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Oracle Advanced Pricing User's Guide
Release 12.1
Part Number E13427-04
Modifier Scenarios
This appendix covers the following topics:
Modifier Scenarios
Discount
Surcharge
Price Break
Other Item Discount
Promotional Goods
Coupon Issue
Item Upgrade
Terms Substitution
Freight and Special Charges
New Price
Modifier Scenarios
The following scenarios illustrate how to meet business needs by creating modifiers. The scenarios are
organized by the following modifier concepts:
Discount
Surcharge
Price break
Other item discount
Promotional goods
Coupon issue
Item upgrade
Terms substitution
Freight and special charges
New price
Discount
Scenario 1
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If the customer is a preferred customer or customer spends more than 150 currency units, they
receive 10 percent off the order.
1. Create a modifier.
Modifier Type: Discount
Modifier Level: Order
Application Method: Percent
Value: 10
2. In the Line Qualifiers window, create two line qualifiers.
Grouping Number: 1
Qualifier Context: Volume
Qualifier Attribute: Order Amount
Operator: Between
Value From: 150
Grouping Number: 2
Qualifier Context: Customer
Qualifier Attribute: Customer Class
Operator: =
Value From: Preferred
Scenario 2
For any 10 compact discs purchased by April 2000, the customer receives two currency units off.
1. Create a modifier.
Modifier Type: Discount
Modifier Level: Line
End Date: 30 April 2000
Product Attribute: Item Category
Product Attribute Value: CD
Volume Type: Item Quantity
Break Type: Recurring
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Value From: 10
Application Method: Lumpsum
Value: 2
Scenario 3
For every eight currency units spent on cat food, the customer accrues five shopper points.
1. Create a modifier.
Modifier Type: Discount
Modifier Level: Line
Product Attribute: Item Category
Product Attribute Value: Cat Food
Volume Type: Item Amount
Break Type: Recurring
Value From: 8
Select Accrue
Benefit Quantity: 5
Benefit UOM: Shopper Point
Scenario 4
Customers mentioning the Summer Special Promotion (an Ask For promotion) get $5 off of any tennis
racket except the FastFireIII model.
1. Create a modifier.
In Modifiers Summary tab
Modifier No: SUMMER SPECIAL
Modifier Level: Line
Modifier Type: Discount
Automatic box: Selected
Product Attribute: Item Category
Product Attribute Value: Tennis Rackets
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In Discounts/Charges tab
Application Method: Amount
Value: 5
In Advanced tab
Ask for box: Select. Instructs the pricing engine to apply this modifier only if the customer
asks for it.
Click Exclude. In the Exclude Items window, create an excluded item:
Product Attribute: Item
Product Value: FastFire III
Exclude box: Select
Scenario 5
Customers who buy two bottles of shampoo receive one currency unit off of the third bottle of
shampoo.
1. Create a modifier.
Modifier Type: Discount
Modifier Level: Line
Product Attribute: Item
Product Attribute Value: Shampoo
Volume Type: Item Quantity
Break Type: Recurring
UOM: Each
Value From: 3
Application Method: Lumpsum
Value: 1
Surcharge
Scenario 1
Customers in the National Accounts territory who spends less than 1000 currency units per order
receives a 2 percent surcharge.
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1. Create a modifier.
Modifier Type: Surcharge
Modifier Level: Order
Application Method: Percent
Value: 10
2. In the Line Qualifiers window, create two line qualifiers for the modifier.
Grouping Number: 1
Qualifier Context: Volume
Qualifier Attribute: Order Amount
Operator: Between
Value To: 1,000
Grouping Number: 1
Qualifier Context: Customer
Qualifier Attribute: Customer Class
Operator: =
Value From: National Accounts
Scenario 2
Any customer placing a rush order (delivery required within two days) for replacement motors receives
a $50 surcharge.
1. Create a modifier.
Modifier Type: Surcharge
Modifier Level: Line
Product Attribute: Item Category
Product Attribute Value: Motors, Spare
Application Method: Amount
Value: 50
2. In the Line Qualifiers window, create a qualifier for the modifier. You have created qualifier
attribute Days to Requested Delivery and created the appropriate sourcing rules for this attribute.
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Grouping Number: 1
Qualifier Context: Order
Qualifier Attribute: Days to Requested Delivery
Operator: Between
Value To: 2
Price Break
Scenario 1
All employees in Company ABC's mobile phone plan receive per minute discounts based on minutes
used, as follows:
Minutes Discount Per Minute ($USD)
0-120
0.05
120-240
0.10
240-420
0.12
> 420
0.15
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120
Amount
.05
120
240
Amount
.10
240
420
Amount
.12
420
--
Amount
.15
Scenario 2
Customers who buy cases of TY brand products across an order receive a percent rebate per case as
follows:
Cases
0 - 500
500 - 1,000 3
> 1,000
1. Create a modifier.
Modifier Type: Price Break Header
Modifier Level: Group of Lines
Product Attribute: Item Number
Product Attribute Value: TY
Volume Type: Item Quantity
Break Type: Point
UOM: Case
Adjustment Type: Discount
Select Accrue
2. In the Price Break Lines window, enter the break lines:
Value From Value To Application Method Value
0
500
Percent
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500
1,000
Percent
1,000
--
Percent
Scenario 2
Customers who buy six chairs and a coffee table or six chairs and two standard lamps, will get $400 off
a dining table assuming the dining table is on the order as well.
1. Create a modifier.
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Promotional Goods
Scenario 1
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Customers who buy one bottle of shampoo receive a free bottle of conditioner.
1. Create a modifier.
Modifier Type: Promotional Goods
Modifier Level: Line
Product Attribute: Item
Product Attribute Value: Shampoo
Volume Type: Item Quantity
Break Type: Recurring
UOM: Each
Value From: 1
2. In the modifier details, enter the get product.
Product Attribute: Item
Product Value: Conditioner
Get Quantity: 1
Get Price: <price list line for conditioner>
Get UOM: Each
Application Method: Percent
Value: 100
Scenario 2
Customers who buy two bottles of shampoo receive 10 percent off the purchase of a third bottle of
shampoo.
1. Create a modifier.
Modifier Type: Promotional Goods
Modifier Level: Line
Product Attribute: Item
Product Attribute Value: Shampoo
Volume Type: Item Quantity
Break Type: Recurring
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UOM: Each
Value From: 2
2. In the modifier details, enter the get product.
Product Attribute: Item
Product Value: Shampoo
Get Quantity: 1
Get Price: <price list line for shampoo>
Get UOM: Each
Application Method: Percent
Value: 10
Scenario 3
A customer who spends $45 to $100 on an order line receives a free cosmetic bag.
1. Create a modifier line.
Modifier Level: Line
Modifier Type: Promotional Goods
In the Line Qualifiers window, create a qualifier.
Grouping Number: -1
Qualifier Context: Volume
Qualifier Attribute: Line Volume
Operator: Between
Value From: 45
Value To: 100
2. In the Modifier Summary region, select the product that the customer must order to get the free
cosmetic bag.
Click Define Details to display the Products tab. In the Get region, define the item that the
customer gets when the Buy item is ordered.
Get Product Attribute: Item
Get Product Value: Cosmetic Bag
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Get Quantity: 1
Get Price: <price list line for cosmetic bag>
Get UOM: Each
Application Method: Percent
Value: 100
Coupon Issue
Scenario 1
Customers who buy any products in the Chubo brand receive 10 percent off any item in the Chubo
brand on their next order.
1. Create a modifier list. In the Main tab:
Type: Promotion
Number: Coupon15
Select Active
Name: Coupon15
Clear Automatic
2. Create a modifier line for the discount.
In the Modifiers Summary tab.
Modifier Level: Line
Modifier Type: Discount
Product Attribute: Item Category
Product Attribute Value: Chubo
In the Discounts/Charges tab
Application Method: Percent
Value: 10
3. Create a second modifier line for the coupon issue and assign it for the modifier line created in
step 2.
Modifier Type: Coupon Issue
Modifier Level: Line
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Scenario 2
Customers ordering from the website receive a coupon for 10 percent off a future order.
1. Create a modifier line (for Modifier List Type: Promotion).
Modifier Level: Order
Modifier Type: Discount
Application Method: Percent
Value: 10
2. Create a second modifier line for the coupon issue and assign it to the modifier line created in
step 1.
Modifier Level: Order
Modifier Type: Coupon Issue
Coupon Modifier: <modifier from step 1>
3. In the Line Qualifiers window, create a qualifier for the Coupon Issue modifier line from step 2.
You have created the qualifier attribute Website Domain and created the appropriate sourcing
rules for it.
Grouping Number: 1
Qualifier Context: Customer
Qualifier Attribute: Website Domain
Operator: =
Value From: co.uk
Scenario 3
With any order, receive a coupon for two free bags of coffee on a future order.
1. Create a modifier line.
Modifier Type: Promotional Goods
Modifier Level: Group of Lines, All Items
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Item Upgrade
Scenario 1
Customers who order a standard video recorder before end of April 2000 receive a deluxe video
recorder for the same price.
1. Create a modifier list.
Type: Promotion or Deal
Date Type: Requested Ship Date
End Date: April 31, 2000
2. Assign a modifier line to the modifier list in Step 1. You have defined the item relationship
between the standard video recorder and deluxe video recorder.
Modifier Type: Item Upgrade
Modifier Level: Line
Product Attribute: Item
Product Attribute Value: Video Recorder Standard
Upgrade Item: Video Recorder Deluxe
Scenario 2
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Customers who buy a shirt receive the shirt and a tie for the shirt price.
1. Create a modifier. You have defined the item relationship between the shirt and the marketing bill
shirt and tie pack.
Modifier Type: Item Upgrade
Modifier Level: Line
Product Attribute: Item
Product Attribute Value: Shirt
Upgrade Item: Marketing item shirt and tie pack
Terms Substitution
Scenario 1
Customers who spend more than 1000 currency units on a sofa pay nothing for shipping.
1. Create a modifier:
Modifier Type: Terms Substitution
Modifier Level: Line
Product Attribute: Item Category
Product Attribute Value: Sofa
Volume Type: Item Amount
Break Type: Point
UOM: Each
Value From: 1,000
Terms Attribute: Shipping Terms
Terms Value: No Charge
Scenario 2
Customers who buy more than 100 currency units of one item on an order receive terms of 2%
30/NET 60.
1. Create a modifier.
Modifier Type: Terms Substitution
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Grouping Number: 1
Qualifier Context: Volume
Qualifier Attribute: Line Weight
Operator: =
Value From: 0
Value To: 500
3. Create a second modifier.
Modifier Type: Freight Charge
Modifier Level: Line
Application Method: Lumpsum
Value: 3.50
4. In the Line Qualifiers window, create a qualifier for the second modifier from step 3.
Grouping Number: 1
Qualifier Context: Order
Qualifier Attribute: Shipment Priority
Operator: =
Value From: Low
Grouping Number: 1
Qualifier Context: Volume
Qualifier Attribute: Line Weight
Operator: =
Value From: 501
Value To: 1,000
5. Create a third modifier.
Modifier Type: Freight Charge
Modifier Level: Line
Application Method: Lumpsum
Value: 3.50
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6. In the Line Qualifiers window, create a qualifier for the third modifier from step 5.
Grouping Number: 1
Qualifier Context: Order
Qualifier Attribute: Shipment Priority
Operator: =
Value From: Low
Grouping Number: 1
Qualifier Context: Volume
Qualifier Attribute: Line Weight
Operator: =
Value From: 1,001
Scenario 2
Calculate freight handling charge as a 10 percent markup of actual handling cost.
1. Create a formula.
Formula Name: Handling Cost
Formula: 1 * 2
2. Create a formula line.
Formula Line Type: Pricing Attribute
Pricing Attribute Context: Pricing Attribute
Pricing Attribute: Handling Cost Amount
Step: 1
Formula Line Type: Constant
Component: 1.1
Step: 2
3. Create a modifier.
Modifier Type: Freight Charge
Modifier Level: Line
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New Price
Scenario 1
The following table states the scenario for this new price modifier example. Following the table, the text
analyzes the scenario:
Incompat. Level Precedence Bucket Operator Value Engine Selects
1
10
NEWPRICE 30
No
10
NEWPRICE 25
Yes
10
NEWPRICE 40
No
Within the same incompatibility group, when all of the lines have the same precedence, the pricing
engine performs best price processing. The final selling price is in line 2, 25 currency units. In this
scenario, the bucket is not important to the result.
Scenario 2
The following table states the scenario for this new price modifier example. Following the table, the text
analyzes the scenario:
Incompat. Level Precedence Bucket Operator Value Engine Selects Adjusted Amount
1
10
NEWPRICE 30
Yes
-970
10
NEWPRICE 25
Yes
-975
10
NEWPRICE 40
Yes
-960
With different incompatibility levels, the pricing engine evaluates the lines according to buckets. Because
all of the lines are in the same bucket, the pricing engine calculates the adjusted amount from the list
price. It calculates the selling price as follows:
List Price - Sum of the Adjusted Amounts
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Scenario 3
The following table states the scenario for this new price modifier example. Following the table, the text
analyzes the scenario:
Incompat. Level Precedence Bucket Operator Value Engine Selects? Adjusted Amount
1
10
NEWPRICE 30
Yes
10
NEWPRICE 25
Yes
10
NEWPRICE 40
Yes
With different incompatibility levels, the pricing engine evaluates the lines according to buckets. Because
each line is in a different bucket, the pricing engine calculates the adjusted amount from the base price
of the previous bucket (list price is in bucket 0). It calculates the selling price as follows:
List Price - Sum of the Adjusted Amounts
1,000 - (970 + 5 - 15) = 1,000 - 960 = 40
As the pricing engine evaluates the eligible list lines, it resolves incompatibilities in all phases. You can set
up your modifiers such that the pricing engine determines most of the list line eligibility at the search
stage. Then, the pricing engine calculates the final selling price bucket by bucket.
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