Recommended Pricing
Oracle Revenue Management and Billing enables the approver at any level in the product approval hierarchy, division approval hierarchy, and deal approval hierarchy to recommend a price for a price item. An approver can recommend a price for a price item when the Propose Pricing field is set to Yes for the respective level in the approval hierarchy.
The recommended pricing related columns (such as Pricing Information, Average Price, and Revenue) are visible to the approver in the Pricing and Commitments section of the Pricing and Commitments screen. The Recommend Price link appears in the Pricing Information column corresponding to each price item. On clicking the Recommend Price link, the Deal Pricing screen appears. The Rate field corresponding to each price component is editable in the Projected Pricing section of the Deal Pricing screen. The approver can recommend a new price for the price item. However, note that the recommended price for the price item should be within the negotiability floor and ceil limits of the approver.
On simulating the deal, the system calculates the average price, revenue, cost, profit, and profitability based on the recommended price. It checks whether the average price of the price item is within the average price floor and ceil limits of the approver and accordingly changes the status of the price item to Approved, Pending for Approval, or Error. After analyzing the profitability of the deal, the approver can click the Return to Submitter button and thereby request the submitter to consider the recommended price for the price item. On clicking the Return to Submitter button, the status of the price item is changed to Approver Recommended. In addition, a To Do is generated for the relationship manager of the deal. If required, the approver who has recommended the price can edit or delete the recommended price before clicking on the Return to Submitter button.
If the approver has sent the price item to the price item manager for approval, the approver cannot recommend the price for the price item. And, if the approver has recommended the price for a price item, the approver cannot send the price item to the price item manager for approval. In such case, the approver can send the price item to the price item manager for approval only after deleting the recommended price for the price item.
In case of parallel approval, if one approver has recommended the price for a price item, the other approver can view the recommended price for the price item. But, the other approver cannot edit or delete the recommended price for the price item. Also, in case of parallel approval, if one approver has sent the price item to the price item manager for approval, then other approver cannot recommended price for the price item. And, vice-versa, if one approver has recommended price for the price item, then other approver cannot send the price item to the price item manager for approval.
On viewing the recommended price for the price item, the relationship manager may or may not edit the price of the price item based on the approver recommendation. If the relationship manager edits the price of the price item based on the approver recommendation, the system checks whether the proposed price is within the negotiability floor and ceil limits of the relationship manager. Then, on simulating the deal, the system calculates the average price, revenue, cost, profit, and profitability based on the new proposed price. It checks whether the average price of the price item is within the average price floor and ceil limits of the relationship manager. Here, the system derives a new floor and ceil range for the relationship manager dynamically using the approver recommended price and accordingly changes the status of the price item to Approved, Pending for Approval, or Error.