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SCM QP EFF Based Pricing Strategy
SCM QP EFF Based Pricing Strategy
SCM QP EFF Based Pricing Strategy
Introduction 2
Pre-Defined Categories 9
Context Creation 10
Deployment 22
Setting UP Algorithms 34
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.
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.
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.
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.
• Pre-Defined Categories
• Create Contexts
• Deploy Flexfields
Fill in the value “Value Set” in the search field and click on the search icon
From the Manage Application Core Value Set search results page click on the “Add” icon
Field Value
Description Column 80
Length
ID COLUMN Length 30
Pre-Defined Categories
Fill in the value “Manage Extensible Flexfields” in the search field and click on the search icon.
Fill in the value “Header Information” and click on the Search button
Verify the category creation by selecting the flexfield name and clicking the pencil icon. This will launch
the Edit Flexfield 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.
Click the Add icon, search results page to create a new context.
Click the Add icon, search results page to create a new context.
Enter context and segment information and click “Save and Close” button.
In the Create Context page enter the following information: Sample Data
Field Value
Code PricingHeaderInformation
Enabled Checked
In the Context Usages Section add a new Row and search for and select Additional Header
Information
Field Value
In the Edit Context: Pricing Header Information page, Click on the “Add” icon to create Context
Sensitive Segments
Field Value
Name SalesChannel
Code SalesChannel
Enabled Checked
Field Value
Field Value
Field Value
After entering the above information, click on “Save and Close” button.
Field Value
Code PricingHeaderInformation
In the Pricing Header Information: Associated Context Details region Click on the add button to Add
the newly created context
The flexfield category context is now associated with flexfield category page. Select the “Save and
Close” button.
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.
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.
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.
In the Entities tab, click the Add Row icon, and enter the following values:
Field Value
Entity PricingHdrEff_Custom
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
Field Value
Attribute SalesChannel_Custom
Type String
Field Value
Attribute PricingHdrEff_Custom
Read Checked
Write Unchecked
In the PricingHdrEff_Custom: Entities region, from the Action drop-down list, select Add Row.
Field Value
Attribute HeaderId_Custom
Read Checked
Write Unchecked
Field Value
Attribute SalesChannel_Custom
Read Checked
Write Unchecked
Click the Sources tab. In this tab, you will select the provider service.
In the OrderHeader: Details region, from the Action drop-down list, select Add Row.
Field Value
Entity PricingHdrEff_Custom
Field Value
Attribute HeaderId_Custom
Field Value
Attribute SalesChannel_Custom
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.
• Pricing segment
• Price list
• Cost 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.
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.
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
Comparison =
Required Unchecked
Setting UP Algorithms
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.
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
Status Published
Version 1
Public Checked
End Date
Review the values for the Edit Algorithm: Get Sales Pricing Strategy
Field Value
Status In progress
Version 2
Public Checked
End Date
It will create a new row in the table. You have to enter below information
Field Value
Name PricingHdrEff_Custom
Primary Unchecked
End Date
Order By
After publishing the algorithm, the status will change from In progress to Published
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.
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.
Field Value
Default GL Corporate
Conversion Type
End Date -
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.
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.
From the Actions drop-down list, select Add Row option. It will create a new row.
Field Value
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.
Field Value
Pricing Segment -
Transaction Type -
Precedence 100
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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