Manage Pricing Elements

Use a price element to capture different price points in a price calculation.

A price point is the price you set for a charge. Base list price, tier adjustment, list price, discount adjustment, net price, and cost of goods sold are each an example of a price point.

A price element is an object that a pricing algorithm uses to capture different types of prices, costs, adjustments, taxes, or profit margins that it requires to create a price breakdown or pricing analytic.

Pricing calculates the value for each price element when it runs the pricing algorithm. List price is an example of a price element. It might calculate the value of the list price for the AS54888 Desktop Computer at $2,500.

Manage price elements.

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

   • Offering: Order Management

   • Functional Area: Pricing

   • Task: Manage Price Elements

2. On the Manage Price Elements page, in the Search area, set Active to Yes, and then click Search.

3. Examine the price elements that come predefined with Pricing.

   To reduce maintenance, use a predefined price element instead of creating a new one.

4. If you can't locate a predefined price element that meets your requirements, then click Actions > Add Row, then set the values.

   Attribute	Description
   Element Code	Enter a unique code that identifies the price element. The code makes sure you don't create a duplicate price element that might result in a conflict error.
   Element Name	Enter a name. Pricing displays the name in the price breakdown and in the Pricing Administration work area. You can modify the name of a predefined price element.
   Type	Choose a type, such as Price or Cost.
   Used in Pricing Guidelines	Enable this option to add another layer of control in your pricing guidelines. For example, price element Base List Price comes predefined to enable you to use it in a pricing guideline. Assume you create 10 pricing guidelines, and six of them enable the user to modify the base list price, among other elements. Two years later, your company creates a policy that prohibits users from modifying the base list price. Instead of revising the six guidelines, you can disable Used in Pricing Guidelines for price element Base List Price. You can't enable this option with an element of type Cost or type Accrual because Pricing calculates the value for these elements.
   Active	Add a check mark. Pricing only uses pricing elements that are active. If the pricing entity. Doesn't reference the price element. You can remove the check mark to remove the price element from calculations, but keep it for possible later use. References the price element. You can't remove the check mark.