Oracle Advanced Pricing An Oracle White Paper March, 2003
Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing EXECUTIVE SUMMARY................................................................................................ 1 INTRODUCTION.............................................................................................................. 1 BUSINESS SCENARIO..................................................................................................... 1 Functional Issue................................................................................................................ 1 Solution Background................................................................................................... 1 Solution.......................................................................................................................... 1 Attribute Management ................................................................................................ 2 Create a Pricing Attribute........................................................................................... 2 Use the pricing attribute in a pricing formula......................................................... 4 Define Modifier............................................................................................................ 5 Build Attribute Sourcing............................................................................................. 6 A WORD OF CAUTION.................................................................................................. 6 CONCLUSION.................................................................................................................... 6 ii
Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing EXECUTIVE SUMMARY Businesses that charge their customers for freight and other special charges often need to calculate those charges in a variety of ways. Oracle Advanced Pricing provides the functionality and the flexibility to tailor the calculation of freight and special charges to specific business needs. INTRODUCTION This paper steps the reader through setting up freight charges as both a lump sum based upon a range of total order amounts, and also as a percentage of the order amount. This paper is written for the 11i.8 version of Advanced Pricing. The functionality is the same in earlier versions, the navigation and setup forms are different. BUSINESS SCENARIO An enterprise charges its customer for freight based on a tier, a flat rate lump sum for certain amount tiers, followed by a percentage of order amount above a certain tier. Example: Order Amount (in dollars, currency unit is immaterial) Freight Charge 1 100 15 101 200 20 201 300 25 over 300 6 % of order amount Functional Issue Oracle Advanced Pricing only supports Lumpsum order level freight charges. Solution Background Oracle Advanced Pricing (QP) provides a seeded Qualifier of Order Volume. QP also provides the ability to define formulas to calculate the value of a modifier, e.g. freight and special charges. Formulas have elements that include Numeric Constants and Pricing Attributes. Solution Define a Pricing Attribute for Order Amount, create a pricing formula with the formula 1 * 2 where 1 is the pricing attribute Order Amount and 2 is the numeric constant (0.06 in this example). Since there is a seeded Qualifier Attribute for Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
Order Amount, the following steps will outline how to copy the existing mapping rules to create the pricing attribute and formula: Attribute Management Using Attribute Management, locate the attribute mapping for the qualifier context Volume, attribute Order Amount. Responsibility: Pricing Manager Navigation: SetupAttribute MappingContext and Attributes Find Qualifier Context: Volume, Attribute Order Amount
Create a Pricing Attribute Create a Pricing Attribute Context of OrderVolume, attribute Order Amount
Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
Copy the Pl/SQL API information from the Qualifier attribute to the Pricing Attribute Navigation: SetupAttribute ManagementAttribute Linking and Mapping: Find Pricing Transaction Entity Order Fulfillment, Context Type Qualifier Click on Volume code, and click the button Link Attributes. Select Order Amount, and click on Attribute Mapping Select the User Value String for the header level, and Ctrl-C to copy
Return to the Attribute Mapping screen, Find Pricing Transaction Entity Order Fulfillment, Context Type Pricing Click on your new code, and click the button Link Attributes. Enter level, either Order, Line or Both; Attribute Mapping Method of Attribute Mapping Click on Attribute Mapping Enter Oracle Pricing as the application name for request type ONT (you will need to map the other entities as well if you wish to use this attribute in Contracts or Quoting, etc.) Select Header Level, User Source Type (if you are mapping an attribute for Order or Both), and paste the User Value String from earlier. Return to the mapping form for the qualifier context Order Amount, and repeat the steps, copying to the Line Level value string (if you are mapping a qualifier for Line or Both). Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
This creates the Attribute Mapping for your new Pricing Attribute of Order Amount. After you use this attribute in a modifier or formula, you will have to run the Build Attribute Mapping Rules concurrent program, detailed later in this procedure. Use the pricing attribute in a pricing formula Use the pricing attribute in a pricing formula Create a formula that calculates a value that is a percentage of the order amount. Navigation: Pricing FormulasFormula Setup Give your formula a name, description and effective dates (if desired) Enter the formula as NVL ((1*2),3). Using NVL (Null Value) ensures that if for some reason the pricing engine encounters a null value in one of the formula steps, it will return a value, not an error. In this example, factor 3 is a numeric constant, value 0. In Formula Lines, line 1, choose Formula type Pricing Attribute Choose Pricing Attribute Context your context defined previously Choose Pricing Attribute your amount attribute defined previously Enter Step value 1 Formula Line 2, choose Type Numeric Constant Enter your desired percentage as the Component, expressed in numbers, not percentages. Enter Step value 2 Formula Line 3, Type Numeric Constant. This is the value you want returned if the pricing engine encounters a Null value. In this example we chose zero (0) Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
This example will return a value of 6% of the Order Amount. Now we must use this in a Pricing Modifier. A formula could use a Factor List if the percentage varies based on Order Amount. The setup for Factor Lists will not be addressed in this paper.
Define Modifier Define a Modifier using the formula Navigation: ModifiersModifier Setup Type: Freight and Special Charges Assign a number and name, description of desired (recommended) Ensure the Automatic checkbox is enabled Click on Qualifiers to assign any list level qualifiers, if desired (e.g. specific customers, customer classes, order types) Click in Modifier Summary zone Assign a line number, or accept the default. This modifier will assign a lump sum freight charge of 15 for order amounts from 1 to 100 Level: Order Modifier Type: Freight/Special Charge Pricing Phase: Header Level Charges Choose Incompatibility Group (if desired) Click on Discounts and Charges tab, enter Charge name Application Lumpsum, Value 15 Click on Line Qualifiers, click OK in Qualifier Groups window (if it pops) Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
Select Qualifier Context: Volume, Qualifier Attribute Order Amount Enter Operator Between, Value From = 1, Value To 100. Click on OK. Repeat this process for the other lines that are a lump sum for an amount range, as illustrated in the business example above. Create a line for the percent based freight repeat setup steps from above until you click on the Discounts and Charges tab. Choose your Charge name. In the Formula field, enter the name of your formula. Application Lumpsum Click on Line Charges, enter Volume and Order Amount as before, operator Between, Value From 301 (for this example), Value To 9999999 Click OK. Build Attribute Sourcing Run the Build Attribute Sourcing concurrent program There are two ways to run this program, via Reports, Single Request, or from the Tools menu in the Attribute Mapping form.
A WORD OF CAUTION In the 11.5.8 release (Family Pack H) and earlier, this method may produce undesired results if an order line is split, or order lines do not ship together. Until this issue is resolved by development, this method works best with an order type which has Header Level Invoicing.
CONCLUSION In order to meet changing and challenging competitive environments, businesses today must be able to quickly and flexibly define pricing rules to support their business goals. Using the inherent capabilities of Advanced Pricing, a business can adapt their pricing capabilities to their business needs, often leveraging the seeded data provided with the applications, without customization. Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing
Calculating Freight Charges as a Percentage of Order Amount in Oracle Advanced Pricing March 2003 Author: Douglas Visscher Contributing Authors: Joshua Saffren
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