Understanding Financial Impact
When performing price approval and actions, it is important to understand the financial impact of your pricing changes. To view financial impact information, go to the Price Actions page - Financial Impact tab. This tab displays financial impact information for a selected price approval workflow and approval level. Depending on how the tab is filtered, it can even show financial impact information for a selected part/location SKU within the selected price approval workflow/approval level.
The financial impact information can include the results of relative and/or absolute analysis depending on how the page is configured. Relative analysis compares new prices to effective prices. Absolute analysis compares new prices to today's current prices.
Follow these steps to open the tab:
2. Select the Financial Impact tab.
3. Set Approval Roles to the approval role you want to use.
4. Set Price Approval Workflow to the price approval workflow you want to work with. You will only have the option of selecting price approval workflows for which you have permission.
5. Set Approval Levelto the approval level you want to work with.
6. To change the type of information you see on the Financial Impact tab, click the View button on the toolbar and select:
Relative (New vs. Effective) to see only relative analysis data on the tab,
Absolute (New vs. Current) to see only absolute analysis data on the tab, or
Both Relative and Absolute to see both relative and absolute analysis data on the tab.
Click Apply to save your changes.
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The configurable filter for this tab is set on the Price Action page's Single Level tab.
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To filter on a location and/or part SKU:
If you want to filter the price records on the page by location or part, enter a location and/or part in the Location and Part boxes on the toolbar. To enter part and location, you can use the Find Item button (
).
).To set the Price Change Filter:
Set the Price Change Filter to filter price records based on price change according to the selected criteria. Select:
• No Change to display only records with no price change.
• Price Increase to display only records with a price increase.
• Price Decrease to display only records with a price decrease.
• New Price to display only records assigned a new price.
Click the Apply Filter button (
) to apply the filter; click the Clear Filter button (
) to clear the filter.
) to apply the filter; click the Clear Filter button () to clear the filter.The following describes the financial impact information in more detail.
Changes Introduced - Relative (New vs. Effective)
The grid includes the following fields:
• Price Increases: Compares the effective prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have had a price increase.
• Price Decreases: Compares the effective prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have had a price decrease.
• No Prices Changes: Compares the effective prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have not had a price increase or price decrease.
• Total: The sum of the Price Increases, Price Decreases, and No Price Changes fields.
Changes Introduced - Absolute (New vs. Current)
The grid includes the following fields:
• Price Increases: Compares the current prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have had a price increase.
• Price Decreases: Compares the current prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have had a price decrease.
• No Prices Changes: Compares the current prices to the projected prices or new prices for all pairs in the filtered grid and counts the number of pairs that have not had a price increase or price decrease.
• Total: The sum of the Price Increases, Price Decreases, and No Price Changes fields.
Degree of Change - Relative (New vs. Effective)
The grid includes the following fields:
• Average New Price: Calculates the average New Price for all pairs in the filtered grid.
• Average Effective Price: Calculates the average Effective Price for all pairs in the filtered grid.
• Average Change: The difference between the Average New Price and Average Effective Price.
• % Change: The percentage difference between the Average New Price and Average Effective Price.
Change % = (Average New Price - Average Effective Price / Average Effective Price) * 100
Degree of Change - Absolute (New vs. Current)
The grid includes the following fields:
• Average New Price: Calculates the average New Price for all pairs in the filtered grid.
• Average Current Price: Calculates the average Current Price for all pairs in the filtered grid.
• Average Change: The difference between the Average New Price and Average Current Price.
• % Change: The percentage difference between the Average New Price and Average Current Price.
Change % = (Average New Price - Average Current Price / Average Current Price) x 100
Financial Impact (annual) - Relative (New vs. Effective)
For OEM Revenue, OEM Profit, and OEM Margin %, the following values are compared on the page:
• Effective Pricing: Totals effective pricing for all pairs.
• Projected Pricing: Totals pricing based on simulation results for all pairs.
• Net Change: The difference between the Effective Pricing value and Projected Pricing value.
• Net Change %: The percentage difference between the Projected Pricing value and Effective Pricing value.
Net Change % =[ (Projected Pricing value - Effective Pricing value) / Effective Current value] * 100
To see values at price stream level, expand the row by clicking the Expand button (
) for the row.
) for the row.Financial Impact (annual) - Absolute (New vs. Current)
For OEM Revenue, OEM Profit, and OEM Margin %, the following values are compared on the page:
• Current Pricing: Totals current pricing for all pairs.
• Projected Pricing: Totals pricing based on simulation results for all pairs.
• Net Change: The difference between the Current Pricing value and Projected Pricing value.
• Net Change %: The percentage difference between the Current Pricing value and Projected Pricing value.
Net Change % =[( Projected Pricing value - Current Pricing value) / Current Pricing value] * 100%
To see values at price stream level, expand the row by clicking the Expand button () for the row.
) for the row.Financial Impact Chart
The Financial Impact charts provide a graphical representation of the Financial Impact (annual) data.
Use the application