Cascade Discount Not getting Calculated based on Running Net Price for Attribute Based Rules

Summary:

In our customer business, we have below attribute based discount rules:

1) Customer based Discount
2) Pricing Segment/Item EFF based Discount
3) Subregion/Customer Account DFF based Discount

Business expectation is that Discount should be applied in sequence 1-3 with Running Net Price. We have followed the Oracle Document to setup Cascade Discount, but it is not working as expected. All discount is getting applied on the List Price instead of Running Net Price.

Document Link we followed for setup: https://docs.oracle.com/en/cloud/saas/supply-chain-and-manufacturing/26c/faupr/create-discounts-that-accumulate-or-cascade.html#1.-Create-Price-Element-and-Pricing-Basis
Administering PricingAdministering PricingApply one or more discounts that accumulate on a single price list.