This appendix describes the following formula scenarios.
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.
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.