METHOD AND APPARATUS FOR PRICING PRODUCTS IN MULTI-LEVEL PRODUCT AND ORGANIZATIONAL GROUPS

• US 20020026368A1
• Filed: 02/19/1999
• Published: 02/28/2002
• Est. Priority Date: 06/17/1996
• Status: Active Grant

• Current Assignee: Versata Development Group, Inc. (ESW Capital, LLC)
• Original Assignee: Thomas J. Carter III
• Inventors: CARTER, THOMAS J. III
• Granted Patent: US 6,553,350 B2
• Time in Patent Office: Days
• US Class Current: 705/20
• CPC Class Codes: G06Q 20/201 Price look-up processing, e.g. updating
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The invention organizes various pricing tables and price adjustment tables and various products and purchasing organizations based on “who” (i.e. which purchasing organization) is purchasing “what” (i.e. which product). The invention utilizes a denormalized table to relate the “who” to the “what” using denormalized numbers. The invention further organizes various purchasing organizations and products into hierarchical tables. These hierarchical tables are called organizational groups and product groups. Various price adjustments may be specified for each level of the organizational groups and product groups hierarchies. The price adjustments for a particular purchasing organization are determined by retrieving the price adjustments for that particular purchasing organization as well as the price adjustments for organizational groups above the particular purchasing organization in the organizational groups hierarchy. Likewise, the price adjustments for a particular product are determined by retrieving the price adjustments for that particular product as well as the price adjustments for product groups above the particular product in the product groups hierarchy. The invention sorts the various pricing adjustments applicable to a particular product offered to a particular purchasing group based on several criteria. After the sorting is accomplished the pricing adjustments are applied in sequence to arrive at a final price at which a particular product can be sold to a particular purchasing organization.

Claims

1. A method for determining price of a product offered to a purchasing organization, the method comprising the steps of:

arranging a hierarchy of organizational groups;

arranging a hierarchy of product groups;

identifying at least one organizational group above said purchasing organization in said hierarchy of organizational groups;

identifying at least one product group above said product in said hierarchy of product groups;

retrieving pricing adjustments corresponding to said product, purchasing organization, at least one organizational group, and at least one product group;

determining said price of said product by applying said pricing adjustments.

2. The method of claim 1 wherein each of said pricing adjustments includes one or more pricing types.

3. The method of claim 2 wherein each of said pricing adjustments is determined by applying said one or more pricing types in a pricing sequence.

4. The method of claim 3 wherein said pricing adjustments are sorted and applied according to a predetermined sequence of said one or more pricing types.

5. The method of claim 3 wherein said pricing adjustments are sorted and applied according to said hierarchy of product groups.

6. The method of claim 3 wherein said pricing adjustments are sorted and applied according to said hierarchy of organizational groups.

7. A method for determining price of a product, the method comprising the steps of:

arranging a hierarchy of organizational groups and a hierarchy of product groups;

identifying a purchasing organization and one or more organizational groups from said hierarchy of organizational groups;

identifying said product and one or more product groups from said hierarchy of product groups;

determining said price of said product based on a pricing adjustment corresponding to said purchasing organization, said one or more organizational groups, said product, and said one or more product groups.

8. The method of claim 7 wherein said pricing adjustment includes one or more pricing types.

9. The method of claim 8 further comprising the step of specifying a pricing sequence for applying said one or more pricing types to determine said pricing adjustment.

10. The method of claim 9 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.

11. An apparatus for determining price of a product offered to a purchasing organization, the apparatus comprising:

means for displaying a hierarchy of organizational groups;

means for identifying at least one organizational group above said purchasing organization in said hierarchy of said organizational groups;

means for displaying a hierarchy of product groups;

means for identifying at least one product group above said product in said hierarchy of product groups;

means for retrieving pricing adjustments corresponding to said product, purchasing organization, at least one organizational group, and at least one product group;

means for determining said price of said product by applying said pricing adjustments.

12. The apparatus of claim 11 wherein each of said pricing adjustments includes one or more pricing types.

13. The apparatus of claim 12 wherein each of said pricing adjustments is determined by applying said one or more pricing types in a pricing sequence.

14. The apparatus of claim 13 wherein said pricing adjustments are sorted and applied according to a predetermined sequence of said one or more pricing types.

15. The apparatus of claim 13 wherein said pricing adjustments are sorted and applied according to said hierarchy of product groups.

16. The method of claim 13 wherein said pricing adjustments are sorted and applied according to said hierarchy of organizational groups.

17. The apparatus of claim 12 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.

19. The apparatus of claim 18 wherein said pricing adjustment includes one or more pricing types.

20. The apparatus of claim 18 further comprising means for specifying a pricing sequence for applying said one or more pricing types to determine said pricing adjustment.

21. The apparatus of claim 20 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.

18. An apparatus for determining price of a product, the apparatus comprising:

means for displaying a hierarchy of organizational groups and a hierarchy of product groups;

means for identifying a purchasing organization and one or more organizational groups from said hierarchy of organizational groups;

means for identifying said product and one or more product groups from said hierarchy of product groups;

means for determining said price of said product based on a pricing adjustment corresponding to said purchasing organization, said one or more organizational groups, said product, and said one or more product groups.

22. An article of manufacture comprising:

a computer usable medium having computer readable program code embodied therein for determining price of a product, said computer readable program code in said article of manufacture comprising;

computer readable program code configured to cause a computer to display a hierarchy of organizational groups and a hierarchy of product groups;

computer readable program code configured to cause a computer to identify a purchasing organization and one or more organizational groups from said hierarchy of organizational groups;

computer readable program code configured to cause a computer to identify said product and one or more product groups from said hierarchy of product groups;

computer readable program code configured to cause a computer to determine said price of said product by applying a pricing adjustment corresponding to said purchasing organization, said one or more organizational groups, said product, and said one or more product groups.

23. The article of manufacture of claim 22 wherein said pricing adjustment includes one or more pricing types.

24. The article of manufacture of claim 22 further comprising computer readable program code configured to cause a computer to specify a pricing sequence for applying said one or more pricing types to determine said pricing adjustment.

25. The article of manufacture of claim 24 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.

27. The article of manufacture of claim 26 wherein each of said pricing adjustments includes one or more pricing types.

28. The article of manufacture of claim 27 wherein each of said pricing adjustments is determined by applying said one or more pricing types in a pricing sequence.

29. The article of manufacture of claim 28 wherein said pricing adjustments are sorted and applied according to a predetermined sequence of said one or more pricing types.

30. The article of manufacture of claim 28 wherein said pricing adjustments are sorted and applied according to said hierarchy of product groups.

31. The article of manufacture of claim 28 wherein said pricing adjustments are sorted and applied according to said hierarchy of organizational groups.

32. The article of manufacture of claim 27 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.

26. An article of manufacture comprising:

a computer usable medium having computer readable program code embodied therein for determining price of a product offered to a purchasing organization, said computer readable program code in said article of manufacture comprising;

computer readable program code configured to cause a computer to display a hierarchy of organizational groups;

computer readable program code configured to cause a computer to identify at least one organizational group above said purchasing organization in said hierarchy of said organizational groups;

computer readable program code configured to cause a computer to display a hierarchy of product groups;

computer readable program code configured to cause a computer to identify at least one product group above said product in said hierarchy of product groups;

computer readable program code configured to cause a computer to retrieve pricing adjustments corresponding to said product, purchasing organization, at least one organizational group, and at least one product group;

computer readable program code configured to cause a computer to determine said price of said product by applying said pricing adjustments.

33. A method for creating a database for a pricing system, said method comprising the steps of:

arranging a structure of one or more purchasers, said one or more purchasers belonging to one or more organizational groups;

arranging a structure of one or more products, said one or more products belonging to one or more product groups;

creating a price adjustment corresponding to one of said one or more organizational groups and one of said one or more product groups.

34. The method of claim 33 further comprising the step of maintaining said database by modifying said price adjustment.

35. The method of claim 33 wherein each of said price adjustment includes one or more pricing types.

36. The method of claim 35 wherein each of said price adjustment is determined by applying said one or more pricing types in a pricing sequence.

37. The method of claim 35 wherein said price adjustments are applied according to a predetermined sequence of said pricing types.

38. The method of claim 33 wherein one or more price adjustments are applied according to a hierarchy of said one or more product groups.

39. The method of claim 33 wherein one or more pricing adjustments are applied according to a hierarchy of said one or more organizational groups.

40. A method for determining price of a product, the method comprising the steps of:

identifying a purchaser;

identifying one or more product groups corresponding to said product;

identifying one or more organizational groups corresponding to said purchaser;

determining price of said product based on a price adjustment corresponding to said product, purchaser, one or more product groups, and one or more organizational groups.

41. The method of claim 40 wherein said price adjustment is obtained through a single database query.

42. The method of claim 40 wherein said one or more product groups are arranged so as to form a hierarchy of product groups.

43. The method of claim 42 where said product belongs to said hierarchy of product groups, said product being at a most specific level of said hierarchy.

44. The method of claim 43 wherein said price adjustment is obtained through a single database query.

45. The method of claim 40 wherein said one or more organizational groups are arranged so as to form a hierarchy of organizational groups.

46. The method of claim 45 where said purchaser belongs to said hierarchy of organizational groups, said purchaser being at a most specific level of said hierarchy.

47. The method of claim 46 wherein said price adjustment is obtained through a single database query.

48. The method of claim 40 wherein said price adjustment includes one or more pricing types.

49. The method of claim 48 further comprising the step of specifying a pricing sequence for applying said one or more pricing types to determine said price adjustment.

50. The method of claim 49 wherein said one or more pricing types comprise base cost, currency conversion factor, customer discount, volume discount, list price, shipping charges, and tax pricing types.