Creating Modifier Lines

You can add modifier lines to a modifier list to define the type of price adjustments, benefits, or freight and special charges that the pricing engine applies to pricing requests.

Note: Oracle Advanced Pricing also provides an HTML-based user interface (UI) for setting up and maintaining most modifier and modifier line types. For more information, see Using Modifiers in the HTML UI.

For each list type that you define, you can select certain modifier line types. The following modifier types can be selected at the modifier line level:

The following table details the modifier line types that can be used with a selected modifier list type. The modifier line types are listed in the left column, and the modifier list types are listed in the top row. A Yes in a row indicates that you can use the modifier line type with a particular list type, and a No indicates that you cannot:

Modifier Line Type (listed in column below) Deal Discount List F&S Charge List Promotion Surcharge List
Coupon Issue Yes No No Yes No
Discount Yes Yes No Yes No
Freight/Special Charge No No Yes No No
Item Upgrade Yes No No Yes No
Other Item Discount Yes No No Yes No
Price Break Header Yes Yes No Yes Yes
Promotional Goods Yes No No Yes No
Surcharge Yes Yes No Yes Yes
Terms Substitution Yes No No Yes No

After you have created and saved a modifier line, you cannot edit or change the Product Attribute Value (or primary buy item) for the line. To change the Product Attribute Value for a line, you must end date the existing modifier and create a new modifier.

This following section describes general setup information common to most modifier line types. For information on setting up specific modifier line types, see the following tasks:

arrow icon   To Create General Modifier Line Information:

  1. Navigate to the Advanced Pricing - Define Modifier window.

  2. On the Modifiers Summary tab, in the Modifier No field, a default modifier number identifies the modifier line. You can change this value; however, the Modifier No for each modifier line must be unique within the modifier list.

  3. Select the level at which the modifier is applied:

  4. Select a Modifier Type.

  5. Enter the Start/End Dates for the modifier line.

    Note: The start and end date for the modifier line must be between the start and end date on the modifier list. The pricing engine confirms that the dates for the modifier line are valid so that the modifier line can be applied.

  6. Select or clear the Automatic check box:

  7. Select the Override check box to enable the modifier adjusted price to be manually overridden. If this check box is clear then the modifier adjusted price cannot be overridden.

  8. Enter the Pricing Phase for this modifier line. Only valid phases for this modifier level appear in the list of values.

    Note: If you attach a phase with a PRICE event to the following promotional modifier types - Promotional Goods/Other Item Discount/Item Upgrade/Terms Substitution/Coupon Issue - and save the modifier line, then the following error message appears:

    The pricing phase for this modifier is attached to a PRICE event and cannot be used for this modifier type. Please change the pricing phase or remove a PRICE event for this phase from the Event Phases window.

  9. Select an Incompatibility Group.

    For more information about incompatibility groups, see Changing Modifier Incompatibility .

  10. Enter a Bucket value.

    Note: The Proration Type field is reserved for future use.

  11. Enter a numeric Comparison Value. The pricing engine uses this value to compare modifier types of Item Upgrade, Other Item Discount, and Term Substitution to resolve incompatibilities and determine which modifiers to apply. This value is used when the pricing phase incompatibility resolution is Best Price.

    • Best Price processing cannot be used for order-level modifier list types of Discount and Surcharge.

    • For Freight and Special charges, if an Incompatibility Group is not selected for the modifier line, the pricing engine will apply BEST_PRICE regardless of the Incompatibility Resolve Code set for the event phase. In these cases, the best price is the higher charge, not the lower charge.

  12. Select a Product Attribute value such as Item Number, Item Category, or All Items. Use All Items to define a modifier that applies to all items in your product hierarchy.

  13. Select a Product Attribute Value. If you select All Items in the Product Attribute field, the Product Attribute Value is ALL and the Product Description is All.

    If you do not enter values for Product Attribute and Product Attribute Value, the Pricing Engine applies the modifier line as if you selected All Items for Product Attribute.

  14. The Precedence value appears by default based on the precedence value defined with the product attribute. For example, the precedence value for item number is 220. This value can be updated.

    If precedence processing cannot be resolved for two or more modifiers, then the engine uses best price processing to resolve the issue without going below the established precedence.

  15. Enter a Volume Type such as Item Quantity or Item Amount, to instruct the pricing engine which volume attribute to use when qualifying for a modifier.

  16. Select either Point or Recurring in the Break Type field.

    For example, if RECURRING is selected where Value From = 1 and Value To = 10, then for every quantity of 1, the discount is applied up to a quantity of 10. Therefore, if a sales order is created with order quantity 10, then the (lumpsum) discount is applied to all 10 quantities.

    The break type is optional for the following modifier types:

    Example of Point Break Setup

    The following table provides an example of the setup for a point break.

    Field Value
    Break Type Point
    Modifier Line Type Discount
    Product Attribute Item
    Product Attribute Value Item A
    Volume Type Item Quantity
    Operator Between
    UOM Cases
    Value From 100
    Application Method Amount
    Value 2

    The pricing engine interprets this point setup as follows:

    Example of a Recurring Discount Setup

    The following table details an example setup for a recurring discount (recurring is not supported for price break):

    Field Value
    Break Type Recurring
    Modifier Line Type Discount
    Product Attribute Item
    Product Attribute Value Item A
    Volume Type Item Quantity
    Operator Between
    UOM Cases
    Value From 100
    Application Method Lumpsum (Application method will be always Lumpsum when break type is Recurring.)
    Value 2

    The pricing engine interprets this recurring setup as follows:

  17. Select a Volume Type to calculate the volume break.

  18. Select an Operator value such as = or BETWEEN; for example, item quantity = 5 or item quantity BETWEEN 5 and 20. If you select Recurring for the Break Type, you must select BETWEEN.

  19. Select the unit of measure (UOM) for the item or item category. If the line type is Promotional Goods, Other Item Discount, Item Upgrade and Volume Type is Item Quantity, then the UOM is mandatory.

    Note: For promotional limits:

    • If no product UOM is defined for a modifier line, line limits with a basis of Item Quantity will not be created.

    • If no benefit UOM is defined for a modifier line, line limits with a basis of Accrual Units will not be created.

    • If no benefit or product UOM is defined, neither Item Quantity nor Accrual Units appears in the Basis list of values (LOV) to prevent line limits from being created.

  20. Enter Value From and Value To.

    To create greater than and less than conditions, leave Value From and Value To blank, as follows:

arrow icon   To Create a Discount Modifier Line:

Creates a negative price adjustment such as, a 10 percent discount.

  1. Navigate to the Define Modifier window, Discounts/Charges tab.

  2. Complete the entries in the Discounts/Charges tab:

arrow icon   To Create a Freight/Special Charge Modifier Line:

  1. Enter the following information in the Modifiers Summary tab:

  2. On the Discounts/Charges tab, select a Charge Name such as Transportation Charge.

  3. The Include on Returns check box is only relevant for modifiers of type Freight and Special charge List. The Include on Returns box is selected by default so that freight charges are included with returns. Alternatively, if Include on Returns is cleared, then pricing will not apply the charge automatically on the return line.

    When you create a return order (and the price on the original order for which the return line is being created is retained), Oracle Order Management copies all the adjustments and only those freight charges that have the Include on Returns check box selected. If a return line is repriced , then all the charges are evaluated and applied. To have certain charges applied to a return line when the line is repriced, create a qualifier with a not= condition.

  4. Enter a Formula name to use a formula to calculate a discount, surcharge, or freight charge.

  5. Select an Application Method that defines how the modifier is applied. For more information, see Application Method.

    Note: For Freight/Special Charge modifiers, you must select Lumpsum as the Application Method.

  6. Enter a Value unless you are using a formula.

  7. Save your work.

    • For Freight/Special Charges, if an Incompatibility Group is not selected for the modifier line, then the pricing engine will use BEST PRICE incompatibility processing instead of Precedence. Precedence is defined as the Incompatibility Resolve Code in the Event Phases window.

    • When defining a freight charge modifier, select a seeded pricing phase whose Freeze Override Flag value is set to Yes. For example, the Freeze Override Flag is set to Yes for the Line Charges phase, but not for the List Line Adjustment phase. When you set up a freight charge modifier, and select the Line Charges phase instead of the List Line Adjustment phase, then your Return Merchandise Authorization (RMA) line with the Calculate Price Flag of Partial Price would qualify for the freight charge modifier

arrow icon   To Create an Item Upgrade Modifier:

In the Promotion Upgrades tab, you can define an Upgrade Item that replaces a specific item ordered for the same price. The item upgrade item is applied on the same order.

Note: Item upgrade is supported for standard items only.

  1. Navigate to the Define Modifier window, Modifiers Summary tab.

  2. Select Item Upgrade as the Modifier Type.

  3. In the Promotion Upgrades tab, enter the Upgrade Item that replaces a specific item ordered for the same price.

    • The upgrade relationship between the original item and the upgrade item must be set up in Oracle Inventory (the Relationship Type is Promotional Upgrade). When the relationship is set up, the related item appears in the list of values. When the item is upgraded, the UOM is retained from the original item.

    • When the pricing engine applies the qualifying item on the order line, the original item is replaced with the upgraded item and the price of the original item is retained.

arrow icon   To Create a Term Substitution Modifier Line:

Create a Term Substitution modifier line in the Promotion Terms tab to replace freight charges, shipping charges, and payment terms with typically more favorable charges. When the Operating Unit field appears:

  1. Navigate to the Define Modifier window.

  2. In the Modifiers Summary tab, select Term Substitution as the Modifier Type.

  3. On the Promotion Terms tab, enter the new terms in the Terms Attribute and Terms Value fields. The pricing engine substitutes the terms on the order or order line with the terms that you specify.

arrow icon   To Create a Coupon Issue Modifier Line:

You can issue a coupon for an order that a customer can redeem for a price adjustment or other benefit on a later order. When setting up a coupon issue, two modifier lines must be set up: the first defines the benefit or price adjustment, such as a 10 percent discount, and the second defines the coupon issue details, such as the coupon name and expiration date. The following steps outline how to create a coupon issue modifier.

Note: Both the coupon issue and coupon benefit lines must be defined on the same modifier list.

To Define the Coupon Benefit

  1. On the Modifiers Summary tab, create a modifier line to define the benefit or adjustment issued when the coupon is redeemed. For example, a 10 percent discount or $6 off the order. Select a modifier line type of Discount or Promotional Goods to define the benefit.

    The modifier number (Modifier No) on the modifier line generates a unique number series for the coupon, and the coupon number is passed to the calling application. The customer must quote the coupon number to redeem the coupon in the calling application.

    When the customer redeems the coupon, the pricing engine validates the coupon number against the qualifier. It also validates the qualifiers for the discount or promotional goods benefit.

    Note: Typically, the coupon is issued for an order and the actual discount line (the benefit the coupon applies) is applied to a subsequent order when the coupon is redeemed. However, if you set up a line-level qualifier for the discount line with the following settings, then both the discount line and coupon line can be applied to the same order:

    • Grouping Number = -1

    • Grouping Number = Any of the coupon modifier numbers

    If you intentionally include a line-level qualifier on the discount line that has a grouping number not equal to any of the coupon modifier numbers and not equal to - 1, it means that you actually want the discount to be applied independent of coupon redemption.

    All qualifier conditions with grouping number = -1 must also be met in order to redeem the coupon benefit modifier.

To Define the Coupon Issue Details

In a second modifier line, you define the coupon details, such as the coupon name and its expiration date. This line is the Coupon Issue line. After you define the coupon details, you link the benefit line to the coupon issue line:

  1. Select Coupon Issue as the Modifier Type.

  2. Enter a Redemption Rate to specify the percentage probability that customers might redeem this coupon.

  3. Enter the Expiration Date, which is the last date that the customer can redeem the coupon.

    Alternatively, if you enter values for the Expiration Start Date, Expiration Period, and Expiration Period Type, the pricing engine automatically calculates the Expiration Date. For example, for the following coupon setup, the pricing engine calculates an expiration date of 20 July:

    If you do not enter an Expiration Period Start Date, the pricing engine will use the date when the calling application issued the coupon.

  4. Enter the Coupon Modifier Number (from the coupon benefit line) to link the Coupon Issue modifier line to the benefit modifier line.

    Note: The Benefit Quantity, Benefit UOM, and Coupon Conversion Rate fields are not supported for a coupon issue line.

arrow icon   To Create a Promotional Goods and Other Item Discount Modifier Lines:

To reward a customer who orders one or more specified items in the same order, you can create a Promotional Goods modifier line to add a new item or subscription service item to an order and provide a price adjustment or benefit for the item. The reward item does not need to be in the original order. Even if the item is in the order, the pricing engine creates a new line for the item.

You must specify a quantity, and you can use any UOM set up on your system.

Other Item Discount

When the customer orders one or more other specified items (the buy items) on the same order, the Other Item Discount modifier provides a price adjustment or benefit to another item (the get item) on the order. The buy item (including additional buy) and get items must all be on the same order for the benefit to apply. The Other Item Discount modifier must be applied at the Group of Lines level.

Note: Recurring other item discounts are not supported.

To Enter Promotional Goods

Enter the following fields to create a promotional goods modifier:

  1. On the Modifiers Summary tab, define the required buy product (or category) that the customer must order to get the benefit. For example, buy a toothbrush and get a free bottle of mouthwash or buy a computer and get a year of customer support (subscription service).

  2. Click the Define Details button.

    The Define Modifier Details window appears.

  3. In the Products tab > Additional Buy Products region, define any additional products that the customer must buy in addition to the original product defined in the Modifiers Summary tab:

    Additional Buy Products region

  4. In the Get region, define the get product or subscription service that the customer receives. For promotional modifiers (such as buy one, get one), when you define the Get Product, the Get Price field does not display lines for service items with formulas, block price, percent price, or price break lines.

    Get region

    You must not define a Get Line for a Promotional Goods Modifier using price list lines with the following setups:

    Note: After you save the Promotional Goods or Other Item Discount line, you cannot update the Primary Buy, Additional Buy, or Get Product attributes.

    If you manually delete or change a free good line for an order or a quote line on the order (for example, change the number of free good items from three to two on the Sales Orders window), for subsequent repricing calls, the overridden manual entry is retained.

    For example, suppose a customer buys Item A and gets two of Item B free. If you manually change the quantity of free goods that the customer gets from two to one on the Sales Orders window, then on subsequent repricing, the manually overwritten amount is retained and the customer gets the one free good.

    Examples of Promotional Goods Modifiers

    You can create as many must buy items as desired and as many get items or subscription services items as required. Here are some sample scenarios of must buy and get promotional modifiers:

    However, you cannot create a combination of must buy products or get products where the promotional goods modifier must evaluate multiple items. For example, the customer receives 20 units free of the following products or a combination of products A, B, C if the customer buys at least 20 units from the specified products (X or Y) or a combination.

    Instead you must specify explicit must buy and get amounts; for example, the customer must buy 10 of Product X and 10 of Product Y to get 20 free units of Product A.

    Note: If you are using Promotional Good (PRG) type of Modifier Line with Multi-Currency, see Using Promotional Good type of Modifier Line.

    Using a Promotional Modifier as a Qualifier for Another Modifier

    You need to consider the following when setting up a promotional modifier as a qualifier for another modifier:

    Situation: Suppose you want to apply two automatic, promotional modifiers named XXXX and YYYY using the following setups:

    In this setup, the second modifier YYYY will not get applied to the order because the qualifier attribute of Promotional Number is not mapped at runtime. (Its attribute mapping method is User Entered, and will not be evaluated during the pricing call.)

    To ensure that you can use the Promotional Number as a qualifier in another modifier, you need to complete the following steps:

    1. Create a custom qualifier attribute by writing a function to source the attribute: its values will be TRUE or FALSE based on if the modifier XXXX is applied to that particular line or not.

    2. Use this custom qualifier attribute in the modifier YYYY.

    3. Attach the modifier XXXX to the pricing phase List Line Adjustments and attach modifier YYYY to the pricing phase All Lines Adjustments.

    When the order line is entered, the modifier XXXX will get applied first and then, while saving the order line, modifier YYYY will get applied because the modifier XXXX has already been applied while entering.

arrow icon   To Enter Other Item Discount:

  1. On the Modifiers Summary tab, define the required buy product (or category) that the customer must order to get the benefit. For example, buy a toothbrush and get a discount on a bottle of mouthwash.

  2. Click Define Details to display the Define Modifier Details window.

  3. In the Products tab - Additional Buy Products region, define any additional products that the customer must buy in addition to the original product defined in the Modifiers Summary tab:

  4. In the Products tab - Get region, define the other item discount product (the get item) that the modifier provides a price adjustment or benefit for on the order:

    Note: After you save the Promotional Goods or Other Item Discount line, you cannot update the Primary Buy, Additional Buy, or Get Product attributes.

arrow icon   To Create a Price Break Modifier Line:

Create a price break modifier line to apply a variable discount or surcharge price adjustment to a pricing request based on the price breaks.

  1. Complete the following fields:

  2. Select the Price Breaks tab.

  3. Select an adjustment Type such as Discount or Surcharge.

  4. Select an Accumulation Attribute if you are setting up range price breaks that accumulate across orders. This option is available for Range breaks only.

    See Using Accumulated Range Breaks for more information.

  5. The Net Amount Calculation field enables you to calculate the selling price based on the net amount (bucketed amount). You can select from the following values:

    Note: To use net amount, the following values must also be selected:

    • If Line is selected as the modifier line level, then you can only select For All Matching Attributes from the Net Amount Calculation field.

    • Level: Line or Group of Lines level (select Group of Lines to select For matching products from the Net Amount Calculation field.)

    • Modifier Type for the modifier line must be Price Break Header, and related price breaks must be set up.

    • Automatic check box for the modifier line must be selected.

    • Override check box must be cleared.

    • Volume Type: Amount

    Promotional Goods and Net Amount Calculation

    Promotional goods amounts will not be included in the net amount calculation. For example, if an order line gets a promotional good (buy A, get B free or discounted), the new line will not contribute to any net amount calculation of any modifier in the order.

    For examples, see Examples of using net amount in price breaks.

  6. To use the price break to calculate an accrual, select Accrue.

    Note: The Accrual box can only be used if Discount is selected as the Adjustment Type.

    1. If using accruals, enter an Expiration Date to specify when the accrued transactions expire.

    2. Enter Expiration Start Date, Expiration Period, and Period Type. The pricing engine calculates expiration date. The expiration period begins when the item begins to accrue.

      Credit Memo, which is the Rebate Transaction Type default, is reserved for future use.

  7. Click Define Details to display the Define Modifier Details window.

  8. The values for Break Line Type, Break Type, and Net Amount Calculation are provided by default from the modifier line.

  9. Enter Value From and Value To values.

    Note: If you leave Value To of the last break blank, a value of 99999.. (15 digits) automatically defaults. This value is hidden from the end-user and does not display in the Value To field.

  10. Optionally, select a Formula.

  11. Select an Application Method. For more information, see Application Method.

  12. For non-monetary accruals, enter the Accrual Conversion Rate to specify the conversion of Benefit UOM to the modifier primary currency. For example, if 1 air mile is 0.50 currency units, the Accrual Conversion Rate is 0.5.

  13. If applicable, enter the Benefit Quantity and Benefit UOM.

  14. Save your work.

    Examples of Using Net Amount in Price Breaks

    The Net Amount Calculation field enables you to calculate the selling price based on the net amount (bucketed amount). For example, suppose you create a price break modifier line with the following setup:

    If this modifier is applied to the following order, then all order lines that match the product defined in the price break modifier line (for example, Item Number = AS54888) are grouped together for the net amount calculation (regardless of other qualifying criteria):

    Order Line Product Pricing Attribute
    1 Item Number: AS54888 Red
    2 Item Number: AS54888 Blue
    3 Item Number: AS54888 Red

    The item amount is based on the item amount for all three lines, but the discount will be applied to lines 1 and 3:

    The following table displays a modifier setup that will calculate the net amount for an order using a break range type of Point:

    Modifier Setup Bucket Discount Break Ranges
    Line 1: Discount A 1 40% n/a
    Line 2: Discount B 1 30% n/a
    Line 3: Price Break Header (PBH) C 2 5% $0-1,000
    - - 7% $1,000-2,000
    - - 10% $2,000-9,999

    Suppose this modifier were applied to the following order:

    Order Item List price Order quantity
    AS54888 $2,000 each (per unit) 2

    If the modifier were applied to this order, the Net Amount selling price would be calculated as follows:

    1. First Discount A (40 percent) is applied resulting in the unit adjusted amount of $800.

    2. Then Discount B (30 percent) is applied resulting in a unit adjusted amount of $600.

    3. The unit selling price at the end of Bucket 1 is $2,000 - ($800+$600) = $600. This amount becomes the unit selling price for the next bucket.

    4. For PBH C to apply: the Net Amount Calculation is ($2,000*2) - (800*2) - (600*2) = $1,200. This amount qualifies for the second break of C, which is 7 percent.

    5. PBH C applied: the unit adjustment amount is 7 percent*600 = $42. This amount is applied to the unit selling price of the previous bucket.

      The final unit selling price is $600 - 42 = $558.