06 Pricing Training Overview

8/22/2019 06 Pricing Training Overview

1/12

ORACLE IT ERP TRAININGDOCUMENT

ADVANCED PRICING

Prepared by: Jennifer YeoCreation Date: April 24, 2001Last Updated Date: April 25, 2001


2/12

Introduction

This document has been designed to provide analysts with the information theyneed to effectively trouble shoot pricing issues. It will provide a high level

explanation of the Advanced Pricing currently used by Oracle business. As theOracle business is not currently using all the functionality of the product, it issuggested the reader consult the users guide for further and more detailedinformation. The users guide is available on-line at the following url:http://pkm.us.oracle.com/%7Egseiden/11idoc/acrobat/115qpug.pdf.

Overview

Advanced Pricing is used by Order Management and OKS to price lines by usingprice lists, formulas, modifiers and qualifiers. The pricing engine is called severaltimes during the entering of an order. Below I have described the different forms,

their use, and most importantly how they relate to what price is being provided tothe Order Management user by the pricing engine.

Price Lists

Price lists contain prices and currencies associated with products and services.Eachprice list contains basic header information with item lines. Price lists can haveprices for specific items, item categories, or even all items. Prices can be absolutevalues, percents of other prices, or formulas.

2


3/12

Form Details

Header level attributes:

Price List Type: Commercial, GSA or International

Master Flag: If yes, this price list is a parent price list from which child price listsare downloaded from, but this is not the product of another download.

Download From Flag: If yes, then other price lists are downloaded from this one.

This may be the product of another download.

Download To Flag: If yes, then this price list created or maintained by a parent

price list.

Parent Id: If download to flag is yes, then the header_id of the parent price list is

stored here.

Last Exchange Rate: Contains the last exchange rate used during the pricing

download.

Secondary Price Lists:

The pricing engine uses secondary price lists when it cannot determine the pricefor an item using the price list assigned to an order. Primary and secondary pricelists have the same currency. If the item that is being ordered is not on the primaryprice list, the pricing engine uses the highest-precedence secondary price list (thesecondary price list with the lowest value for the precedence field). If an itemappears on both the primary and a secondary price list with the same effective

3


4/12

dates, the pricing engine uses the primary price list to price the item. If an itemappears on the primary price list but is not active (the effective end date haspassed), the pricing engine uses the price on the secondary price list.

Qualifiers:

Qualifiers determine whether the order (or order line) is eligible to use the pricelist. More details on qualifiers will be given below.

Pricing Attributes:

Pricing attributes are attached to a line on a price list. When you query the pricelist for a specific part, you may find several lines for the part on the price list.However, each line will contain different values in the pricing attributes. Thepricing attributes in this form relates to the information entered in the PricingContext flexfield on the sales order form, and the data is stored inOE_ORDER_PRICE_ATTRIBS. New parts are not being entered by the

Product Release Group (PRG) with specific pricing attributes.

Pricing Formulas

Formulas are used by the pricing engine to determine the list prices of items andthe discounts that apply to those items. They can be used to create a price from acomputation as an alternative to entering prices in a price list or calculating a priceadjustment.

The header of the formula will contain the formula value. The values in theformula correspond to steps in the formula lines. You can test the formula, or get

a better understanding of how it works by entering the value for each step, andthen selecting the formula from DUAL.

The formula steps can have the following formula types:

Numeric constant: A numeric value.

Function: One function is available for use. The function

GET_CUSTOM_PRICE is part of the standard functionality which allows

the use of custom code to calculate a price.

List price: The price of the item in a specific price list to which you have

attached a formula.

Price list line: The price of the item in a specific line number of a specific pricelist.

Pricing attribute: The value of a pricing attribute of an item.

Factor list: A list of factors that you can link to multiple pricing attributes or a

range of these attributes. The pricing engine evaluates the formula, thenchooses one of these factors depending into which range the actual pricingattribute of the item falls.

4


5/12

Qualifiers:

Oracle Pricing lets you define qualifiers. Qualifiers determine the who part ofeligibility. Qualifiers and qualifier groups can then be linked to Oracle Price Listsand Oracle Modifiers to define rules of who is eligible to use a price list ormodifier.

5


6/12

Form Details

Grouping Number: The grouping number determines whether the lines entered

on a qualifier have an AND or OR relationship. If the groupingnumbers for a set of lines are the same, then to qualify both conditionsmust be fulfilled. If the grouping numbers are different, then the ORcondition applies, and either condition can be met to qualify.

Context Field: In the Context field is the qualifier context. The LOV displaysall enabled descriptive flexfield context values defined for the QualifierContexts .

Attribute Field: In the attribute field select a qualifying attribute of thecontext chosen above. The LOV will display all enabled descriptive flexfieldcontext specific segment values for the context structure chosen. Where dothese flexfield values come from? The attributes are mapped using theattribute mapping form (just like OM defaulting rules form). Some of theattributes are set up to call custom code that returns a value to the flexfield.The custom code is stored in qp_custom_sourcing_v13.sql (version maychange), and the code is located in:

/u02/app/custom/gsiap/qpmis/11.5.0/admin/plsql.

6


7/12

Modifiers:

Pricing modifiers control how the pricing engine can modify the pricing requestsand pricing request lines. The modifiers list types available are:

Discount

Surcharge

Freight/Special Charges

Promotion

Deal

Each list type then has an associated line type. The line types are described below.

Discount: Creates a negative price adjustment.

Surcharge: Creates a positive price adjustment.

Freight charge

Item upgrade: Replaces a specific item ordered with another item for the same

price.

Terms Substitution: Replaces freight charges, shipping charges, and payment

terms with typically more favorable charges.

7


8/12

Other item discount: Gives a price adjustment or benefit to a specified item on

an order when the customer orders one or more other items on the sameorder.

Promotional goods: Adds a new item with a price adjustment or benefit when

the customer orders one or more other items on the same order.

Coupon issue: Issues a coupon on one order for the customer to redeem for aprice adjustment or benefit on a later order.

Price Break - Applies a variable discount or surcharge price adjustment to a

pricing request based meeting the condition of a break type. You can use bothpoint and range type breaks.

We are not currently using all of this functionality. Modifier line types havemainly been limited to Discounts and Surcharges.

Form Details

Header Level:

Ask For Flag: This is used for Modifier List types of Promotion or Deal. If the

box is checked, then the modifier must be asked for before it can be used.

Number: This is actually stored in the name column of the qp_list_headers_tl

table. The form name is stored in the description column, and the formdescription is stored in the comments column.

8


9/12

List Qualifiers: Determines if the order/line is eligible to use the modifier.

Qualifiers can be placed at the header and/or line level. Pre-existing qualifiersthat were set up in the qualifier for can be chosen, or new qualifiers can becreated through the modifier. However, if the qualifier is created through themodifier for it will not be re-usable by other modifiers.

Automatic Flag: This can be set at the header or line level. If the flag is checked,then modifier is automatic and it will automatically be applied if the pricing requestis eligible for it. Else, if the flag is not checked, the user must manually apply thediscount through the sales order form using the View Adjustments form. The listof values for available modifiers will only list those modifiers for which theorder/line is eligible.

Line Level Information:

Level: Determines which level the pricing engine uses to determine if the requestis eligible for the modifier.Line: The pricing engine determines if the pricing request is eligible for thismodifier by validating the request for each line. It applies this modifier atthe line level.Line group: The pricing engine determines if the pricing request is eligiblefor this modifier by considering the quantities of a group of lines.Order: The pricing engine determines if the pricing request is eligible forthis modifier by validating the pricing request header. It applies thismodifier at the order level but prorates a percentage value to each line.

Pricing Phase: Determines when the modifier will be requested/applied.List Line Adjustment: Occurs when the part is entered, or the cursor ismoved to the next line.All Lines Adjustment: Occurs when an order is saved.Modifiers for BOOK Event: Occurs at booking. We dont use thisbecause the user would not see the final price until after booking.

Incompatibility Group: If two modifiers have the same level of incompatibility

and pricing phase, then both cannot be applied. The pricing engine will eitherchoose the modifier with the higher precedence (lower precedence numbervalue) or the best price. Which way the incompatibility is resolved depends onthe Event Phase is set up.

Application Method: Shows how the discount will be applied.

Amount: Creates a fixed price adjustment on each unit for the amountspecified in the Value.Percentage: Creates a percentage price adjustment on each unit for thepercentage specified in the Value.New price: Overrides the selling price of this item and makes the newprice specified in the Value the new selling price. Creates a priceadjustment forthe difference in list price and the new price.Lumpsum: Creates a price adjustment for this lump sum amount on the

9


10/12

entire line.

You can see what modifiers have been placed on an order by choosing View

Adjustments from the Action button on the Sales Order form. This is very helpfulin trouble shooting when an unexpected price is returned.

Pricing DownloadThe pricing download is a custom program that cascades any changes made to theparent price list to the child price list in the GSI. The program also creates newchild price lists from a newly created master price list. The new child price list willhave the same name as the parent, but with the country code attached (ex. AUDCURRENT COMMERCIAL). The program determines whether a price list isdownloaded to or from by the values stored in the header level attributes stored inthe QP_LIST_HEADERS_B table (see price list section). The concurrentprogram is run on a nightly basis. The program is call PRICELOAD. The file isnamed priceload.sql and the code located in:/u02/app/custom/gsiap/qpmis/11.5.0/admin/plsql

Issues/Trouble Shooting Tips

Issue 1: I have a ticket where the user is getting an error saying the part is not onthe CURRENT COMMERCIAL price list. What should I do?

Go to the price list setup form, and query on the price list. Go to the lower

half of the form, and using the find screen, search for the part. If the part isnot on the CURRENT COMMERCIAL price list, then look for it on theAUXILIARY price list. If the part is not on either price list, email theProduct Release Group at PRGINFO to find out if the part should bepriced.

If there are several price list lines for the part that have same precedence butdifferent pricing attributes, a bug (#1619873) will prevent immediatepricing. We have the fix from development, and the patch should beapplied shortly. However, there is currently a work around fromdevelopment. If the user re-prices the line, in the sales order form theywill usually get a price. If they still do not receive a price, then go to thelines on the price list, and for the part without pricing attributes lower theprecedence by the value of ten. The part will then price.

If the part is on the price list, but there is not a line for the part without pricing

attributes contact PRGINFO to find out if there should be.

Issue 2: I have a ticket where the user says the price for the part is not correct.What should I do?A few things to check are:

With your cursor on the line with the problem, click on the Actions button.

From the list, choose the View Adjustments option. From here you cansee if a discount has been applied. You can then go to the modifier screento check whether the discount is or is not working as it is set up to do.

10


11/12

If there is not a discount on the part, go to the price list and check the price

line. If there is a formula on the line, go to the formula form to see if theformula is working as it is set up to do so.

Where can I find.(All paths are from the Order Management Super User Responsibility unless notedotherwise.)

Price List Information?Path: Pricing >> Price Lists >> Price List SetupTables: Header: QP_LIST_HEADERS_B, QP_LIST_HEADERS_TL

Lines: QP_LIST_LINESPricing Attributes: QP_PRICING_ATTRIBUTES

Modifier Information?Path: Pricing >> ModifiersTables: Same as for price listslist type code will be other than PRL (price list)

Formula Information?

Path: Pricing >> Pricing Formulas >> Formula SetupTables: QP_PRICE_FORMULAS_B, QP_PRICE_FORMULAS_TL

Qualifier Information?

Log in as Oracle Pricing ManagerPath: Qualifier SetupTables: QP_QUALIFIERS, QP_QUALIFIER_RULES

More Documentation?The user guide is on-line at url: http://pkm.us.oracle.com/%7Egseiden/11idoc/acrobat/115qpug.pdf

11


12/12

12

06 Pricing Training Overview

Documents