Oracle Advanced Pricing User's Guide

Formula Scenarios

This appendix describes the following formula scenarios.

Scenario 1

Splinters Glass Company manufactures windshields for cars and trucks. It sells both to wholesale customers and to retail customers.

To its retail customers, Splinters prices windshields based on the dimension of the sheet of glass according to the formula 3 currency units * Width * Height * Thickness Factor.

The following table shows the thickness factors:


Glass Thickness	Thickness Factor
< 5 mm	10%
5 mm - 10 mm	15%
> 10 mm	20%

Splinters sets up Oracle Pricing to use formula and factor-based pricing.

Step 1 - Define attributes

In the attribute manager feature, define three new pricing attributes - width, height, and thickness - using the context of pricing attributes. For more information on attribute management and creating attributes, see Oracle Advanced Pricing Implementation Manual.
Save your work and close the window.

Step 2 - Create a pricing formula

Create a formula header.
- Formula Name: Glass Pricing Formula and Formula = 1 * 2 * 3 *4
Create a formula line.
- Formula Type: Numeric Constant
- Component: 3
- Step Number: 1
Create a second formula line.
- Formula Type: Pricing Attributes
- Pricing Attribute Context: Pricing Attributes
- Pricing Attribute: Width
- Step Number: 2
Create a third formula line.
- Formula Type: Pricing Attributes
- Pricing Attribute Context: Pricing Attributes
- Pricing Attribute: Height
- Step Number: 3
Create a fourth formula line.
- Formula Type: Factor List
- Component: Thickness Factor
- Step Number: 4
Click Factors.
In the Base Pricing Attributes region, create a row.
- Base Pricing Attribute: Thickness
- Comparison Operator: Between
- Value From: 0
- Value To: 5
- Adjustment Factor: 0.10
Create a second row in the Base Pricing Attributes region.
- Base Pricing attribute: Thickness
- Comparison Operator: Between
- Value From: 5
- Value To: 10
- Adjustment Factor: 0.15
Create a third row in the Base Pricing Attributes region.
- Base Pricing Attribute: Thickness
- Comparison Operator: Between
- Value From: 10
- Adjustment Factor: 0.20
Save your work and close the window.

Step 3 - Create a price list for retail customers, create a list line, and attach the formula

Create a price list.
- Name: Retail
- Select the Qualifiers tabbed region.
Add a qualifier.
- Context: Customer
- Attribute: Customer Class
- Value: Retail
Create a new list line.
- Item: Windshield
- Dynamic Formula: Glass Pricing Formula
- UOM: Each
- Method: Amount
- Line Type: Price List Line
Save your work and close the window.

Scenario 2

For its retail customers, Splinters charges for its windshield warranty protection plan at 10 percent of the cost of the replacement windshield. The formula is 10 percent * price of the Windshield item on the Replacement price list). Splinters sets up Oracle Pricing to use formula-based pricing.

Step 1 - Create a new pricing formula

Create a formula header.
- Formula Name: Warranty Pricing Formula
- Formula: 1*2
Create a formula line.
- Formula Type: Numeric Constant
- Component: 0.10
- Step Number: 1
Create a second formula line.
- Formula Type: Price List Line
- Component: Windshield line of Replacement price list
- Step Number: 2
Save your work and close the window.

Step 2 - Create a price list for retail customers, create a list line, and attach the formula

Create a price list.
- Name: Warranties
In the Qualifiers region, add a qualifier.
- Context: Customer
- Attribute: Customer Class
- Value: Retail
Create a list line.
- Item: Protection Plan
- UOM: Each
- Dynamic Formula: Warranty Pricing Formula
- Method: Amount
- Line Type: PLL
Save your work and close the window.