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Oracle E-Business Advanced Pricing – Implementing Your Pricing Policy Using Standard Functionality

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Oracle E-Business Advanced Pricing – Implementing Your Pricing Policy Using Standard Functionality

Executive Summary

The Oracle E-Business Suite uses the Advanced Pricing module to help ensure accurate pricing across the organization. Accurate pricing of a transaction is key to maintaining a good relationship with your customers and ensuring accurate financial reporting. It removes the responsibility from the user, who may not be aware of organisation pricing policy, Dubai Email List or margin considerations.

Applying the correct price up-front improves efficiency, and reduces the need to revisit transactions to adjust the price at a later stage. Accurate pricing improves communication in outsourcing, contract manufacturing and Back-to-Back environments. It also provides tangible benefits in communicating with customers and partners.

Using Oracle’s Advanced Pricing module helps achieve accurate pricing by allowing great flexibility in choosing what price to apply. The application uses the technology to enable standard pricing models such as Volume discounting, Promotions and Price breaks.

Oracle also allows extending the standard functionality using fully supported customizations, and allows detailed reporting on the price charged at a particular time, and the reasons why that price was charged.

This document discusses some of the possible applications of Advanced Pricing in business situations. Various scenarios are outlined, along with practical examples of how Advanced Pricing has been used to help implementation.

Advanced Pricing allows the use of complex pricing models and configuration of other useful pricing options. For instance, the system will allow the creation of adjustments using modifiers to create pricing models such as · Discounts

· Surcharges · Promotions

Apply the modifiers using various methods:

· New Price · Formula · Percentage uplifts

Selectively apply the modifiers using conditions based on seeded or custom attributes:

· Customer · Order Type · Supplier · Item · Contents of customer flexfield

Apply the modifiers at various phases in a BBBORG transaction cycle. In Order Management for instance, apply the modifiers at:

· Fetch List Price · Book Order · Ship Order

Options that are more complicated are available, such as:

· Range Pricing · Price Breaks · Other Item Discount

Most of the above options are available as part of standard Advanced Pricing functionality. Whatever pricing policy your company requires, Oracle can implement that policy across the enterprise.

2. Using Advanced Pricing when the price is different every time

Some business scenarios require a sales price that changes often, in which case, maintenance of price lists and modifiers requires a lot of effort. Basic pricing cannot easily manage this kind of pricing model, as the price changes too often.

Advanced Pricing provides a very flexible solution to this by allowing each call to the pricing engine to generate a custom price. This price does not have to relate to a price list, it can depend on any number of factors.

For instance, the following scenarios all require that the same product can have a different price, depending on the timing of the transaction.

· Create a discount scheme based on the amount ordered in a single calendar month. Customers achieve increasing levels of discount as they order more of a particular product class. · Calculate a sales price based on 10% uplift over the average cost of an item. · Calculate sales price based on 10% uplift over the average purchase price for that item.

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