SQL Built-In Functions for Pricing Formulas in Oracle Advanced Pricing

An Oracle White Paper August 2011

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SQL Built-In Functions for Pricing Formulas in Oracle Advanced Pricing

EXECUTIVE SUMMARY

The purpose of this document is to demonstrate the ways some of the SQL BuiltIn Functions can leverage functionality within Pricing Formulas, in Oracle Advanced Pricing, to generate list prices and modifier values. The use of SQL Built-In Functions is part of the standard applications, and this document is designed to supplement the existing User and Implementation Guides for Advanced Pricing 11.5.10 and Release 12.
Introduction

The following document has been collated to provide an overview guide to establish what is possible with SQL Built-In functions and Pricing Formulas. Unfortunately, although information is available about SQL Built-In functions with respect to PL/SQL coding, there was nothing that detailed the use within pricing formulas. An example of the complexity is where a client sold licences to businesses to enable recorded music to be played to the general public. Each different type of business would have different tariff types, to enable a fairer generation of licence fees, rather than a flat rate for all. Using Quoting and Configurator the client was able to capture a wide range of commercial details, such as Audible Area, Average Attendance, Number of Performances, Licence Period, etc. Although the Ordered Quantity was only 1 Licence sold, there could be numerous parameters in determining the fee. Pricing Attributes linked through Configurator would capture the values that the Pricing Formula would use to calculate the fee. Pricing Formulas in Advanced Pricing apply basic mathematical formulae, using a variety of data sources, to assist in the calculation of list prices and modifier values. A Pricing Formula is structured with two elements: Formula Formula Steps

Within the formula, a standard mathematical calculation is defined using traditional mathematical operators (+ - / * etc). However, rather than the actual figures in the calculation, the formula references the formula steps that are listed in the form.

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The example screenshot below displays how the Formula Steps are related in the Formula Line, DECODE and NVL are examples of SQL Built-In Functions.

Each step can be the same or a different data source or type, for example, Numeric Constant (step 7) Pricing Attribute (step 6) The formula could be defined as (7+6), not (Numeric Constant + Pricing Attribute). See Oracle Advanced Pricing Users Guide for more details on the Pricing Formula set up and usage. Included in the structure of the mathematical formula, is the ability to add SQL Built-In Functions. In standard SQL programming these are seeded functions to help you manipulate data. These built-in functions fall into the following categories: Numeric Character Functions Returning Character Values NLS Character Character Functions Returning Number Values Datetime General Comparison Conversion Large Object Collection Heirarchical Data Mining

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Encoding and Decoding NULL-Related Aggregate

Historically, the Advanced Pricing User Guide mentions SQL Built-In Functions and lists, NVL, SQRT, and MOD as examples and further provides an example in the use of the SQRT (Square Root) command. In later releases of Advanced Pricing, an example of the GREATEST SQL Built-In Function is seeded as part of a minimum fee pricing formula. The User Guide describes the following example: For example, the valid formula (1+2*SQRT(3))/4 contains: Operands: 1, 2, 3, and 4 Mathematical operators: +, *, and / Built-in function: SQRT Parentheses: to group the operands and operators For each preceding step number, you need to create four formula lines since the formula has four step numbers. Oracle Advanced Pricing uses the formula line and evaluates it to obtain the value of the operand and calculates a formula. It does not use the face value of the step number. A list of all SQL Built-In Functions can be found in the PL/SQL User's Guide and Reference. Not all of the SQL Built-In Functions are suitable for use directly within Pricing Formulas formulae, generally those listed in the Number and some in the Miscellaneous categories can be used directly into the formula line. This does not preclude the other functions being used within other formula steps elements such as Pricing Attributes packages and functions or Get_Custom_Price.
Formulas v Modifiers

Some of the functions listed later could be replicated using functionality available through modifiers, e.g. Recurring Price Breaks. However the expanding commercial use of Oracle Applications could mean that modifiers may not necessarily be suited for the required pricing calculations. For example, where a licence is sold to play recorded music, a charge to show live satellite sports, or even calculate the cost of legal aid cases, the transaction quantity is always 1, however additional factors that could be captured through Configurator /OA Framework forms could be used in the calculation of the final price. For example, music licences for businesses could be calculated based on the number of chairs in a hairdressing salon to the number of speakers in a theme park. Likewise, pubs and bars showing sports could be charged on the number of seats

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on site or the rateable value of the premises, as well as the consumption of alcohol per unit. Where these complex pricing calculations are required to support different business models, pricing formulas using the SQL Built-In Functions can satisfy the most complex of models as opposed to trying to replicate these using modifiers.
Formulas v Customisation

Additional pricing and qualifier attributes can be defined in a custom package and used in the pricing objects. This extends the functionality of the pricing module. The accepted approach is to generate a custom package, e.g. XX_PRICING_PKG, listing functions that are mapped to the pricing and qualifier attributes. There is a temptation to use this package to derive all the complex pricing calculations, rather than utilise the SQL Built-In Functions in a pricing formula. Each Built-In Function will attempt to derive a value, used in the calculation. These values can subsequently be seen in the Formula Steps within the Pricing Engine Request Viewer, enabling much easier debugging and maintenance rather than everything, not just the attributes, coded in the custom package. Therefore always look to use the Built-In functions in pricing formulas ahead of any short-cut technical calculation customisation.

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SQL BUILT-IN FUNCTIONS Overview

There are numerous SQL Built-In Functions that can be used within standard SQL or PL/SQL development; the complete list is displayed in Appendix A. However, for Pricing Formulas, generally only mathematical number and some miscellaneous functions will be used. This section considers those most likely to be used in pricing formulas. Although discussed individually, there is nothing to prevent functions being nested within calculations containing other functions. The following section has been compiled with reference and acknowledgement to Oracle Database SQL Reference 10g.
Sql Built In Functions Numeric

CEIL CEIL (n)

This function enables a value or calculation to be rounded up to the nearest integer, i.e. nearest integer greater than or equal to n, where the structure is CEIL(n). Example: Step 1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 CEIL(1/2) = 3.333 = 4 CEIL(2/1) = 0.3 = 1 (CEIL(2-1)/2) = -2.333 = -2 If a pricing attribute could return a decimal value, CEIL(pricing attribute) will round the attribute value up to the nearest integer. This command is particularly useful if pricing formulas are used for calculating price banding for a list price that cannot otherwise by controlled using recurring price breaks, i.e. if the quantity is 1, and additional pricing attributes determine price ranges. Business Use Example A bar entertainment licence is priced, calculated on Area in Metre2 00 10 11 20 21 30 31 40 41 9999999 100 200 300 400 100 for every 10 m2 consumed additionally.

In this case the formula, would have the steps,

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Step 1: Pricing Attribute e.g. Licence Area in M2 Step 2: Numeric Constant 10 Step 3: List Price 100 (derived from price list value field) The pricing formula would be displayed as (CEIL(1/2))*3, such that for every 10m2 or part of consumed a price of 100 would be applied. Therefore, if 62 m2 is to be priced, the value would be CEIL(62/10)*100 = 700 as 6.2 would be rounded to 7.

FLOOR FLOOR (n)

This is the opposite of the CEIL command. This function enables a value or calculation to be rounded down to the nearest integer, i.e. nearest integer less than or equal to n. Example: Step 1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 FLOOR(1/2) = 3.333 = 3 FLOOR(2/1) = 0.3 = 0 (FLOOR(2-1)/2) = -2.333 = -3 With pricing formulas, this could be used in ranges to calculate where whole values had been used. The remainder would not be included in the calculation, if FLOOR were used. Business Use Example Using the previous example, the pricing formula now displayed as (FLOOR(1/2))*3, such that for every 10 consumed a price of 100 would be applied. Therefore, if 62 m2 is to be priced, the value would be FLOOR(62/10)*100 = 600 as 6.2 would be rounded to 6. This function could also be applied to subscriptions to satellite and cable services. The customer will renew in advance of the expiry date, but they are still charged for a set period, e.g. one year, rather than one year plus the time in advance the payment is made, i.e. FLOOR(licence period).

MOD MOD (n, x)

This function will return the remainder of the calculation, where n is divided by x. In the event that x is zero, the function will return the value of n.

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Example: Using actual numbers instead of Formula Steps, MOD(11.5,4) = 3 MOD(25,12) = 1 MOD((13*5),6) = (65,6) = 5 This could be used in a pricing calculation where whole Units of Measure are priced at one rate, and decimal remainders given a premium value. Business Use Example Software licences are sold in sets of 10 at 100 for each licence. Where the set is split less than 10, a surcharge of 15% is added to the licence price. Pricing Attribute Licence Quantity (step 1) List Price 100 (derived from price list) (step 2) Numeric Constant 10 (step 3) Numeric Constant 1.15 (step 4) The pricing formula will be displayed as, ((FLOOR(1/3))*2)+(MOD(1,3)*(2*4))). The FLOOR calculation will determine the fee based on the whole sets consumed by the Licence Quantity. The MOD calculation will determine the cost of the individual split set licences and charged at the increased list price. Please refer to the REMAINDER function below regarding how MOD and REMAINDER generate different values.

POWER POWER (n, x)

This function will act as if nx, therefore raising the value of n by the power of x. The value of the base value and exponent can both be any numeric value; however, if the base is negative then it can only be raised by an integer. Example: Using actual numbers instead of Formula Steps, Step 1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 POWER(1,2) = 10*10*10 = 1000 POWER(2,1) = 3*3*3*3*3*3*3*3*3*3 = 59049 (POWER(2,1)/2) = (3*3*3*3*3*3*3*3*3*3)/3 = 19683 Business Use Example

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Steel rods are sold based on the volume of each rod extruded and priced per Metre3. The standard mathematical formula for this is r2l. Pricing Attributes would be defined for the radius and length of the steel rod, the value of pi set at 22/7 or 3.147 etc Numeric Constant 22 (Step 1) Numeric Constant 7 (Step 2) Numeric Constant 2 (Step 3) Pricing Attribute Rod Radius (Step 4) Pricing Attribute Rod Length (Step 5) List Price (from Price List) (Step 6) The pricing formula would be displayed as ((1/2)*(POWER(4,3)))*5)*6 The POWER function is used to calculate the radius squared. A function like this could probably be most useful when calculating fluid material, e.g. concrete, into solid objects.

REMAINDER REMAINDER (n, x)

This function will return the remainder of the calculation n divided by x. Example: Using actual numbers instead of Formula Steps, REMAINDER(11.5,4) = 4 REMAINDER(25,12) = 1 REMAINDER((13*5),6) = (65,6) = 5 Although Remainder seems similar to the MOD function, the difference between the two functions is how the remaining value is dealt with. For the MOD function, any remaining value is treated as a FLOOR therefore will be rounded to the lowest integer, whereas the REMAINDER function treats the value as a ROUND, and therefore will convert to the nearest integer, irrespective of higher or lower integer. From the example above, the difference can be seen as, REMAINDER(11.5,4) = 4 (3.5 ROUND to 4), whereas MOD(11.5,4) = 3 (3.5 FLOOR to 3). This can also be explained using the following example. SELECT MOD(4,5) FROM DUAL will produce a result of 4. This result can be explained using the formula,

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n (x *FLOOR(n/x)) Therefore 4 (5 * (FLOOR(4/5)) = 4 (5*0) = 4. Whereas the alternate example, SELECT REMAINDER(4,5) FROM DUAL will produce a result of 1. This result is explained as ROUND is used instead of FLOOR. n (x *ROUND(n/x)) Therefore 4 (5 * (ROUND(4/5)) = 4 (5*1) = -1. So, although MOD and REMAINDER are similar, there are some key distinctions that need to be considered when being used in a pricing formula.

ROUND (number) ROUND (n, z)

This function will round up or down the value of n based on the integer specified in z. The integer determines the number of places to the right of the decimal point the value should be rounded. If the value of z is positive, this indicates places to the right of the point, a negative number indicates rounding to the left of the point. If there is no integer value, i.e. ROUND(n), the value is rounded to the nearest integer. Example: Using actual numbers instead of Formula Steps, ROUND(11.12345,2) = 11.12 ROUND(11.12345,4) = 11.1235 ROUND(10/3,2) = 3.33 When using this function, consideration should be given to the Rounding Factors linked to the price list, if associated. For example, if the pricing formula rounds to 2 decimal places and the price list to 5 places, the resultant value could have additional zeros added, i.e. n.nn000. The ROUND command would most likely be used where a complex calculation would require a subset of the data being calculated to be set to x decimal places, rather than calculate the whole amount. Business Use Example The most common case where the ROUND function will be used is in replicating clients pricing structure, originally calculated using spreadsheets. Where a client fixes values to 2 decimal places, they would expect to see the same value in Oracle as they would generated using their spreadsheets. Sometimes this will not happen, as the price is only rounded at the end of the formula calculation, however, should

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the client insist on exact replication of their data, then use of the ROUND command within the pricing formula will enable replication of rounded values from spreadsheets.

SQRT SQRT (n)

This is a basic function as described in the Pricing User Guide; this function will return the Square Root of the value n. Example: Using actual numbers instead of Formula Steps, Step1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 SQRT(1) = 3.162 SQRT(2) = 1,732 (SQRT(2)/2) = 0.577

TRUNC TRUNC(n,x)
This function will return a decimal number truncated to the specified number of decimal places. This value must be an integer. If this parameter is omitted, the trunc function will truncate the number to 0 decimal places. Example: Using actual numbers instead of Formula Steps, TRUNC(125.815) = 125 TRUNC(125.815,1) = 125.8 TRUNC(125.815,2) = 125.81 TRUNC(125.815,-1) = 120 Business Use Example Taken from Note: 554674.1 Formula Setup to Round To Nearest High $100.00 A basic formula to round a number up to the nearest 100: (trunc((F(x)-1)/100)*100)+100 where F(x) can equal a simple number or a more complex equation.

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F(x) is assumed to be > 0. An example of a formula used in the formula setup screen: ((TRUNC(((1+NVL(((2/(2+3+4+5+6)) * (7+8+9+10+11)),12))-14)/13))*13)+13 Where Field 12 = 0 , step 12, numeric constant of 0 Field 13 = 100, step 13, numeric constant of 100 Field 14 = 1, step 14, numeric constant of 1 The other steps could be any pricing attribute or modifier value. The functions listed above are not an exhaustive list, but the most likely to be used in Pricing Formula calculations. Other NUMBER functions listed in Appendix A are more pure mathematical and statistical based, but could also be used in Pricing Formulas, should a business model require it

Sql Built In Functions Null-Related NVL

NVL(x,y) This function will return the value of y, if the value of x is deemed to be NULL. The NVL function is explained in the standard pricing user guide. Its use is to assist the formula calculation in determining what to do if a NULL value is derived in the pricing formula. This is most often used where values for pricing attributes are being sourced and the system may not be able to retrieve a valid value. If a NULL value is returned then the sales order will display a blank price or an ERR in formula warning. The purpose of the NVL function is to direct the calculation to another value if the original is returned as null. Most often another formula step line of Numeric Constant 0 or 1 is used in this instance. The reference to this is by identifying the value or calculation that might return a null value and then pointing to the corresponding replacement value to be used. Example: NVL(1,2) = will return the value of step 2 if the value of step 1 is null NVL((1*2),3) will return the value of step 3 if the calculation of steps(1*2) is null NVL((1+2+3+4+5+6+7+8+9),10) will return the value of step 10 if the previous calculation of formula steps returns a null value

NVL and Error Conditions

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It was mentioned earlier about the impact of NULL values appearing in a pricing formula calculation. Unless specified, using an NVL command, any calculation that contains a NULL value, will cause a pricing formula to fail. In Order Management, there are two messages that are likely to appear should the system have issues with NULL values and the pricing formula. Error in Formula processing : &ERR_TEXT or Error in evaluating formula. Please supply any Pricing Attributes that may be required by the Formula. Or alternatively, use NVL in formula for steps that may potentially have null value. Also, check if all steps used in the formula have been setup as formula lines Unfortunately, both are fairly non-descriptive, but let the user know that the formula has failed. On the sales order line, the list price field will display a null value.. To rectify the error, use the Pricing Engine Request Viewer, and click on Step Values.

( Providing the profile option, QP: Insert Formula Step Values into Temp Table has been set to Yes, the user will be able to access the Step Values form. This lists all formula steps that have been used in the pricing formula price list calculation. Therefore, where particular Step numbers are missing, the user can deduce which Steps need to have NVL commands, or the whole formula has an NVL command. NOTE: The Step Values listed only pertain to the price list calculation and not from any formula associated with modifiers.

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This form lists the respective values used in the calculation. Therefore, values derived from pricing attributes will be listed.

The screenshot above shows Steps from 1 8, if a corrupt value was present, then one of the Step numbers would be missing. To resolve that, locate the step in the pricing formula and use NVL(step number, alternate value) in the pricing formula and reprice. Generally, as mentioned, a numeric constant of 0 is used as the alternate value, however, that may not trigger a potential problem to an inquiring user in a price calculation, however, using an exceptionally large value, e.g. 9999999 would immediately indicate an problem with the price. For example, Pricing Attribute Usage Step1 Numeric Constant 9999999 Step2 Thus, pricing formula is NVL(1,2), such that if no Usage value can be determined, a value of 9999999 is used in its place, which if installed would most likely place the order on credit hold With Order Management, there is always an Error message if a potential NULL value is not catered for, and the Price field blank. However, this feature, NVL, is particularly useful when using pricing formulas with Configurator in Quoting, as opposed to Order Management. In Order Management, if the pricing formula is in error, a warning will appear and a blank displayed in the price field. The Pricing Request Viewer can then be used to determine which step in the formula caused the error. However, in Quoting an error in the pricing formula will cause the whole calculation to fail and require the whole quote to be re-input. Therefore by wrapping the whole formula in a NVL command, a value can still be forced to the Quote form, e.g. 0, 9999999999, etc. The user can then investigate errors without the need for complete re-input of the quote. In Quoting, an error message might be displayed indicating a NULL value or invalid Formula Step. However, the configuration is not left on the quote with a final price of blank, as it would in OM. Unfortunately, in Quoting, the quote will

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simply fail and require the whole configuration to be submit to Quoting once the correction has been made. On small structures, this could not be an issue, however, if this was for a chain of restaurants, requiring a configuration per site for the company, this could potentially be a huge structure that would have to be re-input. Therefore, as a good practice, if pricing is using formulas and quoting is using pricing formulas, ALWAYS, wrap the formula with an NVL function. Again the alternate value could 0 or 99999999 etc. But at least build in contingence for NULL values.

NVL2

NVL(z,y,x) The NVL has a related function, NVL2. This function is an extension of NVL, whereby instead of replacing a NULL value with another value, the expression will return a NULL value replacement and a non-NULL value replacement. Based on the results of an expression z, the system will return x value (if NULL), or y value (if non-NULL). Example: NVL2(1,2,3) = will return the value of Step 2 if Step 1 is not null NVL2((1*2),3,4) will return the value of Step 4 if the calculation of Steps(1*2) is null NVL2((1+2+3+4+5+6+7+8+9),10,(11*12)) will return the value of Steps(11*12) if the previous calculation returns a null value This function would be useful if a pricing attribute was populated, a formula would be derived, whereby if the attribute was left blank a zero or alternate values would be returned. This function could be considered an IF-THEN-ELSE, but restricted to the use of identifying calculations should a NULL value be present.

Business Use Example When calculating the cost of preparing cut wood, an additional cost must be included where the thickness of the wood is below 1cm. Measurements of the prepared wood are collected in the ordering process using set values, therefore the thickness is either NULL or a set size, and the list price calculated. If wood below 1cm thickness is required, an additional 15% is added to the price. Pricing Attribute Cut Length (Step 1) Pricing Attribute Cut Width (Step 2) Pricing Attribute Cut Thickness > 1cm (Step 3)

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Pricing Attribute Cut Thickness < 1cm (Step 4) List Value 10 (from price list) (Step 5) Numeric Constant 1.15 (Step 6) The formula, in this example, would be NVL2(3,((1*2*3)*4),((1*2*4)*(5*6))) Where the thickness was input for > 1cm, the first price calculation would be used, if the > 1cm was NULL, then the additional 15% would be added to the list price value.

Sql Built In Functions General Comparison GREATEST

GREATEST(x,y) This function used in a formula string will compare expressions of data and return the highest value, i.e. if x is higher than y, then x is returned. The data can be a single value, a calculation or a combination of both. Should the datatypes of the expressions be different, then the expressions will be converted to the datatype of the first expression, i.e. x. Example: Step1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 GREATEST(1,2) = 10 GREATEST(2,1) = 10 (GREATEST(2,1)/2) = 3.333 The examples are using standard values, however, the same concept can be applied to pricing formulas. For example, in the seeded minimum fee formula in Advanced Pricing pricing, Step 1: Pricing Attribute Order Amount Step 2: Numeric Constant 750 Using the formula Greatest(1,2) will derive a value of either 750 or the actual Order Amount dependent on which is the higher value. Business Use Example The traditional use of a GREATEST command is when calculating minimum values within a pricing formula, as per the example the seeded formula loaded with Advanced Pricing. Another business example could be, The Licence for a Bar to show particular sports, not pay per view, is based on the Annual Revenue of the Bar, of which the minimum fee for the licence is 500. The

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Licence Fee is 5% of the Gross Revenue or 500 whichever is the greater. To gain the licence the bar owner, must submit revenue figures to the licence authority. To generate the fee, a Pricing Attribute of Gross Revenue will be defined. Pricing Attribute Gross Revenue Step 1 Numeric Constant 0.05 Step 2 Numeric Constant 500 Step 3 The Formula would be displayed as GREATEST((1*2),3). Therefore, the larger value of 5% of Gross Revenue or 500 would be the licence fee.

LEAST

LEAST(x,y) This function used in a formula string will compare expressions of data and return the lowest value, i.e. if x is higher than y, then y is returned. The data can be a single value, a calculation or a combination of both. Should the datatypes of the expressions be different, then the expressions will be converted to the datatype of the first expression, i.e. x. Should one of the expressions return a NULL value that will be considered the lowest value and be returned. Example: Step 1 - Numeric Constant = 10 Step 2 - Pricing Attribute = 3 Least(1,2) = 3 Least(2,1) = 3 (Least(2,1)/2) = 1 The examples are using standard values, however, the same concept can be applied to pricing formulas. For example, Step 1: Pricing Attribute Order Amount Step 2: Numeric Constant 750 Using the formula Least (1,2) will derive a value of either 750 or the actual Order Amount dependent on which is the lower value. Business Use Example Using the example from GREATEST, a licence authority could now apply a maximum licence value of 500. Therefore, the charge for the licence would now be 5% of the Gross Revenue or 500 whichever is the smaller.

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Sql Built In Functions Encoding and Decoding DECODE

DECODE(w,x,y,z) This function operates similar to IF-THEN-ELSE expressions. This function is used to generate IF statements within more complex pricing formulas. However, rather than a basic IF-TRUE-FALSE syntax, the DECODE function will permit a string of statements, to allow many True/False links in a single formula. The DECODE function requires as a minimum four elements, 1: Statement 2: Result 3: True 4: False Such that the minimum pricing formula structure is DECODE(1,2,3,4). Example: DECODE(1+1,2,3,4)=3 as 1+1 equals 2, therefore result statement is 3. DECODE(1+2,2,3,4)=4 as 1+2 equals 3, therefore result statement is 4. This basic concept can easily be translated into pricing formulas. Generally this will be used in collaboration with a Factor List formula step entry as the statement, and Numeric Constant formula steps as the results. Business Use Example Simple The client would like to apply a discount modifier only on a line with an ordered quantity that is a multiple of 5. Using a combination of DECODE and MOD. Pricing Attribute Ordered Quantity Modifier Value Numeric Constant 0 Numeric Constant 5 (Step 1) (Step 2) (Step 3) (Step 4)

Using the formula steps, the formula expression would be, DECODE((MOD(1,4),0,2,3) Where the Ordered Quantity was divisible by 5 and no remaining value, i.e. MOD=0, then the discount value was applied linked to the modifier value. However, if MOD produced a value greater than 0, then the modifier would still be applied, but with a value of 0 instead. Complex

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A customer generates orders based on the attendance an end-customer has for a site. Below 1000, uses the standard list price, anything over 1000 uses a more complex formula. Step 1: Factor List ATTENDANCE Pricing Attribute Attendance Pricing Attribute Attendance Step 2: Numeric Constant 1 Step 3: Numeric Constant 2 Step 4: List Price Step x-y additional steps. The pricing formula would read, DECODE(1,2,4,(x.y)). Such that where the attendance is less than 1000, this would equal Step 2, therefore Step 4 will be used in the calculation. If the attendance is higher, then the more complex formula (x..y) would be used. This example can be expanded to build in a several different pricing formulas within the decode statement. If another band is entered, such that 1001 5000 attendance is double the list price, while 5000+ is now the complex formula. Step 1: Factor List ATTENDANCE Pricing Attribute Attendance Pricing Attribute Attendance Pricing Attribute Attendance Step 2: Numeric Constant 1 Step 3: Numeric Constant 2 Step 4: List Price Step x-y additional steps. The pricing formula would now read, DECODE(1,2,4,3,(4*3),(x..y)). Such that if the Attendance is less than 1000, this equals step 2, therefore List Price (Step 4) is used. If the Attendance is between 1001 5000, this equals Step 3, therefore the calculation is List Price * 2 (Step 4* Step3), if neither Attendance is satisfied, then the complex formula (x.y) will be used. This approach can be used for a limitless number of conditions, providing the Factor List value has a Numeric Constant to reference by. The Factor List need not be a range of values, the value to be mapped against the Numeric Constant is just the adjustment factor, what derives it is dependent on the Context and Attribute within the Factor List, e.g. values of Yes and No can be linked to adjustment factors of 1 and 2. 0 1000 1001 5000 5001 99999 1 2 3 0 1000 1001 99999 1 2

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CASE

CASE n WHEN x THEN y ELSE z END The CASE built-in function is an refinement of DECODE, in that a statement and result can provide for True and or False results. However, CASE statements are restricted to 255 arguments, each WHEN..THEN condition counts as two arguments. Although, a pricing formula with that many conditions would be exceedingly rare. This is the same limit as the DECODE function. Business Use Example A Multi currency mark-up is defined to enable marketing rounding on public price, If converted list price between 1-499 => then rounding up 1 If converted list price between 500-999 => then rounding up 5 If converted list price between 1000-99999999=> then rounding up 10 CASE WHEN 1 BETWEEN 2 AND 3 THEN ((CEIL(1/4)*4)-1) WHEN 1 BETWEEN 5 AND 6 THEN ((CEIL(1/7)*7)-1) WHEN 1 BETWEEN 8 AND 9 THEN ((CEIL(1/10)*10)-1) END List price Numeric Constant 1 Numeric Constant 499 Numeric Constant 1 Numeric Constant 500 Numeric Constant 999 Numeric Constant 5 Numeric Constant 1000 Numeric Constant 9999999 Numeric Constant 10
CASE V DECODE

(step 1) (step 2) (step 3) (step 4) (step 5) (step 6) (step 7) (step 8) (step 9) (step 10)

When attempting IF-THEN-ELSE statements in pricing formulas, the examples presented demonstrate that CASE and DECODE can both be used. But how to determine which function to use in which scenario? DECODE will only allow you to compare one value to another in the statement. However, as in the example previously, a factor list can be used to list ranges of values, providing there is an attribute that can be applied to the factor list. This is where CASE can have the advantage. CASE statements allow for > and BETWEEN comparisons, as seen in the example above. The List Price needs to be compared to other values, as there are no other attributes available, it is possible to compare the List Price to Numeric Constants.

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If a new attribute Converted List Price is defined, then the above example could be defined using DECODE. DECODE(1,2,((CEIL(7/2)*2)-7),3,((CEIL(7/5)*5)-7),4, ((CEIL(7/6)*6)-7)) Factor List Converted List Price Converted List Price 1 499 Converted List Price 500 999 (Step 1) 1 2

Converted List Price 1000 99999 3 Numeric Constant 1 Numeric Constant 2 Numeric Constant 3 Numeric Constant 5 Numeric Constant 10 List Price (Step 2) (Step 3) (Step 4) (Step 5) (Step 6) (Step 7)

The CASE statement could be argued is easier to understand than DECODE. However, with the DECODE, by using Factor Lists and Attributes, should values need to change due to yearly rate adjustments, the effective dates linked to the Pricing Date will enable easier maintenance. If this does not need to be considered, then the easier option would be the CASE statement. DECODE is a series of values within the parentheses, and can be difficult to follow, whereas the expression WHEN x THEN y is clear. There is no right or wrong usage of CASE and DECODE, it is dependent on the data sources available and the data comparisons required to produce the final value.

Sql Built In Functions Aggregate

Aggregate functions return a single result row based on groups of rows, rather than on single rows. When used in Pricing Formulas, the functions can take the values of a Pricing Attribute and manipulate the data to provide the required calculation. The following lists some of the Aggregate functions and how they might be applied to a particular situation. Business Use Example Data A business calculates the list price of an item based on a uplift from the purchase price over the previous 6 month period. A pricing attribute is defined that will collate the purchase prices for the invoiced and closed purchase order lines for the specific item being ordered. Item A PO Price Jan 2011 Feb 2011 1234 1256

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Mar 2011 Apr 2011 May 2011 Jun 2011

AVG

1321 1378 1398 1434

AVG(x) This function will return the average value of the expression x. If a Pricing Attribute has been defined to return multiple rows of numeric values, the AVG function can be used to calculate a single value for the pricing formula. Business Use Example The business calculates the List Price of an item being ordered on the average purchase order price over the last six months and adds a margin of 25%. The pricing formula will be, (AVG(1))*2 Step 1 Pricing Attribute PO Price Step 2 Numeric Constant 1.25 The system will calculate (1234+1256+1321+1378+1398+1434)/6 = 8021/6 = 1336.83. Therefore the calculated list price for the sales order would be 1671.04.

MAX

MAX(x) This function will return the highest value of the expression x where the expression evaluates a more than one row of data. If a Pricing Attribute has been defined to return multiple rows of numeric values, the MAX function can be used to calculate a single value for the pricing formula. Business Use Example For certain customers, the business calculates the List Price of an item being ordered on the maximum purchase order price over the last six months and adds a margin of 25%. The pricing formula will be, (MAX(1))*2 Step 1 Pricing Attribute PO Price Step 2 Numeric Constant 1.25 The system will evaluate (1234, 1256, 1321, 1378, 1398, 1434) and return 1434. Therefore the calculated list price for the sales order would be 1792.5.

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MIN

MIN(x) This function will return the lowest value of the expression x where the expression evaluates a more than one row of data. If a Pricing Attribute has been defined to return multiple rows of numeric values, the MIN function can be used to calculate a single value for the pricing formula. Business Use Example For its best customers, the business calculates the List Price of an item being ordered on the minimum purchase order price over the last six months and adds a margin of 25%. The pricing formula will be, (MIN(1))*2 Step 1 Pricing Attribute PO Price Step 2 Numeric Constant 1.25 The system will evaluate (1234, 1256, 1321, 1378, 1398, 1434) and return 1234. Therefore the calculated list price for the sales order would be 1542.5.

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EXAMPLE

The following BR.100 set up extracts is for a recorded music licence for special one off events. The table below shows the customer data that needed to be converted into a formula. Using the formula, meant that only the List Price value was amended each year for inflation (RPI%) Average Attendance Fee() 1 - 500 10.99 501 - 2000 21.98 2001 - 3500 43.96 3501 - 5000 65.94 5001 - 6500 87.92 6501 - 8000 109.90 8001 - 9500 131.88 9501 - 11000 153.86 Fees increase pro rata 21.98 per band of 1,500 persons. VAT should be added at the current rate to the above charges. To obtain the value of the licence, three main parameters need to be recorded: Number of People in Attendance Number of Hours the Event will last Here, where the Attendance is fewer than 500 people this will incur a set fee from the Price List (i.e. 10.99, whereby over 500 people a formula will calculate the licence fee.
Name Description Event Tariff Effective Dates 01-OCT-2000 Formula NVL(((DECODE(1,2,3,4,(CEIL((7-5)/6)*(3*4))))*NVL(8,2))*NVL(10,2),9)

Formula Type Factor List Numeric Constant List Price

Pricing Attribute Context

Pricing Attribute

Component 002 ATTENDANCE 1

Step 1 2 3

Reqd Flag

Seeded

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Formula Type Numeric Constant Numeric Constant Numeric Constant Pricing Attribute Pricing Attribute Numeric Constant Pricing Attribute

Pricing Attribute Context

Pricing Attribute

Component 2 500 1500

Step 4 5 6 7 8

Reqd Flag

Seeded

XX Criteria XX Criteria XX Common Attributes

Average Attendance Number of Days 0 Licence Days

Y Y

9 10

Factors
Form Name

Factors
Base Pricing Attribute Context XX Criteria XX Criteria Base Pricing Attribute Average Attendance Average Attendance Operator Between Between Value From 1 501 Value To 500 9999999 Adjustment 1 2 Start Date End Date

Base Pricing Attributes

Component 002 ATTENDANCE 002 ATTENDANCE

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APPENDIX A SQL Built-In Functions

Extracts from Oracle Database SQL Reference 10g Release 2 (10.2)

Numeric ABS ACOS ASIN ATAN ATAN2 BITAND Character CHR CONCAT INITCAP LOWER LPAD LTRIM NLS_INITCAP NLS_LOWER NLSSORT NLS_UPPER REGEXP_REPLACE REGEXP_SUBSTR REPLACE RPAD RTRIM SOUNDEX SUBSTR TRANSLATE Datetime ADD_MONTHS CURRENT_DATE CURRENT_TIMESTAMP DBTIMEZONE EXTRACT FROM_TZ LAST_DAY LOCALTIMESTAMP MONTHS_BETWEEN NEW_TIME NEXT_DAY NUMTODSINTERVAL NUMTOYMINTERVAL ROUND SESSIONTIMEZONE SYS_EXTRACT_UTC SYSDATE SYSTIMESTAMP Conversion ASCIISTR BIN_TO_NUM CAST CHARTOROWID COMPOSE CONVERT DECOMPOSE HEXTORAW NUMTODSINTERVAL NUMTOYMINTERVAL RAWTOHEX RAWTONHEX ROWIDTOCHAR ROWIDTONCHAR SCN_TO_TIMESTAMP TIMESTAMP_TO_SCN TO_BINARY_DOUBLE TO_BINARY_FLOAT Data Mining CLUSTER_ID CLUSTER_PROBABILITY Hierarchical SYS_CONNECT_BY_PATH Collection CARDINALITY COLLECT POWERMULTISET POWERMULTISET_BY_CARDINALITY SET Large Objects BFILENAME EMPTY_BLOB EMPTY_CLOB Aggregate

AVG
COLLECT CORR COUNT COVAR_POP COVAR_SAMP CUME_DIST DENSE_RANK FIRST GROUP_ID GROUPING GROUPING_ID LAST

CEIL
COS COSH EXP

FLOOR
LN LOG

MOD
NANVL

MAX
MEDIAN

POWER REMAINDER ROUND

MIN
PERCENTILE_CONT PERCENTILE_DISC

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Numeric SIGN SIN SINH

Character TREAT TRIM UPPER

Datetime TO_CHAR TO_DSINTERVAL TO_TIMESTAMP TO_TIMESTAMP_TZ

Conversion TO_CHAR TO_CLOB TO_DATE TO_DSINTERVAL TO_LOB TO_MULTI_BYTE TO_NCHAR TO_NCLOB TO_NUMBER CLUSTER_SET FEATURE_ID FEATURE_SET FEATURE_VALUE PREDICTION PREDICTION_COST PREDICTION_DETAILS PREDICTION_PROBABILITY PREDICTION_SET

Aggregate PERCENT_RANK RANK REGR_ STATS_BINOMIAL_TEST STATS_CROSSTAB STATS_F_TEST STATS_KS_TEST STATS_MODE STATS_MW_TEST STATS_ONE_WAY_ANOVA Encoding and Decoding STATS_T_TEST_ STATS_WSR_TEST STDDEV STDDEV_POP STDDEV_SAMP SUM VAR_POP VAR_SAMP VARIANCE

SQRT
TAN TANH NLS Character NLS_CHARSET_DECL_LN NLS_CHARSET_ID NLS_CHARSET_NAME

TO_YMINTERVAL TRUNC TZ_OFFSET

TRUNC
WIDTH_BUCKET

General Comparison

Character Number ASCII INSTR LENGTH

TO_SINGLE_BYTE TO_TIMESTAMP TO_TIMESTAMP_TZ TO_YMINTERVAL TRANSLATEUSING UNISTR

GREATEST LEAST

CASE DECODE
DUMP ORA_HASH

Null Related COALESCE LNNVL NULLIF

REGEXP_INSTR

NVL NVL2

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SQL Built-In Functions for Pricing Formulas in Oracle Advanced Pricing August 2011 Author: Marcus Lawrence Contribution Acknowledgements: Stuart May, Kevin DeMartelaere, Stanislas Martin, Carolyn Graver and Pradeep Bansal Oracle Corporation World Headquarters 500Oracle Parkway Redwood Shores, CA94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 www.oracle.com Oracle - Hardware and Software Engineered to Work Together Oracle is a registered trademark of Oracle Corporation. Various Product and service names referenced here in maybe trademarks of Oracle Corporation. All other product and service names mentioned maybe trademarks of the irrespective owners. Copyright2002 Oracle Corporation All rights reserved.