Price Lists

Setups to define price lists

Navigate to Advance Pricing User Responsibility > Price Lists > Price List Setup à Click on Other Tab

Value of the fields Pricing Transaction Entity should be ‘ORDFUL’ & that of System Source Code should be ‘QP’. In case the value is not the one mentioned then change the profile options ‘QP: Pricing Transaction Entity’ & ‘QP: Source System Code’ & give the value as ‘Order Fulfillment’ & ‘Oracle Priciing’

Now go to Main Tab & give details as shown below

We have added 3 lines to show that while booking an order price of an item will be defaulted based upon the price list used. The highest priority will be given to the ‘Item Number’ Product Attribute followed by Item category & then followed by ‘All Items’ Product Attribute.

Next is to define Shipping Methods. Navigate to OM Responsibility > Inventory > Setup > Freight Carriers

Click on Organization Assignments & assign the organization to this carrier

Next we need to define a customer & associate payment terms, salespersons, order transaction types, price lists, warehouse & ship methods at customer ship-to location. Navigate to Customers > Standard à Click on create & give details as shown below

Click on Save and Add Details

In case you get an error message saying “Provide a positive integer for minimum customer balance amount or percent when balance amount overdue type is amount or percent respectively.” Then do the following

Click on Details & go to Business Purposes Tab & then click on Details against Ship-To Field & give details as shown below

Click on Apply 3 times. First time it will be at Business Purpose Level, Next time it will be at Site level & last time it will be at Account level. With this the basic customer setup is done

Now we’ll check these setups by creating a Sales Order. Navigate to Orders, Returns > Sales Orders & give customer name, Remaining all other details will be defaulted

Give Line quantity. The price will be populated from the 3^rd line of the Price list

& Save the record, In case you get an error message saying

Then navigate to Setup > Transaction Types > Define à Query for your transaction type name & add Default order line type

Now when you save the order, it will be saved without any error message.

Go back to the sales order form & query for the same sales order (SO# 5000) & add another line.

The item mentioned in line2 is not present in Price list but the item category (MISC.MISC) is present in price list. So the price of 150 is populated from there only. Similarly if we add another line with an item for a category other then ‘MISC.MISC’ then a price of 100 will be populated

Defining Price based on Unit of Measure (UOM)

Suppose we want to add a line where UOM is DZ (Dozen) then we’ll get an error saying

Now go back to price lists & add another row & give details as shown below

Now go back to sales order form & add another line. As soon as we enter the item name, the default UOM will be populated & now if we enter the quantity, unit price will be defaulted as 150

Change the UOM to DZ & you can see the change in Unit Selling Price value

Price Break Headers (PBH)

Case1: When Price Break Type is ‘Point’ & Application Method is ‘Unit Price’

Add a new line in Price List & give details as shown below

Click on Price Breaks & give details as shown below

Save the record.

Now go to the sales order form & enter 3 lines as shown below

As we have given the price breaks for a range of items so it is showing different Unit Selling Price when quantity is different.

Now give quantity as 16. You’ll get an error saying

Case2: When Price Break Type is ‘Range’ & Application Method is ‘Unit Price’

Go to Price list & for the same line change Price Break Type to ‘Range’ & keep Application Method as ‘Unit Price’

Go to sales order form & add new line & give quantity as 8

As we have given the break type as ‘Range’ so the system has calculated the price of first 5 items as 190 each & next 3 as 180 each so unit price is (190*5+180*3)/8 = 186.25 & Line total will be calculated as 186.25*8=1490

If we give break type as ‘Range’ then system will do the cumulative pricing. It means it will not point to a particular price break but to will touch base with all the price breaks which it encounters in order to reach its final quantity.

Now give quantity as 20.

Here price is calculated as (190*5+180*5+170*5)/20. So we can conclude that as the quantity will increase beyond 15, the price will decrease accordingly

Case3: When Price Break Type is ‘Point’ & Application Method is ‘Block Price’

Go to Price List & modify the fields as shown below

Now go back to Sales Order & add new lines & give quantity as 3 & 6 respectively

Whenever Application Method is Block Price, the price break will be considered for the entire block means if we give 190 as the price break for up to 5 items & while booking an item, we give 3 as the quantity then it will be considered that the price of entire block (that is 3 items) is 190 so for a single item it will be 180

Here also if we give quantity as 16, then we’ll get same error

Case4: When Price Break Type is ‘Range’ & Application Method is ‘Block Price’

Go to Price list & change the details as shown below

Now go back to sales order line & add a new line & give details as shown below

Here Price is calculated as (190+180)/6 = 61.67

Few points to be noted

1.)   If  Price Break Type is Point then the Price break which we have given in Price lists will be considered for individual items (that is if quantity is 4 then price will be 190 each & if it is 6 then price will be 180 each)

2.)   If Price Break Type is Range then the Price Breaks which we have given will be used cumulatively. Means, if we give quantity as 8 then cost of 5 items will be calculated as per 190 each & that of remaining 3 will be calculated as per 180 each.

3.)   If Application Method is Unit Type then whatever price break we’ll give will be considered for an individual item means for 5 items price will be 190 each & for more than that it will be 180 each & so on

4.)   If Application Method is Block Price then what ever price break we’ll give will be considered for a block & a block comprises of the quantity which we give means if we give quantity as 3 so the price break of 190 will be considered for only 3 items & if we give 7, a block will comprise of 7 items