Manage Pricing for Covered Items
In this example, you set up Oracle Pricing to calculate three years of warranty service for a laptop computer, starting on January 1, 2017, billed monthly at the rate of 10% of the sale price.
This topic uses example values. You might need different values, depending on your business requirements.
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Go to the Setup and Maintenance work area, then go to the task:
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Offering: Order Management
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Functional Area: Pricing
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Task: Manage Pricing Bases
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On the Manage Pricing Bases page, set the pricing basis to use for the covered item.
More than one charge might exist for a covered item. You must set up a pricing basis that determines the charges and price element, such as list price or net price, to use for the percent calculation.
For example, assume your covered item includes a separate charge for the sale price, but doesn't include charges for the monthly recurring sale price or a one-time recycling fee. You must specify which of these charges to use as the basis when calculating the coverage charge for the covered item. In this example, the price of the coverage is 10% of the list price of the covered item.
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Click Actions > Create, then set the values. This basis specifies the list price as the charge to evaluate. For details, see Manage Pricing Bases.
Attribute
Value
Name
Coverage_Basis_for_Desktop_PC
Usage
Coverage Basis
Price Element
List Price
Price Type
Recurring
Charge Type
Sale
Charge Subtype
Price
Price Periodicity
Month
Active
Contains a check mark
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Click Save and Close.
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Go to the Pricing Administration work area, then click Tasks > Manage Price Lists.
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On the Manage Price List page, search for price list Corporate Segment Price List, then open it for editing.
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On the Price List Lines tab, in the Items area, click Actions> Add Row, then set the values.
Attribute
Value
Item
WR11531
Description
Desktop PC Warranty
Pricing UOM
Year
Line Type
Buy
Primary Pricing UOM
Contains a check mark
Service Duration Period
Year
Service Duration
3
Note
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To verify you added a coverage item, make sure the Associated Items column displays the Managed Covered Item icon, and that Service Duration Period and Service Duration are grey and disabled.
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This example assumes that Product Management includes the coverage item WR11531. If the search can't find the coverage item you require, then you must add it in the Product Management work area.
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In the Associated Items column of the row you just added, click the Manage Covered Item icon.
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On the Manage Covered Items page, click Add Row, set the values, then click Save.
Attribute
Value
Pricing UOM
Each
Coverage UOM
Year
Action Type
Add
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Click Create Charge.
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In the Charge details area, set values, then click Save.
Attribute
Value
Pricing Charge Definition
Recurring Sale Price
Price Periodicity
Month
Calculation Method
Covered Item Price Percent
Use this method for a coverage pricing rule when the rule bases the price of the coverage on a percent of the covered item price.
Coverage Basis
Coverage_Basis_for_Desktop_PC
Calculation Amount
10
Start Date
Set a date.
End Date
Set a date.