Manage Pricing Bases

Set up the pricing basis that Oracle Pricing uses to calculate an adjustment.

Each pricing basis references a price element, such as List Price or Invoice Price, to calculate the discount that it applies on an item. The price element is one of the components on the pricing charge.

You can manage these pricing bases.

Type of Pricing Basis	Description
Adjustment Basis	Adjust the price according to a percent. For example, create an adjustment basis that applies a 20% discount on the list price of a network of desktop computers. For another example, apply a 10% discount on the installation charge for a network of desktop computers. Set up the adjustment on the list price, base price, or net price, resulting in different invoice values for the network of computers.
Tier Basis	Adjust the price according to an amount. A tier basis aggregates price for a single pricing charge or a set of pricing charges. For example, if a one-time sale charge is greater than $2,000, then apply a 10% discount on the base price. For another example, determine the one-time sale charges for the QP LIST PRICE charge component. The tier basis contains the details of the pricing charges and the charge components that Pricing uses to calculate the adjustment. It references the price type, charge type, charge subtype, and price periodicity. These details are important when more than one charge exists for an item. Include or exclude charges. For example, assume a third-party contractor installs the item you sell, so you don't want to offer a discount on the installation. Create a pricing basis that includes only the one-time sale charge and a monthly recurring service charge, but that excludes the one-time installation charge. Specify whether to apply the tier basis to each order line or the entire sales order. To calculate the tier basis at runtime, Pricing aggregates the charges that match the criteria you set up.

Assume you must add a tier basis for the sale, installation, and monthly service for a network of desktop computers. Assume you must apply the tier basis on these charges.

• A one time charge on the list price of the sale

• A one time charge on the list price of the installation fee

• A recurring charge on the list price of the monthly service fee

Assume you sell to a distributor who ships the item and handles the freight and shipping charges, so you must exclude freight charges from your pricing basis.

This topic uses example values. You might need different values, depending on your business requirements.

Manage a pricing basis.

1. Go to the Setup and Maintenance work area, then go to the task.

   • Offering: Order Management

   • Functional Area: Pricing

   • Task: Manage Pricing Bases

2. On the Manage Pricing Bases page, in the Search area, set Active to Yes, then click Search.

3. Examine the pricing bases that come predefined with Pricing.

   To reduce maintenance, you use a predefined pricing basis instead of creating a new one.

4. If you can't locate a predefined pricing basis that meets your requirements, then click Actions > Create.

5. On the Create Pricing Basis page, set the values.

   Attribute	Value
   Usage	Tier Basis
   Price Element	List Price
   Price Type	One Time
   Charge Type	Sale
   Charge Subtype	Price
   Active	Contains a check mark

6. Click Add Charge Criteria.

7. In the Criteria for Included Charges area, notice that the Create Pricing Basis page already added a row that includes the criteria you specified in step 6.

8. Add the criteria for the installation fee. In the Criteria for Included Charges area, click Actions > Add Row, then set the values.

   Attribute	Value
   Price Type	One Time
   Charge Type	Sale
   Charge Subtype	Fee

9. Add the criteria for the monthly service fee. In the Criteria for Included Charges area, click Actions > Add Row, then set the values.

   Attribute	Value
   Price Type	Recurring
   Charge Type	Service
   Charge Subtype	Fee
   Price Periodicity	Month Pricing gets the values it displays for Price Periodicity from the UOM class that you define in the pricing charge definition. If you don't define this UOM class, then Pricing gets these values from the Default Pricing Periodicity UOM class. For details, see Manage Pricing Charge Definitions.

10. Add the criteria for the excluded charges. In the Criteria for Excluded Charges area, click Actions > Add Row, then set the values.

    Attribute	Value
    Price Type	One Time
    Charge Type	Freight
    Charge Subtype	All

11. Click Save.

12. Reference your pricing basis from a pricing rule that you create in the Pricing Administration work area.

    For details, see Add Tiers to Pricing Rules.