Modifiers enable you to set up price adjustments (for example, discounts and surcharges), benefits (for example, free goods and coupons), and freight and special charges that can be applied immediately to pricing requests or accrued for later disbursement. Using modifiers, you can:
* Set up a modifier list with multiple modifier lines that define the terms of the price adjustment.
* Create eligibility rules for modifiers by assigning list and line level qualifiers.
* Define modifiers that are incompatible with other modifiers.
* Create exclusive modifiers.
* Create cascading modifiers.
* Accrue monetary and nonmonetary benefits.
* Create monetary or usage limits that a customer can receive for a promotion, deal, or other modifier.
Modifiers determine the adjustments made to the list price. These are dependant on various business factors such as type of adjustment to make, the level at which adjustments are made, how the modifiers are qualified, how they are applied, etc.
■Using modifier lists, you can create groupings of price adjustments, and freight and special charges that you offer and report together to meet various business needs.At the list level, you define criteria that is common to all of the line level modifiers. You can create three modifier list types in oracle pricing
1. Discount List
2. Surcharge List
3. Fright and Special Charges list
■Use modifier lines to define the type of price adjustments, or freight and special charges that the pricing engine applies to pricing requests. You can associate certain line types with each list type. You can use the following line types:
Discount: Creates a negative price adjustment.
Surcharge: Creates a positive price adjustment.
Freight charge: Applies a freight charge.
Price Break: Applies a variable discount or surcharge price adjustment to a pricing request based meeting the condition of a break type.Only point price breaks are allowed in basic pricing modifiers. for ex, the following pricing decisions are:
If item quantity = 1-50, then discount=5%
■The table below describes Modifier List Types and if Discounts, Surcharges, or Freight and Special charges are applicable to the List type. A value of
Yes: indicates that the entity is available for the Modifier List Type.
No: indicates that the entity is not available for the Modifier List Type.
Create a modifier list
1. In the Main tab, select the modifier Type.
2. Enter a Number and Name for the modifier list; the value does not have to be numeric.
Note: The modifier Name should be unique across all PTEs (Pricing Transaction Entities) otherwise an error occurs. For example, if a modifier named "Corporate" is created in the Order Management PTE, an error message displays if you create a "Corporate" modifier in the Purchasing PTE.
3. The Global box is selected when the Pricing Security Control profile option is set to ON. This means that the modifier list can be used by all operating units for pricing transactions. If Global box is deselected, operating unit field is displayed. If multi-org access is NOT enabled, operating unit defaults from profile MO: Operating Unit. This operating unit field cannot be updated by users. If multi-org access is enabled, operating unit defaults from profile MO: Default Operating Unit.
Users can over-ride this default and select an operating unit that they have access to as defined by MO: Security Profile. The use of this modifier is then only restricted to pricing transactions for this operating unit.
4. Select or clear Automatic:
• If selected, the Automatic box is also selected at the line level, and the pricing engine automatically applies the modifier.
• If cleared, then the modifier must be manually applied.
Note: If you select Automatic for a list, all the lines for this list default to Automatic.
5. Enter Currency. This is an optional field.
6. Enter the Start Date range.
Note: If you do not enter dates (start/end), the list is effective from the creation date and does not become ineffective.
Creating List Level Qualifiers
Modifier list level qualifiers help the pricing engine to determine who is eligible for the modifier lines. If an order is not eligible for a modifier list, it is not eligible for that list's line level modifiers even if the lines have qualifiers for which the order is eligible.
Creating Modifier Lines
Use this process to create modifier lines to define how the price is adjusted. Once you have created and saved a modifier line, you cannot edit or change the Product Attribute Value for the line. To change the Product Attribute Value for a line, you should end date the existing modifier and create a new modifier.
1. Enter the Level.
• Line: The pricing engine determines if the pricing request is eligible for this modifier by validating the request for each line. It applies this modifier at the line level.
• Order: The pricing engine determines if the pricing request is eligible for this modifier by validating the pricing request header. It applies this modifier at the order level but prorates a percentage value to each line.
2. Enter Modifier Type from the following:
• Freight/Special Charges
• Price Break
3. Select or clear Automatic. If you select it, the pricing engine automatically applies this modifier. If you clear it, someone must manually apply it to an order.
Note: If you select Automatic at the modifier list level, Automatic for each line appears as selected but you can change it. You can allow manual application of discounts, surcharges, and freight and special charges line types.
4. Select or clear Override.
If selected, you can manually change how the modifier is applied for each order.
5. The values of Pricing Phase, Incompatibility Group, and Bucket will be dependent on the modifier level chosen.
For Basic Pricing, the Incompatibility Group will always be Level 1 Incompatibility Group, and bucket will be defaulted to 1 for line level modifiers.
Enter discount,surcharge information and freight charge information in appropriate tabs.
Creating Line Level Qualifiers
Modifier line level qualifiers help the pricing engine to determine who is eligible for the modifier lines. If an order is not eligible for a modifier line, it is not eligible for the line level modifiers even if the lines have qualifiers for which the order is eligible.
Once a qualifier is end dated, the group having that end dated qualifier becomes invalid. The modifier having that end dated qualifier will apply only if there is another group of qualifiers that satisfy the conditions and are within the valid date ranges.