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