1. Using Revenue Management
  2. Create a Pricing Dimension Structure and Value Sets

Create a Pricing Dimension Structure and Value Sets

The Pricing Dimension Structure in Revenue Management allows organizations to model pricing dimensions as a flexfield structure for use in establishing standalone selling prices.

The price of a product can vary based on factors like:

  • Geographic location

  • Selling quantity

  • Type of customer

These factors typically influence how the company determines or sets the selling price of the product. An organization with multiple lines of business may use different sets of dimensions for each line of business.

An organization should analyze how products are priced in each of its lines of business and compile the list of unique groups of pricing dimensions used. Each unique group of pricing dimensions should be defined as a pricing dimension structure.

Consider the following when determining the structures you need:

  • Analyze pricing policies across all your products and services and identify all of the pricing dimensions being used.

  • Identify the price bands you need for the pricing dimensions.

  • Identify distinct groupings of price dimensions.

  • Define a pricing dimension flexfield structure for each distinct grouping of pricing dimensions.

  • Assign segment labels to the dimensions that have price bands.

  • Create only one structure instance for each pricing dimension flexfield structure.

Identify Source Document Attributes:

  • Use pricing dimension combinations to help determine standalone selling prices for a source document line.

  • Use pricing dimension assignments to help you to enter the pricing dimension values automatically for the document lines imported into Revenue Management.

  • Identify the document attributes that capture the pricing dimension values.

  • Assign the document attributes to the pricing dimensions for each source document.

Your organization has three tiers of pricing for hardware drives and software licenses:

  • Tier 1 hardware and software products that are available to non-US customers.

  • Tier 2 hardware and software products that are only available to customers in the US.

  • Tier 3 software products that are specific to only Japan and the United Kingdom.

Define Value Sets and Assign Values

The following table provides an example of how you would configure the pricing dimension structure and assign the value sets:

Pricing Structure Name

Value Set Name

Segment Order

WG_VRM_Structure

Customer Classification

1

Quantity Band

2

Geographic Region

3

Country

You assign values but don't assign it as a segment.

  1. Based on the table, create the value set Customer Classification.

  2. Assign the following values for Customer Classification:

    • Tier 1

    • Tier 2

    • Tier 3

  3. Create the value set Quantity Band.

  4. Assign the following values for Quantity Band:

    • 1-100

    • 101-500

    • 500-999,999

  5. Create the value set Geographic Region.

  6. Assign the following values for Geographic Region:

    • Europe

    • North America

    • Asia Pacific

  7. Create the value set Country

  8. Assign the following values for Country:

    • US

    • Canada

    • UK

    • Japan

  9. Create a structure, name it WG_VRM_Structure, and assign the following segments:

    • Segment 1: Customer Classification

    • Segment 2: Quantity Band

    • Segment 3: Geographic Region

  10. Compile the structure and click Save and Close.

  11. Create Pricing Dimension Assignments using the following table for each of the documents:

    Document

    Segment 1

    Segment 2

    Segment 3

    Projects

    Customer Classification

    Line Quantity

    Bill-to Customer

    Sales Orders

    Customer Classification

    Line Quantity

    Bill-to Customer

    Service Orders

    Customer Classification

    Line Quantity

    Bill-to Customer

    Receivables

    Customer Classification

    Line Quantity

    Bill-to Customer

  12. Create Pricing dimension bands for the following:

    • Quantity band for hardware

    • Quantity band for software

    • Set band and select countries and region

  13. Create the following items:

    • Hard drives

    • Licenses

  14. Create the standalone selling price profile and select the following:

    • Structure

    • Representation Type (discount percentage)

    • Pricing Dimension Assignments

    • Band Assignments:

      • For item licenses assign software quantity band

      • For item hard drives assign hardware quantity band

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