PeopleSoft CRM 9.1 Order Capture Applications PeopleBook

Understanding Product, Pricing, Proration, and Catalogs

This chapter discusses:

Products, PeopleSoft Enterprise Pricer, and catalogs.
Product setup.
Pricing setup.
Proration of price adjustments.
Catalog setup.

Products, PeopleSoft Enterprise Pricer, and Catalogs

This section discusses the integration of products, pricing, and catalogs with Order Capture.

Products

Product definitions provide the foundation for many features of PeopleSoft Customer Relationship Management (PeopleSoft CRM), including product ordering, catalogs, and catalog searches. Product records are also used by PeopleSoft Advisor to create the Advisor dialogs that are accessed from within Order Capture and Order Capture Self Service.

You can use many of the elements used to define products—such as product brand, product category, product group, and product attributes—to dynamically generate catalogs based on criteria that you specify. For example, you can create rules that select only certain brands for inclusion in a catalog or that include products based on their attributes.

Pricing

PeopleSoft Enterprise Pricer enables real-time, dynamic pricing on quotes and orders based on company pricing policies. Order Capture users define rules that determine which discounts, surcharges, giveaways, and conditions apply. As products are added to a quote or an order, PeopleSoft Enterprise Pricer applies all of the pricing rules (for both non-recurring and recurring charges) that match the defined conditions to determine final prices. Conditions might include number of products ordered, type of customer, or customer region. The same pricing engine also allows customer service representatives (CSRs) to manually adjust prices and view all price adjustments related to an order or a quote.

Catalogs

The PeopleSoft CRM Catalog contains a hierarchy of products that Order Capture and Order Capture Self Service can access. You can access catalogs from different locations within the collaborative selling suite of applications. Users can navigate directly to Catalog Search and enter search criteria in the search dialog box, or configure the PeopleSoft CRM portal homepage to display a catalog search pagelet. You can also navigate to the catalog by using the order form.

Note. To navigate to the catalog by using the order form, you must have the PeopleSoft CRM Portal Pack installed.

Using the order form, CSRs can search catalogs for product information. Order Capture Self Service customers can also view catalog information.

In addition, you can restrict user access to a product by validating it against a catalog when the product is added to an order.

CSRs and customers can also access the product catalog by way of PeopleSoft Advisor dialogs, and CSRs and customers can launch PeopleSoft Advisor from the catalog to retrieve product recommendations based on dialog interactions.

If you try to submit a product without linking it to a catalog, the order is held with the message Product (number), (Name) on Line 1 is not in the Customer's Product Catalog. You have two choices:

You can override the hold by changing the hold status.
You can turn off this hold.

If you turn the hold off, it will never fire for any CSRs. If you do not want to use catalogs at all in the system, or you do not care if customers order products not in their catalog, then you can simply turn the hold off via the Order Capture Workbench.

To turn off this hold, navigate to Set Up CRM, Product Related, Order Capture, Capture Type Workbench. Choose the SetID you are working with. Change the Capture Type codes for each scenario. Start with Quote or Order. Chose Hold Processing. Clear Product Catalog Violation and save.

Note. The default catalog in Find Products in the left navigation changes after selecting a different business unit in the Add Order page. This ensures that the CSR will see consistent catalogs while being in Add Order or in Find Product.

Product Setup

To define products and packages in PeopleSoft CRM, you:

Create definitional elements to associate with product elements such as product brand, product category, and competency codes.

These are reusable attributes that you associate with product IDs in step 2 to create unique product and package definitions.
Create the product and associate definitional elements (as well as other product attributes and parameters) with the product IDs.
Assign product units of measure on the Product Attributes by UOM page.
Define package components on the Package Components page (for products defined as packages).
Establish product prices using the Product Price page (for individual products and packages with top-level pricing) or the Product Component Pricing page (for packages using component-level pricing).
Define product relationships on the Product Relationships page.
Associate standard or custom notes with products on the Notes page.

Pricing Setup

Documentation on how to set up and use PeopleSoft Enterprise Pricer appears in the PeopleSoft Enterprise Pricer 9.1 for CRM PeopleBook.

See Oracle's PeopleSoft Enterprise Pricer for CRM Preface.

Proration of Price Adjustments

This section provides an overview of adjustment price proration and discusses:

Order level adjustments.
Price adjustment history.
Proration of adjustments per line.
Customer billing integrations.

Order Level Adjustments

Order Capture enables you to prorate order level adjustments when creating and maintaining orders and quotes. To use this functionality, you must create a Total Order Discount/Surcharge price rule in Enterprise Pricer.

Proration of order level adjustments consists of three major components:

Configuring the application to use proration.

A field on the business unit determines if the order level adjustments are prorated or not.
Dividing adjustments over the order lines.

The ratio for the prorated adjustment considers the net price of each line with the quantity ordered in order to prorate the order level adjustment appropriately.
Displaying adjustment history.

The history table keeps track of the adjustments that are applied to each line. Any adjustment that affects the net unit price is reflected in the history table.

These guidelines apply to creating orders with an order level adjustment:

Guideline	Description
Different adjustment types	More than one order level adjustment can be applied to the order at the same time. These adjustments can be either a fixed amount or a percentage.
Manual order level adjustments	You can add a manual adjustment that will apply to the entire order. The manual order level adjustments are grouped with the order level adjustments that were applied by the Enterprise Pricer. The sum of both the manual and system adjustments gives the total order amount that will be prorated. Note that the system does not support the proration of recurring prices. Note. Manual adjustments are not supported in service management orders.
Order level discount across order lines	The ratio for the prorated adjustment considers the net price of each line with the quantity ordered in order to prorate the order level adjustment appropriately.
Price adjustment history	The history table keeps track of the adjustments that are applied to each line. Any adjustment that affects the net unit price is reflected in the history table.
Repricing an order	When proration is turned on, it is performed every time the order is repriced.
Order of adjustments	The adjustments from price rules defined to be applied at the line level are always applied first. The manual adjustments are applied second and price protect the line. The prorated order level adjustments are applied last.
Discount/Surcharge in the total section	When the order level adjustments are prorated, the fields use to store the order level adjustment on the order are set to 0. The Discount/Surcharge rows in the total grid are hidden.
Holds	By adjusting the price on a line with a prorated adjustment, it is possible that the order will go on hold if the price goes under the minimum selling price. The existing holds are applied.
Package Products	Package products are prorated just like other products on the order. Pricing for these can be at the component level, or at the product header level.

The following guidelines apply to maintaining orders with an order level adjustment:

Guideline	Description
Protected prorated adjustments	Order lines with these statuses protect the prorated amount for that line: 5000 – Picked 5100 – Partially Picked 5500 – Purchased 5600 – Partially Purchased 5700 – Billed 5750 – Partially Billed 6000 – Shipped 6010 – Complete 6100 – Partially Shipped Note. When the prorated amount is protected, it is not recalculated every time the proration calculation is done.
Cancelled order lines	When prorating the order level adjustments, the lines that are cancelled are excluded from the proration, as well as Engagement Service products.
Adding product to order	Adding a product to the order forces the proration to be done again.
Changing existing order line	Change to an existing order lines forces the proration to be done again.
Deleting order line	Deleting an order line forces the proration to be done again.
Minimum order level adjustment	If an order is being maintained, it is possible that the prorated adjustments that are protected based on the line status will be higher than the new order level adjustment that will be calculated after the order is changed. In this case, the amounts that are protected will remain the same and won’t be decreased to match the new order level adjustment.

The following guidelines apply to converting a quote with an order level adjustment to an order:

Guideline	Description
Calculation of order level adjustments for orders that come from a quote.	There is no flag on the order that can be use to indicate that the order level adjustments are price protected. This flag exist only for the line prices. When an order is created from a quote, the Related Actions tab on the order contains a reference to the originating quote. This reference is used to determine if the order level adjustment should be recalculated, or if the one calculated on the quote should remain.
Proration of order level adjustments for orders that come from a quote.	When an order is created from a quote, there is no proration of order level adjustments done on the order. The proration is done only on the quote. If the business unit is set up to allow for editing the order following conversion from a quote, then any changes made to the order results in recalculating the prorated adjustments.

Guideline

Description

Calculation of order level adjustments for orders that come from a quote.

There is no flag on the order that can be use to indicate that the order level adjustments are price protected. This flag exist only for the line prices.

When an order is created from a quote, the Related Actions tab on the order contains a reference to the originating quote. This reference is used to determine if the order level adjustment should be recalculated, or if the one calculated on the quote should remain.

Proration of order level adjustments for orders that come from a quote.

When an order is created from a quote, there is no proration of order level adjustments done on the order. The proration is done only on the quote. If the business unit is set up to allow for editing the order following conversion from a quote, then any changes made to the order results in recalculating the prorated adjustments.

Proration of Adjustments Per Line

The following guidelines apply to prorating the order level adjustment per line:

Guideline	Description
Order lines included in the proration	Order lines that are cancelled or that already have a prorated adjustment that is protected are not included in the proration. Both scenarios do not apply to Engagement Service products.
Order lines excluded in the proration	Order level adjustments that have already been billed should remain the same and should not be reapplied. For example: an order was created with 4 order lines and a prorated order level discount of 20$ had been prorated evenly across these lines (each line receiving 5$ discount). Line 1 has been billed and the other lines have not. If you maintain the order and add a fifth line, the 20$ order level discount still applies. When the proration is done again, instead of giving 4$ per line, the line that was billed will keep 5$ of the 20$ and the other 15$ will be divided across the 4 other lines.
Displaying order level adjustments as an amount	Order level adjustments can be both a percent and an amount. The total adjustment is calculated as an amount so that the amount can be divided across the lines.
Net unit price adjustment	The net unit price on the line is the price that gets updated. Order Capture does not store the extended price for a line. The net unit price multiplied by the quantity gives the extended price. The order quantity is included when calculated with the adjustment ratio applied.
Adjustment ratio calculation	The following formula is used to find the adjustment to apply to the net price on the line: ((Order Level Adjustment – Protected Amount)* (Net Price)/(Order Sub Total – Extended Line Price of Protected Lines)).
Recurring charges	Only nonrecurring charges are affected by the proration.
Price protected lines	The prorated adjustment amount can be applied to a line, even if that line is protected.
Giveaway products	Giveaways lines are excluded from the proration
Free periods products	Free Periods lines are excluded from the proration

Calculation Example

If an order has these two lines:

Product	Quantity	List Price	Extended Price
1000	3	20.00	60.00
1001	7	15.00	105.00
Total order price			165.00

To prorate an order level discount of $20.00 USD, first calculate what the unit price of each product must be to arrive at the discounted order amount:

For product 1000, the discounted unit price is $20.00 - (20.00 * 20.00 / 165.00), or $17.58 USD.

The extended price is 3 * 17.58, or $52.74 USD.
For product 1001, the discounted unit price is $15.00 - (20.00 * 15.00 / 165.00), or 13.18 USD

The extended price is 7 * 13.18, or $92.26 USD.

In this scenario, the $20.00 order-level prorated discount needs to be proportionately distributed between the two order lines, therefore, the calculations of the actual discounts for order lines of products 1000 and 1001 are (20.00 * 20.00 / 165.00) and (20.00 * 15.00 / 165.00) respectively.

The order total is $52.74 + $92.26, or &145.00 USD.

Note. When line quantities are greater than 1, the entire discount amount might not prorate evenly across the order lines. For example, using an order discount of 20.05 in the above scenario, would the result in only USD $20.03 of the discount being applied. The remaining $02 USD cannot be evenly spread to a unit price when the line quantities are 3 and 7, and therefore remains unapplied.

Price Adjustment History

The following guidelines apply to reviewing price adjustment history:

Guideline	Description
Prorated adjustments on the price adjustment page	The price adjustment history page shows all the adjustments that are applied to the list price in order to calculate the net unit price. The prorated adjustments are displayed on this page.
Deleting history rows	The Adjustment History page allows the user to delete an adjustment that was applied manually. System adjustments and prorated adjustments cannot be removed. To remove prorated adjustments that result from a manual order level adjustment, remove the manual order level adjustment. You cannot remove prorated adjustments that result from a price rule.
Add a Final Unit Price to the adjustments page	Final Unit Price reflects the list price with discounts subtracted, and surcharges added. This is displayed in the Unit Price field on the order line.

Customer Billing Integrations

The current integration to Supply Chain Management (SCM) and TBP will not be affected by the changes made for prorating the order level adjustments.

The following guidelines apply to billing integrations to Supply Chain Management (SCM) and TBP:

Guideline	Description
Integration to TBP with proration turned ON	When proration has been turned ON, the order level adjustments will be prorated across the order lines and passed to the TBP as part of the line price. No adjustments are stored at the order level.
Integration to SCM and TBP with proration turned ON	When proration has been turned ON, and the order/quote contains products that are passed to TBP and other that are passed to the fulfillment system, the order level adjustments will be prorated across the order lines and passed to SCM and TBP as part of the line price.
Integration to TBP with proration turned OFF	When proration has been turned OFF, the order level adjustments will be stored at the order level but they won’t be passed to TBP.
Integration to Supply Chain Management (SCM) with proration turned OFF	When proration has been turned OFF, the order level adjustments will be stored at the order level and they will be passed to SCM as an order level adjustment.
Integration to Supply Chain Management (SCM) and TBP with proration turned OFF	When proration has been turned OFF, and the order/quote contains products that are passed to TBP and other that are passed to the fulfillment system, the order level adjustments will be stored at the order level and will be passed to SCM as an order level adjustment.

Catalog Setup

PeopleSoft CRM enables you to define the layout and content of online product catalogs for internal and external use. You define the look and feel of catalogs by creating display templates, and then define the contents that you want to organize and present according to your template definitions. You can designate products for inclusion in a catalog either by direct association (using product IDs) or by creating business rules to dynamically build product content based on the selection criteria that you define. Similarly, you can control user access to catalogs (as well as tailor catalogs to users) by directly associating user IDs with specific catalogs or by setting up business rules to establish permissions.