Setting Up Price Rules

Transaction

Select a value from the available options to create a new price rule and populate the list of values for the field names.

This field is only visible in add mode. Once the rule is created for a transaction, you cannot change the transaction.

Status

Select from these values:

Deployed: Activates the price rule so that it is used to determine price adjustments. You must enter data on the Formulas page before you can save the price rule in this status. You can also use the simulator to test price scenarios in this status.

Inactive: The price rule is not active. The rule is not available for any price calculations. Use to inactivate a rule that was previously in use.

Pending: This status appears by default. You can save the price rule in this status without adding data on the Formulas page. Use this status when you want to save the price rule, but you don not want the system to process any edits on the rule. You cannot use a rule in this status in the simulator, and price rule validation is not performed when you save the rule.

Ready to Test: Use this status to test the rule with the simulator, but the rule is not available for use in price calculations.

Description

Enter a description of the rule.

Short Description

Enter a short description of the rule. The first 20 characters of the description appear by default. This field is used as the label on pages and inquiries.

Also Used by Transaction

The Also Used by Transaction is used to select child applications the price rule can be applied to, if the transaction has child applications that use its pricing data.

Error

If an error exists in the price rule definition, a red square box appears in this column. Correct the error. This field only appears if an error exists. Position the mouse cursor on top of the red square to view a detailed description of the error.

Field Name

Select the price-by field to use with the rule condition. The valid list of price-by fields is established on the Transaction Price By Keys page by the Enterprise Pricer system administrator. The list of fields that is available when you create the price rule is determined by the transaction.

Identifier

Enter values for the price-by fields; use a comma to separate multiple values. This option is available only in Advanced mode.

Search Push Button

Click to search for valid price-by field values.

And/Or

Select either operator to combine the selected conditions. This option is available if you are using advanced mode.

Build Rule Definition

After selecting the conditions to use and the conditional operator, click this button to build the rule definition. The new condition is added to the Combined Conditions grid, and the definition appears in the Rule Definition group box.

Price Action Type

Define the function of the price rule when it is applied to a transaction. This field is required.

Values vary for each transaction:

Discount/Surcharge: Apply a discount or surcharge to the line.

Min/Max Margin: Perform a margin check. If a line falls outside one of the minimum/maximum margin rules, Enterprise Pricer will return the match to the transaction. Each transaction will take proper action. For order management, the schedule is put on 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, then the Margin Percentage is 0.

To calculate the margin, Transaction Pricer passes the Product Cost even when Cost Plus Pricing is not used.

Min/Max Target Discount (minimum/maximum target discount): Compare the discount adjustment and apply a target adjustment so that the overall discount falls in the minimum and maximum target discount range.

Min/Max Target Price (minimum/maximum target price): Compare the net price and apply an adjustment to bring the price within the minimum and maximum prices specified.

Min/Max Target Surcharge (minimum/maximum target surcharge): Compare the surcharge adjustment and apply the adjustment such that the surcharge falls within the minimum and maximum target surcharge specified.

Price List Only Condition: Create a condition-only price rule to select the price lists.

Price Override: Apply a new price to replace the existing price.

Pricing Base: Specify a pricing base for transaction lines that match this rule. The pricing base type is specified by the Pricing Base field.

Product Add: Add additional products field or a specified price.

Rollup Only Rule: Create rollups that are independent of conditions of the adjustment (for example, Discount/Surcharge) price rule to select adjustment formulas.

Total Order Discount/Surcharge: Apply a discount or surcharge to the entire order.

Pricing Base

Select the base or the starting point for the pricing calculation.

Alternate Cost: The alternate cost of the product is used as the base for pricing calculations. Alternate cost is a different cost than product cost. For example, in PeopleSoft Order Management, the alternate cost is the product cost with an Alternate Cost Adjustment Factor applied to it.

Cost: Use the product cost as the base for pricing calculations.

List Price: Use the product list price as the base for pricing calculations.

Cascading/Summed

Select the method for applying the adjustment for the Discount/Surcharge and Product Add price action types.

Cascading: Applied as they are found. A second discount is applied to the previously discounted price, a third discount is applied to a price that is already discounted twice, and so on. For example, if the system encounters two discounts, such as 10 percent and 20 percent off the list price of 100 USD, then the system applies the discounts in this way: 10 percent off of 100 USD and 20 percent off of 90 USD. Thus, the unit price for the order schedule line is 72 USD.

Summed: When the system finds multiple discounts, it adds them together and applies the discount once. Thus, for the summed example, the system applies discounts in this way: the 10 percent and 20 percent discounts are combined for 30 percent off of 100 USD. The unit price for the order schedule line is 70 USD. The summed adjustments are applied to the net price with cascading adjustments already applied.

Period-to-Date

Select to include period-to-date totals in the adjustment. The system applies adjustments based on purchases within a determined period. Each order is considered in the adjustment based on the date of the order. Past orders are used to compare the price and quantity ranges of the formula on the price rule.

Use Net Price

Select to use net price instead of base price from the orders considered in the period-to-date calculation.

The Use Net Price will be available only if Price Action Type value is Discount/Surcharge, Price Override, Product Add, or Total Order Discount/Surcharge, and Period-to-Date value is either By Customer or By Rule.

Tiered Pricing will be hidden if the Use Net Price option is selected. Tiered pricing uses base price to calculate the tiers.

One-Time Only

Select to limit the rule applicability. Typically used for price discounts that are so good they are not allowed on multiple orders. Effective for encouraging large first orders instead of many smaller orders.

Per Customer: Rule is used one time per customer.

Per Rule: Rule is used one time.

Rollup Exclude

Indicate whether to include Known Value Items (KVI) or Non-Discountable Products (NDP) in the total to select formulas.

KVI & NDP Products: Do not include KVI and NDP.

KVI Products: Do not include KVI.

NDP Products: Do not include NDP.

None: Include all products.

Rollup By

Identify the manner in which rollup (totals to select price formulas) is calculated. The options are:

Line: Rollup is calculated by order lines.

Rule: Rollup is calculated by a rollup-only price rule.

Schedule: Rollup is calculated by order schedule.

Transaction: Rollup is calculated by transaction, from all order schedules that match the same price rule.

Rollup Rule ID

Enter the rule whose rollup is used to select the matching price formula for the current price rule.

Rounding Rule ID

Identify a specific rounding rule to use when determining values such as net price and adjustments.

For

Define which calculations should have a rounding rule applied to them before arriving at a final value. Values are:

Adjustment: Round each adjustment.

Both: Round both adjustments and the net price.

Net Price: Round only the net price.

None: Do not round adjustments or the net price.

Maximum Quantity

Define the maximum quantity of items to which this price rule can apply. This setting enables you to introduce a new product to the market at a discounted price for a limited quantity.

UOM

Define the unit of measure for the maximum quantity of items to which this price rule can apply.

Use Grace Days

Select to have the system use the grace days that are assigned to the customer when determining which price formulas are applied to the price. You can assign a grace period (in days) for each customer. Grace days are added to the ending date of the formula.

Exclusive Pricing Only

In PeopleSoft Order Management, you can set up a special arbitration plan called an Exclusive Pricing ID. This arbitration plan must specify at least one price rule by name. When this exclusive pricing ID is used in a sales order, the matching arbitration plan is used first. If no adjustments are applied after the exclusive pricing ID arbitration plan is applied, then the regular arbitration plan is used. By selecting the Exclusive Pricing Only option on the price rule, you specify that this price rule is used only when the exclusive pricing arbitration plan is used.

Stop Processing Here

Select to prevent the system from applying further price adjustments when the system finds a match with a price rule. This event can occur for total order or line adjustments. The system stops applying price adjustments after encountering the first price rule match that has this option selected.

Mutually Exclusive

When the Mutually Exclusive check box is selected, if the price rule is found to match the order during arbitration, then that rule is the only rule applied to the entire sales order; no other discounts or surcharges apply to the order. Typically, this option is used for discounts that are so good that no other discounts are allowed in conjunction with the discount provided by this rule. An example of a mutually exclusive price rule is "Spend 10,000 USD or more and get 25 percent off the order. No other discounts allowed."

If more than one mutually exclusive price rule is matched, only the first (use the arbitration plan to specify the order) mutually exclusive price rule is applied. All other price rules are ignored, including the normal price rule that is sorted before the applied mutually exclusive rule. The process for these price rule is processed separately for order and line/schedule adjustments, similar to the current process for the Stop flag on the rule. Each order can have only one mutually exclusive price rule, and one per schedule. Because a mutually exclusive price rule excludes other regular rules, the Stop flags on those price rules do not stop the mutually exclusive price rules from being applied.

Applicable to List Price

When selected, indicates that the price rule is applicable when list price is the base for pricing calculations.

Applicable to Buying Agreement

When selected, indicates that the price rule is applicable when a buying agreement is the base for pricing calculations.

Applicable to Cost Base

When selected, indicates that the price rule is applied when cost is the base for pricing calculations.

Applicable to Alter Cost Base

When selected, indicates that the price rule is applicable when alternate cost is the base.

Tiered Pricing

When selected, tiered pricing is performed for the price rule. This selection allows different adjustments for products in the same transaction line. Pricing schedules are created to identify the quantities of each adjustment (formula).

Increment

Identify the increment unit of the tiers. This value should match the increment of how the product is ordered (in pricing UOM). The usual value for quantity is 1. The minimum and maximum values for the formal ranges must be multiples of the increment value. For example, if the increment is 5, you can set up the formula ranges as 0–10, 15–25, 30–100, and so forth. If the ordered quantity is 27, the first 10 will match the formula range of 0–10. The next 15 will match the formula range 15–25. The last 2 do not match any formula range and will have no adjustment applied.

Rollup By UOM

When selected, indicates that the rollup is based on the unit of measure.

Price Type

Select the price type for the defined formula range. The options are:

Quantity: Indicates the formula range pertains to the number of units of the item purchased in the minimum and maximum purchase ranges identified.

Price: Indicates the formula range defined pertains to the order value of the item purchased in the minimum and maximum purchase ranges identified.

Minimum Amount

The minimum amount, quantity or purchase total, for the specified formula range.

Maximum Amount

The maximum amount, quantity or purchase total, for the specified formula range.

The system uses 9999999999 as the default in the High Quantity field for the last price formula if the field is left blank.

Date Range IDs

Identify the date ranges the transaction must match to apply the formula. Separate multiple IDs by a comma (for example, 1,2,3).

Formula Range IDs

Identify the formula ranges the transaction must match to apply the formula. Separate multiple IDs by a comma (for example, 1,2,3). For tiered pricing rules, you can have only one formula range per formula.

Unit of Measure

The unit of measure required to apply the formula. If not provided, match all unit of measures.

Currency

The currency in which the price formula is measured. If not provided, apply to all currencies. Currency is required if the formula range is by price or adjustment is by amount.

Discount/Surcharge By

Amount: Indicates that the adjustment is by amount.

Amt & Expr (amount and expression): Indicates that the adjustment is a calculated value derived by the amount or an expression.

Expression: Indicates that the adjustment is derived from a specific expression.

Ext Class (external class): Indicates that the adjustment is derived from an external class.

Pct & Expr (percent and expression): Indicates that the discount is a calculated value derived by a percent or an expression.

Percentage: Indicates that the adjustment is by percent.

Margin By

Amount: Indicates that the margin matching is by amount.

Percentage: Indicates that margin matching is by percent.

Target Discount By

Amount: Indicates that the target discount is matched by amount.

Percentage: Indicates that the target discount is matched by percent.

Target Price By

Price: Indicates that the target price is matched by item unit price.

Target Surcharge By

Amount: Indicates that the target surcharge is matched by amount.

Percentage: Indicates that the target surcharge is matched by percentage.

Price Override By

Expression: Indicates that the price is derived from a specific expression.

Ext Class (external class): Indicates that the price is derived from an external class.

Prc & Expr (price and expression): Indicates that the price is a calculated value derived by percent or an expression.

Price: Indicates item price is defined by the price in the Price field.

Product Add By

BOGO (buy-one-get-one): The factor by which the product is given away. Enterprise Pricer computes the quantity of the promoted item given away by summing the quantities from the order schedules that match the price rule, dividing them by the BOGO factor, and taking the whole number.

For example, if you had a single formula range of Quantity 1–99999 for Product ID 10050 and the BOGO factor was set to 3, each unit of 10050 purchased in the order would receive 2 units of the item identified on the Product Detail page.

BOGO & Prc (buy-one-get-one and price): In additional to specifying the BOGO factor to calculate the product adds quantity, specify the price of the product add using a mathematical expression.

Qty & Prc (quantity and price): Specify the product add quantity and price.

Qty Exp(quantity and expression): Specify the calculation to use for the product add quantity in the Expression field.

Quantity: Indicates the product add quantity.

Small or Large

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, the formula is specified as Amt & Expr, and Smaller is selected. 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.

Product ID

The product ID for the promoted item.

UOM Promo (unit of measure promotion)

Select the UOM for the product that is given away.

Product Add Type

Specify whether you want the giveaway applied to each matched line of the transaction (sales order) or applied only once to the header of the transaction. This option applies only to the Product Add By types of Qty Expr, Qty & Adj, and Quantity.

Per Line: The system applies this giveaway to every line.

Per Order: The system applies this giveaway only once to the entire sales order.

Terms

Assign a payment term to the formula. If this formula is used when pricing the transaction, the system assigns the most favorable payment terms to the transaction.

Adjustment Type

Specify an adjustment type. Values are:

Bill Back: An adjustment that is accrued instead of reducing the net unit price of the item on the invoice.

Off-Invoice: An adjustment that reduces the net unit price or, in the case of a total order adjustment, the price of the order.

Discount Distribution Code and Surcharge Distribution Code

These distribution codes, along with the associated amounts, are passed to PeopleSoft Billing Interface tables during the Populate Billing process.

To use bill backs, enter both a discount and surcharge code. Off-invoice discounts or surcharges only require one of these codes.

Discount Dist Percentage (discount distribution percentage) and Surcharge Dist Percentage (surcharge distribution percentage)

The sum of the percentages must equal 100 percent for each business unit and adjustment type.

Customer Count

The number of customers that have made use of this rule.

Order Count

The number of orders this rule has applied to thus far.

Schedule Count

The number of schedules this rule has applied to thus far.

The price rule usage is updated as order schedules are processed for the order. Therefore, previous schedules will reduce the available quantity for the later schedules in the same order. This process is similar to the PTD process. To avoid conflicts with other orders that are applied by the same price rule, the price rule usage data is retrieved before each pricing calculation.

Because tiered pricing breaks the schedule quantity into pricing schedules, the usage for those price rules is calculated by summing the quantities from matching formulas for the same rule. For non-tiered pricing, multiple formulas for the same price rule can apply to the schedule, for all the products in the same schedule. To calculate the usage for these rules, Enterprise Pricer uses the applied quantity from one of the formulas.

Total Adjustment

The total adjustment value thus far for this rule.

Maximum Quantity

The number of product units sold referencing this price rule. This information is relevant for rules that identify a maximum quantity.

Detail Tab

Provides a customer-specific summary of price rule usage for the selected rule, including details such as order number, order lines, schedule, price schedule, formula ID, adjustment flag, amount, percentage or price, applied adjustment amount, and currency code.

Additional Detail Tab

View the date and time stamp for each instance when the price rule was used for a given customer.