Release12 Advance Pricing

Today we will go over Release12 Advance Pricing

Pricing concepts

Price List

Price lists are essential to ordering products because each item entered on an order must
have a price. 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, andshipping defaults such as freight terms and freight carrier.

UOM

You setup price for item/uom combinations so it is the required value for defining pricing setup.

For example,if you setup price as item 'A' and EA is $10 and when you create an order for item 'A' 1 EA,system will populate $10.

What happens when you order 'A' 1 dozen ,how system is going to price .....it depends on how you setup your price list, when you setup price list for 'A' EA $10 and if you would have checked primary uom then during order entry, system will convert dozens to each and then calculate the price.Actually,pricing needs uom conversion setup in Inventory to do this conversion.

we will see more on UOM as we go along.

Modifiers

Modifiers can adjust net price either up or down. Modifier actions include discounting, adding surcharges, charging for shipping, changing order terms (payment, freight, or shipping method) or adjusting price based on promotional pricing actions.

You can create 3 modifier list types

1. Discount List
2. Surcharge List
3. Freight and Special Charges List
4.Promotion
5.Deal

Discount: Creates a negative price adjustment
Surcharge Creates a positive price adjustment

There are many concepts to discuss but the above ones are important concepts,we will see more concepts as we go deeper.Let us get some basic idea how pricing happens in Advance pricing.

How pricing engine price the order

Step1.Enter an order for item 'Z01' and save
Step2.Order entry screen calls pricing engine to price that item
Step3.Pricing engine checks if any price list qualifies for this order,you would ask how it know if price list qualifies or not, well, that is the reason we have another thing called qualifier, which you can attach to price list.So Qualifier can be customer ,order type etc which says this price list qualifiers for that order.Pricing engine check that price list for the price of this item.
Step4.Pricing engine will check if you want to give any discounts for this item so checks if any modifier exists.
Step5.Returns price to order entry.

This is very basic steps but we will go over more complicated ones as we go.

We wil l discuss one more concept , which is Events and Phases,Pricing
events and phases enable you to define which pricing data is considered for
application to a request at the pricing point in your transaction process flow. You can
separate the pricing of your transaction, rather than pricing a whole transaction at once.

A pricing event is a point in the transaction life cycle when you want to price the
transaction (or certain transaction lines), or when you want to apply price adjustments,
benefits, or charges to the whole transaction or specific transaction lines.

When pricing engine is envoked,calling module should pass the event to pricing engine.

For e.g

Freight and special charges are calculated at time of shipping.

Cross order volume discounts apply at end-of-day (once total order volumes have
been derived) in a high volume batch environment.

Coupons are awarded only after all items in the shopping cart are priced and the
user proceeds to final checkout.