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 don’t 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