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

Confidential

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)

Confidential

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

Confidential

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

Confidential

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.
Confidential

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

Confidential

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.

Confidential

2002 Sierra Atlantic, Inc.

Point / Range

Confidential

2002 Sierra Atlantic, Inc.

Block Pricing

Confidential

2002 Sierra Atlantic, Inc.

Block Pricing
Combinations allowed

Confidential

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.

Confidential

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

Confidential

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

Confidential

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.

Confidential

2002 Sierra Atlantic, Inc.

Pricing Context

Confidential

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

Confidential

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.
Confidential

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

Confidential

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.