3Lists

This chapter contains the following:

Rules

Set up pricing rules to control how Oracle Fusion Pricing calculates the price for each item.

A pricing rule is a statement that controls how Pricing applies a price adjustment on an item. For example, how to apply a discount on the list price of an item.

You add a pricing rule when you create a list, such as a price list.

  • Apply more than one charge to an item. For example, define a charge for a one-time sales price for a desktop computer in one pricing rule, then apply another charge for maintenance service that recurs monthly in another pricing rule.

  • Create rules that calculate base price, list price, price adjustments, discounts, return charges, shipping charges, and so on according to a set of conditions and results.

  • Define currency conversion rules that manage pricing for different currencies.

A pricing entity is an object that stores details that Pricing uses to price an item. A pricing strategy, pricing segment, customer pricing profile, price list, cost list, and discount list are each an example of a pricing entity.

Apply a rule to a pricing entity.

Pricing Entity Example Rule Help Topic

Price list

Set the base price to $500 USD for a cell phone, and allow the user to manually adjust the price.

Manage Price Lists

Cost list

Add a 5% increase to the invoice price to capture cost of goods sold.

Manage Cost Lists

Discount list

Provide an 8% discount if the customer purchases a recurring service for 12 months, such as a monthly service call on a commercial kitchen appliance.

Manage Discount Lists

Shipping charge list

Price shipping for a Desktop Computer at $50 for Standard Delivery and $100 for Express Delivery.

Manage Shipping Charge Lists

Currency conversion list

Define the base price for a computer monitor at $400 USD (United States Dollar), and use a 1.38 conversion rate to offer it for sale in CAD (Canadian Dollar) at $553.88.

Manage Currency Conversion Lists

Note.

  • You use a separate page to define each type of pricing list. For example, you use the Manage Price Lists page to define a price list.

  • The Overview page of the Pricing Administration work area displays pricing rules that you recently updated. You can search it to locate other pricing rules.

  • You must click Access Set when you define a list, then add an access set.

    The access set identifies the sales orders that Pricing processes. For example, if you choose Vision Operations Business Unit Set for the access set, then Pricing will only process sales orders that reference the Vision Operations business unit.

    Set Access Set to Common to process sales orders for all business units.

  • You must click Approve on the page that you use to create the list so you can add it to a pricing strategy and so the pricing algorithm can use it.

    Use the Pricing Administrator or Pricing Manager job role when you sign into Pricing and edit a pricing rule. However, Pricing displays Approve only if you sign in with the Pricing Manager job role, and only if you didn't already approved the list.

  • You set up a list, add it to a pricing strategy, then verify your add. The behavior is similar for any type of list that you define. For details, see the Manage Pricing Strategies topic.

  • You can set up a tier pricing rule that adjusts price according to the number of items that the customer orders. For example, apply a 10% discount on all items when the customer buys two or three computers, and apply a 15% discount on all items when the customer buys four or more computers. For details, see the Adjust Price topic.

  • Add a pricing matrix. Use it to adjust the charges that you define in each list according to a set of conditions and the value of an attribute. For details, see the Adjust Price topic.

Attributes You Use in Pricing Rules

Attribute Description

Business Unit

Business unit where Pricing applies the pricing strategy. The business unit helps you organize and report on pricing and charges according to a management hierarchy, and to make sure Pricing processes data securely for the business unit.

Item

The item that you must add to the list, such as the AS54888 Desktop Computer. If you can't locate the item you must add, then you must add it to the product model.

For details, see the Oracle Fusion, Implementing Product Information Management book on My Oracle Support.

Pricing UOM

The unit of measure, such as Each.

Primary Pricing UOM

Add a check mark to use the value that you set in the Pricing UOM attribute as the primary pricing unit of measure.

For details, see the Defining Units of Measure section of this topic.

Service Duration Period

If the item you add in the line is a service, such as a maintenance service agreement for a computer system, then set the service duration period.

Service Duration

If the item that you add in this line is a service, then set the service duration.

Associated Items

If the item you add in this line is a configured item, then click the icon in Associated Items to view the configure options.

Line Type

Choose a value.

  • Buy. The customer is buying the item.

  • Return. The customer is returning the item.

Start Date and End Date

Specify the time period when the rule is available for processing. To create a rule that never expires, leave the End Date empty.

Set Up Units of Measure

Pricing doesn't convert a unit of measure in the current release.

For example, assume Pricing receives order lines x and y, the item for each order line is AS54888, but the UOM for order line x is Each and the UOM for order line y is Box of 5.

  • Pricing doesn't convert Box of 5 to a quantity of 5 and a UOM of Each.

  • Pricing doesn't calculate the price for Box of 5 as five multiplied by the price for Each.

So, you must add a separate line for the item in the Price List Line tab for each UOM that you sell for AS54888. You can then click Create Charge to specify how to calculate price for Box of 5. For an example, see the Manage Price Lists topic.

Note.

  • Primary Pricing UOM doesn't affect pricing calculations or relationships in the current release. Pricing includes it to support converting a unit of measure in a future release.

  • You can add only one unique combination of item, unit of measure, and line type for the primary pricing UOM

Here's an example that sets up two items when you must support different units of measure for the same item.

Item Description Pricing UOM Primary Pricing UOM

AS54888

Desktop Computer

Each

Contains a check mark

AS54888

Desktop Computer

Box of 5

Doesn't contain a check mark

CM15140

Computer Monitor

Each

Contains a check mark

CM15140

Computer Monitor

Box of 5

Doesn't contain a check mark

Duplicate Lists

Copy list details to a new list, including pricing rules, modify the new list, then save your modifications. Copying a list helps you create a new list and avoid errors. You click the Duplicate icon to duplicate a list.

For example.

  1. On the Overview page, click Tasks > Manage Discount Lists.

  2. Search for the list you must copy.

  3. In the Search Results area, click Duplicate.

    Use the dialog that displays to specify how to copy the list, such as whether to copy discount lines from the original discount list.

Note.

  • If you modify the currency when you duplicate a list, then you might not be able to copy the charges that the original list references.

    For example, assume you duplicate a cost list and modify the currency to CAD (Canadian Dollar). You might not be able to copy the charges because Pricing created them for some other currency, such as USD (United States Dollar).

  • If you duplicate charges, then you can copy all charges or only the most current set of charges.

Examine Old Pricing Rules

The Overview page in Pricing Administration comes predefined to display pricing rules that you recently updated. You can also search for older pricing rules that have expired or are about to expire.

  1. Go to the Overview page, then click Search > Advanced.

  2. On the Search Pricing Rules page, in the Advanced Search area, set values, then click Search.

  3. In the search results, use Rule End Date to filter the results, such as Before 12/28/19 12:00 AM.

Prices

Set up a price list that sets the price for each item you sell.

A price list is a collection of prices for items that you target for a set of customers, and for a period of time. Use it to set the base list price and make other adjustments for each item.

  • Associate more than one price list with more than one pricing strategy.

  • Create more than one price list, then use pricing profiles, pricing segments, and pricing strategies to reference your prices lists to one or more customers.

  • If you add a charge to an approved price list, then Pricing automatically approves the pricing entities that the charge references. It approves them for use in the price list.

  • Set up the pricing charges that a price list contains for each item that the list references. Here's the types of charges you can set up.

    Type of Charge Description

    One Time Charge

    A one-time charge for an item, such as a one-time fee to establish a phone service.

    Recurring Charge

    A periodic charge, such as the monthly recurring charge for a phone service.

You will add a price list that sets the base price for the AS54888 Desktop Computer.

  • $2,500 for each computer

  • $10,000 for a box of five computers

You use the Edit Price List page in the Pricing Administration work area at design time to calculate price on the Create Order page in the Order Management work area at run time.

the Edit Price List page in the Pricing Administration
work area

This topic includes example values. You might use different values, depending on your business requirements.

This topic describes how to create a pricing rule. For details, including descriptions about some of the attributes you can set, see the Pricing Rules topic.

Summary of the Setup

  1. Create price list.

  2. Add items to price list.

  3. Add price list to pricing strategy.

    You only add the price list to a pricing strategy the first time you create the price list. Pricing automatically adds any changes you make after you add the price list.

Create Price List

  1. On the Overview page, click Tasks > Manage Price Lists.

  2. On the Manage Price List page, click Actions > Create.

  3. In the Create Price List dialog, set values.

    Attribute Description

    Name

    Enter Price List for Computer Service and Rentals.

    Pricing Charge Definition

    Choose Sale Price.

    You can specify the pricing charge definition that represents the value that Pricing calculates during a transaction.

    You usually choose Sale Price.

    To verify your choice, examine the values that Pricing displays in the Price List Line Default Values area after you choose. Make sure these values describe the items that you will add to the price list. For details, see the Manage Pricing Charge Definitions topic.

    Calculation Method

    Choose Price.

    Here's the values you can choose.

    • Price. Use the value you set in the Base Price attribute in this price list to calculate the price.

    • Cost. Use cost plus pricing to calculate the price. You add an adjustment to the cost that you define in the cost list, then Pricing uses the adjustment to determine the base price. For details, see the Cost Plus Pricing topic.

    Pricing uses the values you set in the Price List Line Default Values area of the Create Price List dialog for each item you add to the price list.

    For example, if you set the Calculation Method attribute to Price in the Create Price List dialog, and then use the Price List Lines area of the price list to add item AS54888 Desktop Computer, then Pricing sets the Calculation Method attribute to Price in the Charge area for the AS54888 Desktop Computer.

  4. In the Type attribute, set one of these values.

    Type Description

    Segment Price List

    For this example, choose Segment Price List.

    Specifies the base price of an item. Choose this type to use for the base price when Pricing calculates the invoice price. You usually use Segment Price List.

    You use the pricing profile to segment customers, then assign this profile to a pricing strategy. Pricing applies the pricing adjustments that other price lists in the pricing strategy specify. It applies them to the base price, then uses the adjusted prices to calculate the final invoice price.

    Ceiling Price List

    Specifies the highest price of any item that you add to the price list. Choose this type to make sure the invoice price of an item doesn't exceed the ceiling price.

    Floor Price List

    Specifies the lowest price of any item that you add to the price list. Choose this type to make sure the invoice price of an item isn't less than the floor price.

    GSA Price List

    Choose this type for items that you sell to a government agency. GSA (General Services Administration) periodically sets these prices when it makes the GSA price list available. If the customer isn't a government agency, then you can't set the net price to a value that's less than the GSA price.

    GSA is an agency of the United States government that manages and supports federal agencies.

  5. Click Save and Edit.

Add Items to Price List

  1. In the Price List Lines tab, click Actions > Add Row, then set values.

    Attribute Value

    Item

    AS54888

    Pricing UOM

    Each

  2. Click Create Charge.

  3. In the Charge area, set values.

    Attribute Value

    Pricing Charge Definition

    Sale Price

    Calculation Method

    Price

    Base Price

    2500

  4. Repeat steps 1 through 3. Here's the values to use.

    Attribute Value

    Item

    AS54888

    Pricing UOM

    Box of 5

    Pricing Charge Definition

    Sale Price

    Calculation Method

    Price

    Base Price

    10000

    Note.

    • Add a separate line in the Price List Line tab for each UOM that you sell for the item.

    • Add more than one charge to the price list line for each item to help manage the price charge so you can achieve your profitability objective. For example, create a separate charge for the sale price, the administration fee, and recurring charges, then manage them at various levels, such as individual items or all items.

  5. Click Save > Approve.

Add Price List to Pricing Strategy

Add your price list in the Segment Price Lists area of the pricing strategy named Corporate Pricing Strategy. For details, see the Manage Pricing Strategies topic.

Display Only Recurring Charges from Price Lists

Some items include a charge that recurs regularly, such as a subscription that recurs one time every month. The charge for other items, such as a desktop computer, don't recur, but instead include a one-time sale price. The order line in a sales order might display the recurring charge and the sale price.

For example, here's an order line for a subscription with a 30.00 recurring charge.

an order line for a subscription with a 30.00 recurring
charge

You probably don't want the sale price to display for a subscription.

Set up Pricing to remove the Sale Price from the order line.

  1. Create a price list that includes the subscription, and add the recurring charge to the subscription.

    For this example, name the price list My_Price_List. Use the All Items tab instead of the Items tab when you add the charge to My_Price_List.

  2. Add My_Price_List to your pricing strategy.

  3. On the Edit Pricing Strategy page, click the row that includes My_Price_List, click Top of List, then verify that the Precedence attribute is 1 for My_Price_List.

  4. At run time, Order Management will use the price list with the highest precedence and ignore the others.

Include or Exclude Tax on List Price

Specify whether to include or exclude tax on the list price.

  1. Sign into Order Management with setup privileges.

  2. In the Navigator, click Setup and Maintenance.

  3. In the Setup and Maintenance work area, open the task.

    • Offering: Financials

    • Functional Area: Transaction Tax

    • Task: Manage Tax Regimes

  4. On the Manage Tax Regimes page, open your tax regime for editing.

  5. On the Edit Tax Regime page, set the inclusion method.

    Tax Inclusion Method Description

    Standard Inclusive Handling

    Include tax as part of the list price.

    Standard Noninclusive Handling

    Don't include tax as part of the list price. Instead, add it to the list price.

    For example, assume the list price for the item is 100. Here's how tax affects the sales order.

    Tax Price in Sales Order

    Inclusive tax of 10%.

    Total Net Price, $90

    Total Tax, $10

    Pay Now, $100

    Exclusive tax of 10%.

    Total Net Price, $100

    Total Tax, $10

    Pay Now, $110

Costs

Modify a predefined cost list or create your own to set up a variety of charges, such as item cost, sales commission, or labor cost.

  • Use a cost list to set up cost plus pricing.

  • Use a cost list to calculate part of the profit margin for a charge.

  • Separate charges to help you manage and optimize charges and profit margins for an item, and help improve your pricing strategy. For example, create a separate charge for the transport charge, installation charge, recurring service charge for maintenance, and a one-time administration fee for 50 desktop computers. Pricing adds each cost as a charge to the cost list.

  • Manage charges at different levels, such as individual items or all items.

Assume you must add a cost list that includes a $35 fee for maintenance service for the AS54888 Desktop Computer. The fee recurs one time each month.

This topic describes how to create a pricing rule. For details, including descriptions about some of the attributes that you set, see the Pricing Rule topic.

This topic includes example values. You might use different values, depending on your business requirements.

Summary of the Steps

  1. Create cost list.

  2. Add item to cost list.

  3. Add cost list to pricing strategy.

Create Cost List

  1. Create the pricing charge definition that Pricing uses to calculate cost for your cost list.

    You must do this set up before you define the cost list. For details, see the Manage Pricing Charge Definitions topic.

  2. On the Overview page, click Tasks > Manage Cost Lists.

  3. On the Manage Cost List page, click Actions > Create.

  4. In the Create Cost List dialog, enter values, then click Save and Edit.

    Attribute Description

    Name

    For this example, enter Cost List for Computer Service and Rentals.

Add Item to Cost List

  1. Click Actions > Add Row, then set the value.

    Attribute Description

    Item

    For this example, add AS54888 Desktop Computer.

  2. Click Create Cost Charge.

  3. In the Cost Charges area, set values.

    Attribute Description

    Cost Element

    Choose Cost of Goods Sold.

    Use the cost element to monitor cost through the inventory and accounting life cycle. For example, monitor the material cost, overhead cost, or tax cost of an item.

    Monitor each of these costs as a separate cost element. Pricing comes predefined to use Cost of Goods Sold, but you can set up pricing to use other cost elements.

    Pricing Charge Definition

    For this example, choose Recurring, then set Price Periodicity to Month.

    Use this attribute to specify the type of charge. Choose a value.

    • Sale Price. Apply this cost to an item that the customer is purchasing.

    • Service Price. Apply this cost to a service that the customer is purchasing, such as a one-time charge to install and setup a network of desktop computers.

    • Recurring. Apply this cost to a recurring service that the customer is purchasing, such as monthly maintenance service for a desktop computer.

    Cost Calculation Type

    For this example, choose Fixed, then enter 35 in the Cost Amount.

    Specify whether Pricing uses a fixed amount or a percent.

    For fixed, select Fixed, then enter a value in the Cost Amount attribute.

    For percent, select Percent of Price Element, then define attributes.

    • Cost Basis Element. Select the price element that Pricing uses to calculate the cost charge, such as Base List Price.

    • Cost Percentage. Enter a number that represents the percent to calculate for the cost charge. Enter a percentage of a price element, such as 10% of the base list price, ceiling price, invoice price, list price, or net price. Pricing calculates the charge value at run time.

      For example, to calculate the cost as 15% of the base list price, set Cost Basis Element to Base List Price, and sent Cost Percentage to 15.

    Cost Plus Pricing

    For this example, leave empty.

    Add a check mark to define an item price in terms of cost, such as add a $100 cost markup to the list price. For details, see the Cost Plus Pricing topic.

    Cost Method

    For this example, leave empty.

    Choose the accounting method that your company accounting policies require to account for the cost. This attribute doesn't affect pricing calculations or relationships. Use it to help document how you use the cost list.

  4. Scroll to the top of the page, then click Save > Approve.

    If you add a pricing rule to a cost list that you already approved, then Pricing automatically approves the pricing entities that the rule references. It approves them for use in the cost list.

Add Cost List to Pricing Strategy

For this example, add the cost list to the pricing strategy named Corporate Pricing Strategy. For details, see the Manage Pricing Strategies topic.

Cost Plus Pricing

Use cost plus pricing to calculate and analyze the profit margin that your company earns for an item in terms of the pricing charges that the item references.

Use it to optimize pricing so it meets the pricing objective you define.

If you use cost plus pricing, then Oracle Fusion Pricing calculates the item price according to attributes you set on the price list and the cost list. The cost of an item is the sum of the charges that you define for the item on these lists. Pricing includes only the charges you enable for cost plus pricing as part of the cost when it calculates price.

Here's an example that uses cost plus pricing.

Cost Plus Pricing Cost Amount Cost Calculation Type Markup Selling Price

Contains a check mark

345

Fixed

55

345 plus 55 equals $400

Does not contain a check mark

345

Fixed

55

345

Assume you typically sell a cellular phone according to the price you define in the Base Price attribute of the price list of $445, and you set the Calculation Method in the price list to Price. You offer the phone to your customer for $400 using cost plus pricing. Here's your setup.

  1. In the price list, set these attributes.

    Attribute Value

    Calculation Method

    Cost

    Calculation Type

    Markup Amount

    Cost Calculation Amount

    55

  2. In the cost list, set these attributes.

    Attribute Value

    Cost Calculation Type

    Fixed

    Cost Amount

    345

    Cost Plus Pricing

    Add a check mark

Here's the calculation that Pricing will do at run time.

  • Cost of $345 plus markup of $55 equals a base price of $400

Set Price Periodicity to a Granular Level

Set Price Periodicity to a sufficiently granular value so it meets your customer's requirements.

Assume you add a cost list in the Pricing Administration work area. It includes a $420 annual fee for maintenance that you provide as a service on the AS54888 Desktop Computer. You click Create Cost Charge, then set values.

Attribute Value

Pricing Charge Definition

Recurring

Price Periodicity

Year

Cost Amount

420

Your customer, Computer Service and Rentals, places an order for the AS54888 and requests maintenance for 1.5 years. You create a sales order in the Order Management work area, add the AS54888 Desktop Computer to the order, set the Duration to 1.5, the Period to Year, the Contract Start Date to January 1, 2020, then click Submit. However, Order Management can't use a fraction such as 1.5 to calculate the Contract End Date. In can use only a whole number. So Order Management displays an error requesting you to change duration to a whole number.

To avoid this problem, and to meet Computer Service and Rentals' request, set Price Periodicity to a more granular value.

Attribute Value

Pricing Charge Definition

Recurring

Price Periodicity

Month

Cost Amount

35

Then set Duration on the order line to 18.

If you must keep Price Periodicity at Year, then leave Duration empty and set the Contract End Date to June 30, 2021 when you create the order line. However, this approach requires you to manually calculate the end date every time you add an order line because the date changes, and you must calculate it accurately to the day. Avoid this problem. Make the Price Periodicity more granular instead.

Discounts

Create a discount list to set up discounts, profit margins, and price overrides for an item.

  • Define a discount for a variety of reasons, such as a seasonal holiday discount, or volume discount according to price or quantity.

    For example, create a price list that sets the base price of a cell phone at $445 with no other adjustments, which sets the list price at $445. You can define a seasonal discount of 10% from December 10 to January 1, resulting in a net price of $400.50.

  • Apply a flat rate discount or a percent discount.

  • Use a pricing matrix to define a discount according to an item attribute and apply it to the list price at run time. For example, mark up the price of an extra large, red shirt by $10, and apply a 7.5% discount for a blue, large shirt.

Discount Matrix

Use a discount matrix to manage discounts.

Use a discount matrix to manage discounts.

Note.

  • Use dynamic, declarative rules to define conditions and results that determine price. For example, use the Growing Region attribute and the Variety attribute of the Lemon item as the condition, and the adjustment as the result.

    If Growing Region is Domestic, and if Variety is Standard, then adjust price by +$0.50.
  • Create a price list matrix or discount matrix that adjusts base price or list price.

  • Create rules according to.

    • Transactional attribute. An attribute that occurs on the sales order.

    • Item extensible attribute. An attribute that you define in the Product Information Management work area to meet your specific business requirements. For example, Growing Region could be a transactional attribute and Variety could be an item extensible attribute.

    • Define matrix rules that apply to all items on the order line. Or define matrix rules that apply only to some items on the order line according to the value of an attribute.

    • .For example, if an order line includes 10 domestic standard lemons, and 10 domestic organic lemons, then add $0.50 to the standard lemons, and add $1.50 to the organic lemons.

    • Use a matrix class to create a template that you can reuse with different pricing entities, such as pricing charge, discount, and so on.

Create a pricing rule that provides a one-time, $100 discount on the sale price of a new computer.

You use the Edit Discount List page in the Pricing Administration work area at design time to calculate a discount on the Create Order page in the Order Management work area at run time.

Create a pricing rule that provides a one-time,
$100 discount on the sale price of a new computer.

Assume you're rolling out a sales campaign to bring in the new year and increase sales for the AS54888 desktop computer. You're offering a $100 discount. This topic shows you how to do it.

Summary of the Steps

  1. Create discount list.

  2. Add item to discount list.

  3. Add discount list to pricing strategy.

  4. Test your setup.

This topic includes example values. You might use different values, depending on your business requirements.

For details about how to create a pricing rule, see the Pricing Rule topic.

Create Discount List

  1. On the Overview page, click Tasks > Manage Discount Lists.

  2. On the Manage Discount List page, click Actions > Create.

  3. In the Create Discount List dialog, set values, then click Save and Edit.

    Attribute Value

    Name

    Discount List for Sentinel Standard Desktop

    Price Type

    One Time

    Set the type of price that Pricing uses with the item that you add to the discount list.

    • One Time. For a one-time purchase of a tangible item, such as a desktop computer.

    • Service. For a recurring purchase, such as a service agreement for a desktop computer that bills monthly.

    Charge Type

    Sale

    Set the type of charge that Pricing uses for the item.

    • Sale. For a tangible item, such as a desktop computer.

    • Service. For a service, such as a service agreement for a desktop computer.

    Charge Subtype

    Price

    Provide more details about the charge, such as whether the charge is a price or a fee. For example, a service charge might include an installation fee and a delivery fee.

    Currency

    USD

    Business Unit

    Vision Operations

    Start Date

    Any time before the current date.

    Line Type

    Buy

Add Item to Discount List

  1. In the Discount Lines tab, click Actions > Add Row, then set values.

    Attribute Value

    Name

    AS54888

    Description

    Sentinel Desktop Computer

    Pricing UOM

    Each

    Line Type

    Buy

  2. In the Discount Rules area, click Actions > Create > Simple Rule.

  3. In the Create Discount Rule dialog, set values, then click OK.

    Attribute Value

    Price Type

    One Time

    Charge Type

    Sale

    Charge Subtype

    Price

    Name

    New Year Promotion

    Start Date

    Any date before the current date.

    Adjustment Type

    Discount Amount

    Adjustment Amount

    100

  4. Scroll to the top of the page, then click Access Sets, then add an access set.

  5. Click Actions > Add Row, then set values.

    Attribute Value

    Set Code

    Business unit of the selling organization. For this example, set it to Vision Operations.

  6. Click Save, then click Approve.

Add Discount List to Pricing Strategy

For this example, add the discount list to Corporate Pricing Strategy. For details, see the Manage Pricing Strategies topic.

  1. Click Tasks > Manage Pricing Strategies.

  2. On the Manage Pricing Strategies page, search for, then open Corporate Pricing Strategy.

  3. On the Edit Pricing Strategy page, click Discount Lists.

  4. Click Actions > Select and Add.

  5. In the dialog, search for Discount List for Sentinel Standard Desktop, click the row that displays in the results, then click OK.

  6. In the new row, set the start date to any date that occurs before the current date, then click Save.

Test Your Setup

  1. Open another browser application, then sign into Order Management as the order entry specialist.

  2. Go to the Order Management work area, then create a sales order.

    Attribute Value

    Customer

    Computer Service and Rentals

    Business Unit

    Vision Operations

    Order Type

    Standard Orders

    Bill-to Account

    1006

  3. On the catalog line, search for AS54888.

  4. Wait for the result to display, then click the sale price.

  5. In the Amount dialog, verify that the price breakdown includes your new $100 discount.

    Discount Rule New Year Promotion defined for the item AS54888 applied from Discount List for Sentinel Standard Desktop

Shipping Charges

Create a shipping charge list to calculate freight, duty, handling, and insurance charges for an item.

For example, allow your users to choose 2nd day air delivery for a desktop computer at a price of $75 for each computer, or choose ground transportation at a price of $25.

Here's your requirements for this example.

  • Allow your users to price shipping for the AS54888 Desktop Computer at $50 USD for Standard Delivery and $100 USD for Express Delivery.

  • Discount shipping charge by 10% if customer orders a quantity of 5 to 10 computers.

  • Discount shipping charge by 25% if customer orders a quantity of more than 10 computers.

You will create a pricing rule. For details, see the Pricing Rule topic.

This topic includes example values. You might use different values, depending on your business requirements.

Summary of the Steps

  1. Create shipping charge list.

  2. Create pricing matrix.

  3. Add shipping charge list.

Create Shipping Charge List

  1. On the Overview page, click Tasks > Manage Shipping Charge Lists.

  2. On page Manage Shipping Charge Lists, in the search results, click Actions > Create.

  3. In the Create Shipping Charge List dialog, set values for the Name attribute and the other required attributes, then click Save and Edit.

    Attribute Value

    Name

    Shipping Charge List for Sentinel Standard Desktop

  4. On the Edit Shipping Charge List page, on the Shipping Charges tab, click Items.

    You add a shipping charge for a single item. Pricing doesn't support the Flat Rates tab in the current release.

  5. Click Actions > Create, then click Create Item Charge.

    Pricing doesn't support Create Product Category Charge in the current release.

  6. In the Create Item Charge dialog, set values.

    Attribute Value

    Shipping Method

    Standard Delivery

    Pricing Charge Definition

    Freight

  7. Click Actions > Add Row, then set values.

    Attribute Value

    Name

    AS54888

    Calculation Method

    Price

    Base Price

    50

    Allow Manual Adjustment

    Doesn't contain a check mark.

    You can't allow users to manually adjust price in the current release of Pricing.

  8. Click OK.

  9. Repeat steps 5 through 8, except use these values.

    Attribute Value

    Shipping Method

    Express Delivery

    Base Price

    100

Create Pricing Matrix

Create a pricing matrix that adds the discounts.

  1. In the search results, click Actions > Create Adjustment Matrix.

  2. In the Create Price Adjustment Matrix dialog, add a check mark to each option, then click OK.

  3. In the Adjustment Matrix area, add a matrix.

    Minimum Extended Quantity Maximum Extended Quantity Adjustment Type Adjustment Amount

    5

    10

    Discount Percent

    10

    11

    NA

    Discount Percent

    25

    To specify a maximum quantity to infinity, leave Maximum Extended Quantity empty in the row that specifies the highest value.

  4. Scroll up, click Access Sets, then add an access set.

  5. Click Save > Approve.

Add Shipping Charge List

Add a shipping charge list to pricing strategy Corporate Pricing Strategy. For details, see the Manage Pricing Strategies topic.

Currencies

Set up a currency conversion list to specify the conversion rate to use between two currencies, such as the US Dollar and the Canadian Dollar.

Use a currency conversion list to manage currency.

Note.

  • Do business in more than one currency while maintaining your pricing rules in one currency.

  • Define price values in a single currency but offer items in more than one currency.

  • Create currency conversion rules for each pricing strategy.

  • Create one price with more than one conversion type.

  • Create markups and markdowns for each currency or country.

  • Adjust the conversion rate to accommodate changes that occur in company policy, currency fluctuations, international monetary policy, and so on.

  • Define the currencies and conversion rules that Pricing uses to calculate prices at run time so the application that requires price details, such as Order Management Cloud, can display prices in the currency that the user is familiar with.

  • Reduce maintenance because you define only a minimal number of lists in Pricing for a pricing strategy when compared to defining a price list for each currency.

  • Limit the currencies that you use to sell items.

  • If you don't specify a currency conversion list, then Pricing uses the default currency conversion list.

  • You can't define a currency conversion list or general ledger conversion, but you can add a conversion rate for the general ledger when you define a currency conversion list.

Manage Currency Conversion Lists

Set up a conversion rate of 1.01 to adjust the US Dollar down by 0.99 to the Canadian Dollar.

You will create a pricing rule. For details, see the Pricing Rules topic.

This topic includes example values. You might use different values, depending on your business requirements.

Summary of the Steps

  1. Create currency conversion list.

  2. Add conversion rate to currency conversion list.

  3. Add currency conversion list to pricing strategy.

Create Currency Conversion List

  1. On the Overview page, click Tasks > Manage Currency Conversion Lists.

  2. On the Manage Currency Conversion Lists page, in the search results, click Actions > Add Row, then enter a value.

    Attribute Value

    Name

    Currency Conversion List for Sentinel Standard Desktop

    You can enter any text.

Add Conversion Rate to Currency Conversion List

  1. In the Details area, click Actions > Create.

  2. In the Create Conversion Rate dialog, set values.

    Attribute Value

    Base Currency

    USD - US Dollar.

    To Currency

    CAD - Canadian Dollar.

    Conversion Type

    Fixed.

    You can specify the source that Pricing uses for the conversion rate.

    • Fixed. Use the fixed rate that you specify. If you choose Fixed, then set a rate in the Conversion Rate attribute.

    • GL Sourced. Get rates from the GL (general ledger) conversion list or the General Ledger application. GL fixes rates for a time period, such as a yearly, quarterly, or monthly.

    Conversion Rate

    Enter 1.01.

    GL Conversion Type

    Leave it empty.

    If you set Conversion Type to GL Sourced, then you must set the GL Conversion Type. For example, choose Corporate, Quarterly, Monthly, Spot, EMU Fixed, User Defined, and so on.

    This attribute doesn't affect pricing calculations or relationships. Use it to document how you're using the currency conversion list.

    Adjustment Type

    Markdown Amount

    You can specify how to make the adjustment, such as markdown or markup.

    Adjustment Amount

    Enter 0.2.

    You can specify the amount or percent to apply for the adjustment.

  3. Click OK.

  4. Scroll to the top of the page, click Access Sets, then add an access set.

  5. Click Save.

Add Currency Conversion List to Pricing Strategy

For this example, add this currency conversion list to the pricing strategy named Corporate Pricing Strategy. For details, see the Manage Pricing Strategies.

Example Conversions

Here's some examples that use a 1.01 conversion rate to convert USD to CAD.

Adjustment Type Adjustment Amount Adjustment Calculated on Conversion Rate Final Conversion Rate

Markdown Amount

0.2

0.2

1.01 minus 0.2 equals 0.99

Markdown Percent

20%

20% of 1.01 equals 0.202

1.01 minus 0.202 equals 0.808

Markup Amount

0.2

0.2

1.01 plus 0.2 equals 1.21

Markup Percent

20%

20% of 1.01 equals 0.202

1.01 plus 0.202 equals 1.212

Manage More Than One Currency

Allow your users to choose from more than one currency in a single sales order.

In this example, you set up Pricing so your users can order the AS5488 desktop computer from Computer Service and Rentals in the USD currency or Yen currency.

Summary of the Steps

  1. Examine predefined behavior.

  2. Create pricing strategies.

  3. Assign pricing strategies to pricing segment.

  4. Test your set up.

This topic includes example values. You might use different values, depending on your business requirements.

Examine Predefined Behavior

  1. Sign into Order Management.

  2. Create a new sales order.

    Attribute value

    Customer

    Computer Service and Rentals

    Item

    AS54888

  3. On the order header, click Actions > Edit Currency Details.

  4. In the Edit Currency Details dialog, click the down arrow for Order Currency, and notice it includes only US Dollar.

  5. Click OK, then sign out of Order Management.

Create Pricing Strategies

Create two pricing strategies. One strategy will default to USD, and the other will default to Yen.

  1. In the Navigator, click Pricing Administration.

  2. On the Overview page, click Tasks > Manage Pricing Strategy.

  3. Create a pricing strategy.

    Attribute Value

    Name

    Pricing Strategy for USD

    Business Unit

    Computer Service and Rentals

    Default Currency

    USD - US Dollar

    Objective

    Allow user to choose USD

    Allow Currency Override

    Contains a check mark.

  4. Create another pricing strategy.

    Attribute Value

    Name

    Pricing Strategy for Yen

    Business Unit

    Computer Service and Rentals

    Default Currency

    JPY- Yen

    Objective

    Allow user to choose Yen

    Allow Currency Override

    Contains a check mark.

Assign Pricing Strategies to Pricing Segment

  1. On the Overview page, click Tasks > Manage Pricing Strategy Assignments.

  2. Immediately below the page title, click Actions > Add Row, then set values.

    Attribute Value

    Assignment Level

    Header

    Pricing Context

    Sales

    Transaction Type

    Sales Orders

    Start Date

    Choose today's date.

  3. Click Save.

  4. Click Create Assignment Matrix.

  5. In the Create Assignment Matrix dialog, add a check mark to each option, then click OK.

  6. In the Header-Sales-Sales area, click Actions > Add Row, then set values.

    Attribute Value

    Channel Method

    Inside Sales

    Pricing Segment

    Corporate Segment

    Transaction Type

    Sales Order

    Pricing Strategy

    Pricing Strategy for USD

  7. Click Actions > Add Row, then set values.

    Attribute Value

    Channel Method

    Inside Sales

    Pricing Segment

    Corporate Segment

    Transaction Type

    Sales Order

    Pricing Strategy

    Pricing Strategy for Yen

  8. Click Save and Close.

Test Your Set Up

  1. Sign into Order Management, then create a sales order.

    Attribute value

    Customer

    Computer Service and Rentals

    Item

    AS54888

  2. On the order header, click Actions > Edit Currency Details.

  3. On the Edit Currency Details dialog, click the down arrow for Order Currency, then verify you can choose US Dollar or Yen.

Use Different Currencies for the Same Customer

Set up pricing so you can use different currencies for the same customer.

Assume you must sell the AS54888 item priced in USD (United States Dollar), and the AS54600 item priced in RMB (Renminbi), to customer Computer Service and Rentals, in the Vision Operations business unit.

  1. Go to the Pricing Administration work area, then click Tasks > Manage Price Lists.

  2. Create the USD price list.

    • On the Manage Price Lists page, click Actions > Create, set values, then click Save and Edit.

      Attribute Value

      Name

      USD Price List

      Type

      Segment Price List

      Currency

      USD

      Pricing Charge Definition

      Sale Price

      Business Unit

      Vision Operations

      Line Type

      Buy

      Calculation Method

      Price

    • In the Items area, click Actions > Add Row, then set values.

      Attribute Value

      Name

      AS54888

      Pricing UOM

      Each

      Line Type

      Buy

    • Click Create Charge, then set values.

      Attribute Value

      Pricing Charge Definition

      Sale Price

      Calculation Method

      Price

      Base Price

      1100

      Allow Manual Adjustment

      Not enabled

    • Click Access Set, click Actions > Add Row, then set values.

      Attribute Value

      Set Code

      COMMON

      Set Name

      Common Set

    • Click Approve, then click Save and Close.

  3. Create the RMB price list.

    • Repeat step 2, but use different values.

      Attribute Value

      Name

      RMB Price List

      Type

      Segment Price List

      Currency

      RMB

      Pricing Charge Definition

      Sale Price

      Business Unit

      Vision Operations

      Line Type

      Buy

      Calculation Method

      Price

    • Add the item.

      Attribute Value

      Name

      AS54600

      Pricing UOM

      Each

      Line Type

      Buy

      Pricing Charge Definition

      Sale Price

      Calculation Method

      Price

      Base Price

      1300

      Allow Manual Adjustment

      Not enabled

    • Assign the Common Set access set.

  4. Create the pricing strategy.

    • Click Tasks > Manage Pricing Strategies.

    • On the Manage Pricing Strategies page, click Actions > Create, set values, then click Save and Edit.

      Attribute Value

      Name

      USD Pricing Strategy

      Business Unit

      Vision Operations

      Default Currency

      USD

      Default GL Conversion Type

      Leave empty

      Allow Price List Override

      Enabled

      Allow Currency Override

      Enabled

      For this example, assume Vision Operations uses USD as the default value for most sales orders. So, you name the strategy USD Pricing Strategy, then add currencies to it.

    • In the Segment Price Lists area, click Actions > Select and Add, search for USD Pricing Strategy, click the row in the search results, then click OK.

    • In the Segment Price Lists area, click Actions > Select and Add, search for RMB Pricing Strategy, click the row in the search results, then click OK.

    • Verify that the Segment Price Lists area contains your price lists, then click Save.

      Name Business Unit Currency Status

      USD Price List

      Vision Operations

      USD

      Approved

      RMB Price List

      Vision Operations

      RMB

      Approved

    • Click the Allowed Override Currencies tab.

    • Click Actions > Add Row, then set the value.

      Attribute Value

      Currency

      RMB

    • Click Approve, then click Save and Close.

  5. Test your set up.

    • Go to the Order Management work area, then create a sales order.

      Attribute Value

      Customer

      Computer Service and Rentals

      Item

      AS54888

    • Verify that the Amount attribute on the order line displays the value as USD.

    • Create another sales order for Computer Service and Rentals, but this time, in the order header, click Actions > Edit Currency Details, then set Order Currency to Chinese Renminbi.

    • Add the AS54600 item to an order line, then verify that the Amount attribute on the order line displays the value as RMB.

Adjustments

Use tier pricing or a pricing matrix to adjust the price that a pricing rule calculates.

Assume you define a price list that includes a desktop computer and you set the base price for the item to $2,000.

Here's how you can use tier pricing and a pricing matrix to adjust the price.

diagram that illustrates how you can add tier pricing
and a pricing matrix to adjust the price for this computer in two
different ways

Note.

  1. Tier pricing. Adjust a pricing rule according to quantity or monetary value. For example.

    • If the quantity on the sales order is 10 to 19, then reduce the price for each unit by $200.

    • If the quantity on the sales order is 20 or more, then reduce the price for each unit by $400.

  2. Pricing matrix. Adjust a pricing rule according to the value of an attribute. For example.

    • If the customer on the sales order is Computer Service and Rentals, then reduce the total price by $50.

    • If the customer on the sales order is Computers Direct to U, then reduce the total price by $25.

Here's the calculation that the rule does if Computer Service and Rentals orders 10 computers.

Description Calculation

Base price for each item before tier discount

$2,000.

Tier

The quantity of 10 places the sales order in tier 1.

Tier adjustment

$200 discount for each unit.

Price for each unit after tier adjustment

$2,000 base price minus $200 discount equals $1,800.

Price for all units after tier adjustment

10 unit multiplied by $1,800 equals $18,000.

Adjustment in pricing matrix

$50 discount off total price.

Price after tier adjustment and matrix adjustment

$18,000 minus $50 equals $17,950.

Here are the lists where you can add an adjustment.

List Tier Pricing Pricing Matrix

Price list

yes

yes

Cost list

yes

no

Currency conversion list

no

yes

Shipping charge list

no

yes

Returns price list

no

no

For an example that uses a tier adjustment, see the Add Tiers to Pricing Rules topic.

For an example that uses a pricing matrix, see the Manage Shipping Charge Lists topic.

For details about how a matrix class determines the attributes that you can choose in a pricing matrix, see the Matrix Classes topic.

Use tiers to adjust price.

Use tiers to adjust price.

Note.

  • Use the price list tier to adjust the base list price.

  • Use the tier adjustment on a discount list to adjust list price.

  • Adjust a price list or discount list according to quantity or amount.

  • Apply tiers on the order line or entire sales order.

  • Apply rules to only the highest tier or to all tiers.

  • Apply discount percent, discount amount, markup percent, markup amount, or price override.

  • Apply pricing on each unit ordered or to a block of units.

For example, add tier pricing to a pricing rule to adjust price according to the number of items that the customer orders. If the customer buys.

  • Two desktop computers, use tier 1 to apply a 10% discount.

  • Four desktop computers, use tier 2 to apply a 15% discount.

This topic describes attributes you use with tier pricing. For details about them, see the Add Tiers to Pricing Rules topic.

Here's the values you can use when you set the Application Method attribute of a tier pricing rule.

  • Per Unit. Apply the rule to each unit.

  • As Block. Apply the rule to a block of units.

Set Up Tiers for Each Unit

Apply the tier pricing rule to each unit. For example, if the sales order includes a quantity of four, and if the discount is $1 for each item, then the total discount is $4.

Here's the attributes you use when you define a tier pricing rule for each unit.

Attribute Description

Minimum

Set the lowest value that defines the tier.

Maximum

Set the highest value that defines the tier.

Set the Apply To attribute to All Tiers

Apply the adjustment that each tier specifies.

Set the Apply To attribute to Highest Tier

If the quantity places the sales order in the highest tier, then apply the adjustment that the highest tier specifies to all items, and ignore all other tiers.

Example of Defining Tiers for Each Unit

Assume you must define tiers.

  • Tier 1. If the customer orders a quantity of one to 10 items, then price each item at $50.

  • Tier 2. If the customer orders a quantity of more than 10 items, then price each item at $45.

  • Override the list price with a price that you specify for each tier.

Here's how Pricing assigns items to tiers when the sales order includes a quantity of 15 items, depending on whether you set the Apply To attribute to All Tiers or Highest Tiers.

Tier All Tiers Highest Tier

1

10 items

Not applicable

2

5 items

15 items

Pricing calculates these values.

Minimum Maximum Price Override All Tiers Highest Tier

Tier 1

1

10

$50

10 items multiplied by $50 equals $500

Not applicable

Tier 2

11

Not applicable

$45

5 items multiplied by $45 equals $225

15 items multiplied by $45 equals $675

Price for All Tiers

Not applicable

Not applicable

Not applicable

$500 plus $225 equals $725

$675

Define Tiers for Blocks

You use the same attributes to define tiers for blocks of units that you use when you define tiers for each unit, plus a few more.

Concept Description

Block

A quantity of items, such as 100 desktop computers.

Increment

Size of the block.

For example, if you specify the Increment as 100, then the block size is 100.

Partial block

A block that includes only part of the full count of items that the Increment specifies for a block.

For example, if the Increment is 100, then any block that includes less than 100 items is a partial block, so a block that includes a quantity of 99 is a partial block.

Satisfied block

A block that includes the full quantity that the Increment specifies for a block.

For example, if the Increment is 100, then a block that includes a quantity of 100 is satisfied.

If you set Partial Block Action to.

  • Include Partial Block. Pricing applies the discount to each partial block and to each satisfied block.

  • Include Satisfied Blocks. Pricing applies the discount only to each satisfied block.

Examples of Defining Tiers for Blocks

Assume you must set up these tiers.

Tier Quantity Price for Each Item

1

100 to 1,000

10

2

1,001 to 2,000

5

3

More than 2,000

3

Also, you override the list price with a price that you specify for each tier.

If you set the Apply To attribute to Highest Tier Pricing, then Pricing will assign these quantities to tiers.

Minimum Maximum Increment Item Price

1

1,000

100

$10

1,001

2,000

50

$5

2,001

Not applicable

Not applicable

$3

Example of Using All Tiers or Highest Tier

If the sales order includes a quantity of 2,300 items, then Pricing will assign quantities to each tier depending on how you set the Apply To attribute.

Tier Set Apply To Attribute to All Tiers Set Apply To Attribute to Highest Tier

1

1,000 items

Not applicable

2

1,000 items

Not applicable

3

300 items

2,300 items

Pricing calculates these values for this example.

Minimum Maximum Increment Price Override All Tiers Highest Tier

Tier 1

1

1,000

100

$10

1,000 items multiplied by $10 each equals $10,000

Not applicable

Tier 2

1,001

2,000

50

$5

1,000 items multiplied by $5 each equals $5,000

Not applicable

Tier 3

2,001

Not applicable

Not applicable

$3

300 items multiplied by $3 each equals $900

2,300 items multiplied by $3 each equals $6,900

Price for All Tiers

Not applicable

Not applicable

Not applicable

Not applicable

$15,900

$6,900

Example of Using Include Partial Block or Include Satisfied Blocks

If the sales order includes a quantity of 850 units, then Pricing will assign all items to tier 1, and will ignore the other tiers.

Assume the list price is $12 each.

Here's the values that Pricing will calculate depending on whether or not you select Include Partial Block or Include Satisfied Blocks.

Minimum Maximum Increment Price Override Include Partial Block Include Satisfied Blocks

Tier 1

1

1,000

100

$10

850 items multiplied by $10 each equals $8,500

800 items multiplied by $10 each equals $8000

Tier 2

1,001

2,000

50

$5

Not applicable

Not applicable

Tier 3

2,001

Not applicable

Not applicable

$3

Not applicable

Not applicable

Price for All Tiers

Not applicable

Not applicable

Not applicable

Not applicable

$8,500

$8000

List Price for Items Not in Satisfied Bloc

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable

50 items multiplied by $12 each equals 600

Total Price for All Items

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable

$8600

Add Tiers to Pricing Rules

Use tier pricing to adjust a pricing rule.

In this example, you add tier pricing that applies discounts on a sales order:

  • Apply a 10% discount on all items when the customer buys two or three desktop computers.

  • Apply a 15% discount on all items when the customer buys four or more desktop computers.

For details about tier pricing and some of the attributes you set, see Tier Pricing.

This topic includes example values. You might use different values, depending on your business requirements.

Add tiers to a pricing rule.

  1. Create a discount list for the AS54888 Desktop Computer.

    For details, see the Manage Discount Lists topic.

  2. In the Discount Rules area, click Actions > Create, then click Tier Based Rule.

  3. In the Create Discount Rule dialog, in the Calculation Basis area, set values.

    The combination of these attributes constitute the tier header.

    Attribute Description

    Name

    Enter Desktop Computer Tiered Discount.

    Tier Basis Type

    For this example, choose Item Quantity.

    Here's the values you can choose.

    • Item Quantity. Adjust the tier according to the quantity of items that the customer orders.

    • Extended Amount. Adjust the tier according to the total monetary value of the sales order. You must also select a tier basis to specify the price element that Pricing uses to calculate the tier adjustment, such as One Time or Recurring.

    For details about tier basis and adjustment basis, see the Manage Pricing Bases topic.

    Apply To

    Highest Tier

    For details, see the Setting the Apply To Attribute section in this topic.

    Application Method

    Per Unit.

    Aggregation Method

    For this example, choose On Line.

    Here's the values you can choose.

    • On Document. Calculate adjustment according to the total quantity or total amount for the entire sales order or document.

    • On Line. Calculate adjustment according to the quantity or amount for each order line.

    Pricing applies the tier rule to each order line regardless of how you set Aggregation Method.

    Adjustment Type

    Leave Adjustment Type empty because you specify the adjustment type in the Tiered Pricing Rules area.

    • You can include different adjustment types across tiers.

    • If you set the Adjustment Type in the header, then Pricing defaults the Adjustment Type in each line to the value that you set in the header.

    For details, see the Setting the Adjustment Type Attribute section in this topic.

    Enforce Adjustment Calculation on Each Tier

    For this example, make sure this option doesn't contain a check mark.

    If you add a check mark, then Pricing applies the attributes you specify in the Calculation Basis area, such as Application Method, to each of the rules that you specify in the Tiered Pricing Rules area, and you can't modify these attributes in the Tiered Pricing Rules area.

  4. In the Tiered Pricing Rules area, define the first tier. Click Actions > Add Row, then enter values.

    Attribute Value

    Minimum

    0

    Pricing calculates the minimum value as Minimum plus 1. For example, if you set Minimum to 0, then Pricing uses 1 as the minimum value for the tier.

    Maximum

    3

    Application Method

    Per Unit

    Adjustment Type

    Discount Percent

    Adjustment Amount

    10

    Adjustment Basis

    List Price

    If you specify a percent discount, then you must specify the adjustment basis that Pricing uses to calculate the adjustment, such as list price or installation charge.

    For example.

    • If the list price of a desktop computer is $500, and

    • You set List Price as the adjustment basis, and

    • You set the adjustment amount to 10%

    • Then the discount is $500 multiplied by .10 equals $50.

  5. In the Tiered Pricing Rules area, define the first tier. Click Actions > Add Row, then enter values.

    Attribute Value

    Minimum

    3

    Maximum

    Leave empty

    Pricing will use this tier for any sales order that includes a quantity of four or more.

    Application Method

    Per Unit

    Adjustment Type

    Discount Percent

    Adjustment Amount

    15

    Adjustment Basis

    List Price

  6. Click OK.

  7. On the Edit Discount List page, click Save, and then click Approve.

Setting the Apply To Attribute

You use the Apply To attribute to specify the tiers that Pricing applies.

Assume you create these tiers.

Tier Quantity Tier Rule

1

Zero to three

10% discount

2

Four or more

15% discount

Pricing applies these tiers differently depending on how you set the Apply To attribute.

Quantity That Customer Orders Set the Apply To Attribute to All Tiers Set the Apply To Attribute to Highest Tier

Two

Apply a 10% discount on two items.

Apply a 10% discount on two items.

Four

Apply a 10% discount on three items, and a 15% discount on one item.

Apply a 15% discount on four items.

Six

Apply a 10% discount on three items, and a 15% discount on three items.

Apply a 15% discount on six items.

Setting the Adjustment Type Attribute

Adjustment Type Description

Discount Amount

Adjust price according to the value you enter. For example, if you enter 15, then decrease price by $15.

Discount Percent

Adjust price according to the discount you specify. For example, if you enter 15, then decrease price by 15%.

Markup Amount

Adjust price according to the value you enter. For example, if you enter 15, then increase price by 15$.

Markup Percent

Adjust price according to the markup you specify. For example, if you enter 15, then increase price by 15% of the tier basis.

Price Override

Adjust price according to the value you enter. For example, if you enter 15, then adjust price by $15.

Pricing applies these adjustments to each item, and it applies them to the value of the Adjustment Basis. In this example, Adjustment Basis is List Price, so it applies the adjustment to the list price.

Add an adjustment matrix to a price list and see how it affects order lines in Order Management Cloud.

For example.

  • Set the unit price.

  • Set the start and end dates when the price applies.

  • Use an adjustment matrix. For example, apply a discount according to quantity.

  • Use a tier adjustment.

For details, see the Manage Price Lists topic.

Assume you must modify a predefined price list that references the AS54888 Desktop Computer.

  • Reduce the base price from $2,500 to $2,000 for each computer.

  • If the order line quantity is 10 or more, then discount the sale price by 20%.

This topic includes example values. You might use different values, depending on your business requirements.

Summary of the Steps

  1. Examine the current behavior.

  2. Modify the price list.

  3. Verify your work.

Examine the Current Behavior

  1. In the Navigator, click Order Management.

  2. On the Overview page, click Tasks > Create Order.

  3. Complete attributes in the header.

  4. In the Order Lines area, add an item.

    Attribute Value

    Item

    AS54888, Desktop Computer

    Quantity

    10

    UOM

    Each

    Sale Price

    2,500

  5. Click 2,500 next to Sale Price, then examine the details.

    details next to Sale Price

    You will modify the price list so it applies a unit price of $2,000, and a discount of 20%.

  6. Click Done, and then sign out of Order Management.

Modify the Price List

  1. Sign into Oracle Fusion Pricing with the Pricing Manager job role, then, in the Navigator, click Pricing Administration.

  2. On the Overview page, click Tasks > Manage Price Lists.

  3. On the Manage Price List page, enter the value, and then click Search.

    Attribute Value

    Name

    Corporate Segment Price List

  4. In the Search Results, click Corporate Segment Price List.

  5. On the Edit Price List page, enter the value, then click Search.

    Attribute Value

    Item

    AS54888

  6. Enter the value.

    Attribute Value

    Base Price

    2000

  7. Click the down arrow next to Create Charge, then click Create Price Adjustment Matrix.

  8. In the Create Price Adjustment Matrix dialog, add a check mark to Ordered Quantity, then click OK.

  9. In the Sale Price, Price Adjustments area, add a row.

    Ordered Quantity Adjustment Type Adjustment Amount

    10

    Discount Percent

    20

  10. Click Save and Close, then sign out of Pricing.

Verify Your Set Up

  1. In the Navigator, click Order Management.

  2. On the Overview page, click Tasks > Create Order.

  3. Complete attributes in the header.

  4. In the Order Lines area, add an item.

    Attribute Value

    Item

    AS54888, Desktop Computer

    Quantity

    10

    UOM

    Each

    Sale Price

    1,600

  5. Click 1,600 next to Sale Price, then verify values in the Amount dialog.

    value  next to Sale Price

Allow your users to adjust price on an order line in Order Management Cloud.

Here's an example of a manual price adjustment. The user clicks the pencil in the Your Price column on the order line, then adds a 10% percent discount off the list price during a sales negotiation.

example of a manual price adjustment. The user
clicks the pencil in the Your Price column on the order line, then
adds a 10% percent discount off the list price during a sales negotiation.

Pricing can apply a manual price adjustment on a configured item only to the price of the entire item. It can't apply an adjustment on a configure option.

This topic assumes you already set up Pricing, including adding items to the Corporate Segment Price List. For details, see the Roadmap to Manage Pricing topic.

This topic includes example values. You might use different values, depending on your business requirements.

Allow users to adjust the sale price for the AS54111 item.

  1. On the Overview page, click Tasks > Manage Price Lists.

  2. Search for, then open Corporate Segment Price List.

  3. On the Edit Price List page, in the Search area, enter the value, click Search, then wait for the result to display.

    Attribute Value

    Item

    AS54111

  4. In the AS54111 Charge area, on the Sale Price row, make sure Allow Manual Adjustment contains a check mark, then click Save.

  5. Optional. Set up a pricing guideline to control the adjustment amount or to prevent an unprofitable discount.

    • Control adjustment to the net price according to a percent of the list price or net price. For example, prevent a manual price adjustment from exceeding 50% of the list price.

    • Control adjustment to the net price according to a value.

    • Set a new value for the net price.

    • Apply one or more adjustments to a charge for each order line.

    • Require a reason for the adjustment.

    At run time, Pricing validates each manual price adjustment against the pricing guidelines that you define.