Ignore Pricing for Order Lines Custom Hook

An Oracle White Paper Created: Apr 2009 Update: Apr 2011

Ignore Pricing for Order Lines Custom Hook

OVERVIEW

This document gives an overview of the new functionality that is an enhancement to Oracle Advanced Pricing functionality. This enhancement is released as a part of 11.5.10 and R12 releases of Oracle Applications. The motive of this enhancement is driven by the performance gain that desired by the users if majority of the order lines are not significant to pricing and can carry a zero price. Note: For information regarding setup for orders, please refer to Order Management manuals. For details on the setup for advanced pricing, please refer to advanced pricing users guide. Reference My Oracle Support (formerly MetaLink) Note 91798.1 - Order Management Product Suite Documentation.
Purpose of introducing the Custom Hook

In many scenarios, there is a need to price only certain number of order/quote items using the pricing set up. For rest of the items the price is picked from some dummy price list that will carry certain price. These items are completely insignificant to pricing and no more processing is needed for these items in the pricing engine call other than fetching a price from some dummy price list. Usually, customers intentionally set the list price of these items as 0 or set up a price list line with ALL ITEMS" as 0. Mostly model items have lot of marketing or manufacturing option items included which have no significance from pricing perspective. Still the lines from these items are sourced to pricing for processing and after lot of unnecessary processing, the prices fetched for these lines are 0. Due to this these lines are a extra burden on pricing and cause performance issues. Especially in case of bigger orders significant amount of time can be saved if pricing engine could ignore these lines. The Ignore Pricing custom hook provides users an opportunity to inform pricing engine to ignore such lines that could result in substantial performance gain.

Important implementation Notes: The sales order line with an item setup to ignore pricing will be completely ignored by pricing engine for any other processing. Here are a few examples. Example 1: An item Item_A has been identified as a zero priced item by the custom hook. The item is included in item category cat_A.. If a modifier is set up for application to category cat_A, it will not be applied to the sales order line that has ordered item item_A. Example 2: Item A and Item B belong to Item Category CAT1. A modifier line is setup for this Item Category, where the group quantity is from 10-99, and then it will apply a 10% discount. Item B has been identified as a zero priced item by the custom hook. The following Order is booked. Order line 1 - Item A - qty 8 Order line 2 - Item B - qty 15 The CAT1 group quantity would be 8 and not 23 (8+15), since order line 2 is for an item that is setup as a zero priced item, which means that it is not considered by the pricing engine. Therefore, this modifier for group quantity 10-99 would not apply.
Example 3:

Item_0 and Item_1 belong to Item Category CAT_A. A modifier line is setup for the Item Category CAT_A, where the group amount is from 1000-99999, and then it will apply a 10% discount. Item_1 has been identified as a zero priced item by the custom hook. The following Order is booked. Order line 1 Item_0 - qty 8 with unit list price 100. Order line 2 Item_1 - qty 10 with unit list price as 100. The CAT_A group amount would be 800 and not 1800 (800+1000), since order line 2 is for an item that is setup as a zero priced item, which means that it is not considered by the pricing engine. Therefore, this modifier for group amount 1000-99999 would not apply. Customer needs to evaluate the scenarios similar to the ones explained above and then design the ignore items pattern logic for the custom hook.

Ignore Pricing Custom Hook Implementation

An overview of the tasks involved in the implementation of ignore pricing custom hook is depicted in the following flowchart

Pricing Engine Execution

An overview of pricing engine execution for this functionality is depicted in the following diagram.

Implementing QP_custom_ignore.Ignore_itemline_for_pricing

If you intend to use ignore_itemline_for_pricing you must create a package body for qp_custom_ignore with the procedure ignore_itemline_for_pricing. The pricing engine calls the qp_custom_ignore.ignore_itemline_for_pricing API with the following set of parameters: p_request_type_code: IN VARCHAR2 Pass appropriate parameter value to determine correct line structure depending on the application that calls pricing engine. Example: for using OE_ORDER_PUB.G_LINE structure, pass this parameter as ONT or, for using ASO_PRICING_INT.G_LINE_REC structure, pass this parameter as ASO. x_ignore: OUT NOCOPY VARCHAR2 Set this parameter in the ignore_itemline_for_pricing API to true if the line has to be ignored for price processing, false if line has to be processed by engine for list price derivation and for applying other adjustments. x_default_price_list_id: OUT NOCOPY NUMBER If x_ignore is set to true then user must set x_default_price_list_id to a valid list_header_id of an active price list with an entry of ALL_ITEMS of zero price. This is a mandatory step as Price list is a mandatory field on Sales Order line. Though pricing engine will not use this price list in the list header search it is needed to have the price list active so that other pricing engine calls with the profile option QP: Custom Ignore Pricing profile set to N will not fail. Implementation Hint User may create a new dummy pricelist that user can use to identify whether the item has been priced as zero price item. User can also restrict using this dummy pricelist for other normal pricing transactions by restricting it with some appropriate qualifier.

Implementation Examples.

Assumption A dummy pricelist is created having list_header_id 12345.

Example 1:

User has identified following 4 items as zero priced items. These are mostly the configured option items that are attached to majority of the models sold by the company using sales order form. Item A B C D Inventory_item_id 11111 22222 33333 44444

CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING( p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS l_item_id VARCHAR2(240); BEGIN if p_request_type_code = ONT' then l_item_id := OE_ORDER_PUB.G_LINE.inventory_item_id; if (l_item_id IN (11111,22222,33333,44444)) then x_ignore := 'Y'; x_default_price_list_id := 12345; Else x_ignore := 'N'; x_default_price_list_id := 0; end if; ELSE x_ignore := 'N';

x_default_price_list_id := 0; end if; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

Example 2:

The user has identified a line flow say, zero_price_line. If the line_type_code is defaulted/updated to this value before a pricing call then pricing for these lines should be ignored and the price should be set to zero in sales order line.
CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING(p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS BEGIN IF p_request_type_code = 'ONT' THEN IF (OE_ORDER_PUB.G_LINE.line_type_code = 'ZERO_PRICE_LINE') THEN x_ignore := 'Y'; x_default_price_list_id := 12345; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

Example 3

User has designed a specific format to name the option items those need to be considered as zero priced. The names of these items end with _zp tag.
CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING(p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS BEGIN IF p_request_type_code = 'ONT' THEN IF ( (OE_ORDER_PUB.G_LINE.item_type_code = 'OPTION' AND (OE_ORDER_PUB.G_LINE.ordered_item LIKE '%_zp' )) THEN x_ignore := 'Y'; x_default_price_list_id := 12345; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

Example 4

User has designed to insert/update the attribute11 of Inventory items descriptive flex field using the master items form. The value zero_price is entered into attribute11 of all such items those need to be considered as zero priced on a sales order line.
CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING(p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS l_zp_attribute VARCHAR2(240); BEGIN IF p_request_type_code = 'ONT' THEN SELECT attribute11 into l_zp_attribute FROM mtl_system_items_b WHERE inventory_item_id = OE_ORDER_PUB.G_LINE.inventory_item_id AND organization_id = FND_PROFILE.VALUE('QP_ORGANIZATION_ID'); IF (l_zp_attribute = zero_price' ) THEN x_ignore := 'Y'; x_default_price_list_id := 12345; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

Example 5

User has designed to have a special item category (category_id = 55555) and assign only those items that are to be considered as zero price items to that item category.
CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING ( p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS l_zp VARCHAR2(1); BEGIN IF p_request_type_code = 'ONT' THEN SELECT Y into l_zp FROM dual WHERE EXISTS (SELECT 1 from mtl_item_categories WHERE category_id = 55555 AND inventory_item_id = OE_ORDER_PUB.G_LINE.inventory_item_id); IF (l_zp = Y' ) THEN x_ignore := 'Y'; x_default_price_list_id := 12345; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

Example 6

Customer maintains a custom table X_ZERO_PRICE_ITEMS that explicitly stores the items those need to be considered as zero priced items.
CREATE OR REPLACE PACKAGE BODY QP_CUSTOM_IGNORE AS PROCEDURE IGNORE_ITEMLINE_FOR_PRICING ( p_request_type_code IN VARCHAR2 ,x_ignore OUT VARCHAR2 ,x_default_price_list_id OUT NUMBER ) IS l_zp VARCHAR2(1) := N; BEGIN IF p_request_type_code = 'ONT' THEN SELECT Y into l_zp FROM dual WHERE EXISTS (SELECT 1 FROM x_zero_price_items WHERE inventory_item_id = OE_ORDER_PUB.G_LINE.inventory_item_id); IF (l_zp = Y' ) THEN x_ignore := 'Y'; x_default_price_list_id := 12345; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; ELSE x_ignore := 'N'; x_default_price_list_id := 0; END IF; END IGNORE_ITEMLINE_FOR_PRICING; END QP_CUSTOM_IGNORE;

More Implementation Notes

For further performance gain, we recommend to implement some caching mechanism since the same item for same line can be repeatedly processed for different pricing calls for various pricing events. This will help by not executing the same query in the same session.
Patches delivering the QP_CUSTOM_IGNORE.ignore_itemline_for_pricing Functionality

Release 11.5.10 Please apply patch 8203943 Release 12.0 - Please apply patch 8266809:R12.QP.A Release 12.1 Please apply patch 9413376:R12.QP.B

Ignore Pricing for Order Lines Custom Hook Created: April, 2009/Updated: April 2011 Authors: Rajendra Badadare, Smitha Balaraman. Co-Authors: Shankar Kattamanchi, Dharmender Gupta, Kelli Stone. Copyright Oracle Corporation 2009 All Rights Reserved Printed in the U.S.A. This document is provided for informational purposes only and the information herein is subject to change without notice. Please report any errors herein to Oracle Corporation. Oracle Corporation does not provide any warranties covering and specifically disclaims any liability in connection with this document. Oracle is a registered trademark and Enabling the Information Age are trademarks of Oracle Corporation. Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: 415.506.7000 Fax 415.506.7200 Copyright Oracle Corporation 1995 All Rights Reserved