Pricing Formula

Pricing Formula

A Pricing formula is used to calculate the price of an item at runtime. In this example we’ll calculate the price of a second hand car. The Price of the car will depend on fixed as well as variable parameters. Fixed parameter being the margin of the broker & variable parameters will be like car model, year of manufacturing etc.

Navigate to Advance Pricing Responsibility > Setup > Attribute Management > Context and Attributes & give details as shown below

Click on Value Sets Tab & give details as shown below

Save the record & give this value set name in value set field

Add another line & give details as shown below

Click on Value Sets Tab & give details as shown below

Add this values set name in Value Set field. & add value set values. Navigate to Sys Admin Responsibility > Application > Validation > Values & give values as shown below

Now Navigate to Advance Pricing Responsibility > Setup > Attribute Management > Attribute Linking and Mapping & give details as shown below

Give Pricing Transaction Entity as ‘Order Fulfillment’ & Context Type as ‘Pricing Context’ & search for the Code we just created

Click on Link Attributes

Now we can see that the Code is enabled

Next is to define the formula. Navigate to Pricing Formulas > Formulas Setup

Click on second line & click on Factors & give details as shown below

This step is to associate the car type to a numeric constant so that it can be used in a formula. Once done, go to Tools > Build Formula Package

Now create an item in item master & Add that item to price list.

Now create an order

Just give the order item name & click on Pricing Tab & give Pricing Context & give dff values as shown below

Press OK & give quantity as 1 & save the record

We can see that the price has been generated automatically