Integrating Oracle Advance Pricing with Oracle

Purchasing in Release 12
Sundeep Sharma
Senior Consultant

Agenda
Introduction
Key Concepts
Setups required for integration
Different Pricing Scenarios
Integration Considerations
Conclusions
References
Question and Answers

Introduction

The purpose of this presentation is to highlight how

enterprises can leverage Oracle Advanced pricing to price
requisitions and purchase orders. Prior to 11.5.10 pricing for
purchase order items was maintained using:
Item List Price maintained in Item Master
Blanket Agreement price breaks
Price breaks from item catalogs
Custom Pricing hooks to leverage complex pricing scenarios

Key Concepts
Price List: List of prices for a individual item or item category. Price can be
maintained as unit price, percent price or price break.
Modifier: Advanced pricing term which adjusts the price by either
applying discount or surcharge.
Qualifier: are attributes setup in advanced pricing which determine the
eligibility.
Types of Purchasing Documents: Standard Purchase Order, Blanket
Purchasing Agreement, Contract Purchase Order.
Contract Purchase Order: are purchasing agreements with supplier for
specific term and conditions without indicating goods and services
purchased. Standard purchase order are then created referencing
contract

Setups
Setup Profile Options

Setups
Contract Purchase Agreement

Setups
Create Approved Supplier List

Setups
Create Sourcing Rule

Setups
Assign rule to Assignment Set

Setups
Add item to Price List

Pricing Scenarios
Requisition Created With CPA

Different Pricing Scenarios

Item Volume Based Price

Different Pricing Scenarios

Item Volume Based Price

Different Pricing Scenarios

Getting Price from external system

Different Pricing Scenarios

External Data

Different Pricing Scenarios

Purchase Order Price

Integration Considerations
Contract Purchase Agreement is mandatory to integrate Advanced
Pricing with Purchasing
Purchase Orders and requisitions referencing Contract Purchasing
Agreement only work
Freight and special modifiers are not supported
Order level modifiers not supported only line level modifiers
supported
Manual modifiers not supported only automatic modifiers are
supported

Conclusions
Oracle Advanced pricing and purchasing integration provides

buyers to maintain simple to complex pricing structures

Buyer dont have to maintain complex structure manually as
this integration allows them to bring these structures in
application thus automating the pricing process
Buyers can negotiate best terms and conditions and due to this
cost of managing purchasing agreement is significantly reduced
Provide accurate pricing information to the procurement
department and other requesting departments
Reduction in account payables matching errors and holds due
to wrong or inconsistent price on the Purchase Orders

References
Oracle Purchasing Integration with Oracle Advanced

Pricing
Release 11.5.10 An Oracle White Paper September 2006 Note.394490.1
What Are The Steps Required To Setup And Use Advanced
Pricing in Purchasing White Paper- Note 455778.1
FAQ: Using Advanced Pricing in Purchase Orders and
Requisitions- Note 357657
How the Price of Requisition/PO in Oracle Purchasing is
populated, when using Advanced Pricing? Note 567579.1

Question and Answers

Sundeep Sharma
ssharma@terillium.com
773-517-1558