SCM QP EFF Based Pricing Strategy

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Oracle Fusion Pricing

Extensible Flexfield Usage


ORACLE WHITE PAPER | MAY 2016
Table of Contents

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Executive Overview 2

Introduction 2

Setting UP Extensible Flexfields 4

Create Value Set 6

Pre-Defined Categories 9

Context Creation 10

Context to Category Association 17

Page Definition and Association 19

Deployment 22

Setting UP Manage Service Mappings 23

Create extensible flexfields Entity 25

Add extensible flexfields entity to Services 27

Add extensible flexfields entity to Sources 29

Setting UP Matrix Classes 32

Edit Sales Pricing Strategy Assignment 33

Setting UP Algorithms 34

Create a version of Get Sales Pricing Strategy algorithm 35

Edit Get Sales Pricing Strategy algorithm 36

Publish Get Sales Pricing Strategy algorithm 39

Setting UP Pricing Strategy 40

Create a Pricing Strategy 41

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Setting UP Pricing Strategy Assignment 42

Create a Pricing Strategy Assignment 42

Order Capture Integration 43

Conclusion 44

Executive Overview
Oracle Fusion Pricing is a flexible solution designed to enable corporations to adapt their Pricing
Strategy to support key business needs. It also offers customers extensibility options that can be used
to configure their implementation to support their unique needs.

Given the wide range of options and flexibility, customers have many configuration choices available
during implementation.

The intent of the white paper is to show how we can take an Extensible Flexfield attribute, such as
sales channel, and use this to derive pricing strategy in Fusion Pricing.

Introduction
Extensible Flexfields are a valuable feature that allows customers to extend using Order Management
and Fusion Pricing that are unique to their business.

Extensible Flexfield attribute information can be extended to derive sales channel based Pricing
Strategy. Sales Channel and derived pricing strategy value are sent and received as a part of Price
Request.

For example, if Extensible Flexfields are designed to capture Sales Channel information on a Sales
Order Header, the Sales Channel information can be used by Price Request to derive a Pricing
Strategy. If the businesses want to add new sales channels, they can achieve by adding new Sales
Channels using the FSM lookups framework, and for define pricing strategies they can do it using
Manage Pricing Strategy Assignment task flow.

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The feature within Fusion Pricing, Order Management, and Flexfields that enables these types of
scenarios are summarized in the table and displayed in the figure below.

Figure1. Extensible Flexfield setups

TABLE1. EXTENSIBLE FLEXFIELDS USAGE BY ORACLE FUSION PRICING

FUNCTIONAL AREA EXTENSIBLE FLEXFIELD USAGE

Manage Service Mapping Service Mappings represents a high-level


grouping of entities that can be retrieved and
updated by Fusion Pricing and Order
Management. Customers can configure / extend /
customize to support business flows. The EFF
attributes are defined as a part of service
mappings so that it can be used as a part of price
execution to retrieve Sales Channel based Pricing
Strategy to determine the price.

Manage Matrix Class Matrix Classes is an easy-to-use, intuitive


framework that allows you to create conditional
rules. The customer can configure can own
condition columns from a variety of comparison
attributes, and define result columns. Each matrix
class can have one or more condition and result
column, matrixes are a flexible way of creating
multidimensional rules. The Sales Channel EFF
attribute is added as a condition rule to the seeded
Matrix Class associated with strategy assignment.

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Manage Algorithm Algorithms enable you to implement / configure
the procedural logic for your company’s pricing
business flows. The Price Sales Transaction
process consists of a series of algorithm steps
used to determine a base list price and arrive at a
final price for items on an order in Oracle Fusion
Order Management. The EFF entity related data
set will be added to Get Sales Pricing Strategy
Algorithm that belongs to Price Sales Transaction
algorithm.

TABLE2. EXTENSIBLE FLEXFIELDS USAGE BY ORACLE PRICING ADMINISTRATION RULES

FUNCTIONAL AREA PRICING AND ORDER MANAGEMENT INTEGRATION

Manage Pricing Strategy Customers can configure / define pricing


strategies. Grouping of pricing rules that together
define the approach for achieving a specific goal
around selling and pricing products. In this
implementation, users can create a pricing
strategy for a specific Sales Channels.

Manage Pricing Strategy Assignments The customer can configure / define pricing
strategy assignments based on selling scenarios.
Assignment of a Sales Channel to a pricing
strategy. In this implementation, users can
configure the rules to determine the Sales
Channel and Pricing Strategy.

Order Management Customers can configure FOM order information


from one or more Sales Channels.

Setting Up Extensible Flexfields

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Figure 2.Extensible Flexfield Setups

Extensible flexfields allow customers to add attributes to the FOM data model (shown in the table
below). Customers can create multiple attributes for each entity and these attributes can be further
categorized via the use of “contexts”. A context determines which attributes are shown based on some
customer created criteria (context). You can also think of contexts as part of a hierarchy of attributes.
The top level of the hierarchy is the entity and entity category. The next level(s) are one or more
contexts, and the final level consists of the attributes themselves.

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Figure 3.Extensible Flexfield Hierarchy

In order to support Sales Channel based pricing strategy business use case then create extensible
flexfields for use within FOM, the following implementation steps need to be completed.

• Create Value Set

• Pre-Defined Categories

• Create Contexts

• Associate Contexts to Categories

• Define Page(s) and Associate Contexts to Page(s)

• Deploy Flexfields

Create Value Set


Create a value based on Sales Channels seeded lookup table.

Fill in the value “Value Set” in the search field and click on the search icon

Figure 4.Search Setup and Maintenance task page

Click the Manage Application Core Value Sets link

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Figure 5.Setup and Maintenance search results in page

From the Manage Application Core Value Set search results page click on the “Add” icon

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Figure 6.Manage Application Core Value Sets page

Create Value Set page: Enter these values

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Field Value
Value Set Code ORDER_SALES_CHANNELS
Description Pricing strategy based on sales order
channels
Module Application Flexfields
Validation Type Table
Value Data Type Character

Figure 7.Create Value Sets page

Enter Value Set definition details as furnished in the below table.

Field Value

From Clause FND_LOOKUPS

Value Column Name LOOKUP_CODE

Value Column Type VARCHAR2

Value Column Length 30

Description Column MEANING


Name

Description Column VARCHAR2


Type

Description Column 80
Length

ID Column Name LOOKUP_CODE

ID Column Type VARCHAR2

ID COLUMN Length 30

WHERE Clause LOOKUP_TYPE=’ORA_QP_CHANNEL_METHODS’


(Manually key in, do not cut and paste)

ORDER BY Clause DISPLAY_SEQUENCE

Then click on “Save and Close” button.

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Figure 8.Create Value Sets page

Pre-Defined Categories
Fill in the value “Manage Extensible Flexfields” in the search field and click on the search icon.

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Figure 9.Search Setup and Maintenance task page

Click the Manage Extensible Flexfields link

Figure 10.Setup and Maintenance search results in page

Fill in the value “Header Information” and click on the Search button

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Figure 11.Manage Extensible Flexfields search page

Verify the category creation by selecting the flexfield name and clicking the pencil icon. This will launch
the Edit Flexfield page.

Figure 12.Manage Extensible Flexfields search results page

The flexfield category is displayed in the Category table.

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Figure 13.Edit Extensible Flexfield: Header Information page

Context Creation
From the Edit Extensible Flexfield page, click the “Manage Contexts” button in the upper right-hand
corner to define the contexts you have decided to implement.

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Figure 13.Edit Extensible Flexfield: Header Information page - Manage Contexts

Click the Add icon, search results page to create a new context.

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Figure 14.Edit Extensible Flexfield: Header Information page - Manage Contexts

Click the Add icon, search results page to create a new context.

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Figure 15.Manage Contexts page

Enter context and segment information and click “Save and Close” button.

In the Create Context page enter the following information: Sample Data

Field Value

Display Name Pricing Header Information

Code PricingHeaderInformation

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API Name Pricingheaderinformation

Enabled Checked

Behavior Single Row

Figure 16.Create/Edit Contexts page

In the Context Usages Section add a new Row and search for and select Additional Header
Information

Enter this data:

Field Value

Name Additional Header Information

View Privileges None

Edit Privileges None

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Figure 17.Create/Edit Contexts page

In the Edit Context: Pricing Header Information page, Click on the “Add” icon to create Context
Sensitive Segments

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Figure 18.Create/Edit Contexts page

In the Edit Segment Page enter the following Information:

Field Value

Name SalesChannel

Code SalesChannel

API Name saleschannel

Enabled Checked

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In the Column Assignment Form enter the following Information:

Field Value

Data Type Character

Table Column ATTRIBUTE_CHAR1

In the Validation Form search the following Information:

Field Value

Value Set PRDER_SALES_CHANNELS

In the Display Properties Form enter the following Information:

Field Value

Prompt Sales Channel

Display Type List of Values

After entering the above information, click on “Save and Close” button.

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Figure 19.Edit Segment page

Figure 20.Edit Context – Pricing Header Information page

Context to Category Association


Once the contexts and categories are created, associate them via the Category Details page. Click on
the “Select and Add” icon.

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Figure 21.Edit Extensible Flexfield – Header Information

Select the context and click the “OK” button.

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Figure 22.Select and Add context to Category page

The Context is now associated with the Category

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Figure 23.Edit Extensible Flexfield: Header Information page

Page Definition and Association


Now that the contexts have been assigned to categories, you also need to assign the contexts to
pages. This will determine where the flexfields will be displayed in the Fusion Order Management user

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interface. This can be done from the same Category Detail page under the Pages tab. Click the “New”
icon.

Figure 24.Edit Extensible Flexfield: Header Information page

In the Create Page, enter these values:

Field Value

Display Pricing Header Information

Code PricingHeaderInformation

Usage Additional Header Information

First Click on the OK Button, then click on the Save Button

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Figure 25.Create Page

In the Pricing Header Information: Associated Context Details region Click on the add button to Add
the newly created context

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Figure 26.Edit Extensible Flexfield page

Select the context and click the “OK” button

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Figure 27.Select and Add Contexts window

The flexfield category context is now associated with flexfield category page. Select the “Save and
Close” button.

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Figure 28.Edit Extensible Flexfield page

Deployment
For the flexfields just created to be available in the product, they need to be deployed via the Manage
Extensible Flexfields page. To deploy a flexfield, select it in the table and select “Deploy Flexfield” in
the action dropdown available from the table. Each flexfield will need to be deployed individually.

Figure 29.Manage Extensible Flexfield page

Click on OK button once the deployment completes successfully.

Figure 30.Deploy Flexfields page

Setting UP Manage Service Mappings

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Figure 30.Manage Service Mapping Setups

A service mapping contains entities, sources, and services. Pricing uses it to map the input Sales Order to
the output Priced Sales Order.

The following diagram illustrates some of the main parts of the Sales service mapping, which is a typical
service mapping that comes predefined with Pricing. Pricing uses it to price a sales order.

Figure 31.Service Mappings

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1. Source. Provides a structure so that Pricing can model data in the input SDO. For example,
the predefined Sales service mapping includes the OrderHeader, OrderLine, and etc source,
and this source includes details about the Order Header and Order Line.

2. Service. Requests the service mapping and receives the output priced sales order. For
example, the PriceSalesTransaction service references the entities and attributes that a
pricing algorithm can use to calculate the product price of a sales order.

3. Entity. References the entities that the service mapping requires to structure the output Sales
Order. In this example, the output Sales Order includes four entities. Each entity references
one or more attributes. For example, the Header entity references the following attributes:

a. PricingStrategyId. Allows the service mapping to map the input SDO to the pricing
strategy on the output0020SDO.

b. PricingSegmentCode and CustomerId. Allows the service mapping to map the input
SDO to the pricing segment on the output SDO.

4. Attribute. References the attributes that the service mapping requires to structure the output
SDO. Each service mapping fulfills a finite purpose. For example, the Sales service mapping
prices a sales order, so it references attributes that a typical sales order includes, such as
ItemId so that it can identify the item in the sales order, and UnitPrice so that it can multiply
unit price by quantity, and do other calculations. Other service mappings might reference an
entirely different set of attributes

5. In order to support Sales Channel based pricing strategy business use an extensible flexfields
category by name Pricing Information Header is created and it is child entity of
SaleOrderHeader entity and the attribute.

In order to support Sales Channel based pricing strategy business use case then create Service
Mapping for use within Pricing, the following implementation steps need to be completed.

• Create extensible flexfields Entity

• Add extensible flexfields entity to Services

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• Add extensible flexfields entity to Sources

Create extensible flexfields Entity


In the Navigator, click Pricing Administration. On the Overview page, Click the Tasks panel
drawer, and select Manage Service Mappings. On the Manage Service Mappings page, you can
view the predefined Sales service mappings. Click the Sales link. In the Edit Service Mapping: Sales
page, you can review the Entities tab and its Details.

In the Entities tab, click the Add Row icon, and enter the following values:

Field Value

Entity PricingHdrEff_Custom

Description Sales Order Header Flexfield entity to


support sales channel based business
flows.

Figure 32.Service Mappings – Entities

To the newly created PricingHdrEff_Custom entity add two attributes, as shown in the below tables.

IN THE PRICINGHDREFF_CUSTOM: DETAILS REGION CLICK ADD ROW ICON, AND ENTER FOLLOWING VALUES:

Field Value

Attribute HeaderId_Custom

Type Long

Allow null Yes

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CLICK THE ADD ROW ICON TO ADD ANOTHER ATTRIBUTE, AND ENTER FOLLOWING VALUES:

Field Value

Attribute SalesChannel_Custom

Type String

Allow null Yes

Click on the Save button

Figure 33.Service Mappings – Entity Attributes

Add extensible flexfields entity to Services


In the Services tab select PriceSalesTransaction the consumer service and add newly created
extensible flexfields entity and attributes.

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Figure 34.Service Mappings – Services

In the PriceSalesTransaction: Details region select Entities tab:

CLICK ADD ROW ICON, AND ENTER THE FOLLOWING VALUES

Field Value

Attribute PricingHdrEff_Custom

Read Checked

Write Unchecked

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Figure 35.Service Mappings – Service Entity

In the PricingHdrEff_Custom: Entities region, from the Action drop-down list, select Add Row.

Enter the following values:

Field Value

Attribute HeaderId_Custom

Read Checked

Write Unchecked

Field Value

Attribute SalesChannel_Custom

Read Checked

Write Unchecked

Click on the Save Button

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Figure 36.Service Mappings – Service Entity Attributes

Add extensible flexfields entity to Sources


In the Sources tab select OrderHeader the provider service and add newly created extensible
flexfields entity and attributes.

Click the Sources tab. In this tab, you will select the provider service.

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In the Sources tab, select OrderHeader source.

Figure 37.Service Mappings – Sources

In the OrderHeader: Details region, from the Action drop-down list, select Add Row.

Enter the following values:

Field Value

Entity PricingHdrEff_Custom

Type View Object

View Object PricingHeaderInformation


Note: This is the EFF context name that you have
created beforehand. Make sure the name you enter
matches with the one you have created as a part of
Header Information Flexfield object (FOM). Also
check you are in which patch build (PB) you are in, if
you are above PB5 then you need to use View
Definition name
(HeaderEffBPricingHeaderInformationprivateVO),
else you can use this name.

Query Type Unique Identifier

Query Attribute HeaderId


Note: This attribute has to match with the one that is
part of the EFF entity (Header Information – flexfiled
– FOM)

Figure 38.Service Mappings – Sources Entity

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In the PricingHdrEff_Custom: Details region, select the Attribute Mappings tab. In the Attribute
Mappings tab, from the Action drop-down list, select Add Row.

ENTER THE FOLLOWING:

Field Value

Attribute HeaderId_Custom

View Object Attribute HeaderId


Note: This attribute has to match with the
one that is part of the EFF entity (Header
Information – flexfiled – FOM)

Field Value

Attribute SalesChannel_Custom

View Object Attribute saleschannel


Note: This attribute has to match with the
one that is part of the EFF entity (Header
Information – flexfiled – FOM). Please
make sure the exact name is provided
here, otherwise, Your business flow may
not work expected.

Click on the Save Button

Figure 39.Service Mappings – Sources Entity Attribute

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Setting UP Matrix Classes

A matrix class allows you to use a declarative environment to define the conditions and results that you
specify when you add a pricing matrix to a pricing entity.

You can add a pricing matrix to the following pricing entities:

• Pricing strategy assignment

• Pricing segment

• Price list

• Cost list

• Currency conversion list

• Shipping charge list

• Returns price list

Oracle Fusion Pricing comes predefined with matrix classes that specify the conditions and results that
these pricing entities display when you add a pricing matrix.

In order to support Sales Channel based pricing strategy business use case then edit Sales Pricing
Strategy Assignments seeded matrix class, the following implementation steps need to be completed.

• Edit Sales Pricing Strategy Assignment

Edit Sales Pricing Strategy Assignment

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In the Navigator, click Pricing Administration. On the Overview page, you can see high-level
information about the last updated pricing and shipping rules, and rules that are about to expire.

Click the Tasks panel drawer, and select Manage Matrix Classes.

On the Manage Matrix Classes page, you can view the predefined Sales Pricing Strategy
Assignment matrix class.

Click the Sales Pricing Strategy Assignment link.

Figure 40.Manage Matrix Classes

In the Edit Matrix Class: Sales Pricing Strategy Assignment page, you can review the Matrix Class
header, Condition Column, and Result Columns.

In the Condition Column region, select the row, and change the Compare to attribute value:

Field Value

Name Channel Method

Source Code Name SaleschannelCode

Comparison =

Compare to Attribute PricingHdrEff_Custom.SalesChannel_Custom

Required Unchecked

Allow null Checked

Null is Wild card Checked

Domain Lookup: ORA_QP_CHANNEL_METHODS

Click on the Save button

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Figure 41.Edit Manage Matrix Class

Setting UP Algorithms

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Using algorithms, you can create and maintain price execution processes. The algorithms component
is a generic toolkit using which you can customize processes to meet a variety of business needs. It
transforms input rows of a data set into a set of output rows by executing table lookups, joining rows
from another set, conditional logic, and external function calls.

The process consists of a series of algorithm steps used to determine a base list price and arrive at a
final price for items on an order in Oracle Fusion Order Management.

To support pricing strategy derivation based on Sales Channel extensible flexfield attribute, then we
have to customize a seeded algorithm. In the following section, we will cover them in detail. To enable
this business flow work, we have to add a new data set to the existing seeded algorithm.

Below are the lists of instructions that need to be followed by the implementers.

• Create a version of Get Sales Pricing Strategy algorithm

• Edit Get Sales Pricing Strategy algorithm

• Publish Get Sales Pricing Strategy algorithm

Create a version of Get Sales Pricing Strategy algorithm


In the Navigator, click Pricing Administration. On the Overview page, you can see high-level
information about the last updated pricing and shipping rules, and rules that are about to expire.

Open the Tasks panel drawer and select the Manage Algorithms task. Then using the Query By
Example icon and search for the predefined algorithm by name Get Sales Pricing Strategy

Review the queried results

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Field Value

Name Get Sales Pricing Strategy

Status Published

Version 1

Public Checked

Start Date 3/27/12/ 12:00 AM

End Date

Description This Process is used to get the Pricing


Segment and Pricing Strategy for the Sales
Documents (Quotes, Sales Agreements,
Orders).

Figure 42.Manage Algorithms

Click the Actions menu and select Create Version.

Figure 43.Manage Algorithms – Create version

It will create a new version of the algorithm

Review the values for the Edit Algorithm: Get Sales Pricing Strategy

Field Value

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Name Get Sales Pricing Strategy

Status In progress

Version 2

Public Checked

Start Date 3/27/12/ 12:00 AM

End Date

Description This Process is used to get the Pricing


Segment and Pricing Strategy for the Sales
Documents (Quotes, Sales Agreements,
Orders).

Figure 44.Manage Algorithms

Edit Get Sales Pricing Strategy algorithm


Now that we have created a version of the algorithm Get Sales Pricing Strategy, we need to edit it
and add the newly created Extensible flexible entity by name PricingHdrEff_Custom as a data set to it.
Select the new version of the algorithm to edit.

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Figure 45.Edit Algorithm: Get Sales Pricing Strategy

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In the Edit Algorithm: Get Sales Pricing Strategy it will list of steps, then click and select step 13
which will be (Retrieve Header Strategy -> Get Header Strategy) and add a data set to it. To add ,
need to click Add Row as show in the screen show.

Figure 46.Edit Algorithm: Get Sales Pricing Strategy

It will create a new row in the table. You have to enter below information

It will prompt you with a new row to enter data set

Field Value

Name PricingHdrEff_Custom

Variable Path PriceRequest.PricingHdrEff_Custom

Cardinality Zero or one

Primary Unchecked

Data Set Join [HeaderId_Custom:{Header.HeaderId}]

End Date

Order By

Click Save and Close.

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Figure 47.Edit Algorithm: Get Sales Pricing Strategy

Publish Get Sales Pricing Strategy algorithm


We have completed adding the data set, now we have to publish the algorithm to pick up the changes
that we have incorporated to support pricing strategy derivation based on sales channel value.

Please follow below instructions to publish newly customized algorithm.

The Manage Algorithms tab is open.

Click the Actions menu, and select Publish.

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Figure 48.Manage Algorithm

After publishing the algorithm, the status will change from In progress to Published

Figure 49.Manage Algorithm

Setting UP Pricing Strategy

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You can define a pricing strategy that helps you achieve a profitability goal. It specifies the price lists,
cost lists, discount lists, currency conversion lists, shipping rules, and return price lists that Oracle
Fusion Pricing uses to help meet the pricing objective of the pricing strategy.

For example, as per our business use case want to create a pricing strategy based on sales channels,
to sell and price an item differently for each sales channel.

Below furnished instructions that need to be followed by the implementers.

• Create a Pricing Strategy

Create a Pricing Strategy


In the Navigator, click Pricing Administration. On the Overview page, you can see high-level
information about the last updated pricing and shipping rules, and rules that are about to expire.

Open the Tasks panel drawer and select the Manage Pricing Strategies task. Create a new pricing
strategy by name Corporate Pricing Strategy – Sales Channel Inside.

From Actions drop-down list, select Create option.

It will allow you to enter a value in a popup.

Enter the following values: (Sample Data)

Field Value

Name Corporate Pricing Strategy – Sales Channel


Inside

Default Currency USD – US Dollar

Default GL Corporate
Conversion Type

Description Corporate strategy for inside sales channels


business flows

Start Date 8/1/15 8:15 PM

End Date -

Business Unit US1 Business Unit

Allow price list Checked


override

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Allow currency Checked
override

Note: Add desired price list to this strategy, it is not in the scope of this document how to create and
add price list to Pricing Strategy. Please refer to fusion pricing implementation document.

Click on the Approve button, it pops up’s a warning window click Yes button.

It will change the status of the newly created pricing strategy to Approved.

Click on Save and Close button

This completes setting up pricing strategy.

Setting UP Pricing Strategy Assignment

Pricing strategy assignment that allows you to define and assign a pricing strategy based segments,
sales channels and etc. It also allows you can use different pricing strategies for the same pricing
segment to support multiple selling scenarios, or you can use different strategies for different
segments.

For example, you can create the following assignment rules: If the Sales Channel is Inside Sales, and
if the Transaction is Sales Order, and if the Channel is Direct, then use the Corporate Pricing Strategy
– Sales Channel Inside.

Below furnished instructions that need to be followed by the implementers.

• Create a Pricing Strategy Assignment

Create a Pricing Strategy Assignment


In the Navigator, click Pricing Administration. On the Overview page, you can see high-level
information about the last updated pricing and shipping rules, and rules that are about to expire.

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Open the Tasks panel drawer and select the Manage Pricing Strategy Assignments task. Create a
new pricing strategy assignment.

From the Actions drop-down list, select Add Row option. It will create a new row.

Enter these values: (Sample Data)

Field Value

Assignment Level Header

Pricing Context Sales

Transaction Type All

Start Date 8/1/15 8:15 PM

End Date 8/1/2016 8:15 PM

From the tool back click on Create Assignment Matrix button. It will prompt you to select Optional
Condition Columns

From the list select Channel Method, Pricing Segment Transaction Type conditional
columns and click on Ok button.

In the Header-Sales-All-08/01/2015 8:15-08/01/2016 8:15: Pricing Strategy


Assignment Rules from the action drop-down list, select Add Row.

Enter the following values:

Field Value

Channel Method Inside Sales

Pricing Segment -

Transaction Type -

Pricing Strategy Corporate Pricing Strategy – Sales Channel


Inside

Precedence 100

Click on Save and Close button.

Order Capture Integration

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Run the flow using Order Management UI by creating an order by passing sales channel value.

Conclusion
Extensible Flexfields allow customers to define and capture attributes that are unique to their business. While simply
capturing the information is important, Oracle Fusion Pricing also enables other uses for this data.

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White Paper Title


oracle.com January 2016
Author: Srinivas Pagadala
Contributing Authors: Priya Gopal and Raghu

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