1.overview of advanced pricing

Overview of Advanced PricingOverview

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Overview of Advanced Pricing

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Oracle Advanced Pricing

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Overview of Oracle Advanced Pricing



Objectives




Overview of Oracle Advanced Pricing Oracle Advanced Pricing significantly extends and expands the capabilities of Basic Pricing (Basic Pricing is included with Order Management). Oracle Advanced Pricing and Basic Pricing share common software components that run in either basic or advanced mode. The pricing system software components review how they are installed, either as full or shared, to determine which mode to run in.Users of basic pricing are installed as shared and are not licensed to use advanced pricing capabilities. In basic mode, the pricing systems software components display the features of Oracle Advanced Pricing in the user interface setup windows. Since the information necessary to drive the advanced pricing functionality cannot be set up in a pricing implementation running in basic mode, using Oracle Advanced Pricing features is also inhibited. Users who have licensed Oracle Advanced Pricing are installed as Full and will have all setup windows and features provided by Oracle Advanced Pricing. Since all information can be set up, Oracle Advanced Pricing features are fully enabled.

Instructor NoteTo view a comparison of Oracle Advanced Pricing and basic pricing features, see the Oracle Advanced Pricing Implementation Manual.



Benefits of Oracle Advanced Pricing



Oracle Advanced Pricing Related Products

Oracle Advanced Pricing Related ProductsOracle Advanced Pricing is a key component of the Oracle E-Business Suite, an integrated set of applications that are engineered to work together to drive profitable customer interactions.



Overview of Oracle Advanced Pricing in the Order to Cash Process

Overview of Pricing in the Order to Cash ProcessPricing sends customer list price, agreement price, and modifier information to orders being entered manually in Order Management and to orders being entered in other Oracle applications which can then be either imported or can use an API via Order Capture into Order Management.



Pricing in Order Fulfillment

Pricing in Order Fulfillment• Price configurations at time of product or service configuration• Execute pricing and promotion plans at multiple steps in the order process• Calculate freight and special charges• Re-price orders at shipment



TCA Party Hierarchy

TCA Party Hierarchy TCA = Oracle’s Trading Community Architecture



Single Pricing Engine – Multiple Uses of Pricing Data

Single Pricing Engine – Multiple Uses of Pricing Data• Integrated Across E-Business Suite

- One pricing engine – a single investment of pricing truth- Accessible to any hosting (calling) applications

• Architected to share or restrict data use- Application or user determines sharing of data

• Business Specific User Interface- Professional pricing user: Standard forms UI- Application specific: Look and feel of hosting application

Open APIs allow building to fit specialized user needsTable Key

CMRO: Complex Maintenance Repair and Overhaul



Pricing Engine Overview

Pricing Engine OverviewThe Pricing Engine answers three questions:

• What is being priced?• Who is asking for the price?• How is the base unit price to be adjusted?

Once it has all this information, it selects the price list price and then applies any qualified modifiers to calculate the final Selling Price.WHAT?Based on the seeded Item Context and any user-defined pricing attributes that have been set up:

• The Item Context such as the Item Number, Item Category, or All Items.• Using pricing attributes enables you to define characteristics about an item that affect the

selling price.For example, pricing attributes could be set up to represent height and length. When entering an Order, the system will prompt for the height and length the customer is ordering so that the pricing engine can use that information to calculate the unit selling price.



WHO?The pricing engine uses qualifiers passed from the Sales Order to determine WHO is asking for the price. The qualifiers select which modifiers will be used to calculate the final selling price. You can associate qualifiers with price lists, modifier lists, and modifier lines. These qualifiers act like rules protecting your modifiers from being used incorrectly. Oracle provides seeded qualifier contexts that you can use immediately. Some example of the seeded qualifiers include:

• Customer Context: Name, Bill-to, Ship-to, Customer Class, Sales Channel. • Order Context: Order/Line Type, Customer PO, Agreement, Ship Date.• Terms Context: Payment terms, Freight Terms.• Modifier List Context: Price List.• Volume Context: Order Amount, Line Volume

Note: These are not the only fields available with each context.HOW?Once the Pricing Engine has selected a unit price it determines HOW to adjust it by selecting qualified modifiers. For example, Discounts and Surcharges can be applied as a Percent, Amount, New Price or Lumpsum to the unit price. However, Freight and Special Charges are not used in the calculation of the Unit Price. These values are stored separately and added to the Line and Order totals.



Overview of the Pricing Engine

Overview of the Pricing EngineThe pricing engine receives a pricing request which it processes and supplies the base (initial) price from the price list or customer agreement. It then applies any modifiers, calculates the selling price, and returns the result to the calling application.



Pricing Engine

Pricing EnginePreparing the Price Request StructureThe calling applications submit price requests. This function configures a pricing request into a pricing request structure. The pricing request structure provides information about all the qualifiers and product pricing attributes.Selecting the Price List or Modifier ListThis function selects which price lists are eligible for the current pricing request. It uses the qualifiers and pricing attributes to select an eligible list of prices or modifiers it can apply to the pricing request lines according to the certain rules.Determining List PriceThis function takes the validated price list lines and applies them to the pricing request lines. You can specify the list price on a price list as unit price, percent price, or formula.Applying Price and Modifier AdjustmentsThis function takes the validated modifier list lines and applies them to the pricing request lines. The modifier function provides price adjustments such as discounts, price breaks, surcharges, coupons, item and term substitutions, and other item discounts. Discount and



surcharge modifiers affect the selling price--freight charge modifiers do not affect the selling price.



Pricing Engine Process

Pricing Engine ProcessPricing qualifiers control who is eligible for certain prices (price lists) and benefits (modifiers)Some example qualifiers are:

• Customer Class = VIP• Order Type = Special

Attributes determine where the specific values in which you define pricing contexts in product or customer hierarchies:Customer hierarchyLevel where qualifier characteristics can be defined such as customer or customer nameProduct hierarchyLevel at which pricing characteristics can be defined such as product item, item number, category, or brand. For example, all plastic items of Grade B quality get a 50% discount.The prices can be:

• Absolute values• Percentages of other prices• Formulas



• Positive and negative valuesCalculated price: The output of the pricing engine is Calculated Price which consists of the list price and adjustments. This computed value is then returned to the calling application.



The Oracle Advanced Pricing Process

The Oracle Advanced Pricing ProcessThe calling application sends a request to the pricing engine (the pricing request) for a sales order from Customer 1 with two lines—shampoo and conditioner.The pricing engine selects the appropriate information into the pricing request structure and analyzes the pricing request.



Oracle Advanced Pricing Features



Price Lists

Price ListsThe prices can be:

• Absolute values• Percentages of other prices• Formulas• Positive and negative values

This is explained in more detail in the Pricing modules.



Qualifiers

QualifiersOracle Advanced Pricing lets you define qualifiers to determine eligibility rules governing who can receive a particular price, discount, promotion, or benefit. Qualifiers and qualifier groups can then be linked to price lists and modifiers. The following lists common qualifier terms:Qualifier ContextsQualifier contexts are flattened hierarchies where similar qualifying attributes can be grouped into logical categories. QualifiersQualifiers are specific attributes that assist Oracle Advanced Pricing with limiting the who for benefit or price eligibility.Qualifier ValueA qualifier value is a value you chose to associate a qualifier attribute.



Qualifier Groups



Modifiers

ModifiersDefines how Oracle Advanced Pricing will make adjustments such as providing a discount or surcharge. When you set up modifiers, you define the adjustments your customers may receive. You control the application of modifiers by using rules such as qualifiers and related attributes.Modifiers enable you to set up price adjustments, benefits, and freight and special charges that the pricing engine applies immediately to pricing requests or accrues for later disbursement.Modifier actions include discounting, adding surcharges, charging for shipping, or adjusting price based on promotional pricing actions.



Modifiers

Modifiers (continued)Modifiers are pricing actions that drive your pricing processes in addition to price lists, formulas, and agreements.



Accruals

AccrualsThe pricing engine uses Accruals in price calculations and passes them to the calling application

• Do not affect the selling price of an order line• Do not appear as chargeable items on invoices• Create an adjustment record in the database



Formulas

FormulasWhen you attach a formula to a price list line, you typically do not enter a price for that line because the pricing engine uses the formula to calculate the final list price of the product or service. One exception is a formula that has a formula type of List Price: in this case, you must enter the list price (base price) for the formula to use in its calculations.



Formulas

Formulas (continued)You can choose one of following methods to determine how a formula calculates the price:

• Dynamic calculation• Static calculation

These are explained further in the Formulas module.



Price Books

Price BooksAdditionally, a Price Book API is provided for other applications to generate a price book and then use the information as required.



Contexts

ContextsThis concept is explained further in the Attribute Management module.



Pricing Attributes

Pricing AttributesIn this example, the product service is available in three versions: Gold, Silver, and Bronze. The price for service varies according to which type (attribute) applies.



Attribute Management

Attribute ManagementOracle Advanced Pricing enables you to define pricing actions and rules by using price lists, modifiers, qualifiers and formulas to define prices, price adjustments, and other pricing features. When the pricing engine gets a pricing request, attribute management retrieves all values for the qualifier and pricing attributes associated with the transaction. The pricing engine evaluates these values to determine which price lists and modifiers are eligible for the transaction. The data sources for the qualifiers and pricing attributes can be within Oracle applications or from outside Oracle applications.



Responsibility Levels



Oracle Pricing Administrator

Oracle Pricing AdministratorYou cannot access the Forms-based UI from this responsibility, use the Oracle Pricing Manager responsibility instead.Note: Parameter definitions provide controls for pricing applications that can be set by a Pricing Transaction Type (Request Type) or by a group of transactions that share pricing setups (PTE).



Oracle Pricing Manager

Oracle Pricing ManagerYou cannot access the HTML UI from this responsibility. Use the Oracle Pricing User or Oracle Pricing Administrator responsibility instead.



Oracle Pricing User

Oracle Pricing UserThe HTML UI features and functions are accessed through the HTML Home page. Your level of access to a pricing entity (view only or maintain) is defined by the pricing security settings in effect. Note: You cannot access the Forms-based UI from this responsibility. Use the Oracle Pricing Manager responsibility instead.



Oracle Advanced Pricing HTML User Interface (UI)

Oracle Advanced Pricing HTML User Interface (UI)Use the following navigation path to access the HTML UI:(N) Oracle Pricing User > Home The HTML UI provides guided flows, logical component groupings, instructional texts, and tips that simplify the overall user experience when defining pricing setups. Using the HTML UI, you can:

• Quickly identify your step within a flow.• Verify your setup in the review pages before saving the line.

The UI provides guided flows for setting up price lists and for the modifier types of discount, surcharge, price break, and promotional goods. In the modifier flow, pricing components are logically grouped by category like Controls, Products, Benefits, and Qualifiers. You must use either the Oracle Pricing Administrator or Oracle Pricing User responsibility to access the pricing features in the HTML UI.



Pricing Home Page (HTML UI)

Pricing Home Page (HTML UI)From the Home Page (HTML UI) in the Oracle Pricing User responsibility, you can easily navigate to various flows of the application (you cannot access the Forms-based UI—must use the Oracle Pricing Manager responsibility):

• The Home page includes Shortcut links for creating price lists, modifier lists, and price list maintenance.

• The work queue displays a list of the most recently created price lists and modifier lists. This enables you to quickly view or update list details. You can also search for a price list or modifier list from this page.



Modifier Setup (HTML UI)

Modifier Setup (HTML UI)The HTML UI provides guided flows to create and maintain the following modifier lists and line types:List types

• Deals• Discount Lists• Promotions• Surcharge Lists

Line Types• Discount• Price Break• Promotional Goods• Surcharge

Notes: • For promotional goods in HTML, additional buy items are not supported.



• Modifiers created in the HTML UI are initially in inactive state (by default). After creating the modifier, you must query the modifier header again, select the Active check box, and save your changes to make the modifier active.

• For modifier types or features unavailable in HTML, you must use the Forms-enabled UI (accessed from the Oracle Pricing Manager responsibility). Within each create flow, you can verify your setup data before saving on the review page.



Shortcut Region (HTML Home page)

Shortcut Region (HTML Home page)Create Modifier Line flows include Discount, Surcharge, Price Break, Promotional Goods. Note: For promotional goods in HTML, additional buy items are not supported.



Summary



1.overview of advanced pricing

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