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Jul 22, 2010

Oracle Advance Pricing - Pricing Engine

Last couple of days I am working on Oracle Advance Pricing, very Interesting module from Oracle and usually refer as QP in Apps community.In next few posts I will talk about this only.

Advance Pricing is a flexible, expendable module that provides a common source for setting up rules to derive prices and then Derive the Price for your products based on these Rules

Key components of QP are –
1.    Price Lists
2.    Qualifiers
3.    Modifiers
4.    Formulas
5.    Request types
6.    Context and Attributes.

With the above components you can define Rules and condition and Pricing Engine/API use these rules and condition while calculating the price.

Pricing Engine -
Below diagram show the Internal Structure of Pricing Engine ( I have copied below Pricing engine diagram from oracle documents , I am not Owner if this)

 As shown in above diagram Oracle pricing engine goes through two types of processing activities each time it executes.
First, the engine runs a selection engine component that evaluates the
qualifier rules users have established, and based on those rules chooses the
qualified ‘pricing actions’ that the calling application may need to apply the
transaction they were processing when they called the pricing engine.
Pricing actions include
                    Price lists, such formulas as may be attached to price lists, and a the
                    wide variety of modifiers including discounts, promotional free goods, other item
                    discounts, accruals, and so forth.
The second activity is the calculation engine. The calculation engine processing
begins when the selection engine has completed the task of selecting the proper
pricing actions to apply to the transactions. The task of the calculation engine is to
perform all necessary calculations needed to compute net selling prices.

In next few post I will talk about how we can set an effective Pricing engine and what are the steps we can take to improve the performances.

For more details please feel free to contact me or Resister your self at and someone will contact you.

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