Unit of measure (UOM) is a way to quantify resources. It is a key factor in pricing and discounting the products on the cart. With the new object called Frequency/UOM conversion rate, you can define a set of unit of measures for your product families. Products under the same family can be priced differently, based on its unit of measure. Depending on the available unit of measures for the product family, the sales reps can define different discounts for different UOMs for the same product.
The current design requires all products under the same product family to share the same UOM conversion rates. So an implementation tip is to use product category to group products by business needs, but use product family to group products that share the same conversion rates. For example, different types of coffee can be grouped under a single category called Coffee, but if you want to apply the same conversion rate to dark roast and mild roast coffee products, you can create a new product family called Roast Coffee.
Frequency/UOM conversion rate is a new object, along with fields such as Conversion Factor and Type. Depending on the type of conversion type, you must define the field values for either the Frequency conversion or UOM conversion. You can also control whether to apply these conversions on a product family and product category.
You can only define UOMs and UOM conversion rates for product families; one product can exist in multiple categories, but only in one product family.
Use case: Creating UOM and conversion rate for products
Description: This use case describes how to create frequency conversion rates and unit of measurements for pricing the products on the cart. You might use this functionality differently, depending on your business case.
Suppose you are a coffee vendor and want to sell your product by considering the customer requirements in terms of kilograms and boxes. As a system administrator, you can set up the type of measurement as kilogram and box, and define the conversion rate for these measurements.
In the following example, the sales administrator creates a conversion type for the coffee product.
The above setup represents the following UOM conversion rates for the product family Coffee
1 Box = 10 Each
1 Kilogram = 20 Each
1 Case = 5 Each
1 Kilogram = 2 Box
Pricing admin can create product list for any products under the product family Coffee and use above UOMs captured in the UOM conversion table.
For example, the pricing admin can create prices list in the following UOMs:
And the sales rep can create the following manual adjustments on the cart:
|Dark Roast||$2 off||Each|
|Dark Roast||$23 off||Box|
|Dark Roast||$12 off||Case|
|Medium Roast||5% off||Each|
|Medium Roast||8% off||Box|
|Medium Roast||5% off||Case|
In the cart, the pricing engine converts the quantities from the Pricing UOM to the Selling UOM and the discounting UOM to the Selling UOM.
To create a Frequency Conversion Rate
Perform the following steps to create a new record of frequency conversion rate:
- In CPQ Console, click (All Tabs) and search for Frequency/UOM Conversion Rates.
- Click Frequency/UOM Conversion Rate tab and click New to create a new record.
The record is divided into 4 sections and the fields in each section are explained below:
Information Field Description Type Defines the currency metric type. Available values are Frequency and Unit Of Measure. Depending on your selection, you must enter the values in either Frequency or UOM Conversion table. Product Family Defines the Product family to which you want to apply the conversion rate. This helps you filter the group of products on which you want to apply the conversion rate. Ensure that you have created a product family record so as to see it populated in this picklist. Product Category Defines the Product category to which you want to apply the conversion rate. This helps you filter the group of products on which you want to apply the conversion rate. Ensure that you have created a product category record so as to see it populated in this picklist. In our example, the product category is Coffee. Frequency Conversion > applicable for Type = Frequency Field Description From Frequency Defines the starting frequency for a conversion rate from which the rates are valid. To Frequency Defines the ending frequency for a conversion rate until which the rates are valid. UOM Conversion > applicable for Type = Unit of Measure Field Description From UOM Defines a unit of measure that can be used as a source for rate conversion. For example, if you want to measure a coffee box in terms of Box to Kilogram conversion, use Box in From UOM and Kilogram in To UOM field. To UOM Defines a unit of measure that can be used as a destination for rate conversion. Rate Field Description Conversion Rate Defines the rate at which you want to convert the product. In our example, for UOM conversion from Box to Kilogram for 1 box = 2 kilograms, enter 2 in this field.
- Click Save.
You must create these records for each UOM that you want to configure. In our example, you must create one record for each row of Table 1.