Use Case: Applying Price Escalator on New Ramp Lines During Renewal of Assets

OLD format:: 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

In this use case:

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.

Navigate to the Installed Products page.
Select the bundle asset you want to renew.
Click Renew.
The Confirm Renewal intermediate page is displayed.
Select Retain the current Asset End Date and click Confirm.
The Installed Products page is displayed.

On the Mini-Cart, click View Cart. The cart page with the following details is displayed.


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
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

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.