Merchandising: Procurement Sales Audit Pricing

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Oracle Retail Merchandising Foundation Procurement

Austin Gwin

Principal Solution Consultant

Oracle Retail

July, 2022

Tuesday Jul 12

9:00 Introduction and Oracle Retail Overview

9:30 Hierarchy, Location, Vendor

11:00 Item

12:00 Lunch

1:30 Procurement

Costing & Deals

Purchase Order

Invoice Match

4:30 End

Procurement: Purchase Orders, Deals, Costing & Invoice Match

Suppliers originate in

Financials; once approved

sent to Merchandising to

order product

Item, Orders & Deals are created.

Deals auto-applied to orders and

are sent to the supplier for

fulfillment

Merchandise is received at the

warehouse, store or even

customer. Inventory & Stock

Ledger are updated to reflect

receipt and staged for the GL

Matched/resolved

invoices are paid in AP;

totals/liabilities & inv

movement posted to GL

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

Invoices are received and

automatically matched (or

resolved) against the PO and

receipt details

End To End Merchandising Flow: Procurement

PROCESS &

CLEANSE SALES

RECEIVE &

ALLOCATE STOCK

MATCH & RESOLVE

INVOICES

SUPPLIER

MANAGEMENT

MANAGE ITEMS &

PURCHASE ORDERS

EXECUTE

PRICING

TRACK & VALUE

INVENTORY

POST, PAYMENT &

GENERAL LEDGER

Define or induct regular pricing,

promotional mechanics and

markdowns. Link to vendor

funding. Pass Price to

downstream solution, Web or in

store

All transactions at SKU/location

are captured in real-time with

Inventory & Stock Ledger

updated to reflect movement

and staged for the GL

Procurement Cost Events

Scenario Number Scenario Description

PRI19 Procurement - Cost events TCS has a need to change the cost of the products based on the negotiations with the vendor for a specific time frame

Managing Item Cost

EDI

Spreadsheet Upload

User Interface

Cost Change

Item/Supplier Site/Country Origin Item/Supplier Site/Country Origin

/Location

Base Cost

Bracket Costs

Reason Code / Type

Upload as Approved

or Online Approval

Cost Change Events

Optional

Effective Date

Item Master

PO Update

Supply Chain Hub

Cost & Cost Updates

Manual Cost Change: Items can be selected for cost changes in various ways:

By item or item list – if a cost change only affects one item or a portion of the items provided by the supplier By supplier/supplier site – if a supplier implements cost changes that affect many or all of the items it supply to a retailer By location – if a cost change only affects the items provided by the supplier for a given location

EDI Cost Change: Suppliers send new cost prices to retailer via EDI:

Cost changes can be reviewed and the following actions taken: Accept or Reject Once accepted the cost price change tables are populated and flow is the same as manual cost price changes

Apply Cost Change:

The cost change will be applied to Supplier Item cost on pre-defined Effective Date (can only be a future date)

There is an option against each item to recalculate orders and update children Recalculating orders will correct purchase order costs (only for orders not yet received)

Supplier Item Base Cost

- Deals = Net PO Cost + ELC Expenses = Net Landed

Cost

+ Cost of Inventory

Movements

• Unit cost price • Cost zone structure • Future cost changes • EDI cost changes

• Order volume • Order type • Logistics rebate

• PO receipt cost • Invoice cost

• Record and track additional costs of article procurement

• Freight charges • Insurance • Duty • Handling fees

• WAC • Used for COGS • True margin

indication

• Receipt cost price • Average cost price

• Intra-company Tsf • Inter-company Tsf • Transfer Up-charges

Item Supplier Location Cost

$1.50

Bracket Price Reduction

- $0.10

Article PO Cost

= $1.00

Freight Charge & Duties

+ $0.232

Article Landed Cost

= $1.232

- Brackets & Allowances

• Negotiated discounts

• Annual deals • Promotional deals • PO specific deals • Off-Invoice discounts • (Bill-back discounts) • (Rebates)

Off Invoice Discount

- $0.40

Adjusted Cost Price

= Location Cost Price

• WAC

Logistics Handling Fee

+ $0.20

Location Cost Price

$1.432

Actual Landed Cost

• Freight Charges • Obligations

Purchase Order: Cost Structure

Product Demonstration

Procurement Deals and Rebates

Scenario Number Scenario Description

PRI17 Vendor Rebates

TCS receives discounts or rebates from vendors.

Sometimes special pricing or promotions are negotiated for campaigns. In this option the pricing is decided before the Purchase Order is created and therefore the Purchase Order is created at campaign prices.

In other cases, the discounted cost from vendor is based on the actual sales. In this scenario the rebate is realized on meeting agreed targets.

Examples of other vendor discounts / rebates currently in use are: * % discount based on annual Purchase * Tiered $ Sales for specific $ 1-2 mil -2%, 2-3 mil -2.5% * Flat amount % - marketing, product placement * Quick-pay discounts

Purchasing Basics : Deals

A deal is an agreement between a retailer and a supplier that results in a payment or a discount or a rebate from the supplier to a retailer

1. At its simplest the payment can be just a lump sum contribution to some a retailer or joint business activity such as advertising or display of the supplier’s product in a feature space in store

2. More complex deals will calculate income for a retailer based on their achieving some predefined order or sales targets with an item or group of items

3. Another class of deal supports vendor funding of promotions and markdown taken as a result of price changes or clearances

Deals can also be captured for partners : wholesalers, distributors and manufacturers

A Simple Deal collects pre-defined lump sums at pre-defined intervals; not linked to specific transactions in the system

• One type of Simple Deal: Fixed Deal

A Complex Deal is triggered by transactions in the system, such as a sale or a purchase order or a price event. The deal income depends in some way on the size or volume of the deal transaction(s), according to the parameters set for the deal.

• Several types of Complex Deal:

• Off Invoice – Discount on a purchase order cost

• Billback / Billback Rebate – Bill supplier retrospectively based on performance : purchase orders, receipts or Sales

• Vendor Funded Markdown – Bill supplier for markdown taken on a price change or clearance

• Vendor Funded Promotion – Bill supplier for contribution to realised markdown on promotion sales

Purchasing Basics : Deal Types

Purchasing Basics: Deals from Creation to Collection

Supply Chain Hub

Manual Entry via Merch UI

Upload as Approved or

Online Approval

EDI

Deals Management

Purchase Order

Invoice Match

Bill-back Amounts Captured

AP/AR

Off Invoice

Deal Income Debit/Credit

Purchases

Receipts

Markdowns

Receipt & Invoice

Bill-Back / Rebates

Fixed Stock Ledger

Based on Deal

selection

Automation is Central to Collecting Every Cent Earned Seamless integration across Deals, PO’s, Invoice Matching and Payment

Receiving Sales Invoice

Creation Invoice

Matching Payment in Financials

PurchasingDeals

Off Invoice Deal

Scan Allowance Bill-back based on Sales Qty

Sales are tracked during effective period Debit Memo automatically created and sent to Financials

Bill-back based on Purchase Qty or Received Qty

Purchases/Receipts tracked (and invoices matched) during effective period; Debit Memo automatically created and sent to Financials

Bill-Back based on a Promotion

Purchases linked to promotion Debit Memo automatically created and sent to Financials

With Proof of Performance

Typical Examples of Deals

Supply Chain Hub

EDI and Upload capabilities • Items/Costs/Prices provided by

supplier • Contract, Purchase Orders and Deals

can be created and negotiated • Supplier can also upload documents,

like Invoices or Credit Notes • Supplier can build an EDI interface,

upload a spreadsheet or create items using existing interface

• Includes a review/approval process by Retailer

• Highly configurable

Product Demonstration

Procurement Purchase Orders

Scenario Number Scenario Description

PRI1 Procurement to Pay Process using Single Purchase Order-single shipment with Primary vendor and standard items.

PRI3 Procurement – PO and ASN amendments

PRI4 Procurement – Procure to pay having single Purchase Order and multiple ship points

PRI9 Procurement – Automated through planning system

PRI10 Procurement – Procure to Pay for ELFA product considering blanket Purchase orders or open contract Purchase order

PRI11 Procurement – ELFA prepacks and kits

PRI15 Procurement – Freight allocation for Domestic Purchase Orders

Flexible and open procurement

Multiple Options For Purchase Order Creation and Maintenance

EDI

Replenishment or Planning

Product Development

Induction Templates

Completion

Cost & Expenses defaults

Supply Chain Hub

Manual Entry

Purchase Order Management

• New PO

• Update PO

• Mass update

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Purchase Orders: Consignment & Scan Based Trading

Key Capabilities

• Payment automatically generated without manual user intervention

• Option to track inventory (units only)

• Item or item/ location level designation

• Test pilot an item, then roll out

• Manage cost by set $ amount or % off retail

• Details included on invoices so it’s clear to your supplier

• Invoicing based on sales, based on retailer and/or supplier desired frequency

Ivan, a Senior Buyer, gets real time updates on late POs, POs needing his approval, and more.

Buyer Dashboard

Ivan Buyer

Product Demonstration

Procurement Receiving

Scenario Number Scenario Description

PRI2 Procurement - Receipt discrepancies

PRI5 Procurement - Damages at receipt

PRI7 Procurement - Procure to pay for cross dock shipping method

Transaction Process Flows

Selling Locations

Receipts Adjustments Shipments

Merchandising Operations Stock Locations

Supplier Warehouse

Store (SIOCS)

General Ledger

Sales Audit

S a

le s

Daily Sales Cash, Deposits

Order Liabilities

Invoice Matching

Orders

Receipts

In Store

In v

o ic

e s

Approved Invoices

Stock Ledger

T ra

n s a

c ti

o n

Inventory & Sales

Accounts Payable

Orders Inventory / Order / Receipts / Costs

Merchandise Shipped

On Line

Oracle Retail Oracle External

Product Demonstration

Procurement Invoice Match

Scenario Number Scenario Description

PRI12 Invoicing & Payment

PRI13 Invoicing & Payment – Invoice Adjustments

PRI14 Invoice Pre-payments for Imports

PRI16 Received but not Invoiced

PRI18 Purchase Order Payment - Details

PRI6 Procure to Pay using Alternate Vendors

Automated 3-way match between PO/Receipt/Invoice based on retailer-specified thresholds

Entry

• EDI import

• Evaluated Receipts

• Direct Store

Delivery

• Vendor managed

Inventory

• Consignment

• Deals

• Manual group entry

Payables/Posting

• Best term calculation

• Open interface to

Financials

Matching

• Automatic 3-way matching

• Summary level and detail

level if necessary

• Configurable Supplier

tolerances

• Manual online match

Resolution

• Line discrepancy

separated

• Routing capability

• Reason code driven action

• Cost and/or quantity

adjustment

• Automated matching increases efficiency and accuracy

• Manage by exception to handle large volume of invoices

• Flexible tolerance and workflow to incorporate business rules

Document Entry

Automated Matching

Resolution Posting

Match, Post & Pay : Invoice Matching Capabilities

Flexible, User-defined Invoice Matching Strategies

The same supplier can have very different invoice matching tolerances for different products

Match, Post & Pay : Invoice Matching Capabilities

Vendor Groups: Dealing with Complex Matching Issues

Vendor Groups allows a retailer to associate different suppliers together, allowing for payment of an invoice from one to be matched with purchases from another.

This can be useful when suppliers merge or a factor or other alternate payment requirement occurs.

Invoice Pre-Payments

Both PO and Invoice will reflect the Paid In Advance term type. Invoice will be sent for payment without match; system will prevent re- payment when goods received. Should supplier short ship, a debit demo can be issued after receipt completed.

Received Not Invoiced

All receipt lines that have not been successfully matched and sent for payment will be sent once an accounting period to the General Ledger. Retail Invoice Match (ReIM) does this automatically, based on the assigned inventory account determined during system set up.

UCM

Oracle Retail Cloud Financials

Bulk

General Ledger

Payables

Retail

Merchandising

System

Retail Stock

Ledger

Retail Invoice

Matching

Retail Sales

Audit

Manual

Messaging

Service

Lifecycle Data

Management

Inventory

Valudation

Revenue

Recognition

Merchandising

Procure to Pay

G/L Chart of Accounts

Inventory & Sales Data

Daily Sales, Cash & Deposits

Aged receipts never invoiced

Manually Paid Invoices

Matched & Pre Pay Invoices

Credit Notes

Debit/Credit Memos

Supplier, Sites, Addresses

Rebates

Freight Terms

Currency Exchange Rates

Payment Terms

External

Service

Retail to Cloud Financial Integration Overview

Detail on Matched Invoices

Oracle Retail Invoice Match (ReIM) produces instructions for payment to the Accounts Payable functions of a financial solution such as Oracle ERP.

This interface is a standard API that can be tailored to the requirements of virtually any modern financial solution.

Typically the output included invoice number, pay date(s), discount date(s), amount to pay and how amount is considered (negative or positive amount).

The standard interface does not include notification that payment has been completed, though that can be configured in the Supply Chain Hub

Financial Integration Data Flows

Supported Integration Flows • Foundation Data

• Suppliers Sites and Addresses • COA validation • Currency and Exchange Rates • Payment Terms • Freight Terms

• Sales • Sales Audit Totals to GL

• Stock Ledger Valuation • Stock Ledger to GL

• Procure to Pay • Invoice Matching to AP • Invoice Matching to GL

UCM

Oracle Retail Cloud Financials

Bulk

General Ledger

Payables

Retail

Merchandising

System

Retail Stock

Ledger

Retail Invoice

Matching

Retail Sales

Audit

Manual

Messaging

Service

Lifecycle Data

Management

Inventory

Valudation

Revenue

Recognition

Merchandising

Procure to Pay

G/L Chart of Accounts

Inventory & Sales Data

Daily Sales, Cash & Deposits

Aged receipts never invoiced

Manually Paid Invoices

Matched & Pre Pay Invoices

Credit Notes

Debit/Credit Memos

Supplier, Sites, Addresses

Rebates

Freight Terms

Currency Exchange Rates

Payment Terms

External

Service

Retail to Cloud Financial Integration Overview

Javier, an AP Analyst, has a dashboard that identifies, in priority order, the invoices that have failed to match that are his to review

Javier Accounts Payable

Analyst

Invoice Match Dashboard

Product Demonstration

End of Day 1

Wednesday Jul 13

9:00 Recap – Q&A from Day 1

9:30 Import & Landed Cost Process

11:00 Inventory Management (Transfers, Adjustments, RTV, Physical Inventory, Store Inventory)

12:00 Lunch

1:30 Inventory Management – Sales Audit

2:30 Perpetual Inventory & Stock Ledger

Financial Mapping

Costing Method

Posting to GL

4:00 Other Topics (not included on the RFP/scripts) if allowed

Pricing

4:30 End

Inventory Management: Sales Audit

Inventory Management

Scenario Number Scenario Description

IM8 Sales Audit Process: This process covers the flow of the sales transactions from the POS system is updated into the Core Merch system and how the sales gets posted in the GL account in finance application.

Suppliers originate in

Financials; once approved

sent to Merchandising to

order product

Item, Orders & Deals are created.

Deals auto-applied to orders and

are sent to the supplier for

fulfillment

Merchandise is received at the

warehouse, store or even

customer. Inventory & Stock

Ledger are updated to reflect

receipt and staged for the GL

Matched/resolved

invoices are paid in AP;

totals/liabilities & inv

movement posted to GL

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

Invoices are received and

automatically matched (or

resolved) against the PO and

receipt details

End To End Merchandising Flow: Sales Audit

PROCESS &

CLEANSE SALES

RECEIVE &

ALLOCATE STOCK

MATCH & RESOLVE

INVOICES

SUPPLIER

MANAGEMENT

MANAGE ITEMS &

PURCHASE ORDERS

EXECUTE

PRICING

TRACK & VALUE

INVENTORY

POST, PAYMENT &

GENERAL LEDGER

Define or induct regular pricing,

promotional mechanics and

markdowns. Link to vendor

funding. Pass Price to

downstream solution, Web or in

store

All transactions at SKU/location

are captured in real-time with

Inventory & Stock Ledger

updated to reflect movement

and staged for the GL

Import: • Transactions from all channels • Standardize to one format

Sales Audit: • Audit • Total

Export: • Sales + Taxes • Totals • Raw data

Store POS Online StoreStandardize

Automated Auditing

Perform Correction

Automated Totaling

Yes Does Error Exist?

Stock Ledger

Invoice Matching

General Ledger

Analytics ACH/Bank Reconciliation

Sales Data

Automated Sales Audit Process

Jen, a Sales Auditor, has a dashboard that identifies for her issues that need resolution and store days that need to be balanced.

Jen Sales Auditor

Sales Audit Dashboard

Product Demonstration

Perpetual Inventory & Stock Ledger

Suppliers originate in

Financials; once approved

sent to Merchandising to

order product

Item, Orders & Deals are created.

Deals auto-applied to orders and

are sent to the supplier for

fulfillment

Merchandise is received at the

warehouse, store or even

customer. Inventory & Stock

Ledger are updated to reflect

receipt and staged for the GL

Matched/resolved

invoices are paid in AP;

totals/liabilities & inv

movement posted to GL

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

Invoices are received and

automatically matched (or

resolved) against the PO and

receipt details

End To End Merchandising Flow: Stock Ledger & Inventory Valuation

PROCESS &

CLEANSE SALES

RECEIVE &

ALLOCATE STOCK

MATCH & RESOLVE

INVOICES

SUPPLIER

MANAGEMENT

MANAGE ITEMS &

PURCHASE ORDERS

EXECUTE

PRICING

TRACK & VALUE

INVENTORY

POST, PAYMENT &

GENERAL LEDGER

Define or induct regular pricing,

promotional mechanics and

markdowns. Link to vendor

funding. Pass Price to

downstream solution, Web or in

store

All transactions at SKU/location

are captured in real-time with

Inventory & Stock Ledger

updated to reflect movement

and staged for the GL

Physical Inventory and Stock Ledger

Scenario Number Scenario Description

PISL1 Merchandise Calendar setup - TCS follows 4-4-5 merchandise calendar

PISL2 Inventory Reporting - Periodically accounting will run reports for receipts, sales, and adjustments by SKU. This is used to reconcile the sub-ledger

PISL3 Research and Visibility - We often look at purchase orders, receipts, adjustments and invoices for research purposes. Accounting View. Export reports

Retail Calendar

The Retail or Sales Calendar is set up during implementation. The format of the calendar - 4/5/4, 4/4/5, etc. – is determined at set up.

Oracle Retail Merchandising Foundation Cloud Service (MFCS) records transactions by date and timestamp. These transactions are rolled up into the appropriate periods by parameters.

This allows for reporting by both sales period weeks and calendar periods.

Retail Calendar

For retailers that use a weekly retail (4-5-4) calendar, the solution provides two options for how to address the extra week added to the calendar every 7 years.

1. Add an extra week to a 4 week period, sometimes referred to as a 4-5-5 approach.

2. Adding the extra week to a 5 week period, referred to as a 4-6-4 approach. This provides a retailer with different options for managing these weeks and making year to year comparisons.

In either approach Merchandise Foundation Cloud Service does not enforce which period the extra week is added to. So for example, a retailer could choose to set up a 4-4-6 calendar, or a 5-5-4 calendar if desired.

Mapping Inventory to the General Ledger

During system set up, inventory accounts are registered in the Merchandising system.

These are assigned via a spreadsheet template.

Inventory Reporting

Transactions are recorded with a date and time stamp. Entries to the Transaction Data repository can be reviewed by any user with proper security.

These entries will note the transaction source, SKU, location, type of transaction, value at cost and retail, as well as the corresponding GL account that exports will target.

In addition, any of the transaction sources support analysis by query, report and/or data warehouse advanced analysis.

This DC to Store transfer results in a reduction of inventory value at the DC and an increase at the receiving store

Value Inventory: Automated Financial Transactions

Any transaction affecting perpetual inventory generates a financial transaction automatically. Upcharges such as processing or admin fees, ‘last mile’ costs, etc can be defined as needed.

Cost Calculation

Oracle Retail Merchandising Foundation Cloud Service supports the following methods of accounting for inventory valuation:

Retail Method of Accounting – where margin is derived from an averaged cost and retail value at a specified level of the Merchandise hierarchy

Standard Cost – where cost is set at a fixed value

Weighted Average Cost – where cost is calculated based on purchase cost and other cost elements at SKU/location level

Weighted Average Cost components

PO Cost Management

• Chain/Zone/Location

• Future cost changes • EDI cost changes • Contract Cost • Manual Entry

Base Item Cost

Deals

• Annual deals • Promotional deals • PO specific deals • Off-Invoice discounts • Bill-back discounts • Rebates & Incentives

Net PO Cost

• PO base cost • Merchandise

invoice cost

ELC Expense

• Freight charges • Insurance • Duty • Handling fees • 3PL

Item Estimated Landed Cost

• Weighted Average Cost • Used for COGS • Used for true margin

Item/Supplier/ Location cost

3.00

Less Off Invoice discount

($1.00)

Item PO Cost

=$2.00

Plus Duty & Freight Charge

+$.50

Item Landed Cost

=$2.50

ALC Expense

Stock Ledger Supporting Both Cost and Retail Accounting Summarizing all merchandise transactions (we track approx. 100 unique transaction types)

Automated Flow of Transactions

Configurable posting frequency and aggregation level of daily or monthly

Merchandising Transaction Codes All of these feed to the Stock Ledger in Units and Value

1 Sales 22 Stock Adjustments 63 Work order Activity Cost

2 Sales Retail Ex VAT 23 Inventory Adjustments 64 Work order Activity Financials

3 Sale of Non Inventory Item 24 RTV 65 Restocking Fee

4 Returns 26 Freight Cost 70 Cost Variance

6 Deal Income 28 Up charge Profit 71 Cost Variance from RTV

7 Deal Income 29 Up charge Expense 72 Cost Variance from RTV

10 Weight Variance 30 Transfer In 80 Workroom/Other Cost of Sales

11 Mark up 31 Book Transfer In 81 Cash Discount

12 Mark up Cancel 32 Transfer Out 82 Wholesale Sales

13 Permanent Markdown 33 Book Transfer Out 83 Wholesale Returns

14 Markdown Cancel 34 Reclassification In 84 Wholesale Markup

15 Promotional Markdown 36 Reclassification Out 85 Wholesale Markdown

16 Clearance Markdown 37 Intercompany Transfer In 86 Wholesale Restocking

17 Intercompany Markup 38 Intercompany Transfer Out 87 VAT added to the cost of inbound transactions

18 Intercompany Markdown 60 Employee Discount 88 VAT added to the sale price of outbound

transactions

20 Purchases 62 Freight Claim

101 -

132

Tran codes to capture item movement for

Consignment Locations. Unit only captured

Financial Integration Data Flows

Supported Integration Flows • Foundation Data

• Suppliers Sites and Addresses • COA validation • Currency and Exchange Rates • Payment Terms • Freight Terms

• Sales • Sales Audit Totals to GL

• Stock Ledger Valuation • Stock Ledger to GL

• Procure to Pay • Invoice Matching to AP • Invoice Matching to GL

UCM

Oracle Retail Cloud Financials

Bulk

General Ledger

Payables

Retail

Merchandising

System

Retail Stock

Ledger

Retail Invoice

Matching

Retail Sales

Audit

Manual

Messaging

Service

Lifecycle Data

Management

Inventory

Valudation

Revenue

Recognition

Merchandising

Procure to Pay

G/L Chart of Accounts

Inventory & Sales Data

Daily Sales, Cash & Deposits

Aged receipts never invoiced

Manually Paid Invoices

Matched & Pre Pay Invoices

Credit Notes

Debit/Credit Memos

Supplier, Sites, Addresses

Rebates

Freight Terms

Currency Exchange Rates

Payment Terms

External

Service

Retail to Cloud Financial Integration Overview

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Tiles provide in context information such as performance

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Beth Inventory Analyst

The inventory control dashboard monitors for problem transfers and inventory issues

Inventory Control Dashboard

This dashboard surfaces issues such as variances in Mark On, Physical Inventory, Shrink and transactions that post later than expected.

Alex Financial Analyst

Financial Analyst Dashboard

Product Demonstration

Additional Topics: Price Execution

Suppliers originate in

Financials; once approved

sent to Merchandising to

order product

Item, Orders & Deals are created.

Deals auto-applied to orders and

are sent to the supplier for

fulfillment

Merchandise is received at the

warehouse, store or even

customer. Inventory & Stock

Ledger are updated to reflect

receipt and staged for the GL

Matched/resolved

invoices are paid in AP;

totals/liabilities & inv

movement posted to GL

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

Invoices are received and

automatically matched (or

resolved) against the PO and

receipt details

End To End Merchandising Flow: Price Change and Promotions

PROCESS &

CLEANSE SALES

RECEIVE &

ALLOCATE STOCK

MATCH & RESOLVE

INVOICES

SUPPLIER

MANAGEMENT

MANAGE ITEMS &

PURCHASE ORDERS

EXECUTE

PRICING

TRACK & VALUE

INVENTORY

POST, PAYMENT &

GENERAL LEDGER

Define or induct regular pricing,

promotional mechanics and

markdowns. Link to vendor

funding. Pass Price to

downstream solution, Web or in

store

All transactions at SKU/location

are captured in real-time with

Inventory & Stock Ledger

updated to reflect movement

and staged for the GL

Define zones for regular, clearance, and/or promotional pricing

• Zones can be used for any price event type

Break out of the zone structure for location level exceptions

Warehouses can also be attached to the zones

Corporate Pricing Channel Pricing

Brand/Entity Pricing Location Pricing

Price Management: Price Zones

Price Management : Regular Price

Price Change • Used to change the regular selling price of an item

and a location

• Defined as an item/location/effective date combination • Item can be item parent (e.g. style), parent/diff (e.g.

style/color), or transaction item (SKU)

• Location can be price zone or individual selling location (physical or digital) or warehouse

• Effective date is the date the price change goes into effect at the selling location or warehouse

Price Change Group • Collection of price changes grouped together for

purposes of management

Price Change Group

Regular Price Change

Price Management : Clearance Price

Used to discount the price of an item/location for purposes of clearing it out of inventory

• Most items will go through multiple markdowns before inventory is completely exhausted

• Markdowns are calculated from the regular price of the item

Defined as an item/location/effective date combination

• Item can be item parent (e.g. style), parent/diff (e.g. style/color), or transaction item (SKU)

• Location can be price zone or individual selling location (physical or digital) or warehouse

• Effective date is the date the markdown goes into effect at the selling location

Clearance Group

First Markdown

Second Markdown

Final Markdown

Clearance Sales can be excluded from Forecast and Replenishment

Price Management : Promotions

Promotion

Promotion Offer 1

Promotion Offer 2

Promotion Offer 3

Used to create a temporary price reduction on items at the selling location (physical or digital)

Promotions are a collection of related offers

Promotions can reference a common campaign

Offers are the discounts offered to customer for a set of items/locations

• Can be defined for one or more days – or even just for a set amount of time within a day

• Conditions

• The items, quantities, and amounts that must be purchased in order to receive a discount

• Rewards

• The details of the discount and how it is applied

Promotional Sales can be excluded from Forecast and Replenishment

Promoting Items

Promotional Offer Types

Item-Specific Promotions

Simple Discounts

Get Y for Discount

Buy/Get

But X, Get Discount

Spend X, Get Discount

Buy X, Get Y for Discount

Spend X, Get Y for Discount

Buy X of Single Item for Discount

Buy X and Y, Get Discount

Buy X and Y get Z for Discount

Gift with Purchase

Buy X, Get Gift with Purchase

Spend X, Get Gift with Purchase

Transaction Promotions

Simple Discount

Get Discount

Buy/Get

Buy X, Get Discount

Spend X, Get Discount

Price Management : Promotion Mechanics

Offers

Item Level

Simple Discount

Get Y for Discount

Transaction Level

Simple Discount

Get Discount

Buy/Get

Buy X for Discount

Spend X for Discount

Simple or complex promotional mechanics can be utilised

If corporate policy allows items can be overlapping promotions

Here we can manage pending and approved regular and clearance price changes

Note again these could have been inducted or manually created

Pricing Dashboard

Thank you

The following is intended to outline our general product direction.

It is intended for information purposes only, and may not be

incorporated into any contract. It is not a commitment to deliver

any material, code, or functionality, and should not be relied

upon in making purchasing decisions. The development, release,

timing, and pricing of any features or functionality described for

Oracle’s products may change and remains at the sole discretion

of Oracle Corporation.

[Date]

Safe harbor statement

Merchandising: Procurement Sales Audit Pricing

Item Type: pdf