Understanding Price Rules

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 price-by 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:

1. For a new price rule, select a transaction.

   This transaction determines the valid price-by field names that are available for the conditions.

   Note: In PeopleSoft CRM installations, the field appears by default and is unavailable for entry.

2. Change the default status from Pending to Deployed, Inactive, or Ready to Test.

   Term	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.

3. Enter a description for the price rule.

   This is a free-form text field.

4. Enter a short description.

   A truncated version of the long description appears by default.

5. Select the child applications the price rule can be applied to, if the transaction has child applications that use its pricing data.

6. 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.

7. 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:

1. For a new price rule, select a transaction.

   This transaction determines the valid price-by field names that are available for the conditions.

   Note: In PeopleSoft CRM installations, the field appears by default and is unavailable for entry.

2. Change the status from Pending to Deployed, Inactive, or Ready to Test.

   Term	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.

3. Enter a description for the price rule.

   This is a free-form text field.

4. Enter a short description.

   A truncated version of the long description appears by default.

5. Select the child applications the price rule can be applied to, if the transaction has child applications that use its pricing data.

6. 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.

7. 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.

8. Select the rows in the Combined Conditions group box that you want to use to create a more complex condition.

9. Select either the AND or the OR operator.

10. 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.

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:

1. Select Sales Orders as the transaction in the Rule Attributes group box of the Conditions page and enter a description.

2. Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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.

5. 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.

6. 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

Product Add - Giveaway Scenario

You can give away products, discount products, create Buy-One-Get-One (BOGO) price rules and Adjustment promotions.

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.

2. Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.

2. Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. In the Rule Attributes group box of the Formula page, select Product Add as the Price Action Type.

4. 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

5. 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

6. 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

7. 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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.

2. Add Sold to Customer 1005 and Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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

7. In the Price Formula group box of the Formula Detail page, specify the formula details:

   Product ID	UOM Promo
   10049	EA

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."

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.

2. Add Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.

2. Add Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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.

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.

2. Add Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. Select the Tiered Pricing check box and specify a tiered increment of 1.

5. 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

6. 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

7. 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

One-Time Only Price Rule Scenario

Enterprise Pricer supports the creation of price rules that are identified as one-time only, per price rule or per customer. When the one-time 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 one-time 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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page. Enter a description.

2. Add Sold To Customer and Customer ID 1005 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page and enter a description.

2. Add Sold To Customer and Customer ID 1005, and add Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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:

1. Add Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page, and enter a description.

2. Add Sold To Customer and Customer ID 1005, and add Product ID 10050 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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.

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."

To set up the scenario for the price rule, complete these steps:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page. Enter a description.

2. Add Sold To Customer and Customer ID 1005 to the Rule Conditions group box of the Conditions page.

3. 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.

4. 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

5. 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

6. 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:

The sales order contains:

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:

1. 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.

2. 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

3. 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

4. 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:

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 kitchen-related 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:

1. Create the rollup rule for all items belonging to the Kitchen product group (Group KITC).

   1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.

      In the Description field, enter Kitchen.

   2. Add Product Group to the Rule Conditions group box of the Conditions page, and select the product group called KITC.

   3. In the Rule Attributes group box of the Formula page, select Rollup Only Rule as the Price Action Type.

   4. Set the Rollup By field to Rollup Rule.

   5. Set the Rollup Exclude field to None.

2. Create the rule that provides a discount to products belonging to the towels product group (Group TOWL):

   1. 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.

   2. Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to TOWL.

   3. In the Rule Attributes group box of the Formula page, select Discount/Surcharge as the Price Action Type.

   4. Set the Rollup By field to Rollup Rule, and select the FIX rollup rule.

   5. Set the Cascading/Summed field to Summed.

   6. 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

   7. 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

   8. 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

3. Create a rule that provides a discount to products belonging to the Refrigerator product group (Group FRDG):

   1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.

      In the Description field, enter Refrigerators.

   2. Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to FRDG.

   3. 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.

   4. 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

   5. 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

   6. 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

4. For the rule that provides a discount to products belonging to the stoves product group (Group STOV):

   1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.

      In the Description field, enter Stoves.

   2. Add Product Group to the Rule Conditions group box of the Conditions page, and set the group ID to STOV.

   3. 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.

   4. 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

   5. 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

   6. 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:

Three additional lines were added to the sales order:

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.

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.

   In the Description field, enter Product Intro.

2. Add Product Group ID to the Rule Conditions group box of the Conditions page, and set the Group ID to 1234.

3. 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.

4. 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.

5. 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

6. 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

7. 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 top-level 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 cost-based, then the list price is used.

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:

1. Select Sales Orders as the Transaction in the Rule Attributes group box of the Conditions page.

   In the Description field, enter Math Expr.

2. Add Product ID to the Rule Conditions group box of the Conditions page, and set the Product ID to 10050.

3. 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.

4. 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

5. 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

6. 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.

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:

This table lists the values in the Adjustment Flag field and the options that are hidden for each value: