Tiering Criterion

Oracle Revenue Management and Billing (ORMB) provides you with the ability to create tiered pricing in case standard flat pricing is not sufficient to meet the business needs. Through tiered pricing, you can offer more favorable pricing to the customers based on service quantity utilization.

Let us understand this with the help of an example. ABC company uses wire transfer services provided by a large bank. If ABC company initiates up to 1,000 wire transfers, the fee charged by the bank will be $5 per transfer. If ABC company initiates more than 1,000 wire transfers, the fee will be $3 per transfer. To introduce this flexibility in the pricing model, you will have to define tiered pricing with the following tiering ranges:

• If the number of wire transfers is greater than 0 and less than or equal to 1000, then charge $5 per transfer to ABC company.

• If the number of wire transfers is greater than 1000, then charge $3 per transfer to ABC company.

In the above example, number of wire transfers is the tiering criterion, 0 - 1000 and 1000 - BLANK are tiering ranges, and $5 and $3 are rates per transfer.

The Tiering Criteria screen allows you to create and edit a tiering criterion. This screen consists of the following zones:

• Tiering Criterion List

• Edit Tiering Criterion

• Create Tiering Criterion

Related Topics

Parent topic: Pricing Management