OM Maintain Price Lists Training

Application: Process: Objective: Prerequisites:

Order Management Maintain Price Lists

1. To create and modify price lists. 2. Items exist in the Item Master. 3. Currencies have been enabled in the General Ledger.

Table of Contents:
OVERVIEW.............................................................................................................................................................................2 Other Pricing Components..............................................................................................................................................2
Pricing Engine..............................................................................................................................................................................2 Qualifiers......................................................................................................................................................................................2 Product Hierarchy and Pricing Attributes....................................................................................................................................3 Pricing Modifiers.........................................................................................................................................................................3

MANUALLY CREATE NEW PRICE LIST........................................................................................................................4 MANUALLY ADD ITEMS.....................................................................................................................................................5

Pricing Attributes.........................................................................................................................................................................6 Price Breaks..................................................................................................................................................................................8 Secondary Price Lists...................................................................................................................................................................9

QUALIFIERS.........................................................................................................................................................................11 ADD ITEMS BY ITEM RANGE, CATEGORY, OR STATUS.......................................................................................12 COPY PRICE LIST...............................................................................................................................................................14 ADJUST PRICE LIST...........................................................................................................................................................16

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Overview
A Price List is one component in the Pricing Model used to price an item on a sales orders. Each price list contains basic list information and one or more pricing lines, price breaks, pricing attributes, qualifiers, and secondary price lists. Basic information includes the price list name, effective dates, currency, pricing controls, rounding factor, and shipping defaults such as freight terms and freight carrier. Price Lists contain prices and currencies associated with products and services. Each price list contains basic header information with one or more item lines. Price lists can have: Prices for specific product and services. Prices as absolute values, percents of other prices, or as formulas. Prices as applicable to the entire organization or to one operating unit. Negative prices.

Some of the information from the Price List will be defaulted on Sales Order depending on how the Defaulting Rules are defined. Other Pricing Components Pricing Engine The pricing engine receives transaction information, prepares pricing requests, selects price lists and modifier lists, and applies price adjustments (benefits) to the transaction. The pricing engine answers the following questions as it determines a price: Qualifiers Qualifiers determine the who part of eligibility. Qualifiers and qualifier groups can then be linked to Price Lists and Modifiers to define concise rules governing who can receive a particular price, discount, promotion or benefit. There are various methods qualifiers can be associated with Price Lists or Modifiers: Create qualifier groups using qualifier groups from and then attach the qualifier group to the price list, modifier list, or modifier list. (Advanced Pricing functionality) Create qualifier (s) and then attach individual qualifiers within the Price List or Modifiers screen. (Basic Pricing functionality). Any combination of method 1 and 2. Once a particular entity has qualified for a particular benefit, pricing attributes can then assist in further refining exactly which benefits can be given.
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Who qualifies for prices and benefits? What is the product hierarchy and what pricing attributes pertain to this item or service? How should I adjust the order price or order line price?

OM Maintain Price Lists Training

Oracle has predefined basic qualifier contexts and associated qualifier attributes that use Oracle Application database tables as the data source wherever applicable. This is part of the Basic Pricing functionality. Product Hierarchy and Pricing Attributes The product hierarchy and pricing attributes control what is being priced or modified on a price list or modifier list. Oracle Pricing includes some seeded pricing attributes for use with Oracle Order Management which is part of the basic functionality. Pricing Modifiers Pricing modifiers control how a modifier affects the final price (selling price). Examples: Discount of 2%; Buy 1 get 1 free

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Manually Create New Price List

Navigate to: Pricing>Price Lists >Price List Setup

In the Price Lists Setup form in the header region:

Enter the following: Price List: Currency: Description: Rounding Factor:

Effective Dates: Payment Terms Freight Carrier: Freight Terms: Comments:

Enter the Price List name. Default Currency value is USD and is changeable Enter a Description for the price list Default Rounding Factor is 2 and is changeable. Rounding factor affects the display of prices on the price list. If the rounding factor is -2, then prices will be displayed as 99.99, if rounding factor is 0, then prices will show up as 99. The Pricing engine rounds the base price and all discount amounts before using them in calculations. The value returned depends on the value that is set for the profile option OM:Unit Price Precision Type. Enter an Effective Time for the price list (optional). The Start Date defaults to the current date. Select the Payment Terms (optional). Select a Freight Carrier for this price list (optional). Select the Freight Terms for this price list (optional). Enter Comments appropriate to this price list (optional).
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Manually Add Items

One way to add items to a Price List is by simply entering the Item Number and a Price in the List Lines tabbed region.

Enter the following: Product Context: Product Attribute: Product Value: UOM: Primary UOM:

Line Type: Price Break Type: Application Method:

Enter item in Product Context. Select Item Number or Item Category in Product Attribute. Item Category refers to the code combination from the default Inventory item category set. Select an item number or an item category depending on the Product Attribute. Choose a unit of measure Select Primary UOM if this price list line unit of measure is the primary pricing until of measure for the item. The pricing engine uses the primary pricing unit of measure and the Oracle Inventory unit of measure conversion information to price an order whose unit of measure does not have a price list line. Select Price List Line for Line Type or Price Break Header. Enter the Applicable Break Type. Select the Application Method.
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Unit Price for inventory items and item categories. Either Unit Price or Percent Price for service items. For inventory items and item categories, enter the base list price of the item in the Value field. For service items, enter a value. If Application Method is Unit Price, enter the base list price of the item. If Application Method is Percent Price, enter a percent of another items price. Enter a dynamic formula in Dynamic Formula. The result of the calculation changes the value of Value. If you enter a dynamic formula, enter Value if the formula includes list price as one of the formula components. At pricing time, the pricing engine calculates the price of the item using the formula. If the formula does not return a price, the engine uses the value of Price as the price. Enter a static formula in Static Formula. The result of the calculation changes the value of Value. Enter the starting and ending effectivity dates of this price list line in Start Date and End Date. The dates should be within the start and end effectivity dates of the price list. Enter a value in Precedence which is the product precedence. When the pricing engine is trying to locate a price, it uses precedence to resolve conflicts when it selects more than one price list line from a price list.

Value

Dynamic Formula

Static Formula: Effective dates: Precedence:

Pricing Attributes Choose the Pricing Attributes button.

In the Pricing Attributes window:

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Enter the following: Product Context Product Attribute Product Value: Pricing Context:

Pricing Attribute

Defaults from Line items form entry. Defaults from Line items form entry. Defaults from Line items form entry. Enter the Pricing Context. A Pricing context is setup in the Descriptive Flexfield window. The order in which you sequence segments in the seeded item context should reflect the structure of your product pricing hierarchy. When defining the product pricing hierarchy, the lowest level in the hierarchy would generally have the lowest flexfield segment sequence number. Therefore, if the pricing engine needed to choose between a price for a specific item versus an item category, you would set the item segment to be more specific than the product group segment. The predefined Pricing Context value is Pricing Attribute. Choose a Pricing Attribute from the list of values.

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Operator: Value From: Value To:

Select = or Between for Operator. Enter Value From Enter Value To

Note: The pricing attributes are joined as AND conditions since they apply to one price list line.

Price Breaks You can only enter price breaks when the Line Type is Price Break Header. Select the Price break type: Point or Range. Choose Price Breaks button

In the Price Breaks window:

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Enter the following: Pricing Context Pricing Attribute: Value From Value To: Price: Application Method: Secondary Price Lists

Volume defaults. Item Quantity defaults. Enter Value From. Enter Value To. For inventory items and item categories, enter the price break. Enter Application method. (see above)

Secondary price lists are used when entering an order, if the product does not exist on the primary price list chosen on the order. This is often used to temporarily allow promotional items to be ordered without adding them to the primary price list and then inactivating them Choose the Secondary Price List tab:

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Select a price list in Secondary Price List.

If you enter more than one secondary price list, all precedences fill with 140 and you must establish an order of precedence for the secondary price lists. The pricing engine evaluates the precedence of the secondary price list along with the product precedence on the list lines to determine the most eligible price list line. For Example: Secondary Price List A: Precedence 100; Item X; Precedence 140; List Price 15 Secondary Price List B: Precedence 130; Item X; Precedence 120; List Price 20 The pricing engine selects the price of 20 because its secondary price list precedence is higher.

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Qualifiers
Choose the Qualifiers tab:

1. Enter qualifiers or attach qualifier groups To enter qualifiers, perform step 2. To enter qualifier groups, perform step 3. Qualifier groups are not defined for R2i. 2. To enter qualifiers Enter Grouping Number. Qualifers with the same grouping number generate an AND condition and qualifiers with different grouping numbers generate an OR condition. Enter Qualifier Context. A Qualifier context (hierarchy) is setup in the Descriptive Flexfield window. The order in which you sequence segments in a context, and across contexts, determines which Qualifiers have priority over others when the pricing engine is forced to choose between multiple prices, incompatible benefits or charges that are eligible to be applied to a request. The sequence number of each Qualifier segment is used to order the Qualifiers according to priority. Enter Qualifier Attribute. Qualifier Attributes are the segments within the Qualifier context in the descriptive flexfield definition. For example: Customer, Agreement Name, etc. Each segment number indicates the default precedence number that may be used when the pricing engine has to choose between multiple prices or incompatible price adjustments, benefits or charges that are eligible to be applied to a request line. The pricing engine will
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select the price or modifier that has qualifed with the qualifier attribute that has the LOWEST precedence (the most specific). Enter Operator, Value From, and Value To. Enter Start Date and End Date. 3. To attach qualifier groups, select Copy Group (Advanced Pricing functionality)

Add Items by Item Range, Category, or Status

Navigate to: Pricing> Price Lists >Add Items to Price List

Another way to add items to a Price List is to use the Add Items to Price List form.

Price List Items Item Category Item Status Set List Price Equal to Cost

Select the Price List to which you would like to add items. Enter an Item or a range of Items. Add items from a certain Item Category Add items that are in a certain status (e.g. active, inactive, etc.). Check this box to create the List Price of the item automatically and set it equal the Cost of the Item.
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If the Item List Price needs to be different from the Item Cost, you can adjust the Price manually or for all items in the Price List. If this is left unchecked, the list price of the item is set to 0. Note: In the case where the Set List Price Equal to Cost button was not checked, a default List Price of 0 is entered. You may then manually update those prices directly on this form.

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Copy Price List

Another way to create a Price List is to copy some or all of an existing Price List. Note: You can only copy to a new price list. Do not create the price list before using this feature. Navigate to: Pricing> Price Lists >Copy Price List

Enter the following: Copy From section: Price List:

Enter the Price List from which data is to be copied. Currency and Description display. Items: Select the range of Items you want copied to the new price list. If you want to copy the entire Price List, then leave this field blank Item Category Set/Item Elect an item category set to limit the items to add. When you Category: add items from an item category, the process adds all items of the item category to the price list. It does not add the item category. Note: You must enter both Item Category Set and Item Category for this criteria to be effective. Retain Effective Dates: Select Retain Effective Dates to instruct the process to copy the effective dates of price list lines. You must specify the effective
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dates for the new price list. Check this checkbox to include all discounts associated with the source price list. Enter the Name of the new price list Enter a Description for the new price list Enter the Effective Dates for the price list

Include Discounts: Copy To Section: Price List Description Effective Dates

Choose the Submit button. The request ID is displayed in the Request ID field. Note: Manually change the Currency if it is required. Currencies must be enabled in the General Ledger before they may be utilized in Order Management.

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Adjust Price List

In addition to changing the Currency when you Copy a Price List, you might also want to Adjust the prices of the items on the list by a certain Percentage or a certain Amount. This may be for a Promotional Price List where all items are reduced by 10%, or in the case of creating a price list in another Currency, you may Adjust the Prices on the new list by the current exchange rate. Navigate to: Pricing> Price Lists >Adjust Price List

Enter the Following: Price List: Items: Item Category: Item Status: Creation Date: Adjust By:

Select the Price List to adjust Select the range of Items to narrow your adjustment (optional) Select Item Category to narrow your adjustment (optional) Select Item Status to narrow your adjustment (optional) Select the item Creation Date to narrow your adjustment (optional) Enter the Percentage or the Amount by which the Adjustment should take place (use a positive number to increase the original list price and use a negative number to decrease original list price)

Select Submit. Requery the Adjusted Price List in the Price Lists form to view the updated pricing.
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