1. Administering Pricing
  2. Adjust Price According to the Item's Category

Adjust Price According to the Item's Category

Adjust price on a price list or a discount list according to one or more categories in a catalog.

Adjust price on a price list or a discount list according to one or more categories in a catalog.

Note

  1. Assume you use the Product Information Management work area to create a Gifts catalog, and it contains a child Candy category and a child Flowers category. Each child contains items. For example, Flowers contains the Glorious Bouquet item.
  2. You use the Pricing Administration work area to create a rule that applies a discount for each item that's in the Flowers category.
  3. At run time, you create a sales order in the Order Management work area, and Pricing applies your rule depending on whether the item is in the Flowers category. The Glorious Bouquet is in the Flowers category, so Pricing applies the 15% discount.

Including and excluding provides you with more flexibility when you apply price adjustments. Assume you have 10 items that are in the Flowers category, including the Glorious Bouquet and the California Poppy. You want to apply a 15% on all 10 items except you don't want to apply that discount on the California Poppy. You can create a rule that applies a discount on all items that are in the Flowers category. You can create another rule that excludes the California Poppy.

Realize these benefits:

  • Have more flexibility when you apply price adjustments.
  • Track your category's price adjustments more efficiently.
  • Improve financial and pricing analytics.
  • Meet more complex pricing requirements.
  • Improve decision making that involve category pricing.

Try It

Assume you need to set up this rule:

If the item is the Glorious Bouquet, and if the item is in the Flowers category of the Gifts catalog, then apply a 15% discount.

Here's a summary of your setup:

Adjust price on a price list or a discount list according to one or more categories in a catalog.

Note

  1. Set up the category's hierarchy and assign the item to the category.
  2. Manage the matrix class and discount list.
  3. Test your work.

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

Manage Catalog

  1. Sign in with the privileges that you need to manage products.
  2. Go to the Product Information Management work area, then click Tasks > Manage Catalogs.
  3. On the Manage Catalogs page, click Create.
  4. In the dialog, set the values.
    Attribute Value
    Functional Area

    Order Entry

    You can select any area.
    Catalog Name Gifts
    Catalog Code Gifts
    Description My gift catalog
    Controlled At

    Master Level

    You can select any level.
    Category Name Flowers
    Category Code Flowers
    Description My default category
  5. Click Save and Continue.
  6. On the Edit Functional Area Catalog page, under Category Name, expand Gifts, then click Flowers.
  7. In the Details area, click Select and Add.
  8. In the dialog, search for the Glorious Bouquet item, then click Apply > OK.
  9. Run the Refresh Product Hub Snapshots scheduled process.
  10. Sign out, then sign in with the privileges that you need to administer Oracle Order Management.
  11. Go to the Setup and Maintenance work area, then go to the task.
    • Offering: Order Management
    • Functional Area: Pricing
    • Task: Manage Pricing Parameters
  12. On the Manage Pricing Parameters page, click the row that has Product Catalogs in the Name column.
  13. In the Product Catalogs area, click Add Row, add the Gifts catalog, then click Save and Close.

Manage the Matrix Class

  1. Sign out, then sign in with the privileges that you need to administer pricing.
  2. Go to the Pricing Administration work area, then click Tasks > Manage Matrix Classes.
  3. On the Manage Matrix Classes page, click Pricing Term Adjustment.
  4. On the Edit Matrix Class page, create the condition that you'll use to include the item in the adjustment.
    • in the Condition Columns area, click Actions > Add Row, then set the values.
      Attribute Value
      Name Category In
      Source Code Name CategoryIn
      Comparison In Hierarchy
      Compare to Attribute ItemCategory.CategoryPath
    • Click Save.
    • In the Domain column, click the pencil, set the values, then click OK.
      Attribute Value
      Domain Type Item Category
      Catalog Gifts
    • Click Save.
  5. While we're here, let's go ahead and add a condition that you can use to exclude the item. We'll talk about excluding later.
    • In the Condition Columns area, click Actions > Add Row, then set the values.
      Attribute Value
      Name Category Ex
      Source Code Name CategoryEx
      Comparison Not In Hierarchy
      Compare to Attribute ItemCategory.CategoryPath
    • In the Domain column, click the pencil, set the values, then click OK.
      Attribute Value
      Domain Type Item Category
      Catalog Gifts
    • Click Save and Close.

Create Your Rule

  1. Click Tasks > Manage Discount Lists, then search for and open the list that you want to use.
  2. Add the Glorious Bouquet item to your discount list, then click Save.
  3. On the Edit Discount Lists page, in the Discount Rules area, click Actions > Create > Attribute Based Rule.
  4. In the dialog that displays, under Select Optional Condition Columns, add a check mark to Category In (In Hierarchy), then click OK.
  5. In the Create Discount Rule dialog, in the Attribute Based Rule area, click Actions > Add Row, set the values, then click OK.
    Attribute Value
    Category In Flowers
    Adjustment Type Discount Percent
    Adjustment Amount 15
    Adjustment Basis QP_AdjBasisforBaseListPrc
  6. Click Access Sets, then set the value.
    Attribute Value
    Set Code

    Vision Operations

    For this example, assume you're selling in the Vision Operations business unit.
  7. Click Approve > Save and Close.
  8. Add your discount list to the pricing strategy that you use to price this item.

Test Your Work

  1. Go to the Order Management work area.
  2. Create a sales order.
    Attribute Value
    Business Unit Vision Operations
    Order Type Standard Orders
  3. Search for the Glorious Bouquet item on the catalog line, then click the price.
  4. Examine the price breakdown in the Amount dialog. Verify that the breakdown says:

    Attribute-based discount rule applied because Category In: Flowers In Hierarchy Flowers

Match Any Part of the Catalog's Hierarchy

You can set up your rule so it applies pricing when the condition matches some other part of the catalog's hierarchy, such as a category's parent. Assume you have this hierarchy:

Gifts
  Candy
  Flowers
    Bouquets
    Stems

Assume you need this rule:

If the item is in the Bouquets category, and if the Bouquets category is a child of the parent Flowers category, then apply a 10% discount on the Glorious Bouquet item.

Use these values when you create your rule:

Attribute Value
Category In Flowers
Adjustment Type Discount Amount
Adjustment Amount 10

At run time, the price breakdown will say:

Attribute-based discount rule applied because Category In: Bouquets In Hierarchy Flowers

Reference a Different Category

You can also set up your rule so it references another category. For example, you can reference the Seasonal Promotion category from the condition that you specify on the discount rule from the Flowers category. At run time, Pricing will apply the discount from the Seasonal Promotion category to the Glorious Bouquet.

Exclude a Category

You can set up your rule so it excludes items that are in a category. Assume you have this hierarchy:

Gifts
  Candy
  Flowers
    Bouquets
      Glorious Bouquet
    Stems
      California Poppy

Assume you need this rule:

Apply a 15% discount on the Glorious Bouquet item, but don't apply a discount on the California Poppy item.

Set these values on your discount rule:

Attribute Value
Category Ex Stems
Category In Bouquets
Adjustment Type Discount Percent
Adjustment Amount 15

At run time, Pricing will apply the discount for the Glorious Bouquet, and the price breakdown will say:

Attribute-based discount rule applied because Category In: Bouquets In Hierarchy Flowers Category Ex: Bouquets No In Hierarchy Stems

The price breakdown won't have a discount for the California Poppy.

Guidelines

You must:

  • Use the Price List Charge Adjustment matrix class for price lists.
  • Use the Pricing Term Adjustment matrix class for discount lists.
  • Use the Item Category domain type when you create your condition on the Manage Matrix Classes page.
  • Set the Comparison attribute to In Hierarchy or to Not In Hierarchy on your rule.
  • Assign the catalog to the condition name so that the Pricing Administration work area displays the relevant categories when you set up your rule.
  • Not write a pricing algorithm that creates a charge according to a category.

Note

  • You can use the Pricing Administration work area, file-based data import, or REST API to manage your adjustment rules.
  • If more than one rule is eligible to apply the discount, then Pricing will use the rule that has deepest category in the hierarchy when it prices the item. For example, if one rule is eligible for Flowers, and another rule is eligible for Bouquets, then Pricing will use the rule for Bouquets.

Opt In

Starting with Update 24B, we recommend that you use the procedure described in this topic to price according to a category. If you used the Create Product Category Charge action on a shipping charge list or the Product Category area of a price list or discount list to create a charge before 24B, and if you want to continue to use that charge, then you must enable these options on the Adjust Price According to the Item's Category opt-in feature:

  • Continue to Use Existing Product Categories for Price Lists
  • Continue to Use Existing Product Categories for Shipping Charge Lists

Note:

  • The Pricing Administration work area will display the Create Product Category Charge action and the Product Category area only if you enable these options.
  • You don't have to enable the Adjust Price According to the Item's Category opt-in feature to use the procedure described in this topic.
  • For background about how to opt in, see Opt Into Features in Order Management.

Access Requirements

Make sure you have the privileges that you need.

Adjust price according to the item's category:

  • Manage Price Lists (QP_MANAGE_PRICE_LISTS_PRIV)
  • Manage In-Progress Price Lists (QP_MANAGE_IN_PROGRESS_PRICE_LISTS_PRIV)
  • View Price Lists (QP_VIEW_PRICE_LISTS_PRIV)
  • Approve Price Lists (QP_APPROVE_PRICE_LISTS_PRIV)
  • Import Approved Price Lists (QP_PRICE_LIST_APPROVED_IMPORT_PRIV)
  • Import Price Lists (QP_PRICE_LIST_IMPORT_PRIV)

Apply discounts according to the item's category:

  • Manage Discount Lists (QP_MANAGE_DISCOUNT_LISTS_PRIV)
  • Manage In-Progress Discount Lists (QP_MANAGE_IN_PROGRESS_DISCOUNT_LISTS_PRIV)
  • View Discount Lists (QP_VIEW_DISCOUNT_LISTS_PRIV)
  • Approve Discount Lists (QP_APPROVE_DISCOUNT_LISTS_PRIV)
  • Import Discount Lists (QP_DISCOUNT_LIST_IMPORT_PRIV)
  • Import Approved Discount Lists (QP_DISCOUNT_LIST_APPROVED_IMPORT_PRIV)

Adjust price or apply discounts according to the item's category:

  • Manage Matrix Classes (QP_MANAGE_MATRIX_CLASS_PRIV)
  • Manage Pricing Parameter Values (QP_MANAGE_PRICING_PARAMETER_VALUES_PRIV)