This chapter covers the following topics:
As you analyze and understand a client's pricing scenario, key implementation decisions must be addressed to develop a logical pricing solution. These decisions, in relation to unit of measure, are addressed in this chapter.
Key Implementation Decision: How do I adjust UOM setups to use Oracle Advanced Pricing?
You must define conversion rates between units of measure in order to price and discount in UOMs other than the primary UOM.
All modifier UOMs must be consistent with the UOM on the price list. Price lists and modifiers must be constructed in the same unit of measure; this is what the pricing engine expects.
Accruals require definition of UOM and UOM class.
You must define UOMs if you use seeded qualifiers for line volume or line weight.
You must define appropriate setups in Oracle Service Contracts to price service items that span partial periods. These are used by pricing in service duration UOM conversions. For more information, see Oracle Service Contracts documentation.
You must define units of measure (UOM) for Oracle Advanced Pricing to:
Price or discount items.
Give non-monetary accruals as benefits. You must define a UOM class and UOM that represent your non-monetary accruals. The profile option QP: Accrual UOM Class should be set to the UOM class that you define.
Define qualifier rules that include the seeded qualifiers line volume or line weight.
Note: Defining UOM is not necessary if you have already installed and set up Oracle Inventory, or if you completed the common applications setup for another Oracle product. For more information, see Oracle Inventory User's Guide, Defining Unit of Measure.
To price and discount an item in a different (not primary) UOM, you must define the conversion rates between the base and other UOMs within the class. Oracle Advanced Pricing uses these rates to automatically convert transaction quantities to the primary pricing UOM. All price adjustments, benefits, and charges must be defined in the same UOM as on the price list.
Note: This step is not necessary if you have already installed and set up Oracle Inventory or if you completed the common applications setup for another Oracle product. For more information, see Oracle Inventory User's Guide, Defining Unit of Measure Classes.
UOM Conversions for Service Items
Oracle Advanced Pricing evaluates UOM conversions from different sources when pricing service items:
If service dates are specified on the transaction being priced, Oracle Advanced Pricing calls Oracle Service Contracts to compute or convert service duration to pricing UOM.
For more information on time period conversions, see Oracle Service Contracts implementation and user documentation.
If service dates are not supplied on the pricing transaction, Oracle Advanced Pricing uses UOM conversion setups in Oracle Inventory for converting service duration to pricing UOM.
The primary UOM feature is used to price an item in different UOM without having to explicitly define prices for each UOM. The pricing UOM is the UOM in which the pricing engine prices the order line. The pricing quantity is the order quantity expressed in the pricing UOM. Invoicing shows information based on the ordered quantity and ordered UOM.
Example:
An item is defined with "Each" declared as the primary UOM in a price list. You order one dozen. The price list does not have a price defined in dozen. The pricing engine uses the conversion factor to calculate a pricing quantity of 12 and pricing UOM of each.
In the Price List window, you define a price for an item/UOM combination as a price list line. In a price list, you may specify only one as primary UOM for an item.
Defaulting UOM While Creating Price Lists
When creating a new price list, the primary UOM defined in Oracle Inventory for an item defaults into the price list UOM. Users can change the defaulted UOM and select the primary flag on the price list line to make this the Pricing primary UOM.
Example: Item A can have:
Primary UOM in INV: EA
Primary UOM in QP: CASE
Three profile options are critical for setting UOMs in Oracle Advanced Pricing:
QP: Accrual UOM Class: Specifies the UOM class used to define accrual UOM. The modifier setup window displays all units of measure in this class when entering the benefit UOM for an accrual.
Default value: none
Required if your business gives non-monetary accruals as benefits
All UOM classes are defined to Oracle Applications
Visible and can be updated at the site and application level
QP: Line Volume UOM Code: Specifies the UOM of the line volume qualifier. The attribute sourcing API converts the item on the request line to its primary UOM. It then uses the volume attributes of the item to derive the line volume of the item in the specified UOM.
Default value: none
Required if your business must define qualifier rules that include the seeded qualifier line volume
All UOM currently defined to Oracle
Visible and can be updated at the site and application levels
QP: Line Weight UOM Code: Specifies the UOM of the line weight qualifier. The attribute sourcing API converts the item on the request line to its primary UOM, and uses the weight attributes of the item to derive the line weight of the item in the UOM specified in this profile option.
Default value: none
Required if your business needs to define qualifier rules that include the seeded qualifier line weight
Specifies UOM of the line weight qualifier (the attribute sourcing API converts the item on the request line to its primary UOM, and then uses the weight attributes of the item to derive the line weight of the item in the specified UOM)
All units of measure currently defined to Oracle
Visible and can be updated at the site and application levels