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Oracle Advanced Pricing User's Guide
Release 12.1
Part Number E13427-04		Go to Table of Contents
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Modifier Scenarios

This appendix covers the following topics:

Modifier Scenarios

The following scenarios illustrate how to meet business needs by creating modifiers. The scenarios are organized by the following modifier concepts:

Discount

Scenario 1

If the customer is a preferred customer or customer spends more than 150 currency units, they receive 10 percent off the order.

  1. Create a modifier.

  2. In the Line Qualifiers window, create two line qualifiers.

Scenario 2

For any 10 compact discs purchased by April 2000, the customer receives two currency units off.

  1. Create a modifier.

Scenario 3

For every eight currency units spent on cat food, the customer accrues five shopper points.

  1. Create a modifier.

Scenario 4

Customers mentioning the Summer Special Promotion (an Ask For promotion) get $5 off of any tennis racket except the FastFireIII model.

  1. Create a modifier.

    In Modifiers Summary tab

Scenario 5

Customers who buy two bottles of shampoo receive one currency unit off of the third bottle of shampoo.

  1. Create a modifier.

Surcharge

Scenario 1

Customers in the National Accounts territory who spends less than 1000 currency units per order receives a 2 percent surcharge.

  1. Create a modifier.

  2. In the Line Qualifiers window, create two line qualifiers for the modifier.

Scenario 2

Any customer placing a rush order (delivery required within two days) for replacement motors receives a $50 surcharge.

  1. Create a modifier.

  2. In the Line Qualifiers window, create a qualifier for the modifier. You have created qualifier attribute Days to Requested Delivery and created the appropriate sourcing rules for this attribute.

Price Break

Scenario 1

All employees in Company ABC's mobile phone plan receive per minute discounts based on minutes used, as follows:

Minutes Discount Per Minute ($USD)
0-120 0.05
120-240 0.10
240-420 0.12
> 420 0.15

A customer who uses 150 minutes receives the following discounts:

  1. Create a modifier.

  2. In the Line Qualifiers window, create a qualifier for the price break modifier.

  3. In the Price Break Lines region, enter the break lines.

    Value From Value To Application Method Value
    0 120 Amount .05
    120 240 Amount .10
    240 420 Amount .12
    420 -- Amount .15

Scenario 2

Customers who buy cases of TY brand products across an order receive a percent rebate per case as follows:

Cases Rebate per case (%)
0 - 500 2
500 - 1,000 3
> 1,000 5

  1. Create a modifier.

  2. In the Price Break Lines window, enter the break lines:

    Value From Value To Application Method Value
    0 500 Percent 2
    500 1,000 Percent 3
    1,000 -- Percent 5

Other Item Discount

Scenario 1

Customers who buy more than three meters of fabric across an order receive 10 percent off thermal curtain linings and 5 percent off drapery services.

  1. Create a modifier.

  2. In the modifier details, enter the get products.

Scenario 2

Customers who buy six chairs and a coffee table or six chairs and two standard lamps, will get $400 off a dining table assuming the dining table is on the order as well.

  1. Create a modifier.

  2. In the modifier details, enter the related product.

  3. In the modifier details, enter the get product.

Promotional Goods

Scenario 1

Customers who buy one bottle of shampoo receive a free bottle of conditioner.

  1. Create a modifier.

  2. In the modifier details, enter the get product.

Scenario 2

Customers who buy two bottles of shampoo receive 10 percent off the purchase of a third bottle of shampoo.

  1. Create a modifier.

  2. In the modifier details, enter the get product.

Scenario 3

A customer who spends $45 to $100 on an order line receives a free cosmetic bag.

  1. Create a modifier line.

  2. In the Modifier Summary region, select the product that the customer must order to get the free cosmetic bag.

Coupon Issue

Scenario 1

Customers who buy any products in the Chubo brand receive 10 percent off any item in the Chubo brand on their next order.

  1. Create a modifier list. In the Main tab:

  2. Create a modifier line for the discount.

    In the Modifiers Summary tab.

  3. Create a second modifier line for the coupon issue and assign it for the modifier line created in step 2.

Scenario 2

Customers ordering from the website receive a coupon for 10 percent off a future order.

  1. Create a modifier line (for Modifier List Type: Promotion).

  2. Create a second modifier line for the coupon issue and assign it to the modifier line created in step 1.

  3. In the Line Qualifiers window, create a qualifier for the Coupon Issue modifier line from step 2. You have created the qualifier attribute Website Domain and created the appropriate sourcing rules for it.

Scenario 3

With any order, receive a coupon for two free bags of coffee on a future order.

  1. Create a modifier line.

  2. In the modifier details, enter the get product.

  3. Create a second modifier line for the coupon issue and assign it to the modifier from step 1.

Item Upgrade

Scenario 1

Customers who order a standard video recorder before end of April 2000 receive a deluxe video recorder for the same price.

  1. Create a modifier list.

  2. Assign a modifier line to the modifier list in Step 1. You have defined the item relationship between the standard video recorder and deluxe video recorder.

Scenario 2

Customers who buy a shirt receive the shirt and a tie for the shirt price.

  1. Create a modifier. You have defined the item relationship between the shirt and the marketing bill shirt and tie pack.

Terms Substitution

Scenario 1

Customers who spend more than 1000 currency units on a sofa pay nothing for shipping.

  1. Create a modifier:

Scenario 2

Customers who buy more than 100 currency units of one item on an order receive terms of 2% 30/NET 60.

  1. Create a modifier.

  2. In the Line Qualifiers window, create a qualifier.

Freight and Special Charges

Scenario 1

For all low priority shipments, calculate shipping charges by order line total weight as follows:

Profile Option QP: Line Weight UOM Code is kg.

  1. Create a modifier.

  2. In the Line Qualifiers window, create a qualifier for the modifier from step 1.

  3. Create a second modifier.

  4. In the Line Qualifiers window, create a qualifier for the second modifier from step 3.

  5. Create a third modifier.

  6. In the Line Qualifiers window, create a qualifier for the third modifier from step 5.

Scenario 2

Calculate freight handling charge as a 10 percent markup of actual handling cost.

  1. Create a formula.

  2. Create a formula line.

  3. Create a modifier.

  4. In the Line Qualifiers window, create a qualifier for the third modifier from step 2.

New Price

Scenario 1

The following table states the scenario for this new price modifier example. Following the table, the text analyzes the scenario:

Incompat. Level Precedence Bucket Operator Value Engine Selects
1 10 1 NEWPRICE 30 No
1 10 1 NEWPRICE 25 Yes
1 10 1 NEWPRICE 40 No

Within the same incompatibility group, when all of the lines have the same precedence, the pricing engine performs best price processing. The final selling price is in line 2, 25 currency units. In this scenario, the bucket is not important to the result.

Scenario 2

The following table states the scenario for this new price modifier example. Following the table, the text analyzes the scenario:

Incompat. Level Precedence Bucket Operator Value Engine Selects Adjusted Amount
1 10 1 NEWPRICE 30 Yes -970
2 10 1 NEWPRICE 25 Yes -975
3 10 1 NEWPRICE 40 Yes -960

With different incompatibility levels, the pricing engine evaluates the lines according to buckets. Because all of the lines are in the same bucket, the pricing engine calculates the adjusted amount from the list price. It calculates the selling price as follows:

Scenario 3

The following table states the scenario for this new price modifier example. Following the table, the text analyzes the scenario:

Incompat. Level Precedence Bucket Operator Value Engine Selects? Adjusted Amount
1 10 1 NEWPRICE 30 Yes -970 (Base price: 1,000)
2 10 2 NEWPRICE 25 Yes -5 (Base price: 30)
3 10 3 NEWPRICE 40 Yes 15 (Base price: 25)

With different incompatibility levels, the pricing engine evaluates the lines according to buckets. Because each line is in a different bucket, the pricing engine calculates the adjusted amount from the base price of the previous bucket (list price is in bucket 0). It calculates the selling price as follows:

List Price - Sum of the Adjusted Amounts

1,000 - (970 + 5 - 15) = 1,000 - 960 = 40

As the pricing engine evaluates the eligible list lines, it resolves incompatibilities in all phases. You can set up your modifiers such that the pricing engine determines most of the list line eligibility at the search stage. Then, the pricing engine calculates the final selling price bucket by bucket.

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