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

Question and Answers

Sundeep Sharmassharma@terillium.com

773-517-1558