Reference Materials > Pricing Topics > Changing Pricing Policy Settings
Changing Pricing Policy Settings
1. On the Pricing Policy Page - Definition Tab - Data Set Tab, ensure that the Settings tab is selected.
2. In the Configuration section, select a Process Group from the drop-down list.
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The ENABLE_PROCESS_GROUP_UI global setting controls the display of this section.
• When set to true the Configuration section is available with the option to select a Process Group.
• When set to false the Configuration section is not visible.
3. In the General section, enter/edit the following settings:
◦ Policy Folder: The policy folder for the pricing policy.
Policy Status: The project management status of the policy. Used for Price Book maintenance. Policy Status must be set to Complete for the results in the policy to roll up into the Price Book results.
◦ Currency: The type of currency to be used for the pricing policy. Currency-related pricing policy settings and pricing policy results are saved to the database using the selected currency.
◦ Propagation Mode: Defines how price stream value calculations will be rippled in the pricing policy. (The effect of the price offsets as they generate recalculations through the chain of price stream values is called rippling.) There are two different types of Propagation Modes: Ripple and Independent. Click here for more information.
◦ Price Change Reason: Select a price change reason. (This field is only available when the PRC_PRICE_CHG_REASON global setting is set to true.
◦ Price Action Comment: Enter a comment about the price action. (This field is only available when the PRC_PRICE_ACTION_COMMENT global setting is set to true.)
◦ Action lock on Apply Results: When checked, the records resulting from the pricing policy simulation will have price action locks applied to them when the results are applied to the Price Action page.
◦ Force Elasticity Data Calibration: Price elasticity determines how sensitive a part is to price changes. If a price is elastic, its volume responds to price - the higher the price the lower the volume, and vice versa. In pricing, Servigistics' goal is to reach the point where price elasticity is maximized for pairs. When Force Elasticity Data Calibration is checked and when the price is NOT a data stage 4 price (meaning that it does not have 4 price changes of significance, where a "price change of significance" is defined during implementation), Servigistics will automatically calibrate elasticity by forcing a price change to test the market.
◦ Include parts with no price change in the results: When Minimum Change Amount and Minimum Change % (under Prevent Small Price Changes) are used, there may be part prices that are not changed because they do not meet the minimum change requirements. This setting determines if parts with no price changes are included in pricing results. This option is checked by default when created a new pricing policy.
When checked, any part prices that were not changed because they did not meet the Minimum Change Amount or Minimum Change % requirements will be included in pricing results.
When NOT checked, any part prices that were not changed because they did not meet the Minimum Change Amount or Minimum Change % requirements will NOT be included in pricing results.
4. In the Dates section, enter/edit the following settings:
◦ Effective Date: The date that the final resulting pricing policy price will take effect. Note that you can set an Effective Date in the past, but Servigistics displays a warning if you do.
◦ Policy Expiration Date: The date that the pricing policy will expire. This field is used for follow-up assessment of pricing policies. It does not affect functionality or system processing.
5. In the Policy Analysis section, edit the following settings:
◦ Detail Step Analysis: Check to turn on the Price Step Analysis feature for the selected pricing policy.
◦ Diagnostic Reporting: Check to generate simulation diagnostic report results (which appear on the Pricing Policy page's Result tab in the Part Loc Pair Counts, Data Flow, Null Reference Point Exceptions, Multi-Currency Stats, and Process Metrics sections). Simulation diagnostic reporting for pricing policies lists basic process summary level information for a policy run and the captured exceptions that occurred. For example, reporting might show you parts that were not included in the policy run because they did not have an assigned strategy code.
6. Sometimes it is not worth the effort to execute small price changes for many part-location pairs; therefore, the Prevent Small Price Changes settings can be used to prevent (or cancel) small price increases and decreases.
◦ Minimum Change Amount: Minimum Change Amount is the smallest amount that can be changed for a price. If the difference between the original part price and the recommended part price is less than this amount, the price change will NOT be implemented and the SKU's new recommended price will be set to current standard price. For example, if Minimum Change Amount (increase) is .25, then a part with an original price of 1.00 and a recommended price of 1.40 will be changed to 1.40 because the difference between the original and recommended prices (.40) is greater than the Minimum Change Amount (.25). A part with an original price of 1.00 and a recommended price of .90 will NOT be changed because the difference between the original and recommended prices (.10) is less than the Minimum Change Amount (.25).
◦ For the Minimum Change Amount row, enter the smallest amount of change to be increased in the Price Increases box; enter the smallest amount of change to be decreased in the Price Decreases box.
◦ Minimum Change %: Minimum Change % is the smallest percentage that can be changed for a price. If the percentage difference between the original part price and the recommended part price is less than this amount, the price change will NOT be implemented and the SKU's new recommended price will be set to current standard price. For example, if Minimum Change % (increase) is 10, then a part with an original price of 1.00 and a recommended price of 1.40 will be changed to 1.40 because the percentage difference between the original and recommended prices (40%) is greater than the Minimum Change % (10%). A part with an original price of 1.00 and a recommended price of .92 will NOT be changed because the percentage difference between the original and recommended prices (8%) is less than the Minimum Change % (10%).
◦ For the Minimum Change % row, enter the smallest percentage of change to be increased in the Price Increases box; enter the smallest percentage of change to be decreased in the Price Decreases box.
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If you are going to set Minimum Change Amount or Minimum Change %, it is recommended that you specify either Minimum Change Amount OR Minimum Change %, but not both. You should NOT use both parameters in the same pricing policy. If they are both populated in the same policy, the one with the smallest resolved price amount will take precedence.
7. Click on the Pricing Policy page toolbar to save your changes.
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