Integrating Oracle Advance Pricing with Oracle Purchasing in Release 12 Sundeep Sharma Senior Consultant

Agenda
Introduction Key Concepts Setups required for integration Different Pricing Scenarios Integration Considerations Conclusions References Question and Answers

Introduction
The purpose of this presentation is to highlight how enterprises can leverage Oracle Advanced pricing to price requisitions and purchase orders. Prior to 11.5.10 pricing for purchase order items was maintained using: Item List Price maintained in Item Master Blanket Agreement price breaks Price breaks from item catalogs Custom Pricing hooks to leverage complex pricing scenarios

Key Concepts
Price List: List of prices for a individual item or item category. Price can be maintained as unit price, percent price or price break. Modifier: Advanced pricing term which adjusts the price by either applying discount or surcharge. Qualifier: are attributes setup in advanced pricing which determine the eligibility. Types of Purchasing Documents: Standard Purchase Order, Blanket Purchasing Agreement, Contract Purchase Order. Contract Purchase Order: are purchasing agreements with supplier for specific term and conditions without indicating goods and services purchased. Standard purchase order are then created referencing contract

Setups
Setup Profile Options

Setups
Contract Purchase Agreement

Setups
Create Approved Supplier List

Setups
Create Sourcing Rule

Setups
Assign rule to Assignment Set

Setups
Add item to Price List

Pricing Scenarios
Requisition Created With CPA

Different Pricing Scenarios

Item Volume Based Price

Different Pricing Scenarios

Item Volume Based Price

Different Pricing Scenarios

Getting Price from external system

Different Pricing Scenarios

External Data

Different Pricing Scenarios

Purchase Order Price

Integration Considerations
Contract Purchase Agreement is mandatory to integrate Advanced Pricing with Purchasing Purchase Orders and requisitions referencing Contract Purchasing Agreement only work Freight and special modifiers are not supported Order level modifiers not supported only line level modifiers supported Manual modifiers not supported only automatic modifiers are supported

Conclusions
Oracle Advanced pricing and purchasing integration provides

buyers to maintain simple to complex pricing structures Buyer dont have to maintain complex structure manually as this integration allows them to bring these structures in application thus automating the pricing process Buyers can negotiate best terms and conditions and due to this cost of managing purchasing agreement is significantly reduced Provide accurate pricing information to the procurement department and other requesting departments Reduction in account payables matching errors and holds due to wrong or inconsistent price on the Purchase Orders

References
Pricing Release 11.5.10 An Oracle White Paper September 2006 Note.394490.1 What Are The Steps Required To Setup And Use Advanced Pricing in Purchasing White Paper- Note 455778.1 FAQ: Using Advanced Pricing in Purchase Orders and Requisitions- Note 357657 How the Price of Requisition/PO in Oracle Purchasing is populated, when using Advanced Pricing? Note 567579.1
Oracle Purchasing Integration with Oracle Advanced

Question and Answers

Sundeep Sharma ssharma@terillium.com 773-517-1558