Proration of Price Adjustments

More than one order level adjustment can be applied to the order at the same time. These adjustments can be either a fixed amount or a percentage.

You can add a manual adjustment that will apply to the entire order. The manual order level adjustments are grouped with the order level adjustments that were applied by the Enterprise Pricer. The sum of both the manual and system adjustments gives the total order amount that will be prorated.

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

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

When proration is turned on, it is performed every time the order is repriced.

The adjustments from price rules defined to be applied at the line level are always applied first. The manual adjustments are applied second and price protect the line. The prorated order level adjustments are applied last.

When the order level adjustments are prorated, the fields use to store the order level adjustment on the order are set to 0. The Discount/Surcharge rows in the total grid are hidden.

By adjusting the price on a line with a prorated adjustment, it is possible that the order will go on hold if the price goes under the minimum selling price. The existing holds are applied.

Package products are prorated just like other products on the order. Pricing for these can be at the component level, or at the product header level.

Order lines with these statuses protect the prorated amount for that line:

• 5000 – Picked

• 5100 – Partially Picked

• 5500 – Purchased

• 5600 – Partially Purchased

• 5700 – Billed

• 5750 – Partially Billed

• 6000 – Shipped

• 6010 – Complete

• 6100 – Partially Shipped

When prorating the order level adjustments, the lines that are cancelled are excluded from the proration, as well as Engagement Service products.

Adding a product to the order forces the proration to be done again.

Change to an existing order lines forces the proration to be done again.

Deleting an order line forces the proration to be done again.

If an order is being maintained, it is possible that the prorated adjustments that are protected based on the line status will be higher than the new order level adjustment that will be calculated after the order is changed. In this case, the amounts that are protected will remain the same and won’t be decreased to match the new order level adjustment.

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

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

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

Order lines that are cancelled or that already have a prorated adjustment that is protected are not included in the proration. Both scenarios do not apply to Engagement Service products.

Order level adjustments that have already been billed should remain the same and should not be reapplied.

For example: an order was created with 4 order lines and a prorated order level discount of 20$ had been prorated evenly across these lines (each line receiving 5$ discount). Line 1 has been billed and the other lines have not. If you maintain the order and add a fifth line, the 20$ order level discount still applies. When the proration is done again, instead of giving 4$ per line, the line that was billed will keep 5$ of the 20$ and the other 15$ will be divided across the 4 other lines.

Order level adjustments can be both a percent and an amount. The total adjustment is calculated as an amount so that the amount can be divided across the lines.

The net unit price on the line is the price that gets updated. Order Capture does not store the extended price for a line. The net unit price multiplied by the quantity gives the extended price. The order quantity is included when calculated with the adjustment ratio applied.

The following formula is used to find the adjustment to apply to the net price on the line:

((Order Level Adjustment – Protected Amount)* (Net Price)/(Order Sub Total – Extended Line Price of Protected Lines)).

The prorated adjustment amount can be applied to a line, even if that line is protected.

Giveaways lines are excluded from the proration

Free Periods lines are excluded from the proration

The price adjustment history page shows all the adjustments that are applied to the list price in order to calculate the net unit price. The prorated adjustments are displayed on this page.

The Adjustment History page allows the user to delete an adjustment that was applied manually. System adjustments and prorated adjustments cannot be removed.

To remove prorated adjustments that result from a manual order level adjustment, remove the manual order level adjustment. You cannot remove prorated adjustments that result from a price rule.

Final Unit Price reflects the list price with discounts subtracted, and surcharges added. This is displayed in the Unit Price field on the order line.

When proration has been turned ON, the order level adjustments will be prorated across the order lines and passed to the TBP as part of the line price. No adjustments are stored at the order level.

When proration has been turned ON, and the order/quote contains products that are passed to TBP and other that are passed to the fulfillment system, the order level adjustments will be prorated across the order lines and passed to SCM and TBP as part of the line price.

When proration has been turned OFF, the order level adjustments will be stored at the order level but they won’t be passed to TBP.

When proration has been turned OFF, the order level adjustments will be stored at the order level and they will be passed to SCM as an order level adjustment.

When proration has been turned OFF, and the order/quote contains products that are passed to TBP and other that are passed to the fulfillment system, the order level adjustments will be stored at the order level and will be passed to SCM as an order level adjustment.