Understanding Price Rules
This section discusses:
Rounding rules.
Pricing rules.
Pricing formula scenarios.
Price rounding rules identify the number of decimal points to use based on the base price that is used in the pricing calculation, provided the base price is the list price or if using a price list, the price list price. You can associate each price rule with a rounding rule or use the default rounding rule from the arbitration plan. You can also define whether each adjustment is rounded before it is applied, the net price is rounded after adjustments are applied, or both.
Use the Price Rounding Rules page to specify rounding rules. If rounding rules are not established, the system rounds according to how each application uses Enterprise Pricer. In PeopleSoft Order Management, for example, it is rounded to four decimal places, whereas PeopleSoft Customer Relationship Management (CRM) rounds by currency.
A price rule defines the conditions that the transaction must meet for the adjustments to apply. The price rule consists of one or more price conditions and one or more price formulas. The price condition defines the set of circumstances that make a price rule applicable to a transaction. The price formula defines the actions that take place when the pricing conditions are met.
Price Rule Conditions
You can enter the conditions for the price rule in either basic or advanced mode. Basic mode enables you to create price rules using the AND operator. Advanced mode enables you to create more complex conditions. You can use the OR operator as well as the AND operator. Advanced mode enables you to enter the values for the priceby fields directly without going through the search or prompt page for the field. It also enables you to build complex conditions by using other conditions that are already defined for the rule. Advanced mode is the default setting for the page.
This is the process for entering a price rule condition in basic mode:
For a new price rule, select a transaction.
This transaction determines the valid priceby field names that are available for the conditions.
Note: In PeopleSoft CRM installations, the field appears by default and is unavailable for entry.
Change the default status from Pending to Deployed, Inactive, or Ready to Test.
Field or Control
Definition
Pending: Price rule is incomplete. Price rule validation is not performed when you save the rule.
Deployed: Price rule is available for use in price calculations.
Ready to Test: Price rule is complete. The price rule is available for use in the simulator, but not for price calculations.
Inactive: Price rule is not active. The rule is not available for any price calculations. Use to inactivate a rule that was previously in use.
Enter a description for the price rule.
This is a freeform text field.
Enter a short description.
A truncated version of the long description appears by default.
Select the child applications the price rule can be applied to, if the transaction has child applications that use its pricing data.
Select a field name in the Rule Conditions group box.
Enter multiple field names by inserting a new row for each field name. In Basic mode, the system automatically joins the two conditions with the AND operator.
Click the Search button to select values for the field names.
When you click the Search button, the system transfers you to a page from which you can search for and select values for the field name that you select. Values that are already selected for the condition automatically appear as selected. To restrict the search further, enter additional search data in the fields at the top of the page. Click the Search button, select one or more values to apply to the rule condition, and click OK.
The condition appears in the Rule Definition group box. The rule definition based on the last condition that you built appears. Additions to the existing condition are made using the AND condition.
This is the process for entering a price rule condition in advanced mode:
For a new price rule, select a transaction.
This transaction determines the valid priceby field names that are available for the conditions.
Note: In PeopleSoft CRM installations, the field appears by default and is unavailable for entry.
Change the status from Pending to Deployed, Inactive, or Ready to Test.
Field or Control
Definition
Pending: Price rule is incomplete. Price rule validation is not performed when you save the rule.
Deployed: Price rule is available for use in price calculations.
Ready to Test: Price rule is complete and is available for use in the simulator but not for price calculations.
Inactive: Price rule is not active. The rule is not available for any price calculations. Use to inactivate a rule that was previously in use.
Enter a description for the price rule.
This is a freeform text field.
Enter a short description.
A truncated version of the long description appears by default.
Select the child applications the price rule can be applied to, if the transaction has child applications that use its pricing data.
Select a field name in the Rule Conditions group box.
You can enter multiple field names by inserting a new row for each new field name.
Enter the field name values directly in the Identifier field or click the Search button.
Enter multiple values by separating the values with commas. Alternatively, you can click the Search button. The system transfers you to a page from which you can search and select values for the field name that you select for the condition. Values that are already selected for the condition automatically appear as selected. To further restrict the search, enter additional search data at the top of the page and click the Search button. Select the fields to apply to the rule condition and click OK.
The field name and value conditions that are defined in the Rule Conditions group box appear in the Combined Conditions group box. The individual rows in the Combined Conditions group box serve as a foundation for you to create more complex conditions.
Select the rows in the Combined Conditions group box that you want to use to create a more complex condition.
Select either the AND or the OR operator.
Click the Build Rule Definition button to create the advanced price rule.
The system automatically inserts the new condition in the Combined Conditions group box.
To create more complex conditions, selecting the new rows in the Combined Conditions group box, select an operator, and click the Build Rule Definition button until you create the desired rule definition.
Note: The payment methods Voucher, Debit Card, and Procurement Card are not available in the order header payment method field, so price rules are not defined for those payment methods. The multiple payment method field (with those additional values) is available only at payment time.
In Enterprise Pricer, you can create price rules that are as simple or as complex as you like. This section outlines various price rule scenarios and explains the price rule setup and process for each scenario.
Discount/Surcharge Scenario
Create a price rule where Customer 1005 will receive a discount amount of 10.00 EUR for purchasing between 1 and 10 units of product 10050. If 11 to 20 units are purchased, the customer will receive a 20.00 EUR discount. If more than 20 units are purchased, the customer will get a 3 percent discount. This rule is valid for the period through the end of the year.
To set up the price rule scenario, complete these steps:
Select Sales Orders as the transaction in the Rule Attributes group box of the Conditions page and enter a description.
Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type and Cascading in the Cascading/Summed field.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
Today's Date
December 31, 2005
Note: The ID is assigned by the system and it is entered in the Price Formulas group box to select the date range.
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
10
2
Quantity
11
20
3
Quantity
21
9999999999999.9999
Note: The ID is assigned by the system and it is entered in the Price Formulas group box to select the formula range.
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure (UOM)
Currency
Discount/Surcharge By
Amount/Percentage
1
1
EA
EUR
Amount
–10
1
2
EA
EUR
Amount
–20
1
3
EA
EUR
Percentage
–3
Note: Remember to save the price rule and set the Status to either Deployed or Ready to Test.
Product Add  Giveaway Scenario
You can give away products, discount products, create BuyOneGetOne (BOGO) price rules and Adjustment promotions.
Note: For online sales order processing, the product adds that are returned from Enterprise Pricer appear on a separate page. Choose which ones to add to the order. For batch processing, the product adds are inserted into the order automatically.
An example of a giveaway is "January 2005 Promotion  Buy 20–49 units of product A, get one product B free."
To create a price rule that is valid through the end of the year and that enables Customer 1005 to receive a product giveaway of one Product ID 10049 per order for purchasing between 20–49 units of product 10050, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.
Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Product Add as the Price Action Type and set the Rollup By field to Line.
Note: If set to roll up by line, 20–49 of product 10050 must be on the same line to match the price rule. If set to roll up by order (the default), 20–49 of product 10050 can be on different lines and they will still match the price rule.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
Today's Date
December 31, 2005
Note: The ID is assigned by the system and it is entered in the Price Formulas group box to select the date range.
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
20
49
Note: The ID is assigned by the system and it is entered in the Price Formulas group box to select the formula range.
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
UOM
Product Add By
Qty/BOGO Factor
1
1
EA
Quantity
1
Note: Currency is optional. If given, only transactions in the specified currency will match the price rule.
In Price Formula group box of the Formula Detail Page, specify the formula details:
Product ID
UOM Promo
Product Add Type
10049
EA
Per Order
Product Add  Discounted Giveaway Scenario
Discounted giveaways are price rules that involve promoting an item but not necessarily giving the product away. An example of a discounted giveaway is "January 2005 Promotion  Buy product A, get one product B free and three additional purchases of Product B at 50 percent off the list price (Limit one free per order)."
Create a price rule by which with the purchase of Product ID 10050, Customer 1005 will receive one free item (Product ID 10049) and a 50 percent discount off the list price for three additional units of product 10049 when the order is placed between January 1, 2005, and January 31, 2005. Make this rule valid for the entire month of January 2005.
To set up the scenario for the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.
Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Product Add as the Price Action Type.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range D
Pricing Date
Start Date
End Date
1
Order Date
January 1, 2005
January 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
50
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
UOM
Currency
Product Add By
Quantity
/BOGO Factor
Expression
Description
1
1
EA
GBP
Qty & Adj
3
LIST_PRICE * 0.50)
Give three items at half price.
1
1
EA
GBP
Quantity
1
In Price Formula group box of the Formula Detail Page, specify the formula details:
Formula ID
Product ID
UOM Promo
Product Add Type
1
10049
EA
Per Order
2
10049
EA
Per Order
Note: This example requires two formulas, one for the free product and one for the product receiving a 50 percent discount.
For online sales order processing, the product adds that are returned from Enterprise Pricer appear on a separate page. The Customer Service Representative (CSR) can then choose which ones to add to the order. For batch processing, the product Adds are inserted into the order automatically.
The Product Add Price Action Type controls how many products to add after selecting the formula (for example, 2 per line or 2 per order), whereas the Rollup By options control how the formula is selected (for example, using the quantity of each line or sum of all matching lines).
BOGO Scenario
You can specify the quantity of a giveaway with a BOGO factor.
An example of a BOGO is "Buy three of product A, get one of product B free."
Create a price rule whereby, for each purchase of three 10050 products, Customer 1005 will receive one free product (Product ID 10049) when the product is ordered between January 1, 2005, and January 31, 2005. This rule is valid for all of January 2005.
To set up the scenario on the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.
Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Product Add as the Price Action Type and set the Rollup By field to Transaction.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
January 1, 2005
January 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
9999999999999.9999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Product Add By
Qty/BOGO Factor
1
1
EA
GBP
BOGO
3
In the Price Formula group box of the Formula Detail page, specify the formula details:
Product ID
UOM Promo
10049
EA
Note: For online sales order processing, the product adds that are returned from Enterprise Pricer appear on a separate page. The CSR can them choose which ones to add to the order. For batch processing, the product Adds are inserted into the order automatically.
The BOGO factor is used to calculate the product add quantity. The formula used is:
Total Quantity of Lines Matching Price Rule/BOGO Factor.
The resulting number derived from the calculation is truncated so that only the whole number is used.
For example, with a BOGO factor of 3, when the customer buys 2 they get 0 free. When they buy 3, 4, or 5 items, they get 1 free. When they buy 6, 7, or 8 items, they get 2 free items, and so on.
Min/Max Target Price Rule Scenario
Occasionally, products have numerous applicable price rules but business needs require you to dictate that the price for certain products falls within a specific range. When an item is associated with a minimum/maximum target price rule, the product adjustments will not exceed the minimum/maximum price established for that product.
An example of a minimum/maximum target price rule is "Unit price of item 10050 between 122.50 USD and 144.50 USD."
Note: This type of rule is often referred to as an Adjustment Cap. In the addition to capping the adjustment by price, you can also cap the adjustments by amount or percentage.
For this scenario, you will create a price rule for Product ID 10050 that ensures a target price of 122.50 to 144.50 USD for the entire month of January 2005:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.
Add Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Min/Max Target Price as the Price Action Type and set the Rollup By field to Transaction.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
January 1, 2005
January 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
9999999999999.9999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Target Price By
Minimum Price
Maximum Price
1
1
EA
USD
Price
122.50
144.50
Note: After all other adjustments are applied, if the minimum/maximum target price is exceeded, an additional adjustment is applied so that the product price will fall within the minimum and maximum price range specified in the formula.
Minimum/Maximum Margin Scenario
In addition to automatically adjusting the adjustments to ensure that a net price falls within a specified range, Enterprise Pricer can also perform margin checks to flag any transaction line when the product's margin falls outside the established minimum/maximum margins. Each transaction then decides how to respond to handle these transaction lines. In the case of Sales Orders, the schedule is put on "Margin Rule Hold."
The margin is calculated in this way:
Margin = Net Price – Product Cost
Margin Percentage = (Net Price – Product Cost)/Net Price *100
If Net Price = 0, the Margin Percentage is 0.
To calculate the margin, the transaction will pass the product cost even when Cost Plus Pricing is not used.
An example of a minimum/maximum margin price rule is "Margin for item 10050 between 18.5 percent and 44 percent."
For this scenario, you will create a price rule for Product ID 10050 that ensures a target margin of no less than 18.5 percent and no more than 44 percent is in place for all orders generated during January 2005:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.
Add Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Min/Max Margin as the Price Action Type and set the Rollup By field to Transaction.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
January 1, 2005
January 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
9999999999999.9999
On the Price Formulas group box of the Formula page, specify the formula definition:
Date Range IDs
Formula Range IDs
Unit of Measure
Currency
Margin By
Minimum Price
Maximum Price
1
1
EA
USD
Percent
18.5
44
Note: When calculating the margin, you can also use alternate product, instead of product cost, by selecting Alternate Cost as Margin Base in the formula.
Tiered Price Rule Scenario
Tiered price rules indicate to Enterprise Pricer the potential need to break a given transaction line into multiple pricing schedules, thus giving the customer control over exactly the discount given by quantity ranges. Enterprise Pricer will perform the tiered calculation and create pricing schedules to pass back the quantity and net price for each quantity, along with the matching formula.
Note: Tiered pricing is only available for discount/surcharge and price override price rules. The formula breaks are based on quantity or price and should not overlap. If a gap occurs in the formula breaks, the gap is treated as no adjustment applied. During the pricing process, when sorting the price rules, the overall adjustment for the schedule is calculated to compare the tiered rule with other price rules.
An example of a tiered price rule is "Buy 25 of Product A. The first 25 are priced at 15 USD each, and additional units are priced at 12 USD each."
Create a tiered price rule for Product ID 10050 that ensures that if 50 units of Product ID 10050 are purchased on a single line of a sales order, then 25 units are priced at 15 USD per item and 25 units are priced at 12 USD per item for all orders generated during January 2005.
To set up the scenario on the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.
Add Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Price Override as the Price Action Type and set the Rollup By field to Line.
Select the Tiered Pricing check box and specify a tiered increment of 1.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
January 1, 2005
January 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
25
2
Quantity
26
9999999999999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1
1
EA
USD
Price
15
1
2
EA
USD
Price
12
OneTime Only Price Rule Scenario
Enterprise Pricer supports the creation of price rules that are identified as onetime only, per price rule or per customer. When the onetime only price rule is determined to apply to the order, it can apply to multiple order lines/schedules in the same order.
An example of a onetime only price rule is "Customer 1005: Spend 1000 USD or more on an order, receive 10 percent off an order if you book it during the month of February 2005. This discount is offered to the customer only on the first order."
To set up the scenario on the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page. Enter a description.
Add Sold To Customer and Customer ID 1005 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type, set the Rollup By field to Transaction, and set the One Time Only field to Per Customer.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
February 28, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Price
1000
9999999999.9999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1
1
EA
EUR
Percentage
5
Mutually Exclusive Price Rule Scenario
Mutually exclusive price rules are used for discounts that are so good that no other discounts are allowed in conjunction with them. A mutually exclusive arbitration type enables you to create or modify arbitration plans to sort mutually exclusive rules appropriately.
An example of a mutually exclusive price rule is "Customer 1005: Spend 1000 USD, and buy 200 or more of product A to get 50 percent off the order. Not combined with other discounts."
Create a price rule whereby Customer 1005 receives one transaction during February 2005 that is discounted by 50 percent. The rule is valid only one time during the month of February.
To set up the scenario for the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.
Add Sold To Customer and Customer ID 1005, and add Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type, set the Rollup By field to Transaction, select the Mutually Exclusive check box, and set the One Time Only field to Per Customer.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
February 28, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Price
1000
9999999999.9999
2
Quantity
200
9999999999.9999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1
1,2
EA
EUR
Percentage
50
Compound Date Breaks Within a Price Rule Scenario
The previous scenarios provided examples of matching a single date for applying price formulas. You can also create price rules by which multiple dates must match for the price formula to apply.
An example of a price rule with multiple date breaks is "Customer 1005: Order 1000 USD worth of product 10050 and book the order in February 2005 with a scheduled ship date in February 2005, and save 5 percent off the order."
Create a price rule whereby Customer 1005 buys 1000 USD of Product 10050 with an order date in February 2005 and a ship date in February 2005, and receives a 5 percent discount off their order total.
To set up the scenario for the price rule, complete these steps:
Add Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.
Add Sold To Customer and Customer ID 1005, and add Product ID 10050 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Total Order Discount/Surcharge as the Price Action Type.
The Rollup By field is automatically set to Transaction.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
February 28, 2005
2
Schedule Ship Date
February 1, 2005
February 28, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Price
1000
9999999999.9999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1,2
1
EA
EUR
Percentage
5
Compound Pricing Formula Scenario
Compound formulas use four values: quantity, amount, weight, and volume. During the pricing process, a price rule with compound formula breaks will match the Price Type node in the arbitration plan if one of the values of the compound break matches that of the price type. For example, if the price rule is by quantity and amount, then it will match both the Quantity and Extended Price type nodes in the arbitration plans.
Note: Not all four compound formula types are valid for each transaction. The application and transaction setup determines the types of compound formulas that are valid. For example, only quantity and amount are used for sales order lines, and weight and volume are valid for load pricing.
An example of a compound price rule is "Apply a 10 percent discount if the total order is 50,000 USD or more and the total order quantity is 500 or more. Both conditions must be met to receive the 10 percent discount."
Note: Compound Pricing Formula rules are not allowed for tiered and periodtodate price rules because the price rules use the accumulated quantity or amount across the order to find the formula.
To set up the scenario for the price rule, complete these steps:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page. Enter a description.
Add Sold To Customer and Customer ID 1005 to the Rule Conditions group box of the Conditions page.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Transaction.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
February 28, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Price
50,000
9999999999.9999
2
Quantity
500
999999999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1
1,2
EA
EUR
Percentage
10
Rollup Options Within a Price Rule Scenario
Enterprise Pricer enables you to indicate how quantities are combined for quantity price breaks using the Rollup By option at the price rule level.
The rollup rule options are:
Transaction
Rollup is by transaction, from all order schedules that match the same price rule.
Line
Rollup is by order line.
Schedule
Rollup is by order schedule.
Rollup Rule
Rollup is controlled by a Rollup Rule.
Suppose this price rule is created:
Price Rule: Sinks
Price Action Type: Discount/Surcharge
Condition: Product = Sinks
Formulas:
Formula # 
Min and Max Quantity 
Discount 

1 
1–10 
–5 percent 
2 
11–20 
–10 percent 
3 
21–30 
–15 percent 
4 
31–99 
–20 percent 
The sales order contains:
Line 
Schedule 
Quantity 
Product 

1 
1 
5 
Sinks 
1 
2 
7 
Sinks 
2 
1 
15 
Sinks 
2 
2 
8 
Sinks 
If the Rollup By option on the order is set to:
Transaction (or the Rollup By option is blank), the order is processed as outlined in the table:
Line
Schedule
Quantity
Product
Rollup Quantity
Formula
Adjustment
1
1
5
Sinks
35
4
–20 percent
1
2
7
Sinks
35
4
–20 percent
2
1
15
Sinks
35
4
–20 percent
2
2
8
Sinks
35
4
–20 percent
Line, the order is processed as outlined in the table:
Line
Schedule
Quantity
Product
Rollup Quantity
Formula
Adjustment
1
1
5
Sinks
12
2
–10 percent
1
2
7
Sinks
12
2
–10 percent
2
1
15
Sinks
23
3
–15 percent
2
2
8
Sinks
23
3
–15 percent
Schedule, the order is processed as outlined in the table:
Line
Schedule
Quantity
Product
Rollup Quantity
Formula
Adjustment
1
1
5
Sinks
5
1
–5 percent
1
2
7
Sinks
7
1
–5 percent
2
1
15
Sinks
15
2
–10 percent
2
2
8
Sinks
8
1
–5 percent
Simple Rollup Price Rule Scenario
A Rollup price rule is used to roll up the quantities or amounts. The rollup is then used by a different price rule to match the formula break for adjustment consideration. Because the rollup rule it is intended to group products for formula consideration, the rollup rule is always by transaction.
You create several rules for the various types of bathroom fixtures.
You have one rule that is a rollup rule that applies to all products that belong to the product group called Bathroom Fixtures.
This rule is used to roll up the total quantities and is called Fixtures.
You have one rule called Showers that provides a discount on shower stalls.
You have one rule called Tubs that provides a discount on bathtubs.
You have one rule called Sinks that provides a discount on sinks.
To set up the scenario, you must create all four price rules:
Create the rollup rule for all items belonging to the Bathroom Fixtures product group (Group FIX).
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Fixtures.
Add Product Group to the Rule Conditions group box of the Conditions page, and select the product group called FIX.
In the Rule Attributes group box of the Formula page, select Rollup Only Rule as the Price Action Type.
Set the Rollup Exclude field to None.
For the rule that applies to products belonging to the Shower Stalls product group (Group STALL):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Showers.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to STALL.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the Fixtures rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
10
2
Quantity
11
20
3
Quantity
21
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
–2
1
2
EA
Percentage
–5
1
3
EA
Percentage
–8
For the rule that applies to products belonging to the Bathtubs product group (Group TUBS):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Tubs.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to TUBS.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the Fixtures rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
10
2
Quantity
11
20
3
Quantity
21
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
–1
1
2
EA
Percentage
–6
1
3
EA
Percentage
–10
For the rule that applies to products belonging to the Sinks product group (Group SNKS):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Sinks.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to SNKS.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the Fixtures rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
10
2
Quantity
11
20
3
Quantity
21
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
–5
1
2
EA
Percentage
–10
1
3
EA
Percentage
–20
A sales order comes in that has these order lines attached to it:
Order Line 
Order Qty 
Product 
Product Group(s) 

1 
10 
Kohler sink, std 
SNKS, FIX 
2 
10 
Smithson shower stall, std 
STALL, FIX 
3 
5 
Delta tub, std 
TUBS, FIX 
During order processing, the price rule Fixtures is used to roll up the total quantities. In this case, all order lines match. The total quantity ordered is 25.
Order line 1 matches the Sinks price rule.
Because the Sinks rule uses Fixture as a rollup rule, the formula matched is the formula with a minimum amount set to 21 and a maximum amount of 99, and a 20 percent discount is applied.
Order line 2 matches the Showers price rule.
Because the Showers rule uses Fixture as a rollup rule, the formula matched is the formula with a minimum amount of 21 and a maximum amount of 99, and an 8 percent discount is applied.
Order line 3 matches the Tubs price rule.
Because the Tubs rule uses Fixture as a rollup rule, the formula matched is the formula with a minimum amount of 21 and a maximum amount of 99, and a 10 percent discount is applied.
Complex Rollup Price Rule Scenario
Using the Rollup Rule to roll up the transaction, it is possible to create multiple baskets in the order. For example, in additional to the rules described in the previous section, there are Fridges and Stoves belonging to a product group called Kitchen, and Towels belonging to both product groups Bathroom Fixtures and Kitchen.
You create several additional rules for the various kitchenrelated items.
You have one rule that is a rollup rule that applies to all kitchen products, and it is called Kitchen.
You have one rule called Towels that provides a discount on towels.
You have one rule called Refrigerators that provides a discount on refrigerators.
You have one rule called Stoves that provides a discount on stoves.
To set up this scenario, you must create four price rules:
Create the rollup rule for all items belonging to the Kitchen product group (Group KITC).
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Kitchen.
Add Product Group to the Rule Conditions group box of the Conditions page, and select the product group called KITC.
In the Rule Attributes group box of the Formula page, select Rollup Only Rule as the Price Action Type.
Set the Rollup By field to Rollup Rule.
Set the Rollup Exclude field to None.
Create the rule that provides a discount to products belonging to the towels product group (Group TOWL):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Towels.
Note: The towel fixtures belong to both the KITC product group and the FIX product group, but the rollup rule specified for the Towels price rule is the Fixtures rollup rule.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to TOWL.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the FIX rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
30
2
Quantity
31
50
3
Quantity
51
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
5
1
2
EA
Percentage
10
1
3
EA
Percentage
20
Create a rule that provides a discount to products belonging to the Refrigerator product group (Group FRDG):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Refrigerators.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to FRDG.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the KITC rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
10
2
Quantity
11
20
3
Quantity
21
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
2
1
2
EA
Percentage
3
1
3
EA
Percentage
4
For the rule that provides a discount to products belonging to the stoves product group (Group STOV):
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Stoves.
Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to STOV.
In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.
Set the Rollup By field to Rollup Rule, and select the KITC rollup rule.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
15
2
Quantity
16
30
3
Quantity
31
99
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Price
1
1
EA
Percentage
5
1
2
EA
Percentage
7
1
3
EA
Percentage
9
The initial sales order had three order lines:
Order Line 
Order Qty 
Product 
Product Groups 

1 
10 
Kohler sink, std 
SNKS, FIX 
2 
10 
Smithson shower stall, std 
STALL, FIX 
3 
5 
Delta tub, std 
TUBS, FIX 
Three additional lines were added to the sales order:
Order Line 
Order Qty 
Product 
Product Groups 

4 
20 
LQ Towel Rack, small 
KITC, FIX 
5 
10 
GE refrigerator model 224 
FIX, KITC 
6 
5 
Maytag stove model 4492 
FIX, KITC 
Each of the two rollup rules has a basket:
The rollup price rule Fixtures has a basket of 45 (the sum of the order quantities in order lines 1, 2, 3, and 4) and is used by price rules Showers, Tubs, and Towels. These discounts are applied:
Order line 1, Kohler sink, is discounted by 20 percent.
Order line 2, Smithson shower stall, is discounted by 8 percent.
Order line 3, Delta tub, is discounted by 10 percent.
Order line 4, LQ Towel Rack, is discounted by 10 percent.
Rollup price rule Kitchen has a basket of 35 (order lines 4, 5, and 6) and is used by price rules Refrigerators and Stoves. These discounts are applied:
Order line 5, GE refrigerator model 224, is discounted by 4 percent.
Order line 6, Maytag stove model 4492, is discounted by 9 percent.
Note: Order line 4, which includes the towel rack item, is included in the Kitchen basket. The Kitchen rollup rule is not used by the towels because the Towels rule specifies the Fixtures rule as the rollup rule.
Maximum Quantity and Maximum UOM for Price Rule
For any given price, you can specify the maximum quantity to which the price rule can apply. For example, you might want to promote a new product at a discount price but limit the quantity of products in the discount program.
For example, a manufacturer has approached you asking you to carry a new line of product. You agree to sell the product on a trial basis to gauge the potential demand from the customer base. The manufacturer agrees to provide you with a specified quantity of the product, 10,000 units, at a special price, 25 USD. You agree to pass the special price on to the customer. You set up a price rule for this product at the special price with a maximum quantity defined. Once the maximum is reached, the price rule is discontinued or expired, and further sales of the product follow the normal pricing rules.
To set up the scenario, you must create a price rule identifying the new product group (1234) and specifying the maximum quantity to be purchased at the discounted amount:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Product Intro.
Add Product Group ID to the Rule Conditions group box of the Conditions page, and set the Group ID to 1234.
In the Rule Attributes group box of the Formula page, select Price Override as the Price Action Type.
Set the Rollup By field to Transaction.
Set the Cascading/Summed field to Summed.
The manufacturer has agreed to give you 10,000 units of the items in this product group.
In the Maximum Quantity field, enter 10000.
In the UOM field, enter EA.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
9999999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Currency
Price Override By
Price
1
1
EA
USD
Price
25.00
All sales order transactions based in USD, including items belonging to the group ID 1234, are priced at 25 USD until 10,000 are sold.
Pricing with a Different Base
Enterprise Pricer enables you to specify a base other than list price for price rule calculations. The system supports these sources as the base.
List Price (default)
Cost
Buying Agreement
Alternate Cost
If the order line is associated with a buying agreement, then the base is always the buying agreement.
If the user has set up specific rules (Pricing Base price rules) to indicate that pricing base is based on certain conditions, then the arbitration plan of the order is used to filter and sort the matching rule to determine the base. The arbitration plan should have a node with price rule type of Pricing Base at the toplevel node in the tree. You can use one of these decisions to select the pricing base:
Use Highest Base.
Compare list price and cost and use the larger of them as the pricing base.
Use Lowest Base.
Compare list price and cost and use the smaller of them as the pricing base.
Use Cost As Base.
Use List Price As Base.
Use Alternate Cost As Base.
After determining the base, the other matching price rules are processed and the selected base is used for all the pricing calculations.
If the order line is not associated with a buying agreement and is not costbased, then the list price is used.
Note: The price rule has four applicable options: Applicable to List Price, Applicable to Buying Agreement, Applicable to Cost Base, and Applicable to Alter Cost Base. After determining the pricing base, only price rules with the matching applicable option selected are applied. For example, if the base is Cost, then only the price rules with the Applicable to Cost Base option selected are applied. For price rules with the option Applicable to Alter Cost Base selected, note that the alternate cost is another cost value. For Order Management, alternate cost is the product cost with a factor applied to it.
Determining Net Price Using Mathematical Expressions
Enterprise Pricer enables you to create mathematical expressions in the price rule that are used to calculate the net price for a given product. Suppose you want to give a 5 percent discount plus a 5 USD discount to all orders of product 10050 during the ordering period February 1, 2005, to December 31, 2005.
To set up this scenario, you must create a price rule that identifies the mathematical expression you want to use to determine the net price for the product:
Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.
In the Description field, enter Math Expr.
Add Product ID to the Rule Conditions group box of the Conditions page, and set the Product ID to 10050.
In the Rule Attributes group box of the Formula page, select Price Override as the Price Action Type.
Set the Rollup By field to Transaction.
Set the Cascading/Summed field to Summed.
In the Date Range group box of the Formula page, enter the date range during which this price rule applies:
Date Range ID
Pricing Date
Start Date
End Date
1
Order Date
February 1, 2005
December 31, 2005
In the Formula Range group box of the Formula page, enter the formula price and quantity information:
Formula Range ID
Price Type
Minimum Amount
Maximum Amount
1
Quantity
1
9999999
In the Price Formulas group box of the Formula page, specify the formula definition:
Date Range ID
Formula Range ID
Unit of Measure
Price Override By
Expression
1
1
EA
Expression
LIST_PRICE * 0.95  5
When product 10050 appears on a sales order with an order date between February 1, 2005, and December 31, 2005, Enterprise Pricer uses the value passed and evaluates the expression to calculate the net price for item 10050 and return it to Sales Order.
Note: When you have a Price Action Type of Discount/Surcharge or Price Override, if you select Price Override By Amount and Expression, Percentage and Expression, or Price and Expression, Enterprise Pricer will perform two calculations and choose either the larger or the smaller net price, depending on how you set the Smaller/Larger field. If you select the Smaller option, Enterprise Pricer selects the smaller net price. If you select the Larger option, Enterprise Pricer selects the larger net price. For example, the product list price is 100 USD, and the formula is specified as Amt & Expr, and Smaller is selected. Therefore, the discount amount is –10, and the expression is "LIST_PRICE * 0.95." Discount by –10 results in a net price of 90. The expression is evaluated as 100 * 0.95 = 95. Because 90 is smaller than 95, a discount of –10 is applied for a net price of 90.
Valid Pricing Combinations
The Adjustment Flag values and labels for the Adjustment Flag, Numeric Value, Text Value, Minimum Amount, and Maximum Amount fields depend on the price action type of the price rule, and they appear in the table. If a listed field is not applicable to the specified price action type, the table cell is blank:
Price Action Type 
Adjustment Flag Values 
Adjustment Label 
Numeric Value Label 
Text Value Label 
Minimum Amount Label 
Maximum Amount Label 

Discount/Surcharge 

Discount / Surcharge By 
Amount / Percentage 
Class / Expression 

Price Override 

Price Override By 
Price 
Class / Expression 

Product Add 

Product Add By 
Quantity / BOGO Factor 
Expression 

Total Order Discount/Surcharge 

Discount / Surcharge 
Amount / Percentage 
Class / Expression 

Minimum/Maximum Target Price 
Price 
Target Price 
Minimum Price 
Maximum Price 

Minimum/Maximum Target Discount 

Target Discount By 
Minimum Amount / Percentage 
Maximum Amount / Percentage 

Minimum/Maximum Target Surcharge 

Target Surcharge By 
Minimum Amount / Percentage 
Maximum Amount / Percentage 

Related Business Objects 

Price List Only Condition 

Rollup Only Rule 

Minimum/Maximum Margin 

Margin By 
Minimum Amount / Percentage 
Maximum Amount / Percentage 

Pricing Base 

Standard Discount 
This table lists the values in the Adjustment Flag field and the options that are hidden for each value:
Adjustment Flag 
Numeric Value 
Text Value 
Minimum Amount 
Maximum Amount 
Market Rate Index 
Small or Large 

Amount 
Not used for Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 

Percentage 
Not used for Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 

Price 
Not used for Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 
Not used if not Minimum / Maximum Rules 

External Class 
Yes 

mathematical Expression 
Yes 
Yes 

Quantity 
Yes 

BOGO Factor 
Yes 

Quantity with Adjustment 
Yes 
Yes 

BOGO with Adjustment 
Yes 
Yes 

Quantity Expression 
Yes 

Amount and mathematical Expression 
Yes 
Yes 
Yes 
Yes 

Percentage and mathematical Expression 
Yes 
Yes 
Yes 
Yes 

Price and mathematical Expression 
Yes 
Yes 
Yes 
Yes 