Comparison using Standard Pricing in a Deal

Until now, you were able to compare the product level, division level, and deal level financial summary using the original (i.e. existing) and proposed pricing in a deal. Now, the system enables you to compare the product level, division level, and deal level financial summary using the original (i.e. existing), proposed, and standard pricing. The standard pricing for a price item and pricing parameters combination is derived from the standard price list. Until now, the standard price list of an entity was used to verify the average price ceil and floor limits for a price item. Now, the pricing from the standard price list can also be used during deal simulation to obtain an optimal pricing for a customer.

A new field named Standard Pricing Comparison is available while defining or editing a deal type. If the Standard Pricing Comparison field is set to Yes, the system checks whether an algorithm is attached to the Standard Price List Search system event in the respective deal type while creating a deal.

If an algorithm is attached to the Standard Price List Search system event in the respective deal type, the system fetches all price lists where the Available for Deal Pricing and Standard for Deal Pricing fields are set to Yes. The system then derives the standard price list (from the result set) which is eligible for each entity in the deal. While deriving an eligible standard price list, the system checks whether the entity meets the eligibility criteria defined in the standard price list. If so, the system stores the eligible standard price list for an entity in the deal. If there are multiple eligible standard price lists for an entity, the system maintains a list of all eligible standard price lists for the entity and assigns a unique sequence number to each eligible standard price list.

On selecting the price items in the Price Item Selection screen, the system fetches the standard pricing for each price item and pricing parameters combination from the standard price list. If the standard pricing is available for a price item and pricing parameters combination, the system considers the same for calculating the profit and revenue statistics during deal simulation. However, if the standard pricing is not available for a price item and pricing parameters combination, the system does not calculate the profit and revenue statistics using the standard pricing during deal simulation.

If there are multiple eligible standard price lists for an entity, the system first searches the standard pricing for a price item and pricing parameters combination in a standard price list with the highest sequence number. If the standard pricing for a price item and pricing parameters combination is not available in the standard price list with the highest sequence number, the system considers the standard price list with the subsequent sequence number. If the standard pricing for a price item and pricing parameters combination is available in a standard price list with the subsequent sequence number, the system fetches the standard pricing for the price item and pricing parameters combination from the standard price list. In this way, the system sequentially checks each standard price list until the standard pricing for a price item and pricing parameters combination is derived. If the standard pricing is available for a price item and pricing parameters combination, the system considers the same for calculating the profit and revenue statistics during deal simulation. If the standard pricing for a price item and pricing parameters combination is not available in any of the eligible standard price lists of the entity, the system does not calculate the profit and revenue statistics for the respective price item and pricing parameters combination during deal simulation.

Until now, three rows appeared for a price item and pricing parameters combination in the Pricing and Commitments screen - one row for the original pricing and commitments, another row for the proposed pricing and commitments, and third row for the recommended pricing and commitments (if any). Now, four rows will appear for a price item and pricing parameters combination in the Pricing and Commitments screen - one row for the original pricing and commitments, another row for the proposed pricing and commitments, third row for the standard pricing and commitments, and fourth row for the recommended pricing and commitments (if any). Note that the system defaults the proposed commitments for calculating profit and revenue statistics for a price item and pricing parameters combination using the standard pricing. If no standard pricing is derived for a price item and pricing parameters combination, an empty row appears for the price item and pricing parameters combination in the Pricing and Commitments screen. Different color code is used to differentiate between different rows for a price item and pricing parameters combination.

Similarly, until now, three rows appeared for an entity in the Customer Hierarchy section - one row where the profit and revenue statistics are calculated using the original pricing and commitments of the entity, another row where the profit and revenue statistics are calculated using the proposed pricing and commitments of the entity, and third row where the profit and revenue statistics are calculated using the using the recommended pricing and commitments (if any) of the entity. Now, in addition, one more row will appear where the profit and revenue statistics are calculated using the standard pricing and commitments (if any) of the entity. If no standard price list is derived for an entity, an empty row appears for the entity in the Customer Hierarchy section.

If the Standard Pricing Comparison field is set to No, the system does not derive the standard pricing for a price item and pricing parameters combination. No additional row will appear for the standard pricing against the entity and the price item and pricing parameters combination in the respective screens.

Now, while simulating a deal, the system calculates the following when the Standard Pricing Comparison field is set to Yes in the respective deal type:

• Deal level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the original pricing

• Deal level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the proposed pricing

• Deal level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the standard pricing

• Product level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the original pricing

• Product level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the proposed pricing

• Product level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the standard pricing

• Division level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the original pricing

• Division level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the proposed pricing

• Division level revenue, profit, profitability(%), revenue variation(%), and profit variation(%) using the standard pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each entity in the customer hierarchy using the original pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each entity in the customer hierarchy using the proposed pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each entity in the customer hierarchy using the standard pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each price item and pricing parameters combination using the original pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each price item and pricing parameters combination using the proposed pricing

• Revenue, profit, profitability(%), revenue variation(%), and profit variation(%) for each price item and pricing parameters combination using the standard pricing

If the Preference To Assigned Pricelist for Ceil Floor Limit Check option type of the C1-DEAL feature configuration is set to Y and the Standard Pricing Comparison field is set to Yes in the respective deal type, the system overrides the feature configuration and validates the average price against the ceil and floor limits defined in the standard pricing. However, if no standard pricing is available for a price item and pricing parameters combination, the system does not validate the average price of the price item and pricing parameters combination.