1. How do I get started with Subscription Management?
  2. Define Pricing

Define Pricing

You must first set up the pricing strategy for the subscription. The pricing strategy of the subscription is then retrieved when the Business Unit, Legal Entity, Contract Type, Number and Primary Party are entered during subscription creation.

When you add subscription lines, the pricing information is retrieved automatically.

Oracle Subscription Management supports:

  • One-time charges, such as activation fees.

  • Recurring charges, such as monthly membership charges.

  • Usage-based charges, such as monthly cloud storage consumption fee.

The application identifies all the usage-based charges that you define using the charge prefix. You can configure this prefix using the profile option OSS_USAGE_CHARGE_IDENTIFIER.

Use this high-level procedure for quick setup of pricing lines, after your full pricing setups are done in Oracle Supply Chain Management (SCM) Cloud.

  1. Sign in to the application with access to pricing administration.
  2. Navigate to the Pricing Administration work area under the Order Management group.
  3. In the Pricing Rules tab, open the price list to which this item is associated.
  4. Create a price list line for an item. Click Associated Items to define unit price and percent price based on covered items.
  5. Enter the recurring price details of the item.
  6. You can add subscription items under an existing price list or create a new price list and add the product.
  7. Once you add the product you can either define the charges or the rate plans.
Note:
  • You don't need to set up charge prefix for rate plan.
  • All consumption based advanced rating models are only supported via Rate Plans.
  • A subscription product can be priced either with charges or rate plans.

What Can Be Included in the Rate Plan?

A Rate Plan can contain the following types of charges:

  • One-Time Charges: Applied once per purchase.

  • Recurring Charges: Billed on a recurring basis (e.g., monthly, quarterly).

  • Usage Charges: Based on actual consumption; requires setup of rating models.

Advanced Pricing Concepts

  • Price Waterfall: Defines how multiple price adjustments—like discounts or attribute-level pricing—are applied to determine final charges.

  • Rate Table and Tiered Pricing: Useful for usage charges; allows defining pricing that varies by volume or usage threshold.

  • SKU-Based Charges: Charges can be defined at the SKU level (for example, Printer-as-a-Service with individual charges for color printing).

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