Using Oracle Advance pricing in Oracle Purchasing

Goal:

Price Break functionality for BPA's in Oracle Procurement work for cumulative
quantity ordered price, rather than on slab basis?

Client requirement is that if they place a PO for say 250 qty, the price applicable should
be 1000 for entire qty, and not as per slab ie 0-99 qty @ 1200, 100 to 199 qty @ 1100 and
200 to 250 qty @ 1000

Solution:

This can be achieved through Oracle Advance pricing, and Contract Purchase Agreement
in Oracle Purchase module.

Following were the sequence setups need to follow to achieve:

1) Advance Pricing related profile options

a) QP: Licensed Product at application level : Purchasing

b) QP: Item Validation Organization at Site level/ application level : Vision

operation ( as per requirement)

c) QP: Pricing Transaction Entity at application level : Purchasing

(Screens for the above mentioned profile options were captured below)

2) Item need to be defined

3) Contract Purchase Agreement

4) Approved Supplier List for the item and the supplier

5) Supplier item attribute tagging contract purchase agreement number defined

6) Sourcing rule against the supplier

7) Assigning Sourcing rule

8) Defining Price list by linking Contract Purchase Agreement, defining price break
based on the requirement.

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Navigation: System Administrator -> Profile -> System : Application- Advance pricing
Following where the profile options and values need to update at application level and as
per requirement

2)
From Oracle Purchasing initial setup we need to define Contract Purchase Agreement
Navigation: Purchasing (Responsibility) -> Purchase orders-> Purchase Orders
Select the Order type as Contract Purchase Agreement

3)
After defining the Contract Purchase Agreement we need to dine the approved
supplier rule for the Item we planned define purchase list

Navigation: Purchasing(Responsibility) Supply Base Approved Supplier : Item:

CM00042

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4) After defining Approved Supplier list, click on the Attributes which you can see
bottom of the screen, and tag Contract Purchase Agreement number .

5) Define Sourcing rule for the supplier and assign the defined sourcing rule
Navigation: Purchasing (responsibility) Supply Base Sourcing Rule

6) Click on the Assign or Navigation: Purchasing (responsibility) Supply Base

Assign Sourcing Rule

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7) After all pre-requisite steps documented above, we have to define price list with
following values
a) Product Context = Item
b) Product Attribute = Item Number
c) Product Value = CM00042
d) Line Type = Price Break Header
e) Price Break Type = Point
f) Application Method = Unit Price
g) Start Date
Navigation : Pricing Manager Price list Price List Setup

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Click on the Qualifier and enter following attributes
a) Qualifier context : Buyer
b) Qualifier Attribute: PO Agreement Number
c) Operator : =
d) Value from: 6446 ( Contract Purchase Agreement number)

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Click on the Price Attributes and enter following attributes
a) Pricing Context : Volume
b) Pricing Attribute: Item Quantity
c) Application Method: Item Quantity
d) Value from: In this filed enter the values from which qty from and to as per
required as capture in the screen below

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Based on the Price list and Price break defined and to flow the price to Purchase module,
move to Oracle Purchase responsibility, and in standard purchase order first enter the
supplier name (this should be same as the supplier defined in Contract Purchase
Agreement), click on the Reference Documents tab at PO line and enter Contract number,
after that enter the Item number under Line tab
Navigation: Purchase(Responsibility) - Purchase Orders Purchase Orders, select
Order Type: Standard Purchase Order
Click on Reference Document Tab ( to enter Contract number)
Click on Line tab ( to enter the Item)

After entering Item number, price will get default from price list and based on the price
list price break, against each qty price will change accordingly as defined in the price list.

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