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Tuesday, December 27, 2011

Pricing Engine

Pricing Engine Overview:
     The pricing engine is a software component of Oracle Advanced Pricing that is called by an application such as Oracle Order Management or iStore to apply pricing actions to transactions. Applications make calls to the pricing engine when transactions need pricing services or need to be priced.
     The advanced, flexible pricing engine performs pricing and benefit calculations for Oracle Order Management products and Oracle Customer Relationship Management products through open APIs.

The pricing engine performs the following functions:
1. Prepares the price request structure
2. Selects applicable price lists and modifier lists
3. Determines base list price
4. Calculates final selling price
5. Applies benefits and surcharges (from modifier lists) to list price to determine selling price 

Preparing the Price Request Structure : The calling applications submit price requests. This function configures a pricing request into a pricing request structure. The pricing request structure provides information about all the qualifiers and product pricing attributes.
Selecting the Price List or Modifier List : This function selects which price lists are eligible for the current pricing request. It uses the qualifiers and pricing attributes to select an eligible list of prices or modifiers it can apply to the pricing request lines according to the certain rules.
Determining List Price: This function takes the validated price list lines and applies them to the pricing request lines. You can specify the list price on a price list as unit price, percent price, or formula.
Applying Price and Modifier Adjustments: This function takes the validated modifier list lines and applies them to the pricing request lines.
    The modifier function provides price adjustments such as discounts, price breaks, surcharges, coupons, item and term substitutions, and other item discounts. Discount and surcharges modifiers affect the selling price; freight charge modifiers do not affect the selling price.

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