Manage Pricing for Covered Items

In this example, you set up Oracle Pricing to calculate three years of warranty service for a laptop computer, starting on January 1, 2017, billed monthly at the rate of 10% of the sale price.

This topic uses example values. You might need different values, depending on your business requirements.

1. Go to Home > My Enterprise > Setup and Maintenance > Tasks > Search > Manage Pricing Bases.

2. On the Manage Pricing Bases page, set the pricing basis to use for the covered item.

   More than one charge might exist for a covered item. You must set up a pricing basis that determines the charges and price element, such as list price or net price, to use for the percent calculation.

   For example, assume your covered item includes a separate charge for the sale price, but doesn't include charges for the monthly recurring sale price or a one-time recycling fee. You must specify which of these charges to use as the basis when calculating the coverage charge for the covered item. In this example, the price of the coverage is 10% of the list price of the covered item.

3. Click Actions > Create, then set the values. This basis specifies the list price as the charge to evaluate. For details, see Manage Pricing Bases:

   Attribute	Value
   Name	Coverage_Basis_for_Desktop_PC
   Usage	Coverage Basis
   Price Element	List Price
   Price Type	Recurring
   Charge Type	Sale
   Charge Subtype	Price
   Frequency	Month
   Active	Contains a check mark

4. Click Save and Close.

5. Go to Home > Order Management > Pricing Administration >Price Lists.

6. Search for price list Corporate Segment Price List.

7. Click Standard Items > Coverages, then add an item:

   Attribute	Value
   Item	WR11531
   Description	Desktop PC Warranty
   UOM	Year
   Service Period	Year
   Service Duration	3

   Note

   • To verify you added a coverage item, make sure the Associated Items column displays the Managed Covered Item icon, and that Service Duration Period and Service Duration are grey and disabled.

   • This example assumes that Product Management includes the coverage item WR11531. If the search can't find the coverage item you require, then you must add it in the Product Management work area.

8. In the Associated Items column of the row you just added, click the Manage Covered Item icon.

9. On the Manage Covered Items page, click Add Row, set the values, then click Save:

   Attribute	Value
   Pricing UOM	Each
   Coverage UOM	Year
   Action Type	Add

10. Click Create Charge.

11. In the Charge details area, set values, then click Save:

    Attribute	Value
    Charge	Recurring Sale Price
    Frequency	Month
    Calculation Method	Covered Item Price Percent Use this method for a coverage pricing rule when the rule bases the price of the coverage on a percent of the covered item price.
    Coverage Basis	Coverage_Basis_for_Desktop_PC
    Calculation Amount	10
    Start Date	Set a date.
    End Date	Set a date.