Pricing Guideline

Create a pricing guideline to control modifications that your users can make to price, net price, margin, and so on. You apply it on an item, user role, customer detail, or time period.

• Set a maximum discount amount, or set a maximum discount percent.

• Set a minimum margin percent.

• Control pricing for a nonconfigured or configured item.

• Make sure the Order Entry Specialist sets values that remain within your company profitability policy while negotiating a price with the customer.

• Reference a pricing matrix so you can leverage the conditions, constraining values, and violation type that the matrix specifies.

Pricing can validate each sales order against a pricing guideline at one of these predefined events.

• Save

• Customer Update

• Reprice

• Validate

• Submit

Note

• Pricing validates the entire transaction.

• Pricing validates only the order line for a line pricing event or for a manual price adjustment.

• Pricing validates against each charge component. For example, assume you create a guideline that disallows a manual price adjustment that exceeds 10%. Assume the Order Entry Specialist applies adjustments.

  • One adjustment for 9%

  • One adjustment for 9%

  • One adjustment for 8%

  Pricing individually evaluates each adjustment. It doesn't evaluate the sum of adjustments, such as the entire 27%. None of the adjustments exceeds 10%, so Pricing accepts them.

• If Pricing determines that a sales order exceeds a guideline, then it displays a warning. The Order Entry Specialist can submit a sales order that contains a warning.

How it Works

1. An Order Entry Specialist does an action in Order Management that requires pricing, such as editing the sale price.

2. Order Management sends a request to Pricing to price the transaction and validate the sales price.

3. Pricing runs a pricing process to validate the sales price. It runs the pricing process according to the assignments that the Manage Pricing Process Assignments page specifies.

4. Pricing runs a pricing algorithm that evaluates the pricing guidelines that you created for the pricing strategy when it prices the transaction.

5. Pricing sends violations it finds for the order line charges for each charge component to Order Management.

6. Order Management displays each violation as a warning or error, depending on how you set up the pricing guideline.

   

You can also set up a rule or constraint to control the sales order when a pricing violation happens.

• Approval rule. Require the Order Entry Specialist to get approval before submitting a sales order that contains a pricing violation. For details, see Use Visual Information Builder.

• Processing constraint. Prevent the Order Entry Specialist from submitting a sales order that contains a pricing violation. For details, see Manage Processing Constraints.