Contract Pricing in CPQ enables you to store contracted prices in the system. When a quote is created in CPQ, the quote price is determined by looking up the price defined in the Contract. Contract price list is a subset of the standard price list. This implies that when the same product is defined in multiple contract price lists, the former contract takes precedence. Contract Pricing is supported for standalone and bundles. Contract Pricing for Options is supported provided options are defined in the same contract price list as the bundle. Options cannot be in a different price list. Options inherit the contract price list from the bundle.
CPQ enables you (a sales representative) to know what adjustments were applied as part of a contract price list so that you can negotiate better with customers and convince them about the discounts they are getting as part of contracts. When a contract price list is generated, it holds the list price from the line item along with its negotiated contract price. When the contract price list is used in pricing a line item, you know the new contract price (used for price calculation, that is, Base Price onward) and the original list price when the contract was negotiated.
CPQ enables you (a sales representative) to quote the correct price to the customer even if none of the contract price lists are applicable. When there is no contract price available, CPQ falls back to the quote price list to verify if it has an applicable price list item. If the quote price list does not have the applicable price list item, CPQ falls back to the Based on Price List to derive the price.
To select a contract pricing list
You must have an existing contract pricing list.
- Navigate to the Proposals tab and select a proposal.
- Click Configure Products (Contract Pricing) and add products to the cart.
You have selected to configure products having contract pricing.
To apply contract pricing on line items
The Contract Number field is available on Line Item record. This will apply contract pricing on specific line item only. This parameter useful when we want to apply contract pricing on specific set of products or some other criteria based on condition and not on all products. You can also enter the contract number on the line items in the cart