Pricing Eligibility
Oracle Revenue Management and Billing enables you to define pricing eligibility criteria using the account, person, and product attributes while defining a price item pricing. For example, a bank offers a product named 12 Month Standard Certificate of Deposit (CD). The interest rate charged to a person for this product differs based on two parameters - Deposit Amount and Person Type (Preferred and Non-Preferred). The following table lists the interest rates offered for the 12 Month Standard Certificate of Deposit (CD) product:
| Deposit Amount | Non-Preferred | Preferred |
|---|---|---|
| Less than $5,000 | 0.13% | 0.20% |
| Greater than $5,000 | 0.15% | 0.22% |
Earlier, you were able to define different interest rates based on different parameters using the rate eligibility feature at the rate component level. Considering the above example, you had to define four rate components. The respective rate component would appear while defining price item pricing based on the following:
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The value defined for the Deposit Amount characteristic on the account
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The value defined for the Customer Type characteristic on the main customer
However, now, you can implement the above scenario using a single rate component instead of maintaining four different rate components. Now, while defining price item pricing, you need to define four different price components for a rate component. For each price component, you need to define the pricing eligibility criteria in the following manner:
| Price Component | Rate | Pricing Eligibility Criteria | If True | If False |
|---|---|---|---|---|
| P1 | 0.13% | Deposit Amount > 5000 | Check Next Condition | Return False |
| P1 | 0.13% | Person Type = Non-Preferred | Return True | Return False |
| P2 | 0.15% | Deposit Amount < 5000 | Check Next Condition | Return False |
| P2 | 0.15% | Person Type = Non-Preferred | Return True | Return False |
| P3 | 0.20% | Deposit Amount > 5000 | Check Next Condition | Return False |
| P3 | 0.20% | Person Type = Preferred | Return True | Return False |
| P4 | 0.22% | Deposit Amount < 5000 | Check Next Condition | Return False |
| P4 | 0.22% | Person Type = Preferred | Return True | Return False |
You can define pricing eligibility criteria when the appropriate parameters are created in the system. These parameters must be mapped to either of the following:
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Account attributes, characteristics, usage amounts, or usage counters
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Person attributes, characteristics, usage amounts, or usage counters
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Product attributes or characteristics
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Service Quantity Identifier
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Custom algorithm which returns the appropriate value
In the above example, you can define the pricing eligibility criteria when the following parameters are defined in the system:
| Parameter | Source Entity | Source Type | Source Type Code | Value Type |
|---|---|---|---|---|
| Deposit Amount | Account | Usage Amount | Deposit Amount | Adhoc |
| Customer Type | Person | Characteristic | Person Type | Predefined |
You can define pricing eligibility criteria for rate components whose tiering type is set to Flat, Threshold, or Step. Each criterion in the pricing eligibility criteria is executed in the specified sequence. If the value of the pricing eligibility criteria is True, the rate of the respective price component is passed to the rate component for further calculations.