Two-Dimensional Pricing

Oracle Revenue Management and Billing enables you to define two-dimensional pricing for a price item. In the two-dimensional pricing, you can offer rates based on utilization of two service quantity identifiers (SQIs). For example, the rate for a price item can vary for each customer depending on the number of ATM transactions and current monthly balance as shown below: Current Monthly Balance Number of ATM Transactions 0-25 25-50 50-75 75-100 0-10000 2 1.9 1.8 1.7 10000-50000 1.6 1.5 1.4 1.3 50000-100000 1.2 1.1 1.0 0.9 100000-500000 0.8 0.7 0.6 0.5 The system allows you to define two-dimensional pricing in a gird which has X-axis and Y-axis. Both, the X-axis and Y-axis should contain service quantity identifiers (SQIs). The two-dimensional pricing is composed of threshold and step tiered pricing. The X-axis is a threshold tier and Y-axis is a step tier. On creating two-dimensional pricing, one price component is created for each X-axis and Y-axis combination. The step tier is stored as the tiering range whereas the threshold tier is stored as the eligibility criteria in the price component. Note that the tiering ranges and eligibility criteria are automatically created in the price component. You cannot manually add a tiering range and eligibility criteria in the price component. You can define two-dimensional pricing when the tiering type of the rate components in the rate schedule is set to STEP. A new field named Pricing Rule Type is added in the Price Item Pricing screen. If you select the Two-Dimensional option from the Pricing Rule Type list, you can define two-dimensional pricing for the price item. However, if you do not select the Two-Dimensional option from the Pricing Rule Type list, you can define traditional flat, step, or tiered pricing for the price item. Besides selecting the Two-Dimensional option from the Pricing Rule Type list, you also need to select the Pricing Eligibility option while defining the two-dimensional pricing for the price item.

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