Cascading discount is used when the discount need to be applied on subtotal. As a standard functionality of Oracle pricing the discount is always applied on the Total of the price. The interesting cases of cascade discount is always seen in the promotion display where it is written as 50+20%(not 70%) discount. This means the price will be first discounted to 50% and then the 20% off will be given on the remaining 50%. Example of this could be
Shirt Price is 100 USD
70% off means shirt price will be 30 USD
50+20% off means (100-50)-(50x.20)=40 USD
When setting up a modifier, you can assign a modifier line to a particular bucket, such as Bucket 1, 2, or 3, to define cascading price adjustments. This setup controls how discounts and other benefits are calculated. This will help to apply discount on the sub total
QP: Allow Buckets for Manual Modifiers
This profile option enables you to define buckets for manual line or group of line level modifiers Values
• Yes: Enables you to define buckets for manual line or group of line level modifiers.
• No: You cannot define buckets for manual line or group of line level modifiers.
If the profile value is changed from Yes to No and there are manual modifiers defined with buckets, the manual modifiers defined with buckets need to be end-dated or deactivated. The pricing engine will return the manual bucketed adjustment even if the profile is set to No.
Null Bucket
Modifiers that are assigned to a Null bucket are applied last and always adjust from the list price.
Example Scenario: Define One Discount of 10% in Bucket1
Define Second Discount with 10% Surcharge in Bucket2
Define third Discount with Lump sum 10 in Bucket3
Item Price is 100 USD
System should work as follows
After first discount : Value will 90
After second: 90+9=99
After third: 99-10=89
Setups
Create the modifier with Buckets
Created another Bucket
Similarly 3rd Bucket can also be created for Lumpsum discount
Once this is created then enter the sales order and validate the price.
This functionality is used very widely in the retail industries and add value to advance pricing features.