Oracle Advanced
Pricing
Overview
Part-1
Advanced Pricing in a Nutshell
Calculates the price for
any transaction
Contains setup information (such
as price lists)
Contains rules for when pricing
setup applies
Contains pricing controls to be
used with rules.
Contains controls for discounts &
surcharges
Flexible to cater complex pricing
scenarios.
Confidential
2002 Sierra Atlantic, Inc.
Oracle Advanced Pricing
A rules based application that uses a common engine component to service
the pricing requirements.
Enables us to define a set of sophisticated pricing rules.
To set up pricing controls that can be used in conjunction with the rules to
precisely govern how and when pricing actions are applied to transactions.
Implement price & promotional strategies.
Execute Complex Pricing Strategies.
Enforce Pricing Policies Across Business Processes.
View Order pricing and analyze promotional spending.
Confidential
2002 Sierra Atlantic, Inc.
Oracle
Pricing Analyst
Prices
Policies
Advanced
Flexible rules
architecture
Implement price
& promotional
strategies
Establish
Pricing Solution
Robust pricing
Execute
Rules-Based
Pricing
Engine
Pricing UI
Analyze
Order
Mgmt
engine
Deliver the
right price
Trade
Mgmt
Transactions
Quoting
Contracts
Enforce
APIs
View order
price detail
Promotional
spend reporting
Confidential
Pre-established
terms for quote
or order
Contract
compliance
ECommerce
Purchase
Orders
Sales
Contracts
Service
Contracts
Purchasing
2002 Sierra Atlantic, Inc.
Pricing Concept
The Pricing Engine determines selling prices for products
and services. It provide answer to the following
questions:
What is being priced ?
Items & services with Product attributes control
Who is asking for the price ?
Who Qualifies for prices and benefits based on Pricing
Qualifier control
How should the price be Adjusted ?
Pricing Modifier control adjustments to the base price
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2002 Sierra Atlantic, Inc.
Price Calculation
Order Fulfillment
Process
Build Qualifier hierarchy, Product
hierarchy and derive attribute values
Pricing Request
Engine
Setup
Price list
Qualifiers
Select Eligible
List Line
Evaluate
Incompatibility
Modifier
Products
Fetch Modifier
Details
Formula
Confidential
Pricing
Attributes
Calculate
Price
2002 Sierra Atlantic, Inc.
Price lists
Price list contains basic list information
and one or more pricing lines that define
item and/or item category prices.
Basic price list information includes the
price list name, effective dates, currency,
pricing controls, and shipping defaults such
as freight terms and freight carrier.
Two types
Standard
Agreement
Standard Price List (PRL)
Agreement Price List (AGR)
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2002 Sierra Atlantic, Inc.
Pricing Attributes
Pricing attributes control what is being priced or modified on a
price list or modifier list. They define eligibility for a price list
line or modifier. They can be used for a price list line, as a
formula component, or in modifiers.
Pricing attributes can be used in combination with each other
and are passed to the pricing engine at run-time.
Confidential
2002 Sierra Atlantic, Inc.
Qualifiers
Qualifiers and qualifier groups can be
linked to price lists and modifiers to define
rules for who can receive a particular
price, discount, promotion, or benefit.
They can assign price, discounts and
promotions to:
Specific customers
Customer groups
Order types
Order amount
Confidential
2002 Sierra Atlantic, Inc.
Formulas
Formulas consists of a mathematical
expression that the pricing engine
uses to determine the list prices of
items.
A full complement of mathematical
operators and numeric operands can
be used.
Two types
Static
Dynamic
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2002 Sierra Atlantic, Inc.
Only in Advanced Pricing
General Features
Multi currency price lists
Dynamic formulas
Price breaks on price list
Promotional Limits
Usability
Qualifier groups
Pricing Organizer for Modifiers
HTML Setup Forms
Price list maintenance
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2002 Sierra Atlantic, Inc.
Only in Advanced Pricing
Flexibility and Integration
Attribute Mapping
Advanced Pricing APIs for setup and price
request
Get Custom Price API
User defined product hierarchies
User control of attribute precedence and qualifier
precedence
Integration with Service Contracts, CMRO,
Procurement
Confidential
2002 Sierra Atlantic, Inc.
Only in Advanced Pricing
Modifier Features
Group of lines modifiers
Modifier line types Coupon, Item Upgrade, Other Item
Discount, Terms Substitution, Promotional Goods
Buckets for Manual Modifiers
Blanket accumulation variables can be used for modifier
breaks
Formula based modifiers
Confidential
2002 Sierra Atlantic, Inc.
Coverage
Confidential
Price lists
Formula
Pricing Attributes
Modifier lists
Qualifiers
Event
Products
Phases
Context
2002 Sierra Atlantic, Inc.
Price lists
Price list contains basic list information
and one or more pricing lines that define
item and/or item category prices.
Basic price list information includes the
price list name, effective dates, currency,
pricing controls, and shipping defaults such
as freight terms and freight carrier.
Two types
Standard
Agreement
Standard Price List (PRL)
Agreement Price List (AGR)
Confidential
2002 Sierra Atlantic, Inc.
Price List Header (Main)
QP: Multi
Currency
Installed
(Y/N)
QP: Unit Price
Precision Type
(Standard /
Extended)
You can Query & Update
inactive price list. Also you can
create a formula based on a
inactive price list.
QP: Security
Control (Y/N)
But pricing request dont check
inactive pricelist for list price.
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2002 Sierra Atlantic, Inc.
Price List Header (Others)
Blanket
Sales Order
Order Fulfillment
QP: Pricing Transaction Entity
Confidential
Advanced Pricing
QP: Source System Code
2002 Sierra Atlantic, Inc.
Price List Lines
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2002 Sierra Atlantic, Inc.
Price Breaks
Item Quantity
1-10
11-50
51-9999
Price
10
9
8
There are two types of Price Breaks
Point: The pricing engine retrieves the absolute price that
brackets the attribute.
Range: The pricing engine computes the price based on
range of price break defined, starting from the lowest value of
price related to attribute.
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2002 Sierra Atlantic, Inc.
Point / Range
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2002 Sierra Atlantic, Inc.
Block Pricing
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2002 Sierra Atlantic, Inc.
Block Pricing
Combinations allowed
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2002 Sierra Atlantic, Inc.
Secondary Price list
Primary and secondary price lists have the same
currency.
QP: Qualify Secondary Price Lists should be Yes if you
want to evaluate qualifiers in secondary price list.
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2002 Sierra Atlantic, Inc.
Context
Context is nothing but just a group of attributes, which are
used in Advance pricing. There are three types of context
available in Advance pricing.
Types
Qualifier
Pricing
Product
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2002 Sierra Atlantic, Inc.
Product Context
Product context refers to how the items used in price lists and modifiers are
defined.
Only one Product context Supported by Oracle Item
Max 100 attributes and defaults are
All Items
Item Number
Item Category
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2002 Sierra Atlantic, Inc.
Pricing Context
Pricing context and attributes refers to what is being priced or
modified on a price list line or modifier list.
You can define multiple pricing context.
They are also used as formula components.
Max 100 attributes per context.
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2002 Sierra Atlantic, Inc.
Pricing Context
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2002 Sierra Atlantic, Inc.
Qualifier Context
Qualifiers and qualifier groups can be linked to price lists and
modifiers to define rules for who can receive a particular price,
discount, promotion, or benefit.
They can assign price, discounts and promotions to:
Specific customers
Customer groups
Order types
Order amount
Confidential
2002 Sierra Atlantic, Inc.
Formulas
Formulas consists of a mathematical expression that the pricing
engine uses to determine the list prices of items.
A full complement of mathematical operators and numeric
operands can be used. Also you can use parenthesis and Built-in
functions.
Two types
Static: You specify the formula and execute a concurrent
request which calculates absolute price values.
Dynamic: You specify the formula and the pricing engine uses
the formula un its calculation each time that someone orders the
product
Confidential
2002 Sierra Atlantic, Inc.
Formula Static
For static calculation of price, run concurrent program at
any time
Calculate the final price using the formula upfront
(not wait until order entry time) and stores it in the
price list.
Price list
Confidential
Static
formula
Update Formula
Prices Concurrent
request
Final List
Price
2002 Sierra Atlantic, Inc.
Formula Dynamic
The list price resulting from the formula calculation is
not calculated or stored anywhere until the sales order
is entered with that price list line item.
When the sales order is entered, the pricing engine
evaluates the formula and displays the final list price on
the order
Sales
Order
Confidential
Pricing Engine
Final List
Price
2002 Sierra Atlantic, Inc.
Formula Component types
There are seven components types available to be
used with formulas
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2002 Sierra Atlantic, Inc.
Formula Component types
Function: The function GET_CUSTOM_PRICE retrieves a
price from an external system and uses it in the formula
calculation.
List Price: The price of the item in a specific price list to
which you have attached a formula.
Factor list: A list of factors that you can link to multiple
pricing attributes.
Modifier Value: Uses the value that is entered in the
Value field from the advanced pricing-Define Modifier
window > Discount / Charges tab.
Numeric Constant: A numeric value.
Price list line: The price of the item in a specific lime
number of a specific price list.
Pricing Attribute: The absolute value of a pricing attribute
of the item.
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2002 Sierra Atlantic, Inc.
A formula can contain any of the following:
Parentheses: for example, (and)
Mathematical operators: for example, +, -, /, and *
Built-in functions: for example, NVL, SQRT, and
MOD
Operands: Operands are step numbers about which
you provide more detail. You can use as
many step numbers as you need, up to the limit of
the field. You can repeat a step number
in a formula, for example, 1+2*2
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2002 Sierra Atlantic, Inc.
Formula Example
For each preceding step number, you need to
create four formula lines since the formula
has
four step numbers.
Oracle Advanced Pricing uses the formula line
and evaluates it to obtain the value of the
operand and calculates a formula. It does not
use the face value of the step number.
Confidential
2002 Sierra Atlantic, Inc.
GET_CUSTOM_PRICE
Confidential
2002 Sierra Atlantic, Inc.
GET_CUSTOM_PRICE
FUNCTIONGet_Custom_Price
(p_price_formula_idINNUMBER,
p_list_priceINNUMBER,
p_price_effective_dateINDATE,
p_req_line_attrs_tblIN
QP_FORMULA_PRICE_CALC_PVT.
REQ_LINE_ATTRS_TBL)
RETURNNUMBERIS
Confidential
2002 Sierra Atlantic, Inc.
GET_CUSTOM_PRICE
Confidential
2002 Sierra Atlantic, Inc.
LIST PRICE
The price of the item in a specific price list to which you have
attached a formula.
Confidential
2002 Sierra Atlantic, Inc.
Factor list
Confidential
2002 Sierra Atlantic, Inc.
Confidential
2002 Sierra Atlantic, Inc.
Modifier Value
Uses the value that is entered in the Value field from the
advanced pricing-Define Modifier window > Discount / Charges
tab.
Confidential
2002 Sierra Atlantic, Inc.
Numeric Constant
A numeric value.
Confidential
2002 Sierra Atlantic, Inc.
PRICE LIST LINE
The price of the item in a specific lime number of a specific
price list.
Confidential
2002 Sierra Atlantic, Inc.
Pricing Attributes
The absolute value of a pricing attribute of the item.
Confidential
2002 Sierra Atlantic, Inc.
