Order Management

Oracle Pricing
 Objectives:

 To Learn the
following: -
Concepts of Pricing. -
Components of Pricing Process -
Overview of Basic Pricing Process -
Details on Basic & Advanced Pricing.
 Introduction To Pricing

 Executes Pricing and Promotional calculations

for OM & other Oracle Applications.
 Supports e-business.
 Can Perform the following functions; -
set a List Price for an item or item hierarchy.
 Introduction To Pricing

 OM & Oracle CRM use the Pricing Engine.

 Oracle includes basic pricing functionality with
OM.
 To use advanced Pricing features,you must
purchase the advanced pricing
license.Advanced pricing includes all basic
pricing features.
 Pricing Terminology

 Qualifiers:control who is eligible for certain prices(price list),price

adjustments,and benefits.
 Attributes:control what product or service is being priced or modified.
 Price lists: list of items with prices.
 Formulas:determine prices or modifiers based on a formula.
 Modifiers:determine how pricing requests and lines are
adjusted.Eg:Discounts reduce the price by a fixed amount or
percentage.
 The Pricing Concept

 The pricing engine determines selling prices for

products.It answers the following
questions:
-Who qualifies for prices and
benefits? -What is the product or service
to be
priced? -
How should I adjust the order price or
order line price?
 Qualifier Terms

 Qualifier
Context: Are a
way of grouping similar Qualifying Attributes in
the Qualifier Flexfield.
 Qualifiers:
Are specific attributes that assist pricing with
the “Who” for benefits or price eligibility.
 Qualifier
Value:
Is a value you choose to associate a Qualifier
Attribute.
 Overview of Pricing Qualifiers

 Qualifier determine the ‘WHO’ part of eligibility.

 Qualifier&Qualifier groups can be associated
with Price List and Modifiers in the following
way: -Create Qualifier Group and attach it
to the price list,modifier list or modifier list line.
-Create Qualifiers and then attach
individual Qualifiers within the price list or
Modifier list. -A combination of method
1 and 2.
 Overview of Pricing Qualifiers

 Can create,modify,query and delete Qualifier

Groups.
 There are predefined basic Qualifier Contexts
and associated Qualifier attributes that use
database tables as the data source wherever
applicable.
 Qualifier Group
 Example;
Customer must be in territory WEST and
ORDER Amount is between $2000 and $5000 or
Order Quantity must be greater than 10000.
 Qualifier group could use seeded Qualifiers such
as Customer Name,Order Amount,Order Quantity
etc,.These qualifiers could come from one or
more Qualifier
context.
 Qualifier Group

 Using Qualifier with Price Lists

Qualifiers or Qualifiers Groups can be
associated with a particular Price List or Price
List Line.
 Using Qualifiers with Modifiers
Qualifier or Qualifier groups can be
associated with a particular Modifier List or
Modifier List Line.
 Modifier Concept

 Use Define Modifier Form to set up Price

Adjustment,Benefits,Freight and Special charges.
 Modifier Lists contain one or more
Modifiers.Modifiers have list level and line level
component. Each
list must have one or more lines associated with
it.
 By defining Qualifier at the list and line
levels,you define a customer’s eligibility for the
Modifier.
 Modifier List Types

 AT the list level,you define criteria that is

common to all of the line level modifiers.Can use
the following list
types; -
Discounts -
Surcharge -
Freight/Special
charges -Promotion
 For each list type that you define,you associate
certain line
types.
 Modifier Line Types

 Use Modifier Line Types to define type of Price

Adjustment,Benefits or Freight.
 Can associate Line Type with each List Type.
 Can Use the following Line Types; -
Discount -
Surcharge -
Freight Charge -Price
Breaks etc.,
 Overview Of Formulas

 Formulas are mathematical Expression that the

Pricing Engine uses to determine the list prices of
items and the discount that apply to those items.
 Use Formulas to; -Create a
Price from a computation as an alternative to
entering prices in Price List. -Calculate
a price adjustment.
 Overview of Price Lists

 Price List are essential to ordering products

because each item entered on an order must have
a price.
 Can record transaction in different currencies.
 Secondary Price List: -
The Pricing engine uses secondary price list when
it cannot determine the price for an item using the
price list assigned to an order. -
Primary&Secondary PL- same currency.