CPQ – Pricerules

Price Rules

• more sophisticated pricing
• negotiated prices with special customers
• Using criteria to change some fields on the quote line, the quote line group or the quote itself
• Price rules follow the if/then format
  • IF = all data of the quote and its related object can be evaluated
  • THEN(THAN) = which fields to change and how to change them

Price Rule – basic information and where it works

Price Condition – Defines the criteria when the Price Rule should start – jumps to Price Action

Price Action – What should happen when the criteria of the Price Condition are met.

Multiple Price Rules can be created. However, no conflicts may occur.

Select Advanced Calculator

• Legacy Calculator is used by default
• but some price rules need Advanced Calculator
  • Setup
  • Installed packages
  • on Salesforce CPQ – click Configure
  • Pricing and Calculation tab
  • Disable Use Legacy Calculator
  • Save
  • Click Authorize new estimator service
  • Allow

Customize Listprices

• Sales reps should be able to create quote quickly and accurately

Example scenario

• a netbook will be expired for $ 500
• schools are to receive a special offer – $400

Options

Option 1

• create new pricebook
  • maintain it accordingly when a new product is added
• Sales Reps can select the appropriate pricebook
• but it must be ensured that they always select the correct pricebook
• very error prone

Option 2

• Create Price Rule
  • adjusts the price whenever a quote is created for an education customer
• so the correct price is always ensured

Create Price Rule

• App Launcher
• Price Rules
• New
• Type Name
• Evaluation Scope = Calculator
• Select Active
• Save

Conditions

• Price rules come into force only under some conditions
• the Customer’s Industry must be checked (field Industry=Education, on the Account)
• if the value is correct, then the price rule comes into effect
  • In the following example Account.Industry = Education should be used
• Additionally there is an automatically created form field (by Trailhead) – „Account Industry“ – contains the value from Account.Industry

• an Related List Price Condition – New click
• Object – Select Quote
• Select Field – AccountIndustry__c (API name of the form field on Quote – must be added to the picklist)
• Operator – Select equals
• Filter-Type – Select Value
• Filter Value – enter appropriate value for the field (= ‚Education‘)
• Save

A 2nd condition is needed for the product code so that the price rule only affects this product.

• click on Related List Price Condition – New
• Object – Select Quote Line
• Field – Select Product Code
• Operator – Select equals
• Filter-Type – Select Value
• Filter Value – Enter Product Code (=NETBOOK)

The rule is now only applied if both conditions are also true.

Price Action

• Make changes to Quote, Quote Line or Quote Line Group if the conditions are true.
• as admin find out which fields have to be changed and how
• in the example change List Price to 400 $

• click on Related List Product Actions – New
• Target Object – Select Quote Line
• Target Field – Select SBQQ__ListPrice__c (API name of the standard list price field – must be added to the picklist)
• Value – add appropriate value (=400)
• Save

Test the Price Rule by creating an appropriate quote.

The Object/Field Combination – Price Condition

• can only identify fields at Quote, Quote Line, or Product Option
• therefore form fields should be used to utilize information from linked objects

Example:

• Reduce an SD card once by a lump sum of $25
• Customers are determined by picklist „Type“ of the opportunity as „New Customer
  • in is not referenced by formula field
  • a tested formula is used

• App Launcher
• Price Rules
• New
• Type Name
• Evaluation Scope = Calculator
• Select Active
• Save

• an Related List Price Condition – New click
• Object – Select Quote
• Tested Formula – enter the reference to the field (=SBQQ__Opportunity2__r.Type)
• Operator – Select equals
• Filter-Type – Select Value
• Filter Value – enter the corresponding value (=New Customer)
• Save

• an Related List Price Condition – Click New
• Object – Select Quote Line
• Field – Select Product Code
• Operator – Select starts with
• Filter-Type – Select Value
• Filter Value – enter the corresponding value (=SDCARD)
• Save

For the price, the list price from the Pricebook must be reduced by $30.

Note:

• a formula can become very complex
• a standard formula field on an object can be used for syntax checking („Check Syntax“ button)
• However, in Price Conditions CPQ does not support all formulas (e.g.: ADDMONTH())

2 Prices for price determination

• CPQ uses additional fields to represent certain adjustments
  • Original price
  • List price
  • Special offer
  • Regular price
  • Customer price
  • Partner price
  • Net price
• RECOMMENDATION: Apply price rules only to list price and special price
• Regular price, customer price, partner price and net price – pro rata price

Avoid italic calculations

• Do not use the same field as source and target for a calculation!
• this leads to calculation problems

Special price

• adjust the package price of a product instead of the list price

Example:

• SSD hard disk in laptop as an option
• SSD hard disk for small companies additionally 20% cheaper
• Solution: Price rule on the special price

• App Launcher
• Price Rules
• New
• Type Name
• Evaluation Scope = Calculator
• Select Active
• Save

Thus, the rule is intended to target companies with fewer than 50 employees.

• an Related List Price Condition – New click
• Object – Select Quote
• Tested Formula – enter the reference to the field (=SBQQ__Account__r.NumberOfEmployees)
• Operator – select less than
• Filter-Type – select Value
• Filter Value – enter the corresponding value (=50)
• Save

• an Related List Price Condition – New click
• Object – Select Quote Line
• Field – Select Product Code
• Operator – Select starts with
• Filter-Type – Select Value
• Filter-Value – enter appropriate value (=SSD)
• Save

Deduct 20% from the special price.

• click on Related List Product Actions – New
• Target Object – Select Quote Line
• Target Field – Select SBQQ__SpecialPrice__c (API name of the standard list price field – must be added to the picklist)
• Formula – enter corresponding formula (=SBQQ__ListPrice__c * 0.8)
• Save

Attention:

• For price rules on the special price
  • Special price type must be customized (=custom)
  • Further Price Action

• click on Related List Product Actions – New
• Target Object – Select Quote Line
• Target Field – Select SBQQ__SpecialPriceType__c (API name of the standard list price field – must be added to the picklist)
• Formula – enter appropriate formula (=Custom)
• Save

Test the Price Rule by creating an appropriate quote!

Summary variables

• CPQ-verknüpfte Datensätze zusammenfassen
  • Quote Lines
  • Product-Options
  • Subscriptions
  • Assets

Example:

• In the navigation – Select Summary Variables
• New
• Enter name (=Laptop Asset Sum)
• Target Object – Select Asset
• Aggregate Function – Select Sum
• Filter Field – Select ProductCode
• Operator – select starts with
• Filter Value – enter corresponding value (=LAPTOP1) – considers Laptop13 and Laptop15
• Save

Price Rules with Summary Variable

• App Launcher
• Price Rules
• New
• Type Name
• Evaluation Scope = Calculator
• Select Active
• Save

Condition 1

• click on Related List Price Condition – New
• Object – Select Summary Variable
• Tested Variable – Select Laptop Asset Sum
• Operator – Select greater and equals
• Filter-Type – Select Value
• Filter Value – enter corresponding value (=10)
• Save

Condition 2

• click on Related List Product Actions – New
• Object – Select Quote Line
• Field – Select Product Code
• Operator – Select starts with
• Filter Type – Select Value
• Filter Values – enter appropriate value (=LAPTOP1)
• Save

Action

From the Pricebook price, another $100 is now to be added.

• click on Related List Product Actions – New
• Target Object – Select Quote Line
• Target Field – Select SBQQ__ListPrice__c (API name of the standard list price field – must be added to the picklist)
• Formula – enter the appropriate formula (=SBQQ__OriginalPrice__c – 100)
• Save

Test the Price Rule by creating an appropriate quote!

Composite Information

• for example:
  • Summarize the weight of a product and convert from grams to ounces.
• with Composite Information area – last minute calculation on CPQ sum value.
• Example: 1 ounce = 28.3495 grams

The operators available here are addition, subtraction, multiplication and division.

Restriction of records – Contraint field

• sometimes second filter is necessary
  • Example
    • only laptops sold in the last year
• overlay another filter
  • with contraint field in summary variable

General procedure:

• Create field for asset – distinguish which assets are included
• Create field to quote – same API name as asset field
• Formulas in both fields (automatic or manual) – same value
• In Contraint field the API name of both fields Asset and Quote

Rule distribution

• actually, a separate rule is needed for each possible price constellation
  • netbook – schools – 400$
  • Netbook – students – 350 $
  • Netbook – health care – 450 $
  • Laptop – schools – 600$
  • Laptop – students – 550 $
  • Laptop – healthcare – 450 $
  • etc.
• Price rules potentiate so quickly
• Solution
  • one rule for all
  • variations in a custom object
  • Query custom object

Price Rules

• Navigation bar – Price rules
• New
• Enter name accordingly (=look up net price)
• Valuation scope – Calculator
• Lookup object – IndustryPrice__c – API name of the custom onbject
• Save

Filtering the custom object with search queries

First Lookup Query

• Lookup Queries (Price Rule) Related List – click New
• Match Type – Select Field Value
• Tested Object – Select Quote
• Tested Field – AccountIndustry__c
• Operator – equals
• Select Lookup Field – IPIndustry__c
• Save

Second Lookup Query

• Lookup Queries (Price Rule) Related List – click New
• Match Type – Select Field Value
• Tested Object – Select Quote Line
• Tested Field – SBQQ__Product__c
• Operator – equals
• Select Lookup Field – IPProduct__c
• Save

Third Lookup Query

• Lookup Queries (Price Rule) Related List – click New
• Match Type – Select Field Value
• Tested Object – Select Quote
• Tested Field – AccountSLA__c
• Operator – equals
• Select Lookup Field – IPSLA__c
• Save

Important: All search queries must never return more than one line, otherwise an error message will appear. If there are 0 lines, the search is simply not updated

Price Action

• Price Action Related List – click New
• Target Object – Select Quote Line
• Select Target Field – SBQQ__ListPrice__c
• Select Source Lookup Field – IPPrice__c
• Save

Test the Price Rule by creating an appropriate quote!

Calculation fields

• Calculating fields are used by CPQ to know that a change could affect the price in any way
• Calculating fields are defined in the field set of the same name („Calculating Fields“)
• Own calculating fields can be added

Offer Calculation Sequence – Calculation Evaluation Event

• In most cases „On Calculate“ is sufficient – will be executed only once.
• In some cases, however, „After Calculation“ or „Before Calculation“ may also be required
• More than one can be selected – not recommended – Performance

Concurrent conditions

• if the conditions build on each other, this can lead to problems

• IF the ship date is within 2 weeks, THEN set Expedited to Checked.
• IF Expedited is checked, THEN add a $20 surcharge to shipping.

The 2nd rule is no longer implemented because it does not see the change in the 1st rule.

Prioritization of actions

Possibilities

• Valuation event of the Price Rule
• Valuation sequence of the Price Rule
• Order of the price action

Also have priority accordingly (1 before 2 and 3…)