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Integrating Oracle Advance Pricing with Oracle Purchasing in Release 12
Sundeep SharmaSenior Consultant
IntroductionKey ConceptsSetups required for integrationDifferent Pricing ScenariosIntegration ConsiderationsConclusionsReferencesQuestion and Answers
Agenda
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
Introduction
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
Key Concepts
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 ScenariosItem Volume Based Price
Different Pricing ScenariosGetting 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
