If your quote, quote line, or quote line group has a value in its Subscription Term field, Salesforce CPQ divides the quote line’s effective subscription term by its default subscription term to calculate the prorate multiplier. However, some quotes base their terms off a start date and an end date.
What is the prorate multiplier used by CPQ?
CPQ combines these two factors to create what is known as the prorate multiplier, which is the actual number CPQ uses to calculate a prorated price. For example, when you added the Password Manager License to your 24-month quote, CPQ used a prorate multiplier of 2, multiplying $30 by 2 to get $60. The question is, where did the 2 come from?
How does Salesforce CPQ calculate quotes?
Each time a quote is calculated, Salesforce CPQ goes through all of the CPQ Quote Calculation Stages (On Initialization, Before Calculate, On Calculate, After Calculate).
What is the prorate multiplier of the default subscription term?
Imagine you have a product with a default subscription term of 1. Selling a subscription from March 1 to May 15 gives us a prorate multiplier of 2.4516 (76 days/31 days). We divide the total days by 31 because March has 31 days, so it would take 31 days to complete the default subscription term.
How do I set the CPQ subscription proration method?
The proration method is set in the CPQ package level setting named Subscription Prorate Precision. It’s best to keep the proration method the same for the life of your org. If you do change it, be aware that old quotes are NOT retroactively recalculated.
What is proration in Salesforce CPQ?
Salesforce Billing uses a prorate multiplier and other billing fields to calculate the order product's billable unit price. Order products inherit the prorate multiplier of their parent quote lines. The order product's prorate multiplier stays unchanged throughout a standard order.
How do CPQ determines the actual length of a subscription in quote line?
CPQ determines the actual length of a subscription quote line in three stages. First, CPQ looks for the most specific start date and the most specific end date and uses those. It's OK if the start date is from one level (such as quote) and the end date from another (such as line).
What is subscription term in Salesforce CPQ?
A product's subscription term is the default amount of time that a subscription lasts. The CPQ package setting Subscription Term Unit controls whether the term is in months or days, and defaults to months. Note Daily subscription term units aren't available in Salesforce Billing.
Which is a Salesforce CPQ pricing method for products?
Salesforce CPQ uses the negotiated price on new quotes, renewal quotes, and amendment quotes. The quote line's effective quantity field represents the actual quantity that Salesforce uses while calculating prices for that quote line.
What is QLE in Salesforce?
The Salesforce CPQ lightning component known as Quote Line Editor (QLE) is a powerhouse. Working hand in hand with CPQ to precisely quote products and compile them into Quote Lines. Driving the initial configuration of Opportunity Products and Order Products too. Firing off complex Product Rules and Price Rules.
How are subscription created in Salesforce CPQ?
When you contract an opportunity or order with at least one subscription product under a contract-based renewal model, Salesforce CPQ creates a contract record. It then creates subscription records for your quote's subscription products and asset records for your quote's products with asset conversion.
How do I make my product a subscription to CPQ?
Navigate to Setup > Installed Packages > Salesforce CPQ > Configure > Subscriptions and Renewals. Select Month as the value for Subscription Term Unit and Subscription Prorate Precision fields and click Save. To create Subscription Products, navigate to Products Tab and click New, set Active checkbox to True.
How assets are created in CPQ?
Salesforce CPQ creates assets when you click Contracted on an opportunity or order. The asset creation process varies based on your account's renewal model and the value of the asset conversion field on the product you're contracting. We can summarize this process with a flowchart.
What does CPQ look for?
First, CPQ looks for the most specific start date and the most specific end date and uses those. It’s OK if the start date is from one level (such as quote) and the end date from another (such as line). If either the start date or end date is unknown, it goes to the next stage.
How many lengths can a subscription quote line have?
Remember, a given subscription quote line can only have one length. While it may take some detective work to uncover what contributes to its length, you can count on CPQ to always use the above process.
