Use Case: Applying Price Escalator on New Ramp Lines During ABO Operations
This use case describes how CPQ applies Price Escalator on new ramp lines during renewal of assets.
Prerequisite
- Your administrator has configured price escalator on the PLI of both bundle and option products. For example:
Escalator Id
Adjustment Type
Adjustment Amount
Period Number
Adjustment Applies To
Adjustment Source
PE-00000001
% Discount
10
1
Base Price
First Ramp
PE-00000002
% Discount
20
2
Base Price
First Ramp
PE-00000003
% Discount
30
3
Base Price
First Ramp
PE-00000004
% Discount
40
4
Base Price
First Ramp
New Sale
In this use case:
- Base price of Bundle1 = USD 1000.00
- Base price of Option1 = USD 100.00
You purchase the following products with three ramp lines during a new sale.
Product | Net Price | Base Price | Option Price | Start Date | End Date | Line Status |
|---|---|---|---|---|---|---|
Bundle1 | USD 990.00 | USD 900.00 | USD 90.00 | 01/01/2023 | 01/31/2023 | New |
Standard Price | USD 792.00 | USD 720.00 | USD 72.00 | 02/1/2023 | 02/28/2023 | New |
Standard Price | USD 693.00 | USD 630.00 | USD 63.00 | 03/01/2025 | 03/31/2025 | New |
Option1 | USD 90.00 | USD 90.00 | 01/01/2023 | 01/31/2023 | New | |
Standard Price | USD 72.00 | USD 72.00 | 02/1/2023 | 02/28/2023 | New | |
Standard Price | USD 63.00 | USD 63.00 | 03/01/2025 | 03/31/2025 | New |
Assets are created for Bundle1 and Option1 with three ramp line items.
Adding a New Ramp Line During Renewal
- Hover the mouse on the bundle product and click the
icon, and then click Price Ramp. The price ramp pop-up is displayed.
- From the Please select a Ramp drop-down, select the latest ramp, and then click the
icon next to the bundle. The fourth ramp line is added to the cart.
Product
Net Price
Base Price
Option Price
Start Date
End Date
Line Status
Bundle1
USD 990.00
USD 990.00
USD 0.00
04/01/2023
04/30/2023
Renewed
Standard Price
USD 792.00
USD 792.00
USD 0.00
05/01/2024
05/31/2024
Renewed
Standard Price
USD 693.00
USD 693.00
USD 0.00
06/01/2025
06/30/2025
Renewed
Standard Price
USD 648.00
USD 594.00
USD 54.00
07/01/2023
07/31/2023
New
Option1
USD 90.00
USD 90.00
04/01/2023
04/30/2023
Renewed
Standard Price
USD 72.00
USD 72.00
05/01/2024
05/31/2024
Renewed
Standard Price
USD 63.00
USD 63.00
06/01/2025
06/30/2025
Renewed
Standard Price
USD 54.00
USD 54.00
07/01/2023
07/31/2023
New
Note:- The fourth ramp line has the line status as New. The new ramp line always gets its value from the price list item (PLI) pricing.
- CPQ applies Price Escalator on new ramp lines created during ABO operations regardless of the Default Asset Pricing Indicator? setting (true or false) in Config System Properties.
- CPQ applies 40% discount on the base price of the first ramp line of both bundle and option.
- CPQ rolls up the option price of the new ramp line to the new bundle rollup line.
