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 you enter.

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 or Oracle Order Management. Your company can have many different price lists. For example, there may be a price list for a consumer and a price list for corporate customers who receive an automatic discount because they buy from your company in bulk. You may have yet another price list for customers with special contractual arrangements with your organization.

You can select a price list for the order as a whole and for each individual product. The price list for a product supersedes the price list for the entire quote 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):

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.

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.

Caution: 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:

the picture is described in the document text

Additionally, if the profile ASO: Price List Override is set to No, 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 LOV will be inactive. If ASO: Price List Override is set to No, 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:

the picture is described in the document text

Custom Pricing Attributes

Custom Pricing Attributes allow you to price a product based upon multiple factors, allowing for greatly increased product and price flexibility. For example, the price of a one year service agreement may depend upon many factors, such as response time, support hours, and coverage. With Custom Pricing Attributes, you can set up one product with a formula that determines the price based on the selected attributes. Custom pricing attributes can be set up in the Oracle Pricing UI.

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. A sum of header level charges appear on the Summary tab of the Quote Header. The Charges Summary form lists each charge and indicates if it is applied at the header or line level.

Note: If there are two modifiers with the same charge type, Pricing will apply the highest charge to the quote.

You can also view the charges for each line by selecting Adjust Charges from the Actions LOV. If a line is selected when you choose the action, all charges applied to the line is displayed.

Within the Charges Summary form, you can add or remove non-automatic charges if ASO: Discounting Privilege is set to Full or Partial and you have update access to the quote. Additionally, you can override the charge value if ASO: Discounting Privilege is set to Full and you have update access.

Discounts

Oracle Quoting allows both header-level and line-level discounts. Discounts at the header are applicable to the entire quote and affect each line on the quote, while line-level discounts are applied to specific products only. If there are multiple discounts available for an order or a line, the application combines them.

Example

A customer purchases a $200.00 coat and a $100.00 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:

Pricing Adjustments

Quoting is set up to display automatic adjustments (which are calculated in Oracle Advanced Pricing) applicable to the selected product and customer. You can also manually apply non-automatic adjustments, if ASO: Discounting Privilege is set to Full or Partial and you have update access to the quote. Additionally, you can override the adjustment value if ASO: Discounting Privilege is set to Full and you have update access. A change in one product can affect the level of other offers and discounts.

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.

Manual Adjustments

There are two ways to manually adjust prices in Oracle Quoting. You can either manually override the price of a product in the main Quoting form or change the manual override adjustment value, for a product or the whole quote, in the Price Adjustment form.

You can manually adjust prices at the line level in Oracle Quoting, if ASO: Discounting Privilege is set to Full. If set to Full, you can modify the Unit Net Price field to reflect an adjustment or override the value of a non-automatic discount in the Price Adjustments form.

Promotional Goods

A Promotional Good is a discounted or free product that is automatically added to the quote when a qualifying product (or products) are 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.

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 greater than 0.

The price list for the line will be the price list set up for the promotional good in Oracle Advanced Pricing. 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.

Behavior

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

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.

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 one modifier, 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 Guide.

Quoting Pricing Behavior

To improve performance, the pricing calls within a quote are restricted. See the notes below to understand the complete pricing behavior.

Notes

Specifying Automatic/Manual Pricing and Tax 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:

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. 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. You can select the Automatic option to enable automatic tax calculation provided you have selected the Automatic option in the Price Calculation LOV.

Note: Setting the profile ASO: Calculate Price to Manual and the profile ASO: Calculate Tax to Automatic is not supported because quote tax is based on the quote product pricing. Similarly, in the UI, you cannot select the Automatic Tax check box in the quote when the Automatic Pricing check box is not selected.

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.

Depending on the setting of ASO: Enable Batch Processing, you can choose to price the quote interactively or through a batch request. See the Oracle Quoting Implementation Guide for more information on this profile.

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 processing time. Therefore, the ability to price the quote manually is more efficient.

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

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 Adjustment regions.

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, irrespective of where the reset pricing action is initiated, the entire quote is repriced.

Submitting a Manual Pricing Request

Irrespective of the profile and check box 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, navigate to Quoting > Price Quote

Notes

Viewing Details of the Pricing Request

Prerequisites

Note: After the batch pricing request completes, the user will receive an e-mail notification.

To view pricing request details, navigate to Quoting > Actions > Pricing Request Details

Canceling a Pricing Request

Prerequisites

Note: When a quote is submitted for batch pricing, the phase may be one of the following: Pending, Inactive or Running.

To cancel a pricing request, select Cancel Pricing Request from the Actions LOV.

Pricing a Product

Notes

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 and all agreements in all currencies with no customer specified and for the related customers. 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 be null.

The price list for both header and line level will be defaulted if the quote currency is the same as the price list currency or there exists a conversion to that currency.

Prerequisites

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

Applying Pricing Attributes

Prerequisites

To apply custom pricing attributes, navigate to:

Notes

Overriding Price Break Level Adjustments

Price breaks are quantity delimiters to which are associated prices or discounts by range of quantity and amount. These breaks may occur at either the line-level or the quote header-level and can be associated with a line or group of lines.

For more information on price break adjustments, see the Oracle Advanced Pricing User's Guide.

Prerequisites

To override price break level adjustments, select Price Adjustment from the Actions LOV in the Quote Header or Quote Lines tab.

Pricing Configurable Products

You must configure model products before pricing because their price depends on the options your customer chooses.

Prerequisites

To price configurable products, navigate to Quoting > Lines

Notes

For setup details, refer the Oracle Configurator Master Index and the Oracle Configurator Implementation Guide.

Applying Promotion Codes

You can modify the price of a whole quote or a single line by applying Promotions to the quote. You will see all available promotions that are set up in Pricing, even those that are not applicable to your quote. When you select the promotion, the quote price is adjusted.

To apply promotion codes to a line or to the entire quote, select Promotions/Pricing Attributes from the Actions LOV.

Prerequisites

Field Behavior

Notes

Adjusting the Price of a Product in the Quoting Form

In order to adjust the price of a product in the Quoting form, there must be a modifier set up in Pricing where the Override flag is checked and the adjustment amount/percent is zero. Changing the selling price on the Oracle Quoting form overrides the adjustment amount of the modifier value (zero) and changes it to the indicated amount.

There are two types of manual adjustments:

Repricing Rules

If repricing leads to changes at the line and/or header level, the manual adjustments should remain unchanged, as illustrated in the following table. Note that only the Automatic Adjustment price changed whereas Manual Adjustment price remained the same after repricing.

Repricing Example
  Before Reprice After Reprice
Unit List Price $100.00 $100.00
Automatic Adjustment (Discount) $20.00 $10.00
Manual Adjustment (Discount) $20.00 $20.00
Unit Net Price $60.00 $70.00

Manual adjustments include discounts and surcharges.

Prerequisites

Notes

Applying a Non-Automatic Discount to a Product or the Entire Quote

You can apply header and group of line level non-automatic adjustments from the header Price Adjustments form. If the adjustment is a header level percentage, it is applied to every line. If the adjustment is group of line level percentage or amount, it is applied to all lines that meet the qualifying criteria. You can also remove non-automatic adjustments in the Price Adjustments form.

Note: The header Price Adjustments form displays both header and line level adjustments.

You can apply or remove group of line and line level non-automatic adjustments from the line level Price Adjustment form. These adjustments are only applied to the current line. The line level Price Adjustments form displays all adjustments applied to a line, including header, group of line, and line level adjustments.

To apply a non-automatic discount to a product or to the entire quote, select Price Adjustments from the Actions LOV.

Prerequisites

Notes

Field Behavior (Header or Line)

Manually Adjusting Prices in the Price Adjustments Form

You can change a manual override adjustment value from the Price Adjustments form if, when the adjustment was created in Pricing, the Override Allowed flag was set to Yes. You can only override adjustments in the Price Adjustments form if the profile ASO: Discounting Privilege is set to Full. If the profile is set to Partial, you can still apply non-automatic discounts.

You can apply manual adjustments in the Price Adjustments form either at the header or line level, but you can only override the price of a header level adjustment in the header Price Adjustments form. You must override the price of the line level and group of line level adjustments in the line level Price Adjustments form.

To manually override the adjustment value, select Price Adjustments from the Actions LOV.

Prerequisites

Field Behavior

Notes

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 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 change the Pricing Date to any date.

If no date is selected, Oracle Quoting uses the current date to get the most current prices.

Prerequisites

Field Behavior

Applying Non-Automatic Charges

Prerequisites

To apply non-automatic charges, select Adjust Charges from the Actions LOV.

Field Behavior

Notes

Overriding Charge Values

Prerequisites

To override charge values in the Charges Summary form, select Adjust Charges from the Actions LOV.

Notes