How does promotions work in Oracle EBS

Many companies need to give promotional offers to the customers. This article is related to such kind of scenarios and tries to get initial path to define promotions in system.

Discount Rule Example
Buy N of X, get Y at Z% off	Buy 2 (=N) pair of jeans (=X), get a sweater (=Y) at 50% (=Z) off.
Buy N of X, get Y at Z$ off	Buy 1 (=N) suit coat (=X), get a dress shirt (=Y) for $10 (=Z) off.
Buy N of X, get Y for Z$	Buy 2 (=N) shirts (=X), get a pair of pants (=Y) for $10 (=Z).
Buy N of X, get highest priced X at Z% off	Buy 3 (=N) items (=X), get 10% (=Z) off the highest priced item. X can be N of the same or different items. Item A is $19.99, item B is 15.99, item C is 10.00. Since item A is the highest priced item, $1.99 (10% of $19.99) is taken off the total.
Buy N of X, get lowest priced X at Z% off	Buy 3 (=N) items (=X), get 10% (=Z) off the lowest priced item. X can be N of the same or different items. Item A is $19.99, item B is $15.99, item C is $10.00. Since item C is the lowest priced item, $1.00 (10% off $10.00) is taken off the total.
Buy $N or more of X, get item Y at Z$ off	Buy $20 (=N) of Sporting Goods (=X), get $10 (=Z) off a basketball item (=Y).
Buy $N or more of X, get Y at Z% off	Buy $20 (=N) or more of Sporting goods (=X), get 10% (=Z) off a baseball cap (=Y).
Buy $N or more of X, get Y for Z$	Buy $500 (=N) or more of jewelry (=X), get a pair of earrings (=Y) for $25 (=Z).
Group Discount Example
Buy N of X for Z$	Buy 2 (=N) pair of jeans (=X), get them for $50 (=Z).
Buy N of X for Z% off	Buy 3 (=N) pair of jeans (=X), get 35% (=Z) off the total.
Buy N of X for Z$ off	Buy 3 (=N) pair of jeans (=X), get $25 (=Z) off the total.
Buy N or more of X for Z% off	Buy 3 (=N) or more pairs of jeans (=X), get 35% (=Z) off the total.
Buy N or more of X for Z$ each	Buy 3 (=N) or more pairs of jeans (=X), get them for $25 (=Z).

We will try to cover few of the above scenarios.
Note: Above scenarios are just to understand different requirements of promotions. All scenarios are not supported by Oracle applications.

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Let’s start with the setup now:

Define Items.
Computer Item:

Printer Item:

Step 2:  Assign the prices to those item on price list

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Scenario 1:
If a customer buys computer AS54888 (Sentinel Standard Desktop) with qty more than 2 then CM76840 (Lightning Inkjet Printer) shall be give at Discount of 40%.

1. Create a modifier with type Promotion
2. Choose modifier as Promotional Goods
3. Automatic check box shall be "yes"
4. Pricing Phase "Modifiers for BOOK Event"   

Click on "Define Details"

Go to Block "Additional Buy Product"
'Get Product Attribute'=Item Number and "Get product Values"= 'Item to be offered'
Get Qty= Qty to be offered, Get Price from particular Price List
Application Method = Percent and Values= Percentage of Discount (if you put 100% then it will be free)

Enter a Sales Order:

Enter the computer Item AS54888

Book Sales order:

On Booking you will get the discounted item on sales order. This item (printer) gets populated automatically with discount of 40% (List price =300, after discount of 20% it comes to 180)

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Scenario 2:
If a customer buys computer AS54888 (Sentinel Standard Desktop) with qty more than 2 then two CM76840 (Lightning Inkjet Printer) shall be give at Discount of amount 111.00. So here CM76840 has a price of 300 per unit, two units are of 600, after discount two CM76840 shall be offered at 489.00 (600.00-111.00)
Or same thing can be expressed as, two qty of CM76840 has be sold at per unit price of 244.50 (489/2).


Click on Define Details... 

Check the setup by putting sale order in place…

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Scenario 3:
If a customer buys computer AS54888 (Sentinel Standard Desktop) with qty more than 2 then CM76840 (Lightning Inkjet Printer) shall be give at fixed price of 199.00 per unit. So here CM76840 has a price of 300 per unit, two units are of 600 and these should be offer at 398 (199 X 2).



Click on Define Details... 

Check the setup by putting sale order in place…