Integrating Oracle Advance Pricing with Oracle

Purchasing in Release 12

Sundeep Sharma

Senior ConsultantSenior Consultant

Introduction

Key Concepts

Setups required for integration

Different Pricing Scenarios

Agenda

Different Pricing Scenarios

Integration Considerations

Conclusions

References

Question and Answers

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

Introduction

• Item List Price maintained in Item Master

• Blanket Agreement price breaks

• Price breaks from item catalogs

• Custom Pricing hooks to leverage complex pricing scenarios

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.

Key Concepts

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

Setup Profile Options

Setups

Contract Purchase Agreement

Setups

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 •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 •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 •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