Pricing Products and Quotes

This chapter covers the following topics:

Overview of Pricing

The price your customer pays for a product depends on the price lists, manual adjustments, and promotional discounts as well as on automatic modifiers set up in Oracle Advanced Pricing.

Start and End (Expiration) Dates

For pricing elements with effectivity dates, Quoting will behave as follows:

Price Lists

Price lists are set up in Oracle Advanced Pricing. Your company may have several different price lists mapping to different customer types. Separate price lists often exist for consumers and corporate customers, reflecting volume discounts for organizations that purchase in large quantities. Additional price lists may reflect special contractual arrangements with other customers.

You can select a price list for the quote as a whole (header level) or for each individual product (line level). The product price list supersedes the quote header price list when determining the price for that specific product.

The header price list defaults based on the following information on the quote (in the following order):

If you leave the header price list field blank, the price list is determined by Oracle Advanced Pricing based on Price List setup. See the Oracle Pricing User’s Guide for more information.

Multi-Currency Price Lists

Multi-currency price lists simplify pricing setup if you are selling products to customers in multiple countries.

In order to use multi-currency price lists, there must be a conversion list associated with each price list. The conversion list, set up in Advanced Pricing, contains an algorithm that converts the base currency price from the price list into one or more additional currencies.

The use of multi-currency price lists is controlled by the profile options QP: Multi-Currency Installed and QP: Multi-Currency Usages. If QP: Multi-Currency Installed is set to Yes, Quoting shows all price lists with the selected currency as base currency, as well as all price lists where there is a conversion list for the selected currency. If the profile option is set to No, the Price List LOV displays only price lists that are valid for the selected currency. You can leave the Currency field blank to view all price lists, or leave the Price List field blank to view all currencies.

The QP: Multi-Currency Usages profile should be set to Yes at the application or responsibility level.

Note: You should not try to disable multi-currency price list functionality, by setting the multi-currency price list profile option back to No. See the Oracle Quoting Implementation Guide and the Oracle Advanced Pricing Implementation Guide for more information.

With multi-currency price list functionality you can also change the selected currency for a quote and recalculate quote prices with the new currency. If automatic pricing mode is enabled, the quote reprices automatically. If not, you must reprice the quote manually for the changes to take effect.

If multi-currency is turned on, the LOV behavior is as follows:

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Additionally, if the Price List field is disabled using OA Personalization and there is no currency selected, the Price List LOV is read only and the Currency LOV displays only currencies that are valid for the selected price list. If there is only one currency, the Currency field is read only. If the Price List field is disabled and a currency is selected, the Price List LOV is read only and the Currency LOV displays only currencies that are valid for the selected price list.

If multi-currency is turned off, the LOV behavior is as follows:

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Additionally, if the Price List field is disabled using OA Personalization, the Price List and Currency LOVs are displayed as read only in the HTML user interface.

Discounts

Oracle Quoting allows both order-level and line-level discounts. Order-level discounts are applied to each line on the quote, while line-level discounts are applied to specific lines only. If there are multiple discounts available for an order or a line, the application combines them.

A customer purchases a $200 coat and a $100 shirt. There is a 10% discount available for the shirt and a 50% discount available for the entire order. The quote price is calculated as follows:

Charges

Charges are a supplemental cost associated with the purchase of a product or service. Charges are generally added to a quote when a task is being performed in conjunction with the product or service (for example, shipping fees or installation charges). In Quoting, charges consist of all freight and special charge modifiers applied to the quote. Header level charges appear within the Pricing subtab in the Charges section.

You can also view the charges for each product line in the quote. Line level charges are displayed in the Charges section of the Pricing subtab in the Line Details page.

You can see all charges applied to the quote at the header and line levels using the View All Charges button from the Charges region of the Pricing tab at the header level. The View All Charges button is not enabled by default. Use OA Personalization to display the button.

Pricing Date

Oracle Pricing uses the Pricing Date to interpret the effective dates set up in pricing. Pricing Date is useful if you want to ensure that the prices on a quote do not change if product prices are updated in Oracle Pricing. You may also want to initially quote prices based on historical pricing information or future pricing information.

Note: The Price List, Agreement and Currency LOVs are based on the Pricing Date in the quote.

Promotional Goods

A Promotional Good is a free or discounted product that is automatically added to the quote when a qualifying product (or products) is purchased. The modifier that contains the qualifying conditions is set up in Oracle Advanced Pricing. Refer to the Oracle Quoting Implementation Guide for setup restrictions.

Important: The line category for a promotional good line must be Order.

For example, if a computer is the qualifying good and a mouse is the promotional good, when you add the computer to the quote, the mouse is added automatically. While the Unit List Price lists the actual price of the product if you were to purchase it, the Total Price for the line displays the promotional price. A promotional price is typically 0, but it can also be set up to be greater than 0.

If an agreement is associated with the promotional good, the agreement price list will not override the promotional good price list. Additionally, once the promotional good is added to the quote, you will not be able to change the quantity, UOM, or price list.

Note: There can be multiple promotional goods for a qualifying item.

If the qualifying good is deleted from the quote, the promotional good is automatically deleted as well. If there are multiple qualifying goods and one is deleted, the promotional good will be removed.

Note: A promotional good is always added as the last item on a quote. There is no special line ordering for promotional goods.

Notes

If a promotional good is included on the quote, you can:

Field Behavior

You can see all price adjustments applied to the quote at the header and line levels using the View All Adjustments button from the Price Adjustments region of the Pricing tab at the header level. The View All Adjustments button is not enabled by default. Use OA Personalization to display the button.

Terms Substitution

When a quote is priced using Advanced Pricing, the pricing engine checks if there are terms substitutions available at either the header or line level. The following terms substitution types are supported by Oracle Advanced Pricing:

Depending on the defined modifiers, any of the available values can be substituted after the pricing engine call.

Quoting displays the terms substitution modifiers for each line (both at header and line level) in the Pricing Details window.

To ensure that a particular terms substitution modifier is applied, the pricing administrator must set up the modifier so that it takes precedence. When using terms substitution modifiers in Quoting, you will observe the following behavior when a pricing call is made:

If there are multiple terms substitution modifiers of the same type with no designated precedence, Oracle Pricing passes all qualified terms substitution modifiers. Oracle Quoting randomly selects one of the terms substitution modifiers and applies it to the quote.

If there are multiple terms substitution modifiers of the same type with a designated precedence, Oracle Pricing passes the modifier with the highest precedence which Oracle Quoting applies to the quote.

Caution: The values in the Payment Terms, Freight Terms, and Shipping Method fields, populated based on defaulting rules, may be overridden after the pricing call.

For more information on modifiers and terms substitution, see the Oracle Advanced Pricing User’s Guide and the Oracle Advanced Pricing Implementation Manual.

Quote Pricing Behavior

To improve performance, the number of pricing calls made have been optimized. See the notes below to understand the complete pricing behavior.

Notes

Applying Pricing Adjustments

In Oracle Advanced Pricing, modifiers are set up that result in price adjustments to a quote. Types of benefits include: discount in percent, amount or new price, discounts on other items, surcharges.

In Oracle Quoting, you can select an adjustment to apply to the quote at the header level or line level.

Prerequisites

For header level pricing adjustments, navigate to Quoting > Pricing subtab > Price Adjustments region > Add Adjustment

For line level pricing adjustments, navigate to Quoting > Line Details > Pricing subtab > Price Adjustments region > Add Adjustment

Applying Promotion Codes

Oracle Quoting allows you to enter promotion codes (also known as offer codes) to capture automatic discounts set up as available on request in the Oracle Pricing engine.

Note: You cannot add duplicate promotion codes.

For header level promotion codes, navigate to Quoting > Pricing subtab > Promotion Codes region > Add Promotion Code

For line level promotion codes, navigate to Quoting > Line Details > Pricing subtab > Promotion Codes region > Add Promotion Code

Applying a Header Level Discount

Prerequisites

You can specify a header level discount percent from the Quote totals region in the Products tab.

Field Behavior

Applying a Line Level Discount

Prerequisites

Field Behavior

Applying Pricing Agreements

Pricing agreements are created in Oracle Order Management or Oracle Pricing by your system administrator or sales manager.

When creating a quote, you can select an applicable pricing agreement. For an existing quote, you can select a pricing agreement in the Quote Header. You can also select agreements at the line level. If a line level agreement is selected, the line price list defaults from the selected agreement.

The Agreement LOVs display all agreements in all currencies set up for the selected sold-to customer or all agreements in all currencies if no customer is specified. Pricing agreements that are not specific to a customer are always displayed.

Agreements and Currency

If the price list associated with the header level agreement has a different currency than what is currently selected on the quote or there is no conversion to the currency on the quote, the agreement price list will be defaulted and the currency will be changed to the base currency for the price list.

If the price list associated with the line level agreement is of a different currency than what is currently selected on the quote or there is no conversion to the currency on the quote, the price list will not be defaulted. The price list will default to null.

If the quote currency is the same as the price list currency or there exists a conversion to that currency, both header and line level price lists are defaulted.

Prerequisites

Pricing agreements must be set up for the customer in Oracle Order Management or Oracle Pricing.

Applying Pricing Attributes

Pricing Attributes are created in Oracle Advanced Pricing. They are used to control pricing activity. For example, Pricing uses attributes to define the eligibility of a customer order to receive a particular price or modifier. Pricing attributes may also be used as elements of a pricing formula.

In a quote, you can apply pricing attributes to derive the price for a product. You can select the pricing context and specify values for the attribute.

To apply pricing attributes for a product in a quote, click the Add Attribute button in the Pricing Attributes region from the Line Details page.

Note: In HTML Quoting, you can apply pricing attributes after the product or service has been added to the quote.

However, pricing attributes cannot be specified in the following scenarios:

Freezing Prices for a Quote

Oracle Pricing uses the Pricing Date to interpret the effective dates for prices. If the Pricing Date is set to January 1, 2002, only prices, discounts and adjustments that are valid as of January 1, 2002 are calculated.

Pricing Date ensures that the prices on a quote do not change if product prices are updated in Oracle Pricing. You can quote prices based on historical or future pricing information.

By selecting the Freeze Price option in the Actions menu, you can save the current date and reuse it for future pricing calls. This date subsequently appears on the quote as the Pricing Date. You can also change the Pricing Date to any date, including past or future dates.

If no date is selected, Oracle Quoting uses the current date for prices, discounts, and adjustments.

Prerequisites

Specifying Automatic/Manual Pricing Requests for a Quote

The price of a quote is affected when a change is made that affects pricing. A quote change that affects the price will also affect tax calculations. Tax is computed after the pricing call, since it is dependant on product pricing. The following quote changes do not affect quote pricing:

Note: Changes made to a quote from the quote search results detail will not compute the price or tax on the quote as the changes are deemed to not affect the quote price.

There are two fields in the quote that you can select to enable automatic or manual pricing and tax for individual quotes. Two profile options govern the initial values of these fields.

If the profile option ASO: Calculate Price is set to Manual, the Manual option is selected in the Price Calculation LOV by default. However, if you wish to automatically price this quote alone, you can select Automatic from the LOV. The profile setting is not overridden and remains Manual for other quotes.

If the profile ASO: Calculate Tax is set to Manual, the Manual option is selected in the Tax Calculation LOV by default. You can select the Automatic option to enable automatic tax calculation provided you have selected the Automatic option in the Price Calculation LOV as well.

Important: Setting the ASO: Calculate Price profile to Manual and the ASO: Calculate Tax profile to Automatic is not supported because quote tax is based on the quote product pricing. Similarly, in the UI, you cannot select Automatic for the Tax Calculation field when the Price Calculation field is set to Manual.

Pricing and Tax Indicators
Action Automatic Pricing/Tax Manual Pricing/Tax
Price affecting change

  • The affected lines are fully priced.

  • The Pricing and Tax status flags display Incomplete.

  • The entire quote is repriced and taxed when the quote is saved or the Price Quote action is initiated.

  • The affected lines are not repriced.

  • The Pricing and Tax status flags display Incomplete

  • The entire quote is repriced and taxed when you initiate the Price Quote action.

In the Price Quote page, there are Submission Options that you can choose from to either price the quote right away or submit it for a batch request. The Submission Options field can be enabled in the HTML UI via OA Personalization.

You can still manually price a quote by selecting Price Quote, even if the Price Calculation and Tax Calculation fields are set to Automatic. It is possible that pricing on a quote may not be current, due to pricing setup changes or the setting of pricing date. The user can manually price the quote to get the price/tax based on the latest setup.

If the Pricing Date is set, Oracle Quoting will price the quote as of the date specified in the Pricing Date field. The date can be any time in the past or future. If this field is blank, quotes are priced as of the current date and time.

The option to manually price an individual quote is particularly helpful when you are:

Repricing after each change or addition increases the processing time. Therefore, the ability to price the quote manually is more efficient.

If the pricing or tax statuses are incomplete, you cannot:

Header Level

Subtab actions

Reset Pricing on a Quote

You can remove any price overrides and non-automatic adjustments applied to a quote via the Reset Pricing button. This button is available on the Quote Header and at the Line Level Pricing Adjustments region.

When you initiate reset pricing, any price overrides and non-automatic adjustments are removed.

In the Automatic pricing mode, when pricing is reset from the Quote Header, a full blown pricing call is made resetting the prices on the entire quote. If the pricing is reset from a quote line, the quote line alone is repriced.

In the Manual pricing mode, when the Reset Pricing button is clicked, the following takes place:

At the Header Level

At the Line Level

Prerequisites

Submitting a Manual Pricing Request

Irrespective of the profile and field settings, you can still manually price a quote by selecting the Price Quote action. Manual pricing and tax calculations allow you to capture the most recent price/tax information.

Prerequisites

To manually price a quote, select Price Quote from the Actions LOV.

Notes

Note: The Submission Options section can be disabled in the HTML UI via OA Personalization.

Viewing Details of the Pricing Request

You can view the pricing request details if a pricing request has been submitted for batch execution.

The Pricing Request Details page displays:

Prerequisites

Canceling a Pricing Request

Prerequisites

Field Behavior

Viewing and Entering Quote Tax Details

You can choose the tax handling and view other tax details for a quote. The Quote tax details are displayed in the Pricing tab of the Quote Header and Quote Line.

There are four tax options:

Important: If tax setup is based on Latin tax, the Tax Handling, Exempt Reason, and Exempt Number fields will not appear on the Pricing page.

Field Behavior

Refer the Oracle E-Business Tax User Guide and the Oracle E-Business Tax Implementation Guide for more details on setting up tax in the application.