Advance Pricing Concepts

Advance Pricing is an advanced, highly flexible pricing engine that executes pricing calculations for Oracle Order Management. Its a rule based application which enables us to

• Give discounts by percentage and amount
• Default price based on Price list, Qualifiers and Pricing formulas
• Apply price modifiers and 
• Apply a surcharge
• Calculate Freight Charges

Concepts in Advance Pricing

• Price List
• Qualifiers
• Modifiers
• Pricing Formulas
• Pricing Attributes

Price list: Each item must have a price and defining its price in price list is a mandatory step. Price list is a repository of item pricing details and to define a price list you must specify price list name, its effective dates, what is currency, item details etc. In price list you can also define price break, specify a qualifier and secondary price list.

 For a price list, you can define Price Breaks, Pricing attributes, Qualifiers, Formulas, and secondary price lists. 

Qualifiers : Qualifier are the attributes which help the pricing engine to determine eligible sales order line for defaulting price, formulas or Modifiers.

Modifiers : A modifier enables us to make price adjustment like giving discount or applying surcharge or freight.

Pricing Formulas : Formulas are mathematical expressions that the pricing engine uses to determine the list prices of items and the discounts that apply to those items.

Pricing Attributes : Attributes define exactly what is being priced or modified. Attributes are the factors that affect the price of the item. It specify the characteristics which helps to determine the price of a product. For example Customer class, Distance, Age of the product etc. You can specify one or a combination of pricing attributes and assign them to a product. At order entry time, the pricing engine evaluates the attributes you have specified during formula setup to calculate the price.

Thanks
Mandeep

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Buy One Get other item Free

Promotions

Lets create a promotional setup in Advance pricing for "Buy One Get other item Free or get 50% discount On other Item"

Setups Steps

Step 1) Create 2 item "First Item" and "Free Item".
Step 2) Enter both items in Price list with price as 100 for both of them

Step 3) Now Navigate to Modifier> Modifier setups and enter header information Like type as Promotion, Currency as USD, enter any number u like and check Active and Automatic. Optionally you can provide start and end dates

Step 4) Now enter line level information. Modifier number will come automatically. Select Type as Promotional Goods

Pricing Phase as "List Line Adjustment" and slect product attribute value as "First Item" and as this is recurring discount so you can select Break type as Recurring. Values are between 1 to 1000 only ie. if order qty is between these values only then item this modifier is applicable

Now click on Define Details

Step 5) in this under Get please enter free Item details. Application method is percent and give value as 100% i.e. its totally free. if you provide the value as 50% i.e. that means there is 50% discount on second item

save you work

Step 6) Run "QP: Maintains the denormalized data in QP Qualifiers".

Test case

Enter a sales order for First Item.

when you save the Sales order, you will get a message that a new line has been added for free item

Click OK

same way if you specify 50% value in Define Details, customer will get 50% discount on second item. you can play around with this and create your own scenarios. Please let me know if you have any specific question.

Thanks
Mandeep

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