Oracle R12 Advanced Pricing in Purchasing

In order to utilize advanced pricing with the purchasing application, the value of the profile option must be set as shown :

Navigate to the Purchasing Responsibility : Purchasing Vision Operations (USA) and open the Item Master form. Select the copy from feature from the Tools menu as shown below :

Select the Item CM96713 as the Item from which the data is to be copied as seen in the following screenshot :

Click the Done button and then choose a name for the newly created item. Go to the purchasing tab to the Purchasing tab to confirm that the item is purchasable. Also note that the item list price (which should default on all purchasing documents) is 0.006 as seen in the following screenshot :

The next step of the required setup is to create a Contract Purchase Agreement which will later be linked to the item ASL entry. To do this, navigate to the Purchase Orders form and enter a new Contract as seen below :

Approve the Contract and then navigate to the Sourcing Rules form and create anew rule for the item using the seeded supplier and site shown below :

The newly created Sourcing Rule can now be assigned to the Item using the Sourcing Rule Assignments form as seen in the following screenshot :

Navigate to the Approved Supplier List form and create a new entry for the item associating it to the same supplier and site as show below :

Click the Attributes button and select the approved Contract created earlier as shown in the following screenshot :

Navigate to the Price Lists form under the Advanced Pricing menu and create a new price list entry. Specify the Item as shown below :

Specify a new Item price in the price list :

The price specified on the price list should take precedence over the list price defined in the Item Master form. To test this, navigate to the Requisitions form and create a new Purchase Requisition and select the Item from the LOV. The supplier/site specified in the sourcing rule should automatically default and the price should default from the price list as shown below :

Navigate to the Source Details tab to confirm that the Contract linked to the Approved Supplier List has been linked to the Requisition as seen in the following screenshot :

Purchase Orders work a little differently. Navigate to the Purchase Orders form and create a new Standard Purchase Order for the same supplier and site. Select the Item and notice that the price does not default from the price list and instead defaults from the Item Master form as shown below :

This happens because the Contract information does not automatically default on to the Purchase Order. Go to the Reference Documents tab and manually associate the Contract as shown in the following screenshot :

Now navigate back to the Line tab and the price has been correctly updated from the price list as shown below :

Modifiers can also be used to modify the Item price on the price list by adding a surcharge or discount to the original price. To add a surcharge, navigate to the Modifiers form and specify the modifier and pricing phase as shown below :

Specify the amount of surcharge to be added to the original price as shown in the following screenshot :

Note that no qualifier has been chosen for this modifier which means that the surcharge specified will be applied to all items being purchased. In order to control which conditions cause the surcharge to be applied (eg specific Items only), a Line Qualifier would need to be created for this Modifier.

To test that the surcharge is applied correctly, create a new Purchase Requisition and select the Item as shown below :