of the values that you selected after you made a selection. Rule conditions are automatically joined with the And conditional operator.

Advanced: Basic mode plus additional data entry features. Enables you to manually enter values for the identifiers or search for identifiers. If adding them manually, separate the values by commas without a space between values. The Match These Values column is populated with the description of the identifiers that you enter.

The Combined Conditions grid is available and automatically populated with the basic field name and value rule conditions. The Combined Conditions grid enables you to create rule conditions that you can combine into more complex conditions. You can use logical And or Or operators.

Advanced mode is the default.

Rule Attributes

Transaction	Select a value from the available options to create a new price rule. Select a value to populate the list of values for the field names. This field is visible only in add mode. Once the rule is created for a transaction, you cannot change the transaction. Note. In PeopleSoft CRM installations, this field is read-only and the default isOrder Capture.
Status	Values are: Deployed: Activates the price rule so that it is used to determine price adjustments. You must enter data on the Formulas page before you can save the price rule in this status. You can also use the simulator to test price scenarios in this status. Inactive: The price rule is no longer active. Use to cancel a rule that was previously in use. Pending: This status appears by default. You can save the price rule in this status without adding data on the Formulas page. Use this status when you want to save the price rule but you don't want the system to process any edits on the rule. You cannot use a rule in this status in the simulator. Ready to Test: Use this status to test the rule with the simulator. The rule is available to the pricing system.
Description	Use to describe the rule.
Short Description	Use for the short description of a rule. The first 20 characters of the description appear by default. This field is used as the label on pages and inquiries.

Rule Conditions

Error	If an error exists in the price rule definition, a red square box appears in this column. Correct the error. This field appears only if an error exists.
Field Name	Select the price by field to use with the rule condition. The valid list of price by fields is established on the Transaction Price By Keys page by the PeopleSoft Enterprise Pricer system administrator. The list of fields available when you create the price rule is determined by the transaction.
Identifier	Use to manually enter values for the price by fields. This value is available only if you are using the advanced mode.
Search Icon	Use to search for valid price by field values. Note. If you selected values previously, those values remain selected until you clear them. You can restrict the search further by entering the appropriate ID and description values at the top of the search page.

Combined Conditions

In the advanced mode, the field names and values that were entered for the rule conditions are included in the Combined Conditions grid when you click the Build Rule Definition button and select an operator. The items in the Combined Conditions grid are a foundation used to build more complex conditions. Select two or more rows to build the complex condition. Every new complex condition that you create is added to the Combined Conditions grid. You can continue to use the new conditions to create more complex conditions for the rule definition.

And/Or

After selecting two or more combined conditions, select either operator to combine the conditions. This option is available if you are using the Advanced mode.

Note. In basic mode, the system automatically uses only the And operator.

Build Rule Definition

After selecting the conditions to use and the conditional operator, click this button to build the rule definition. The new condition is added to the Combined Conditions grid, and the definition appears in the Rule Definition section.

Rule Definition

Displays the final definition in both advanced and basic modes. When using the basic mode, the system displays the rule definition automatically. Click Save to save the price rule.

Establishing Price Rule Formulas

Access the Formulas page.

See Configuring Price Transaction Code Options.

The price action type selected determines what additional data are required on the price formula. The start and end dates and the high and low quantities are required for each formula. The date of the transaction and the quantities of the products on the transaction must fall within these ranges for the system to apply the formula to the transaction.

Rule Attributes

Price Action Type	Defines what the price rule does when applied to a transaction. This field is required. Values vary for each transaction: Discount/Surcharge: Apply a discount or surcharge to the line. Free Period Promotion: Define periods for which a recurring charge is not applied. Giveaway: Apply a giveaway product that can be based on the line or order. Min/Max Target Discount (minimum/maximum target discount): Compare the discount adjustment and apply a target discount. Min/Max Target Price (minimum/maximum target price): Compare the price adjustment and apply a target price. Min/Max Target Surcharge (minimum/maximum target surcharge): Compare the surcharge adjustment and apply a target surcharge. Note. Use the target price action types to limit the total adjustments made to the transaction by the pricing engine. For example, if you define a maximum target discount for a product as 25 percent, the system applies discounts to the list price up to 25 percent. If you define a minimum surcharge for a product as 5.00 USD, the system always applies a minimum 5.00 USD surcharge. If you define a minimum target price for a product as 50.00 USD, the system applies adjustments to the base price, but does not discount the price below 50.00 USD. Price Override: Apply a new price to replace the existing price. Note. If the price rule is defined only for product ID, we recommend that you use the Price List feature to define the base price for the product. Product Add: Add a product to the order, such as a cancellation penalty product. Recurring Discount/Surcharge: Apply a discount or surcharge to the entire order for a specified number of periods. Total Order Discount/Surcharge: Apply a discount or surcharge to the entire order.
Price Type	Defines which transaction value that the system should use to compare the range of the price rule formula. Values vary for each transaction and include: Extended Price Quantity Volume: Only applies to weight and volume pricing. Weight: Only applies to weight and volume pricing. Note. Weight and volume are not used by PeopleSoft CRM applications.
Cascading/Summed	Determines how the system applies the adjustment for the Discount/Surcharge price action type. Cascading: Applies the adjustment as the discounts are found. A second discount is applied to the previously discounted price, a third discount is applied to a price that was previously discounted twice, and so on. For example, if the system encounters two discounts, 10 percent and 20 percent off the list price of 100.00 USD, the system applies the discounts in this way: 10 percent off of 100.00 USD and 20 percent off of 90.00 USD. Thus, the unit price for the order schedule line is 72.00 USD. Summed: When the system finds multiple discounts, it adds them together and applies the discounts once. For the summed example, the system would combine the 10 percent and 20 percent discounts for 30 percent off of 100.00 USD. The resulting unit price for the order schedule line is 70.00 USD.
Promotion Code	Displays promotions from PeopleSoft Promotions Management. If a price rule is generated by PeopleSoft Promotions Management, the promotion code is automatically assigned to the price rule. Note. Not applicable to PeopleSoft CRM.
Use Grace Days	Select if you want the system to use the grace days assigned to the customer when determining which price formulas are applied to the price. You can define a grace period (in days) for each customer. Note. This option is not used by PeopleSoft CRM applications.
Merchandising Type	Displays values associated with promotions from PeopleSoft Promotions Management. Note. Not applicable to PeopleSoft CRM.
Period-to-Date	Used to include period-to-date totals in the adjustment. Note. This option is not used by PeopleSoft CRM applications.
Stop Processing Here	Prevents the system from applying further price adjustments when the system finds a match with a price rule. This action occurs for total order or line adjustments. The system stops applying price adjustments after encountering the first price rule match that has this option selected. Note. This option applies only to price adjustments. It does not apply for price lists associated with price rules.

Price Formulas

The fields in this grid vary depending on the price action type and price type.

Unit of Measure	Applies to price rules for product and product group only.
Start Dateand End Date	The transaction date must fall within these dates if this rule is to apply. Note. If using PeopleSoft SCM installations, a field on the General Information - Payment Options page indicates the grace pricing discount days. An entry in this field enables customers to receive discount pricing beyond the end date for the price break.
Low Quantity	Specify the lower limit of the range of quantities to which this rule should apply. This field is based on the price type definition. The system enters the next lower quantity or amount limit as you insert price formula entries on this page. The quantity appears if you selected the Quantity price type, and the amount appears if you entered the Extended Price price type.
High Quantity	Specify the upper limit of the range of quantities to which this rule should apply. If you specify an upper limit of 9999999999, the price formula is applied regardless of the quantity entered on the transaction. For example, if you enter a price formula with a quantity range of 1–200 and don't create any other price formulas, the system does not apply a price formula to an order with a quantity of 201 unless an upper limit was entered. The system uses 9999999999 as the default in the High Quantity field for the last price formula if the field is left blank.
Percent or Amount Type	Make adjustments by percentage or a fixed amount. Values are: Amount or Percent.
Adjustment Amount	Enter the adjustment amount if you selected Amount in the Percent or Amount Type field.
Adjustment Percent	Enter the adjustment percentage if you selected Percent in the Percent or Amount Type field.
Price	Enter the new price, if the price action type is Price Override.
Currency	Specify the currency shown in the Amount Type field and the currency for price overrides.
Charge Type	Select from the available options for price action types: Discount/Surcharge and Total Discount/Surcharge. Discount: Reduces the list price of the product or the entire order in the case of a total order discount. Surcharge: Increases the price of the product or the entire order in the case of a total order surcharge. Important! Discounts are always negative numbers and surcharges are always positive numbers. If you select Discount but enter a positive number, the system changes the number to a negative number.
Minimum Amount and Maximum Amount	Enter both of these values if you selected Amount in the Percent or Amount Type field. This field applies to the following price action types: Min/Max Target Discountand Min/Max Target Surcharge.
Minimum Percent and Maximum Percent	Enter both of these values if you selected Percent in the Percent or Amount Type field. This field applies to the following price action types: Min/Max Target Discountand Min/Max Target Surcharge.
Minimum Price and Maximum Price	Enter both of these values if you selected Min/Max Target Pricein the Price Action Type field.

Formula Detail Tab

Select the Formula Detail tab.

The Formula Detail tab is used if the Price Action Type field specifies Giveaway or Product Add.

UOM Promo (unit of measure promotion)

Select the UOM for the product that is given away or added to the order.

Giveaway Type

Applies to only giveaways. Specify whether the giveaway is applied to each line of the transaction (sales order) or applied only once to the header of the transaction.

Per Line: The system applies this giveaway to every line.

Per Order: The system applies this giveaway only once to the entire sales order.

Terms and Adjustment Type Tab

Select the Terms and Adjustments Type tab.

Terms

Assign a payment term to the formula. If this formula is used when pricing the transaction, the system assigns the most favorable payment terms to the transaction.

Important! If you set up a price rule with payment terms as a key and you have a price formula with payment terms, you may not get the intended price adjustment when repricing the order.

Note. This option is not used in PeopleSoft CRM.

Adjustment Type

Values are:

Bill Back: An adjustment that accrues rather than an adjustment that reduces the net unit price of the item on the invoice.

Note. This option does not appear in PeopleSoft CRM. PeopleSoft CRM uses off-invoice adjustments.

Off-Invoice: An adjustment that reduces the net unit price or, in the case of a total order adjustment, the price of the order.

Account Distribution Codes

Select general ledger distribution accounts for the price rule formulas if they are applied to the transaction.

Note. This option is not used by PeopleSoft CRM.

Discount Dist Code and Surcharge Dist Code (discount distribution code and surcharge distribution code)

These distribution codes, along with the associated amounts, are passed to the PeopleSoft Billing Interface tables during the Populate Billing process.

To use a bill back adjustment, enter both a discount and surcharge code. Off-invoice discounts or surcharges require only one of these codes.

Discount Dist Percentage and Surcharge Dist Percentage (discount distribution percentage and surcharge distribution percentage)

The sum of the percentages must equal 100 percent.