SCM Cloud Administering Pricing

134 Pages·2016·1.8 MB·English

Oracle
SCM Cloud
Administering Pricing
Release 11
Oracle® SCM Cloud Administering Pricing
Part Number E67455-04
Copyright © 2011-2016, Oracle and/or its affiliates. All rights reserved.
Author: carl casey
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Oracle SCM Cloud
Administering Pricing
Contents
Preface i
1 Introduction 1
Oracle Fusion Pricing: Overview ................................................................................................................................ 1
Pricing Items: How It Works ..................................................................................................................................... 3
Managing Oracle Fusion Pricing: Roadmap .............................................................................................................. 6
2 Managing Pricing Administration 11
Managing Pricing Charge Definitions: Procedure ..................................................................................................... 11
Managing Price Elements: Procedure ..................................................................................................................... 12
Managing Pricing Bases: Procedure ....................................................................................................................... 13
Managing Pricing Parameters: Procedure ............................................................................................................... 15
Managing Rounding Rules: Procedure .................................................................................................................... 16
Rounding Rule Types: Explained ............................................................................................................................. 18
Importing Price Lists: Procedure ............................................................................................................................. 20
3 Managing User Interfaces 29
Managing Pricing Totals: Procedure ........................................................................................................................ 29
Managing Pricing Results Presentations: Procedure ................................................................................................ 32
Managing Pricing Messages: Procedure ................................................................................................................. 33
Managing Pricing Message Tokens: Procedure ....................................................................................................... 35
Managing Pricing Lookups: Procedure ................................................................................................................... 37
Managing Pricing Descriptive Flexfields: Procedure ................................................................................................. 39
4 Managing Profiles, Segments, and Strategies 43
Profiles, Segments, and Strategies: How They Work Together ................................................................................ 43
Managing Pricing Profiles: Procedure ...................................................................................................................... 46
Managing Pricing Segments: Procedure ................................................................................................................. 47
Managing Pricing Strategies: Procedure ................................................................................................................. 48
Assigning Pricing Strategies: Procedure .................................................................................................................. 51
Oracle SCM Cloud
Administering Pricing
5 Managing Price Lists, Cost Lists, Discount Lists, Shipping Charge Lists, 53
and Currency Conversion Lists
Pricing Rules: Explained .......................................................................................................................................... 53
Managing Price Lists: Procedure ............................................................................................................................ 56
Managing Cost Lists: Procedure ............................................................................................................................. 59
Cost Plus Pricing: Explained ................................................................................................................................... 62
Managing Discount Lists: Procedure ....................................................................................................................... 63
Managing Shipping Charge Lists: Procedure .......................................................................................................... 65
Managing Currency Conversion Lists: Procedure .................................................................................................... 67
Using Tiers and Matrices to Adjust Price ................................................................................................................ 70
Troubleshooting Pricing Rules: Explained ................................................................................................................ 82
6 Managing Pricing Algorithms, Service Mappings, and Matrix Classes 83
Pricing Architecture: How It Works ......................................................................................................................... 83
Pricing Algorithms: Explained .................................................................................................................................. 90
Pricing Algorithm Steps: Explained ........................................................................................................................ 100
Managing Pricing Matrix Types: Procedure ........................................................................................................... 105
Managing Pricing Process Assignments: Procedure .............................................................................................. 106
Managing Pricing Algorithms: Procedure ............................................................................................................... 106
Modifying Pricing Algorithm Variables: Procedure .................................................................................................. 109
Managing Service Mappings: Procedure ............................................................................................................... 112
Managing Matrix Classes: Explained ..................................................................................................................... 114
Managing Matrix Classes: Procedure .................................................................................................................... 116
Oracle SCM Cloud Preface
Administering Pricing
Preface
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i
Oracle SCM Cloud Preface
Administering Pricing
ii
Oracle SCM Cloud Chapter 1
Administering Pricing Introduction
1
Introduction

Oracle Fusion Pricing: Overview
Oracle Fusion Pricing is a pricing solution that you can use to manage pricing for items. You can use it to create pricing rules
and pricing algorithms that support your corporate pricing practices.
Pricing administration allows you to design pricing rules that meet your revenue and business objectives so that you can price
items for each pricing segment. The pricing architecture allows you to configure and customize predefined logic so that you
can implement a pricing algorithm that runs the pricing rules that your deployment requires.
1
Oracle SCM Cloud Chapter 1
Administering Pricing Introduction
The following diagram illustrates some of the components that you can customize in Pricing:
5
Pricing
Algorithm
Sales Order Priced Sales
1 Order
Pricing Profile
2
Pricing Segments
Revenue High Value Low Cost to
Potential Accounts Serve
3
4
Pricing Strategy
Price List Discount List Cost List
Explanation of Callouts
You can customize the following components in Pricing:
1. Pricing Profile. Categorize customers who exhibit similar characteristics. For example, categorize a customer as
high customer size, high customer value, medium customer rating, and high revenue potential.
2. Pricing Segment. Assign customers who exhibit similar buying practices to a pricing segment, and then associate
this segment with a pricing strategy that meets the business and revenue goals that you set for this segment.
3. Pricing Strategy. Implement and enforce corporate pricing strategies and pricing objectives so that they meet your
business requirements and revenue requirements. You can group pricing rules in a pricing strategy to control pricing
behavior.
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Oracle SCM Cloud Chapter 1
Administering Pricing Introduction
4. Lists. Create lists, such as a price list, that includes rules that calculate price and shipping charges for an item, and
then reference these lists from the pricing strategy. You can do the following work:
◦ Apply multiple charges to an item. For example, you can define a charge for a one-time sales price for a
desktop computer in one pricing rule, and then apply another charge for maintenance service for this desktop
computer that recurs monthly in another pricing rule.
◦ Create pricing rules that calculate the base price, list price, price adjustments, discounts, return charges,
shipping charges, and so on according to a set of conditions and results.
◦ Define currency conversion rules that manage pricing for different currencies.
5. Pricing Algorithm. Customize the process that Pricing uses during pricing calculations, including pricing algorithms
and service mappings that you can define to meet your business requirements.
Related Topics
• Profiles, Segments, and Strategies: How They Work Together
• Pricing Architecture: How It Works
Pricing Items: How It Works
Oracle Fusion Pricing uses pricing entities, such as price lists and discount lists, to calculate the price of an item.
3
Oracle SCM Cloud Chapter 1
Administering Pricing Introduction
For this example, assume you integrate Pricing with Order Management Cloud, and that Pricing must determine charges for
the AS54888 Desktop Computer. The following diagram illustrates the work that Pricing does when it prices this item.
1
Receive Item Details from
Order Management
2
Determine Pricing Pricing profiles, pricing
Strategy segments, pricing strategies
3
Get Base List Price Price lists
4
Tier adjustments, attribute
Apply Adjustments
adjustments
5
Calculate List Price
6
Apply Discounts Discount lists
7
Calculate Net Price
8
Calculate Sales Tax Oracle Fusion Tax
9
Calculate Profit Margin Cost lists
This diagram illustrates a simplification of the predefined Price Sales Transaction pricing algorithm, which is the primary
algorithm that Pricing uses to price an item. You can modify this pricing algorithm. For details, see Pricing Architecture: How It
Works.
Explanation of Callouts
Pricing does the following work when it prices this item:
1. Receives the following item details from Order Management:
4