It provides an advanced, highly flexible pricing engine that executes pricing calculations for Oracle Order Management. Some of the features which Pricing allows you are:

• Apply a surcharge
• Discounts by percentage or amount
• Calculate the price of order lines using list prices specified in price lists and pricing formulas.
• Apply price modifiers/qualifiers that you define to a line.
• Calculate freight charges and show it as a separate component in Order Management

Concepts in pricing
Price Lists
Price lists are essential to ordering products because each item entered on an order must have a price. Each price list contains basic list information like price list name, effective dates, currency, pricing controls,rounding factor,shipping defaults such as freight terms and freight carrier,and one or more pricing lines, pricing attributes.
Pricing Formulas
Formulas are mathematical expressions that the pricing engine uses to determine the list prices of items and the discounts that apply to those items.
Price List Qualifiers/Modifiers

Price List Qualifiers/Modifiers Modifiers enable you to setup price adjustments (for example, discounts and surcharges) and freight and special charges (modifier lists) that the pricing engine applies immediately to pricing requests.Using modifiers you can:

• Setup a modifier list with multiple modifier lines
• Create eligibility rules for modifiers by assigning list and line level qualifiers
• Qualifiers help the pricing engine to determine who is eligible for the modifier.

Pricing Attributes
Pricing attributes are characteristics of products and services that specify when the characteristics help to determine the price of a product or service. Distance, age of a related product, customer class, product family group, and level of service are examples of pricing attributes. You can specify one or a combination of pricing attributes and assign them to a product. At order entry time, the pricing engine evaluates the attributes you have specified during formula setup to calculate the price.
Steps for pricing an order

• Create a price list (one time)
• This includes creation of price list headers and lines(which associates items to a particular price)
• Create pricing formulas (optional)
• Create price list modifiers/qualifiers (optional)
• Create an order.
• Attach the price list to that order.