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 IdAdjustment TypeAdjustment AmountPeriod NumberAdjustment Applies ToAdjustment Source
    PE-00000001% Discount101Base PriceFirst Ramp
    PE-00000002% Discount202Base PriceFirst Ramp
    PE-00000003% Discount303Base PriceFirst Ramp
    PE-00000004% Discount404Base PriceFirst 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

Bundle1USD 990.00USD 900.00USD 90.0001/01/202301/31/2023New
Standard PriceUSD 792.00USD 720.00USD 72.0002/1/202302/28/2023New
Standard PriceUSD 693.00USD 630.00USD 63.0003/01/202503/31/2025New
Option1USD 90.00USD 90.00
01/01/202301/31/2023New
Standard PriceUSD 72.00USD 72.00
02/1/202302/28/2023New
Standard PriceUSD 63.00USD 63.00
03/01/202503/31/2025New

Assets are created for Bundle1 and Option1 with three ramp line items.

Adding a New Ramp Line During Renewal

  1. Navigate to the Installed Products page.

  2. Select the bundle asset you want to renew. 

  3. Click Renew. The Confirm Renewal intermediate page is displayed.
  4. Select Retain the current Asset End Date and click Confirm. The Installed Products page is displayed.

  5. 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

    Bundle1USD 990.00USD 990.00USD 0.0004/01/202304/30/2023Renewed
    Standard PriceUSD 792.00USD 792.00USD 0.0005/01/202405/31/2024Renewed
    Standard PriceUSD 693.00USD 693.00USD 0.0006/01/202506/30/2025Renewed
    Option1USD 90.00USD 90.00
    		04/01/202304/30/2023Renewed
    Standard PriceUSD 72.00USD 72.00
    		05/01/202405/31/2024Renewed
    Standard PriceUSD 63.00USD 63.00
    		06/01/202506/30/2025Renewed
  6. Hover the mouse on the bundle product and click the icon, and then click Price Ramp. The price ramp pop-up is displayed.

  7. 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

    Bundle1USD 990.00USD 990.00USD 0.0004/01/202304/30/2023Renewed
    Standard PriceUSD 792.00USD 792.00USD 0.0005/01/202405/31/2024Renewed
    Standard PriceUSD 693.00USD 693.00USD 0.0006/01/202506/30/2025Renewed
    Standard PriceUSD 648.00USD 594.00USD 54.0007/01/202307/31/2023New
    Option1USD 90.00USD 90.00
    		04/01/202304/30/2023Renewed
    Standard PriceUSD 72.00USD 72.00
    		05/01/202405/31/2024Renewed
    Standard PriceUSD 63.00USD 63.00
    		06/01/202506/30/2025Renewed
    Standard PriceUSD 54.00USD 54.00
    		07/01/202307/31/2023New
    • 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.