Oracle Pricing Management - Overview About Pricing Formula

          Formulas consist of mathematical expressions that the pricing engine evaluates to calculate the list prices of items and discounts applied to them. Formulas can be linked to a price list line or modifier line
  
Dynamic calculation: The list price resulting from the formula calculation is not calculated or stored anywhere until the sales order is entered with that price list line item. When the sales order is entered, the pricing engine evaluates the formula and displays the final list price on the order.

Static calculation: If the formula is attached to a price list line for static calculation of the final list price, we can run a concurrent program at any time to calculate the final list price using the formula up front (not wait until order entry time) and also store it in the price list. 

Formula Types:

 Function: The function GET_CUSTOM_PRICE retrieves a price from an external system and uses it in the formula calculation
  
List Price: The price of the item in a specific price list.

Factor List: Enables you to define pricing conditions that we can link to multiple pricing attributes or a range of these attributes. The pricing engine evaluates the formula, and then chooses one of these factors, depending into which range the actual pricing attribute of the item falls.

Modifier Value: Uses the value entered in the Value field of the modifier line or price break line.

Numeric Constant: A numeric value.  

Price List Line: The price of the item in a specific line of a specific price list.

Pricing Attribute: The absolute value of a pricing attribute (such as thickness or height) of an item.

Pricing attributes are characteristics of products and services that we can specify when the characteristics help to determine the price of a product or service.

 The concurrent program Build Formula Package should be run if a New Formula is created or change a formula expression.