Renewals are the most common and effective way to retain existing customers and drive growth and sales for your business. Asset renewals eliminate the scope of pricing errors by extending the agreement. Therefore when you renew an asset, you basically regenerate the asset life-cycle for a new duration.

An asset will be renewed till the date you select from one of the following options:

Note

Please note that for renewal transactions, Asset Start Date will always be the current Asset End Date + 1. The Asset End Date is derived from the selected renewal options.

Let us take an example to understand how an asset is renewed based on your selection of the Renewal options.

For an Account 'TierOne', you have created a proposal ‘W3Courses’ which has a Start Date ‘01/01/2016’ and End Date ‘12/31/2017’. The proposal contains the following Assets:

Asset NameAsset StatusStart DateEnd DateSelling Term
Programming with Python courseActivated01/01/201606/30/20166 months
JAVA LearningActivated01/01/201612/31/201612 months

CSS Learning

Activated01/01/201612/31/201724 months

Your subscriber wants to renew the subscription for the ‘Programming with Python course’ asset. Let us see how renewal works with each of the options:

Using Proposal End Date

This option fetches the Proposal End Date from an active proposal which the selected asset is a part of. The Proposal End Date in this example is ‘12/31/2017’ and so the asset will be renewed till this date. Since Asset Start Date will be the current Asset End Date + 1, in this case the Asset Start Date becomes ‘07/01/2016’.


Asset NameAsset StatusStart DateEnd DateSelling Term
Programming with Python courseActivated07/01/201612/31/201717 months

The asset is renewed for 17 months from a revised date of start. The ‘Action’ field on Asset Transaction History is set to Renew. 

Retaining the Asset End Date

The most common practice is to renew an asset immediately after it expires. This option renews an asset with the same term from its current End Date. For example, if the selling term for an asset is 24 months (2 years), the asset will be renewed for 2 further years after the asset expires.
In this scenario, the Asset is renewed for another 6 months (derived from the Selling Term) from its Start Date.

Asset NameAsset StatusStart DateEnd DateSelling Term
Programming with Python courseActivated07/01/201612/31/20166 months

Farthest End Date

An account will have multiple proposals and assets with varying Start and End Dates and Term. This option picks the farthest end date of an Asset out of all Assets in the Account and sets this date as the End Date of the renewed Asset.

The Farthest End Date option is visible only:

  • If the asset has more than one renewable charge type
  • If the selected asset has multiple renewable lines with different end dates


Let us assume that the farthest End Date is ‘12/31/2018’ for an asset in this Account. Now your asset will be renewed as:

Asset NameAsset StatusStart DateEnd DateSelling Term
Programming with Python courseActivated07/01/201612/31/201829 months

Renewal Date

Instead of pulling a renewal date from various sources, if you want to explicitly specify a Renewal End Date you can do so by selecting this option. If you enter ‘01/01/2018’ as the renewal date, the Asset will be renewed as

Asset NameAsset StatusStart DateEnd DateSelling Term
Programming with Python courseActivated07/01/201601/01/201818 months

Please ensure the Renewal Date entered here is greater than the Asset End Date.

To renew an asset

  1. On the Installed Products page, select the assets that you want to Renew.
  2. Click Renew.
  3. To define the Renewal Date on the Confirm Renewal page, select one from the following options:
    • Proposal End Date - To renew the asset till the date Quote/Proposal ends.
      The Proposal End Date is displayed next to the option. 
    • Asset End Date - To renew the asset on the date the asset expires.
    • Farthest End Date - To choose the farthest end date out of all the Assets for renewal.

      The Farthest End Date option is visible only if the asset has more than one renewable charge type or if the selected asset has multiple renewable lines with different end dates.

    • Renewal Date - To pick a date from the calendar for renewal.
       


  4. Click Confirm to proceed with the renewal. Asset Status is set to Pending Renewal on the Installed Products page.
  5. Click Go to Pricing to apply and load the asset with revised dates on the cart page.
    If the administrator has configured the Renewal Adjustment Type and Renewal Adjustment Amount columns for the cart of the current flow, you will see those columns.
    1. In the Renewal Adjustment Type drop-down for a line item, select % Uplift. In this case, enter the required percentage in the Renewal Adjustment Amount field of the line item.
    2. In the Renewal Adjustment Type drop-down for a line item, select Uplift Amount. In this case, enter the required uplift amount in the Renewal Adjustment Amount field of the line item.
      While finalizing the original Quote/Proposal, if you have specified the renewal adjustment, you will see the change in the Net Price. Click Confirm.
  6. Finalize the cart.

On the Accounts page, you can verify the updated status of the Asset.

Check out how renewal works with Bundle and Standalone Assets.

Renewable products

CPQ allows you to configure renewable products at the Price List Item level, cart level, or asset level. If you configure a product as renewable or non-renewable at the PLI level, CPQ cascades it to the cart and asset level.

The AutoRenewalType setting supports the following values:

  • Evergreen: This value makes the asset non-renewable. You cannot pull the product into an auto or OnDemand renewal quote. If the asset is non-renewable, CPQ disables the Renew action (you cannot renew the product manually).
  • Fixed: This value makes the asset renewable. You can pull the product into auto and OnDemand renewal quote.

Impact of Renewal on Order Line Item and Asset Transaction History

On the Asset Line Item, you can trace the renewal activity and modifications from the Order Line Items and Asset Transaction History Related Lists.

Line Status for one-time products will remain Existing.

Renewing an Asset using Current Contract Value


The Contract Term feature is supported only through Proposal.

As a sales representative for a company that sells subscriptions, you may have to uplift and discount the subscription multiple times during its life cycle. Because of such change operations, the net price of the subscription changes, but the contract price remains the renewed value so there is a difference in the asset net unit price and contract net unit price. Due to such operations, sometimes you get higher asset net unit price and lower contract price, or lower asset net unit price and higher contract price. You can renew the subscription for the total contract value or its annual contract value depending on the business case. CPQ loads the asset line with base price as defined by the Base Price Defaulting Method For Renewal setting. For more information, see "Configuring Custom Settings" in CPQ on Salesforce Summer 2019 Administrator Guide.

You can provide discount on the subscription for a value greater than the current net price of the subscription (post a renewal and upgrade operation). CPQ can calculate the discount from the start date of the current contract term (not the original start date of the asset), if the Apply Adj To Current Contract Term setting is enabled. If Apply Adj To Current Contract Term is False, after deep discount, both asset and contract term will start from the original start date. If Apply Adj To Current Contract Term is False and if the customer has a deep discounting use case (discount an amount > net price but < asset TCV ), the recommended best practice is to not expose the contract fields (Current Contract Start Date, Current Contract Term, Current Contract Value, Current Contract Unit Price) on the termination UI. These fields will reset to the original term after a deep discount and the values will be repetitive. Apply Adj To Current Contract Term is a global flag. The value of this flag must be either TRUE or FALSE throughout the cycle of asset. You should not switch this flag during asset operations.

CPQ does not apply delta price adjustment on a subscription if the bundle price becomes the price from PLI after you change an attribute.

Delta price adjustment must be applied only on bundle line.

Delta price adjustment is not applied to a one-time bundle line (new or existing) even though the Enable One Time Change is set to True.

For more information, see "Configuring Custom Settings" in CPQ on Salesforce Summer 2019 Administrator Guide.