Rate Negotiability for Price Item in Deal

Oracle Revenue Management and Billing enables you to indicate whether the rate is negotiable for a price item in a deal. A new field named Negotiability Switch is introduced while defining or editing a price item. The system enables you to set the negotiability option for a price item at the division level. Therefore, you can set different the negotiability option for the divisions to which the price item is associated. By default, the Negotiability Switch field is set to No.

If you set the Negotiability Switch field to No for a division of a price item, you cannot edit or override the rate of the price item in a deal when the customer or account to which the price item is assigned belongs to the division. However, if you set the Negotiability Switch field toYes for a division of a price item, you can edit or override the rate of the price item in a deal when the customer or account to which the price item is assigned belongs to the division. Along with the Negotiability Switch field, you can also set the Only Within Range field which indicates that the system should validate whether the negotiated rate is within the negotiability floor and ceil limits. The Only Within Range field is enabled only when the Negotiability Switch field is set to Yes. By default, the Only Within Range field is set to No.

If the Only Within Range field is set to No, the system does not validate whether the negotiated rate is within the negotiability floor and ceil limits. However, if the Only Within Range field is set to Yes, the system validates whether the negotiated rate is within the negotiability floor and ceil limits. You can define the negotiability floor and ceil limits for a division of a price item at the price item level or at the price assignment level.

On clicking the link in the Pricing Information column corresponding to a price item in the Pricing and Commitments screen, the system enables you to edit or override the original pricing when the Negotiability Switch field is set to Yes for the price item and thereby create a proposed pricing. If the Only Within Range field is set to Yes, the system first validates whether the negotiated rate is within the negotiability floor and ceil limits specified in the original pricing (in case of override) or proposed pricing (in case of edit). To validate the rate, the system considers the pricing where the price item, pricing currency, and division (for which pricing is defined on the customer or account) is same. If the negotiated rate is within the negotiability floor and ceil limits specified in the original or proposed pricing, the system enables you to edit or override the rate. However, if the negotiated rate is not within the negotiability floor and ceil limits specified in the original or proposed pricing, an error occurs indicating that the specified rate is not within the negotiability floor and ceil limits.

If the negotiability floor and ceil limits are not specified for the division in the original or proposed pricing, the system checks whether the negotiated rate is within the negotiability floor and ceil limits specified at the price item level. The system considers the negotiability range of the pricing currency. If the negotiated rate is within the negotiability floor and ceil limits specified at the price item level, the system enables you to edit or override the rate. However, if the negotiated rate is not within the negotiability floor and ceil limits specified at the price item level, an error occurs indicating that the specified rate is not within the negotiability floor and ceil limits. If the negotiability range is not defined for the pricing currency, the system does not validate whether the negotiated rate is within the negotiability floor and ceil limits of the price item.

If the rate negotiability feature is configured for a price item, the system enables:

• The relationship manager to propose a negotiated rate for the price item

• The product level approver, division level approver, and deal level approver to recommend a rate for the price item.