Basic Pricing 1

Basic Pricing
Overview
Copyright Oracle Corporation, 2004. All rights reserved.
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Basic Pricing
System References
Examples: (Please delete the red text examples once you have added your information)
Product Name > Window / Form Name
Oracle Work in Process > Discrete Jobs
Oracle Order Management > Sales Orders
Oracle Inventory > Transactions
Distribution
Job Title*
Ownership
The Job Title [list@YourCompany.com?Subject=EDUxxxxx] is responsible for ensuring that this
document is necessary and that it reflects actual practice.
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Objectives
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Agenda
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Pricing Security Overview
Pricing Security Overview

The following terms are used in pricing security:
Pricing entity: can be a price list, modifier, or agreement.
Entity type: a type of pricing entity like a Pricing Agreement, Standard Price List etc.
Entity usage: grants the entitys usage to one or all operating units so it can be
used during pricing engine calls.
Global Usage: when this is enabled for a pricing entity, the entity can be used across all
operating units. When this is set to No, then the usage of the pricing entity is restricted to
the operating unit that created it. However if the global usage as well as the operating unit
are specified, then global usage takes precedence.
Grantee: the user who is granted permission to view or maintain a pricing entity
Grantee Type: the level at which privileges are granted:
- Global
- Operating Unit
Access Level: is of two kinds View-Only and Maintain access given to a grantee for a
pricing entity.
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Security Implementation Steps
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Security Implementation Steps Mapping Security Requirements
Security Implementation Steps Mapping Security Requirements

All pricing entities are first identified and then mapped to different grantee types according to
the requirements. For example, a pricing agreement can be mapped to an operating unit so that
all users of that operating unit only can view and maintain the pricing agreement.
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Security Implementation Steps Assigning Pricing Entities to an

Operating Unit
Security Implementation Steps Assigning Pricing Entities to Operating Units

There are two scenarios where you can assign pricing entities to operating units: before
implementing Pricing Security and after implementing Pricing Security.
Pricing entities that have been created before implementing Pricing Security normally would
not have operating units assigned to them. In such a situation, the Pricing Administrator can
assign ownership of pricing entities to the appropriate operating unit. Also the Global Usage
option can be used to enable or disable the use of the pricing entity across operating units.
After Pricing Security is implemented, a Global box is added to the header of the price list or
modifier entity. Though the Global check box is selected by default, the user can clear this to
restrict the entity to the users operating unit. Also all pricing entities that have been created
after implementing Pricing Security have a unique system-generated Operating Unit identifier
assigned to them. When querying newly-created pricing entities in the Pricing Security pages,
the operating unit ownership is displayed in the Owned By Operating Unit field.
Assign Global Usage or owned by Operating Units to multiple pricing entities collectively
using the Bulk Update Entity Usage button on the Entity Usage page.
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Security Implementation Steps Creating Privileges
Security Implementation Steps Creating Privileges

You can grant privileges to different grantee types such as Global, Operating Unit,
Responsibility, and User.
After the mapping of security requirements, it is necessary to give the privileges to the pricing
entities. This implies that you can define rules for a pricing entity that will restrict a specific
user or group of users to accessing entities for a specific customer, group of customers or a
specified customer hierarchy level.
You can assign privileges using the following privileges pages:
Privileges page the default page to assign privileges
Express Create Privileges page to assign privileges to a specific pricing entity
Bulk Create Privileges page to assign privileges to multiple entities collectively
In case a user has multiple privileges, it is always the Maintain privilege that will take
precedence. For example, if a user has Maintain access at his operating unit level, but has a
view-only access at his user level, the Maintain access privilege will have precedence.
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Security Implementation Steps Setting up Default Security

Profile Options
Security Implementation Steps Setting up Default Security Profile Options

QP: Security Default ViewOnly Privilege: This is applicable for newly created pricing
entities. This profile option enables you to set the view-only privileges at one of the
following grantee levels: Global (Default), Operating Unit, Responsibility, User, or None.
This controls which users can view newly-created price lists and modifiers.
QP: Security Default Maintain Privilege: This is applicable for newly created pricing
entities. For example, if the profile option is set to Operating Unit, then the maintain
privileges for that price list or modifier are restricted to the pricing users of the operating
unit where the price list or modifier was created. This profile option enables you to set
maintain privileges at one of the following levels: Global (Default), Operating Unit,
Responsibility, User, or None.
For already existing pricing entities, the Privileges window should be used to change the
access privileges.
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Security Implementation Steps Turning Security On
Security Implementation Steps Turning Security On

Before turning the profile option QP: Security Control on, you must ensure that the following
steps have been completed:
Mapping of security requirements
Assignment of an operating unit owner for existing pricing entities
Granting privileges
If these steps are not completed, then users will not be able to use any pricing entities. Once
Pricing Security is activated, it should not be turned off.
When the profile option QP: Security Control is set to ON, the Global box is dynamically
added to the headers of all price lists and modifiers. Though this box is visible to all, it can be
cleared or selected only by users with Maintain privileges.
Before the profile option is turned on, it is essential that the pricing entities are assigned to an
operating unit. After the profile is turned on, a newly created pricing entity gets assigned the
creating operating unit automatically.
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Security Features and impact on Forms/Windows
Security Features and impact on Forms/Windows

Changes made to existing Pricing windows: When pricing security is turned on, a Global
box appears on the pricing windows, enabling you to decide if the pricing entity is to be
available across all operating units.
Changes to price lists: A price list that has Global box checked is accessible to all
operating units, even though it may be assigned to a specific operating unit. If a price list
is copied, it is assigned the default privileges from the pricing security options.
Changes to Modifier windows: A modifier with Global Usage assigned to it is accessible
to all operating units, even though it may be assigned to a specific operating unit. After
pricing security is turned on, the default view and maintain properties for modifiers are
determined by the pricing security profile options.
Changes to Order Management: All list of values (LOV) for price lists in Oracle Order
Management will call the Pricing API, Get_Pricelists(), to return a list of valid price lists.
The API returns the price lists owned by the same operating unit as the operating unit of
the current user and those price lists where the Global box is selected.
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Agenda
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Price List Creation
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Price List Header
Price List Header

Order Management Super User, Vision Operations (USA) or Oracle Pricing Manager
responsibility.
(N) Pricing > Price Lists > Price List Setup
The Pricing Engine requires that all Items, Services, Models, Option Classes, and Options
should be selected and displayed on the price list.
You will need to set up a price list for each Currency you use. The Pricing Engine will only
consider price lists that share the same currency as the Pricing Request. Therefore a sales order
placed in Yen will have to utilize a Yen based price list.
There is a Round to field in Price List window. This field controls the rounding factor.
Entering a positive number affects positions to the left of the decimal. Entering a negative
number affects positions to the right of the decimal. Example 2 would round to the second
decimal point. The type of currency standard or extended which has to be defaulted on the
price list is determined by the Profile Option: QP: UNIT_PRICE_PRECISION_TYPE.
Secondary Price Lists
As with other areas of pricing, the Basic Pricing license controls available functionality to the
user. Basic Pricing allows one Secondary price list. A secondary price list allows the pricing
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engine to look at more that one price list to determine the value of the sales order line. The
Pricing engine will look to the Secondary Price list if the requesting item and unit of measure is
not on the Primary Price list. A secondary price list is a price list you have defined previously.
Any price list has the ability to be used as a secondary price list.
Price Lists and Sales Order Defaults
Fields such as Payment Terms, Freight Terms, and Freight Carrier are available on the Price
List form. By defining the Order Management defaulting rules to use these fields from the
Price List window, you are able to default values directly into the sales order based upon which
price list has been selected for the order. For more information on Defaulting Rules, see the
Order Management Users Guide.
Note: Price Lists cannot be deleted, however a price list is made valid or invalid with the use of
its effective dates. Alternatively, selecting or deselecting the Active box also temporarily or
permanently makes the price list available or unavailable for use.
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Price List Line
Price List Line

Order Management Super User, Vision Operations (USA)
(N) Pricing > Price Lists > Price List Setup (T) List Line
The Product Attribute enables you to enter one price per Item number, one price per Item
Category, or one price for All Items. If you have entered all three prices on a Price List, the
Pricing Engine will always select the Item Numbers price over the Item Categorys and the
Item Categorys over All Items.
The List line UOM is a required element of the validation process. The Pricing request is for an
Item/UOM and only price lists that have the same item and unit of measure will be considered.
If you have the Primary UOM checked and you enter an item/unit of measure combination on
a sales order that is not on a Price list, the Pricing engine converts the unit of measure on the
order to the items primary UOM and then uses the UOM conversions to calculate the unit
price.
Example: Price List setup: BB-2200, $6.00 each, Primary UOM is selected. Sales Order
request: BB-2200 1 dozen. Result: 12*6.00 = $72.00 unit price.
You can use the Precedence column to specify a number. This number is taken into
consideration when comparing lines that are similar (i.e. the same price for the same item). A
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price list line with a lower value in the Precedence column will have a higher precedence the
price from the line will be used by the pricing engine first to price the line.
You can select product, pricing and qualifier contexts in the price list and choose the
corresponding attributes that you want to determine the pricing action. The product context
contains only one context type Item. The pricing context contains all the pricing attributes
that have been created and linked through the Attribute Management windows. The qualifier
context allows you to link your customer hierarchy to the pricing action and ensure that the
customer attributes also play a part in determining pricing of the item.
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Price List Line (contd.)
Price List Line (contd.)

You can enter an absolute value that represents the unit price of your List line item. For service
program items you have a choice of pricing methods. You can enter an absolute value that
represents the unit price of your service program or you can enter a percentage value that
represents the percentage of another items price. When you are selling a service program on a
sales order you are prompted for the item that the service program will cover. The Pricing
Engine finds the price of the covered item and calculates the price of the service program by
multiplying the percent times the items unit price. It then takes that amount times the duration
of the coverage. Example of percent of other price:
Price List setup:
Service Programs item number is set up at 10% per year.
Sales Order request: Customer purchases 1 years worth of coverage for an Item which
sells for 1200.00.
The Pricing Engine calculates .10 * 1200 * 1 (year) = 120.00.
Formulas can be used to if you need an algebraic expression to calculate the selling price.
Basic pricing supports entering a formula name in the Static Formula field. Static Formulas
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require that a concurrent program, Update Formula package, be run to populate the List Price
value prior to being used by the Pricing Engine.
The Price list supports both positive and negative values. This enables you to create an item
which represent a re-stocking fee. Enter this item on your price list with a negative value, then
enter this item on your Return order. When the Pricing Engine calculates the total value of the
return it will subtract the re-stocking fee thus lowering the value of the credit memo.
Start and End dates are respected by the Pricing Engine.
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Copy Price List
Copy Price List

(N) > Pricing > Price Lists > Copy Price List
Copying a Price List enables you to create a new price list without adding lines manually to the
price list. You are able to utilize controls within the Copy Price List window to determine
which line items will be copied during the process.
One option is to include the copying of discounts (modifiers) when copying an existing price
list. This option will create new modifiers for each existing modifier that has the original price
list as either a Modifier List Qualifier or a Modifier Line Qualifier. The new modifiers name
will be a concatenation of the original modifier plus a sequence number and the new price list
will have a Modifier List Qualifier.
When creating the new price list you can specify any applicable effective dates. As the Pricing
Engine will not use the new price list until its Effective Date, this will allow you to create price
lists before they are required and used in the application.
Refer to Guided Demonstration - Copy a Price List [LAB0288Y]
Refer to Practice - Copy a Price List [LAB0289Y]
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Agenda
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Price List Maintenance - Overview
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Manual Price List Updates
Manual Price List Updates

Order Management Super User, Vision Operations (USA) or Oracle Pricing Manager
responsibility.
(N) Pricing > Price Lists > Price List Setup (T) List Line
To change existing Price Lists manually, navigate to the Price List Setup window and find the
price list to maintain.
You can add or update the following:
Add or update Secondary Price List.
Add new list lines to existing Price Lists.
Change list line values. Note: If you overwrite the existing value with a new one, the
previous data is not retained anywhere.
Maintain Pricing History by manually entering an end date on the list line value that is
being discontinued, then add a new line with the same item number and unit of measure
but with the new value. The new list lines start date must be greater than the end date of
the original line.
The Pricing Engine always validates the Price List and List Lines Effective Dates.
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Refer to Guided Demonstration - Manual Price List Update [LAB028AY]

Refer to Practice - Manual Price List Update [LAB028BY]
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Adjust Price List
Adjust Price List

(N) Pricing > Price Lists > Adjust Price List
Use the Adjust Price List program to mass update your price list values. Note that using the
Adjust Price List program to change values does not create a history record. You will not be
able to recapture the old price. If you need to retrieve expired prices, do not use Adjust Price
List option. This option enables you to increase or decrease the current price by a percent or an
amount.
Elements you can update:
Optionally adjust only a Range of Items.
Optionally adjust only an Item Category. Many companies adjust their Items selling
prices annually or when the product cost has drastically changed. This is often done by
Product Family. If you set up an Item Category to represent the Product Family you can
quickly markup the subset of Price List Lines.
Optionally adjust only Items with a specific Item Status.
Any time a new line is added to a price (manually, copy, or Add Items) the system
populates the Creation Date with the system date.
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Use the Creation Date to select only items that were added on a given date. This is very
helpful when you have used the Add Items to Price List program to add new items At
Cost. This enables you to markup the new items while leaving the older lines untouched.
Use the Copy program to create as many price list as your business procedures support
and then Adjust the Price List Value by a Percent or an Amount.
Refer to Guided Demonstration - Adjust Price List [LAB0284Y]
Refer to Practice - Adjust Price List [LAB0285Y]
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Add Items to Price List

(N) Pricing > Price Lists > Add Items to Price List
The Add Items to Price List window enables you to quickly add items to an existing price list.
When using the Add Items to Price list functionality you can use a number of control attributes
within the window to identify which items should be added to the list. These options include
addition by the range of item numbers, item category, and item status. Note that you can only
add items from this window to one list at a time. To add all of the items that have a category of
Shippable to five different price lists, use the Add Items to Price List window five times, to
add the Shippable category to each price list individually.
Using the Set Price Equal to Cost option, you can retrieve the current cost of the item by
selecting an inventory organization that stores item costs; the current cost retrieved is stored in
the same price list as the item.
Refer to Guided Demonstration - Add Items to New Price List [LAB0282Y]
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Add Items to Price List for Maintenance

(N) Pricing > Price Lists > Add Items to Price List
You can use the Add Items to Price List program to add Product Lines to existing price lists.
When new product lines are added to your inventory, assign unique Categories to them, so that
you can add them to your existing Price Lists using the Add Items feature by Item Category.
If you are in an industry where your selling prices are set at a given Percent over cost, add your
items at cost with a Future Effective Start date; then use the Adjust Price List program to
markup the new items.
Note that the Add Items to Price List program does not overwrite any List Lines that have the
same Item Number and Unit of Measure as the Inventory Item Number and its Primary unit of
measure. This means that you cannot accidentally overwrite current valid values.
Refer to Practice - Add Items to a Price List [LAB0283Y]
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Agenda
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Agreement Overview
Agreements Overview
You can set up two kinds of Agreements, Standard or Pricing:
A Standard Agreement could have special Freight or Payment terms. You can associate an
existing Price List to a Standard Agreement. Optionally, you can create Discounts that
are qualified by the Agreement Name or Agreement Type.
A Pricing Agreement allows you to create a Price List as part of the Agreement setup. The
Agreement Price List has fields that are not on a regular Price List. These fields allow
you to optionally enter Customer Item Numbers that have been created in Inventory and
cross referenced to an Internal Item Number.
Agreements can be Generic or Customer Specific. If it is Generic then all customers are
eligible to use it. If it is Customer Specific then only the Customer Name entered on the
Agreement will be eligible.
The Agreement Type has many functions. It can be used as a Qualifier for a Discount
(Modifier). It can be used by the Order Transaction Type to restrict a group of orders to only
allow Agreements of a specified Type. It can be used to group similar agreements for reporting
purposes.
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Besides restricting which Agreements a sales order can use, the Order Transaction Type can
also specify whether an Agreement is required to book a Sales Order.
Many of the fields entered on your Agreements can be used to default the appropriate data on
to a new sales order/line. Your agreement can default Customer PO, Freight Terms, Freight
carrier, payment terms, Salesperson, Invoicing Rules, and Accounting Rules.
By using the Revision number, Revision Date, and Revision Reason you can maintain a history
of all the changes to your Agreements.
Note: You can enter an agreement number of your choice, which you can then use to reference
a legal document given to your customer.
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Agreement
Agreement
(N) Pricing > Pricing Agreement
If you do not enter a Customer you are creating a Generic Agreement.
Effective Dates are used by the Pricing Engine to ensure that only currently valid Agreements
are used. The Effective dates are also used by the Revision Control logic.You cannot create a
new revision unless the current revision has an Effective end date.
If you set the Price List Type to Agreement Price List you can create a price list as part of the
Agreement setup.
If you set the Price List Type to Standard Price List you will be prompted to enter the name of
an existing Price List.
Note: You cannot add items to a Standard Agreement as an existing price list is attached to it.
In fact the items block will appear as read-only.
Refer to Guided Demonstration - Agreement Price List [LAB0280Y]
Refer to Practice - Agreement Price List [LAB0281Y]
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Formula Overview
Formula Overview
Enter the formula name on the list line of the Price List for those items deriving their price
from the static formula.
You must run the Update Formula Prices concurrent program after entering your Formula
name in the Static Formula field of the price list. The concurrent request updates the formula,
making it usable in the price list. Additionally, a formula can be linked to a Freight and Special
Charges modifier when the modifier is created for the order header.
With Basic Pricing you are restricted to three formula component types: Numeric Constant,
Pricing Attribute, and Factor List.
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Basic Pricing Formula
Basic Pricing Formula

(N) Pricing > Pricing Formulas > Formulas Setup
When using the basic pricing formula:
The formula is an arithmetic expression made up of step numbers. Each step number is
entered in the Formula Lines region. You can repeat step numbers in the formula.
Example: 1 * 2 + 3 1. Thus step 1 (or line 1) contains a numeric constant and step 2
contains a pricing attribute. The numeric constant will be multiplied by the pricing
attribute as the formula step numbers indicate that 1*2.
The Name is a unique identifier.
The Pricing Engine uses the Effective dates.
Use the Formula field to enter your formula expression. Each numeric value entered must
be defined using a Formula Type on the Formula Line tab. You can use mathematical
operators, numeric operands, and built-in functions to create your formula.
The formula type Numeric Constant can be any numeric value. It can be a whole number
or a decimal number (1 or .1).
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Pricing Attributes
Pricing Attributes
Pricing attributes are characteristics of products and services that you can specify when the
characteristics help to determine the price of a product or service. Distance, age or usage,
number of users, and level of service are examples of pricing attributes.
You can specify one or a combination of pricing attributes and assign them to a product or
service. The absolute value of a pricing attribute (such as thickness or height) of an item can be
used as a Step in the formula.
Example:
This formula uses a Constant Value and a Pricing attribute to calculate an items unit price.
You sell glass plates that can vary in thickness. You want the price to vary depending on the
thickness. Create a formula 1* 2 to calculate the price of a glass item.
Step 1 is a pricing attribute for thickness.
Step 2 is a numeric constant that represents the base value for the item.
Calculation: If 100 is the base price of the glass item and 0.3 is the value of the thickness
attribute of the glass then the pricing engine evaluates the formula as 0.3*100 which is 30.
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Factor List
Factor List Formula Type

Use Factor Lists to associate values and factors with a Pricing Attribute. The Pricing engine
compares the values entered on a sales order to the values in the Factor List to select the
correct factor to use.
For example you may need to factor in the Skill level of your Consultants when calculating the
sales order price.
Base Price $100
Skill Level
Factor
Results
Apprentice
.85
Markdown
$ 85
Staff
1.0
Regular Price 100
Principal
1.5
Markup
150
The Formulas Pricing Context must match the Pricing Context on the Price List Line that the
formula is being attached to.
You can utilize the OR logic in the conditions that you define your factor list. Each value that a
Pricing Attribute can have is entered as a Base Price Attribute line. Example of OR logic:
Base Price Attribute Thickness = Value: 0.1 mm Factor: 1
Base Price Attribute Thickness = Value: 0.2 mm Factor: 2
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The pricing engine will retrieve a Factor if the customer orders a thickness of 0.1 mm
OR .2 mm.
You can utilize the AND logic if you link an Associated Pricing Attribute line to the Base Price
Attribute line. Example of AND logic:
Base Price Attribute
Thickness = Value: 0.1 mm Factor: 7
Associate Pricing Attribute
Length = Value: 0.5 mm.
The pricing engine will use the Factor 7 if the customer orders a thickness of 0.1 mm AND a
length of 0.5 mm.
You can assign a single value to the Pricing Attribute or a range of values by using the
Operator field. The Operator = (equal) is a single value. The Operator BETWEEN allows you a
range of values.
You can also use multiple values within factor lists. Example of multiple values:
Base Price Attribute Thickness BETWEEN Value: 0.1 and .3 mm Factor: 3
Base Price Attribute Thickness BETWEEN Value: 0.4 and .6 mm Factor: 6
The Pricing Engine will use the Factor 6 if the customer orders a thickness of 0.5mm.
Refer to Guided Demonstration - Basic Pricing Formula [LAB028CY]
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Static Formula Update Program
Static Formula Update Program

(N) Pricing > Pricing Formulas > Update Formula Prices
After a formula has been entered or updated, the updated formulas are not automatically
incorporated in the price list or modifiers. To ensure that the updates are reflected in the pricing
entities, run the Update Formula Prices concurrent program. This concurrent program loads the
updated formulas to a price list or modifier and calculates the list price, displaying it in the
price list or modifier. Using the Update Formula Prices window, you can choose to update
either a specific formula or all formulas.
After the concurrent program completes successfully, you can enter orders in the Sales Orders
window and the updated prices will be in effect during the pricing of an order line.
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Agenda
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Qualifier Overview
Qualifier Overview
Qualifiers are an intrinsic part of pricing logic. Qualifiers create rules that protect your Price
Lists and Modifiers from being misused. To create your qualifier rules, group any of the seeded
qualifiers using AND and OR condition.
If the Grouping Numbers are the same, AND logic is applied.
If the Grouping Numbers are different, OR condition is applied.
If the Grouping Number is 1, then that qualifier is always used with an AND condition
with the other qualifiers. The qualifier with a grouping number of 1 is mandatory and
must be satisfied, irrespective of other qualifiers.
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Seeded Qualifier Contexts
Seeded Qualifier Context

The Qualifier Attributes represent values that can be compared to values on your sales order.
Using these qualifier attributes the Pricing engine can determine which modifier list and
modifier lines should be applied to the order.
Basic Pricing limits the seeded qualifier contexts for both the Modifier List and the Modifier
Line.
Qualifiers for Modifier Lists:
Customer:
Customer Name
Bill to
Ship to
Customer Class
Modifier List:
Price List
Qualifiers for Modifier Lines:
Customer:
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Agreement Name
Agreement Type
Order:
Customer PO
Order Type
Note: When a qualifier has a grouping number 1, it implies that the qualifier will be taken as
mandatory in comparison to other qualifiers.
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Agenda
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Modifier Overview
Modifier Overview
Using Modifiers is the only way you are allowed to adjust the Price List price.
Discounts, Surcharge, and Freight and Special Charges are all valid Modifier types in Basic
Pricing.
Create Order Level Modifiers to apply modifier to all order lines.
Create Line Level Modifiers to apply modifier to only the current line.
Qualify your Modifier List to improve the performance. If the Pricing Engine can disqualify
Lists that are not applicable to the current pricing request it will improving processing time.
By putting qualifiers on your modifier List and Lines, you can create rules that will be
automatically applied by the Pricing Engine.
From the order or order line you can use the Action View Adjustments to see the details of
Modifiers that were applied automatically by the Pricing Engine or to apply Manual discounts.
Also, if the modifier is overridable you can use this window to enter new values or override the
pre-defined values.
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Modifier List
Modifier List
(N ) Pricing > Modifiers > Modifier Setup
The Modifier Type restricts the kinds of lines that can be attached. Basic Pricing supports three
types of Modifier Lists:
Discounts create a negative price adjustment.
Surcharges create a positive price adjustment.
Freight and Special Charges (including Handling charges) create a charge amount.
Elements within the Modifier List window:
The Active check box allows the modifier list to be used by the Pricing Engine.
The Start Dates indicate when the Modifier List is effective.
The currency on the Modifier list must match the currency on the Pricing Request.
Use a combination of qualifiers to establish pricing rules that will be respected by the
Pricing Engine.
Modifiers can remain Price List independent or you can use your Price Lists as qualifiers.
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Modifiers Lines
Modifier Lines
(N) Pricing > Modifiers > Modifier Setup (T) Modifier Summary
The Modifier number is a unique identifier within a List. It can be alphanumeric.
Levels within modifier lines:
If you create an Order Level modifier the adjustment will be applicable to all lines on the
order. If it is a Freight Charge it would only be applied once to the Order Header.
Line Level modifiers only adjust the pricing requests line.
Types of modifier lines:
Define Discounts to markdown the Price List Price.
Define Surcharges to markup the order price.
Create Freight and Special Handling charges to meet your business requirements.
Price Breaks can either be Discounts or Surcharges.You can break on order quantity or
amount.
Elements when defining modifier line:
The Pricing Engine uses the Start and End Dates to establish effectivity .
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The Print on Invoice functionality is controlled by a profile option: OM: Show Discount
Details on Invoice. If it is selected the discounts will print on your invoices. Otherwise,
the net amount is passed to Receivables.
The Automatic check box is selected if you want the Pricing Engine to apply the modifier
to all qualified orders and order lines.
To create Manual discounts leave Automatic unchecked.You can use the Action View
Adjustments in the Sales Orders window to apply manual modifiers.
To avoid changing the Selling Price calculated by the Pricing engine, leave the Override
check box unchecked.
Some businesses have such a flexible selling price that they need the ability to overwrite
the calculated price with a new price. To do this, create a modifier line which has
Automatic unchecked and Override checked.
Optionally, restrict the modifier to a specific Item number or item category by using the
Product Attribute.
If the Pricing Engine finds multiple discounts that are qualified to be applied, it always applies
the modifier which will give the lowest price to the customer based on best price or
precedence.
View your Discounts and Surcharges from the Sales Orders Action View Adjustments menu.
View your Freight and Special Handling charges from the Action Charges menu.
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Modifier Line Examples
Pricing Adjustment Examples

The major pricing modifiers found in Basic Pricing are:
Discount when the seller offers a discount on the list price of the item. The discount can
be a percent, lump sum, amount or new price.
Surcharge the price of the item attracts an additional charge. As with discounts, the
surcharge can be a percent, lump sum, amount or new price.
Freight and Special Charges These are charges applicable during the shipping of items.
Price Breaks Price Break modifiers are applied only at the line level. In this type of
modifier, the quantity or amount is clubbed into various ranges and when the user selects
a quantity or amount that falls within a particular range of values, the corresponding price
is applied.
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Modifier Types
Modifier Types
The table depicts modifier list types and the line types that can be associated to each list type:
discounts, surcharges, and freight and special charges. The check mark () indicates that the
line modifier is available for the list modifier. The cross mark () indicates that the line
modifier is not available for the list modifier.
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Agenda
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Overview of Freight and Special Charges Modifiers
Overview of Freight and Special Charges Modifiers

Freight and Special Charges are costs associated with the shipment of goods. Using Freight and
Special Charges modifiers, you can apply different freight charges to an order or line and thus
increase the selling price. Additionally you can enter the Freight and Shipping costs in
Shipping Execution and have the Freight and Special Charges modifiers convert them into
charges in Order Management. The freight charge may be equal to the freight cost, or it could
be the freight cost with a markup.
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Seeded Freight Charges
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Setting up Freight and Special Charges Modifiers
Setting up Freight and Special Charges Modifiers

Freight and Special Charges Modifiers enable you to define how to apply charges to orders.
You can apply the modifiers automatically or manually. An example of how to set up automatic
order level charges using qualifiers along with the modifiers: First select the Freight and
Special Charges List as the type of modifier. Then at the Modifier Summary tab, enter the
modifier lines, specifying that the modifier is to be applied at the order level. Then set up
header level qualifiers that will be applicable at the list level. You can define the qualifier to
accept only orders with Freight Terms of Prepay and Add. Now when you enter an order with
Freight Terms of Prepay and Add, the charges are applied to the order automatically and you
can view them in the order window.
Please note that this is only one example of a type of setup, various other ways of setting up
Freight and Special Charges Modifiers are possible.
Refer to Guided Demonstration Freight and Special Charges Modifiers [LAB2FE6Y]
Refer to Practice Freight and Special Charges Modifiers [LAB2FE5Y]
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Overview of Attribute Management

An attribute is a characteristic of an item which governs its price. The attributes of an item and
its values need to be passed to the Pricing Engine so that the Pricing Engine can evaluate the
attribute and then based on the value of the attribute, choose the appropriate price list and
modifier(s) for pricing the item. Attribute Management enables you to organize the attributes,
group them in contexts, define calling applications and source applications for the attributes.
An attribute gets its value from a function, a constant value, a multi-record API, system
variable or profile. This value comes from a source application or source system and is read by
the pricing engine, which determines if this is the attribute/value that the requesting application
has called for. If it is the correct attribute/value, then the pricing engine looks up the price list
and modifiers to apply and calculates the unit selling price.
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Some common Attribute Management terms include:
Contexts - Contexts are groupings of attributes that are related. There are three contexts
available in Basic Pricing Pricing Context, Product Context, and Qualifier Context.
Attributes The specific values or characteristics that you use to define pricing rules. For
example, height and weight are attributes that will determine the price of the item.
Attribute values can be defined at the order level, line level, or both.
Mapping data for an attribute There are different ways the data can be mapped:
- User Entered: The attribute value is entered by the user; this is the only sourcing
feature that is supported in Basic Pricing.
Other mapping methods for sourcing attribute data are available only in Advanced Pricing:
- Custom Sourced: The user must provide code to source the attribute.
- Attribute Mapping: An attribute mapping rule must be defined in the Attribute
Mapping window either for the order, line, or both.
- Runtime Sourced: Sourced in the pricing engine by a custom API. This is used to
source an accumulation attribute at runtime.
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Pricing Transaction Entity (PTEs) An entity that supports a many to many relationship
between source systems and request types. The seeded PTEs are Order Fulfillment,
Demand Planning, Intercompany Transaction, Logistics, Complex MRO, and
Procurement.
Source System The application that has the pricing data like price lists, modifiers, as
well as setup information. Examples of source systems are Oracle Marketing, Oracle
Order Capture, Oracle Purchasing, etc.
Request Type The request made by an application for pricing data. Some applications
may even share request types, for example, iStore and Order Capture.
Note: In Basic Pricing, the Pricing Transaction Entity Source System and Request Types
window is view-only: you can view the request types and source system for a given
Pricing Transaction Entity but not make any updates.
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Setup Steps Creating Contexts and Attributes
Setup Steps Creating Contexts and Attributes

The following seeded context types are available in Basic Pricing:
Product contexts and attributes define the product hierarchy and are related to product
information. For example, the product context "Item" may consist of attributes such as Item
Number, Item Category, and All Items.
Pricing contexts and attributes define eligibility for a price list line or modifier. Pricing
contexts and attributes can be used for a price list line, as a formula component, or in
modifiers.
Qualifier contexts and attributes define what can be used to create qualifiers that determine
eligibility for a modifier (who is eligible to receive the modifier).
Contexts cannot be deleted if they have more than one attribute attached.
To create a new context, use the Oracle Pricing Manager responsibility:
(N) Setup > Attribute Management > Context and Attributes
The Context Setup window enables you to choose the context type Pricing, Product, or
Qualifier. Enter a code for the context and enable it. In the same window, you may enter the
appropriate attributes for the context in the Attributes region. Enter a code for the attribute; you
may enter a precedence number (the lower the value, the higher the precedence over other
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attributes) and map the attribute to any one of the hundred customizable attribute fields to store
the value of the derived attribute. If no application name is selected, Oracle Pricing displays.
After saving your work, you can now link the attributes to a Pricing Transaction Entity.
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Setup Steps Linking Attributes to a Pricing Transaction Entity

(PTE)
Setup Steps Linking Attributes to a Pricing Transaction Entity (PTE)

A Pricing Transaction Entity is used to maintain the relationship between source systems and
request types. It ensures that those source systems linked to the Pricing Transaction Entity are
searched whenever a pricing request is generated by a request type that also belongs to the
Pricing Transaction Entity.
Using the Oracle Pricing Manager responsibility:
(N) Setup > Attribute Management > Attribute Linking and Mapping
Select the PTE and the context, and the Contexts region populates with all the attributes that
are created for that PTE/Context. To link an attribute to a PTE, select the context name and
then click (B) Link Attributes. The Link Attributes window enables you to enter the following
information:
Code (usually populated by default with the attribute code that you specified in the
Context and Attributes window)
Level Line, Order, or Both
Attribute Mapping Method only User Entered is available in Basic Pricing
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Save your work and exit the window. You can view the newly linked context in the Pricing
Transaction Entity-Attribute Linking window. The Assigned to PTE box indicates that the
context and its attributes have been assigned to this PTE.
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Agenda
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Profile Options in Basic Pricing
Profile Options in Basic Pricing

The system administrator sets up the pricing profile options so that the access and control of
data can be determined by Basic Pricing. The level at which the profile options can be set are
user, responsibility, application and site. The permissions for setting the profile options are
View, View and Update, No Access. The Required column determines if the profile option
requires a value or not. If it is Required, then you must provide a value. If it is Optional, you
may leave it blank. The Default Value column allows you to provide a default value for the
profile. Following are some common profile options used in Basic Pricing:
Profile Option
Required
Default Value
------------------------------------------QP: Allow Duplicate Modifiers
Required
Yes
QP: Blind Discount Option
Required
Yes
QP: Debug
Optional
Request Viewer Off
QP: Inventory Decimal Precision
Required
10
QP: Item Validation Organization
Required
No Default
QP: Negative Pricing
Required
No Default
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QP: Price Rounding

QP: Qualify Secondary Price Lists
QP: Return Manual Discounts
QP: Satisfied Qualifiers Option
QP: Security Control
QP: Security Default Maintain Privilege
QP: Security Default ViewOnly Privilege
QP: Selling Price Rounding Options
Required
Optional
Optional
Optional
Optional
Required
Required
Optional
Blank
No
Yes
Yes
Off
Blank
Blank
Individual : =
round(list price) + round(adj)
QP: Set Request Name
Required
Blank
QP: Unit Price Precision Type
Required
Standard
QP: Valueset Lookup Filter
Optional
Yes
QP: Verify GSA Violations
Required
No
Please refer to the Oracle Order Management Implementation Manual for further details.
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Summary
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Basic Pricing

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Pricing Security Overview

Pricing Security Overview

Security Implementation Steps

Copyright Oracle Corporation, 2004. All rights reserved.

Security Implementation Steps Mapping Security Requirements

Security Implementation Steps Mapping Security Requirements

Copyright Oracle Corporation, 2004. All rights reserved.

Security Implementation Steps Assigning Pricing Entities to an

Security Implementation Steps Assigning Pricing Entities to Operating Units

Copyright Oracle Corporation, 2004. All rights reserved.

Security Implementation Steps Creating Privileges

Security Implementation Steps Creating Privileges

Copyright Oracle Corporation, 2004. All rights reserved.

Security Implementation Steps Setting up Default Security

Security Implementation Steps Setting up Default Security Profile Options

Copyright Oracle Corporation, 2004. All rights reserved.

Security Implementation Steps Turning Security On

Security Implementation Steps Turning Security On

Copyright Oracle Corporation, 2004. All rights reserved.

Security Features and impact on Forms/Windows

Security Features and impact on Forms/Windows

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Price List Creation

Copyright Oracle Corporation, 2004. All rights reserved.

Price List Header

Price List Header

Copyright Oracle Corporation, 2004. All rights reserved.

Price List Line

Price List Line

Copyright Oracle Corporation, 2004. All rights reserved.

Price List Line (contd.)

Price List Line (contd.)

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copy Price List

Copy Price List

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Price List Maintenance - Overview

Copyright Oracle Corporation, 2004. All rights reserved.

Manual Price List Updates

Manual Price List Updates

Refer to Guided Demonstration - Manual Price List Update [LAB028AY]

Copyright Oracle Corporation, 2004. All rights reserved.

Adjust Price List

Adjust Price List

Copyright Oracle Corporation, 2004. All rights reserved.

Add Items to Price List

Add Items to Price List

Copyright Oracle Corporation, 2004. All rights reserved.

Add Items to Price List

Add Items to Price List for Maintenance

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.

Copyright Oracle Corporation, 2004. All rights reserved.