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.