Manage Channel Programs on Sales Orders

Order Management automatically applies supplier programs to each order line that's eligible to participate in the program, depending on how your order administrator sets up Order Management.

• Order Management applies the supplier program each time you change the Customer attribute, or save, reprice, or submit the sales order. It also applies the program each time you add an order line or modify the quantity or UOM on the order line.

• You can manually add an eligible program to the line depending on the program type. Pricing calculates the resulting supplier accruals, then Order Management includes them in the price breakdown on the order line.

• If the program type allows you to decline the program, then you can decline it on the order line.

Assume you work for Vision Corporation, a distributor who sells the AS54888 desktop computer to your customer Computer Service and Rentals. Big Computers, your supplier, offers the latest model of the AS54888 in January 2020 at $2,000 each. You purchase 100 of them, and sell one to Computer Service and Rentals at a price of $2,100.

Note

1. A year later, in January 2021, Big Computers has a newer, more powerful model available, the AS6000, which they offer to you at $2,000 each, which is the same price you paid for the AS54888 a year earlier.

   • In turn, you drop the price that you charge Computer Service and Rentals for the AS54888 that you still have in inventory to $1,900.

   • Vision Corporation needs to recoup the amount it paid Big Computers when it bought the AS54888 in January 2020, so Vision Corporation reaches an agreement with Big Computers where Big Computers agrees to compensate Vision Corporation for the $200 drop in price that it now charges Computer Service and Rentals.

   • Your order administrator sets up the agreement as a supplier program in the Channel Revenue Management application.

   • The supplier program specifies the incentives and terms of engagement between you and your supplier. For example, it specifies the incentive, the item that's eligible for the program, when its eligible according to the requested ship date or ordered date, the unit of measure, and other factors. You can decline or add supplier programs on the order line, depending on how your order administrator sets them up.

2. You sell one AS54888 to Computer Service and Rentals for $1,900.

3. Pricing calculates a $200 supplier accrual according to terms in Channel Revenue Management. Order Management displays this value in the price breakdown on the order line. The accrual doesn't affect the price that Computer Service and Rentals pays.

4. Order Management fulfills the order, Channel Revenue Management tracks the change, and Oracle Financials sends a debit memo to Big Computers so Vision Corporation can recover the $200.

For details, see Channel Flows: Buy Side vs Sell Side.

Manage an Incentive on an Order Line

Assume you must remove an automatic incentive and manually add another.

1. Check with your order administrator to determine whether you're authorized to manage incentives. If you aren't authorized, then you can view incentives but not modify them.

2. Create a sales order, then add an item to an order line.

3. On the order line, click Actions > Manage Incentives.

   • Use the Actions menu on the order line. Don't use the Actions menu that's above the order line.

   • The Incentives dialog displays. Notice that the dialog displays any automatic incentives that your order administrator has set up. You can leave them or click Remove to remove them.

4. Click Add Incentives.

5. Set the values, then click OK.

   Attribute	Description
   Program Type	Identifies the type of channel program that you're applying.
   Program Name	Name of the channel program from the order line.
   Program Line	Indicates whether Order Management applies the program to one item, or to all items.
   Program Details	Describes the discount type and discount value that Order Management applies to the item. Discount Percent New cost
   Apply Type	System Applied means Order Management automatically applied the program. User Applied means a user used the Order Management work area to apply the program.
   Decline Reason	You can decline a program. If you do, as an option, enter details that describe why you're declining.
   Action	Click a value. Apply Decline

6. On the order line, in the Amount column, click the amount.

7. In the Amount dialog, notice the lines that Order Management added for the incentive, such as Supplier Accrual of 200 USD for Vision Incentives. Order Management displays incentive amounts on the price breakdown for the order line but not the order header.

Configured Items and Kits

You manage incentives for a configured item or kit slightly differently than you do for an item that isn't configured.

Assume you must manage incentives for the CN62441C configured item.

1. Create a sales order.

2. Add the CN62441C configured item to an order line.

3. On the order line, in the Item column, click More.

4. On the Components page, in the Amount column, click Actions > Manage Incentives.

5. In the Manage Incentives dialog, set your values, then click Done.

Note

• Order Management automatically applies eligible incentives to the parent and each child of a configured item or kit when you add the parent to the sales order.

• You can manually apply an incentive to parent or child.

• Order Management doesn't cascade incentives from parent to child regardless of whether it automatically adds incentives or you manually add them. Instead, Order Management considers each individual child separately.

• Order Management doesn't apply incentives to option classes, or to included items that are part of an assemble-to-order or pick-to-order configured item, or part of a kit.

Return Orders

Here is the behavior when you create a referenced return.

• If the order line has an incentive, then Order Management copies the incentive to the return line and reverses the incentive. Order Management applies this behavior for automatic incentives and manual incentives.

• Order Management doesn't automatically apply new incentive programs that your order administrator added since you created the original sales order.

• You can view an incentive on a referenced return, but you can't change it.

• If you have the correct privilege, then you can manually add or remove an incentive on an unreferenced return line. For details, see Return Items Without Original Sales Order.

If the return line doesn't reference the original order, then Order Management automatically applies the incentive that your order administrator has set up, then reverses the sign.

Revise and Copy

If you revise a sales order, and if the line has shipped, is awaiting billing, canceled, or closed, then you can't revise an incentive on the order line.

If you copy a sales order that has an incentive, then.

• Order Management doesn't copy the incentive to the new sales order. Instead, it automatically applies any incentive that's currently eligible for the line.

• You can't enable the Freeze Pricing and Shipping Charges option when you do the copy.