Pricing Pre-Requisites

Merchandising has a dependency on Pricing for managing initial pricing for items. It uses the Pricing zone group/zone definitions and rounding rules to help default a suggested retail price based on the cost for the item. This is applicable whether you're running the full Pricing functionality or running in simplified mode. For details on how to manage these entities, see the Oracle Retail Pricing Foundation Data User Guide.

Price Zone Groups and Zones

Zones are used to group stores and warehouses^Foot 1 that are priced similarly together for more effective management of pricing. One or more zone groups can exist to support different pricing approaches, such as by hierarchy, by type of pricing, and so on. Before creating locations, at least one zone group should be created in Pricing. Then, when you create your first location in Merchandising, it will be automatically added to the zone group and will create a zone in the currency of the location that you added. Subsequent locations will use a "like location" to determine whether to add the new location to the existing zone, or if the location is a different currency, create a new zone. After all locations have been initialized in Merchandising, you can add more zones or move locations between zones, as needed.

Rounding Rules

Rounding rules are optional, but if desired these can be created to indicate how to smooth calculated retail prices. For example, if you want all your non-sale prices to have 00 as the decimal. Rounding rules can also be configured to be used for initial pricing by defining it as part of the initial price zone definition.

Initial Price Zone Definitions

In order to establish the zone group that should be used when initializing retail price for an item, a relationship between the department, class, or subclass from Merchandising is made with a zone group in the Initial Price Zone Definition in Pricing. This definition also includes the markup type (cost or retail), a target markup percent, and optionally the rounding rule that should apply. This is then used for all new items created in that hierarchy for establishing the retail price by zone based on the primary supplier's cost. This relationship must be defined before creating items in Merchandising.

Footnote Legend

Footnote 1:

There is a system option in Pricing that determines whether or not warehouse prices will be managed in zones. If this is set to No, then warehouses will not be added to zones when created.