This section covers use cases for service pricing. 

Various scenarios and the behavior changes are mentioned as follows:

  • User selected an Equipment Bundle and related it to a Service Bundle (assuming the user did not select any options on the service – so only the bundle header is in the cart). Related line items for Service Bundle will have only Equipment Bundle
  • User selected an Equipment Bundle and related it to a Service Bundle and it’s Service Option. 

    • Related line items for Service Option will have only Equipment Bundle

    • Related line items for Service Bundle will have only Equipment Bundle

  • User selected few Equipment Options using Relate Component and associated/related them to a Service Bundle (assuming the user did not select any options on the service). Related line items for Service Bundle will have only selected Equipment Options

  • User selected few Equipment Options using Relate Component and associated/related them to a Service Bundle and it’s Service Option. 

    • Related line items for Service Bundle will have only selected Equipment Options

    • Related line items for Service Option will have only selected Equipment Options

The navigation to the service pricing scenarios is as follows:

Bundle to Bundle

To sell services for the components of equipment by selecting them explicitly:

  1. Navigate to the Installed Products page.
  2. Select an asset bundle. Bundle and its components are displayed.
  3. Click Relate. The Service Catalog page is displayed.
  4. Select a service bundle and click Add to Cart
  5. View the cart. 
  6. Hover the mouse on the service bundle name, click the more icon () and select Related Line Items. The asset bundle that you selected on the Installed Products page is displayed.

Bundle to Component

To sell a service entitlement for more than one special component of one or more of a component:

  1. Navigate to the Installed Products page.
  2. Select an asset bundle. Bundle and its components are displayed.
  3. Click Relate Component. The Relate Component page displays components of the asset.
  4. Select the required asset component(s) and click Relate. The Service Catalog page is displayed.
  5. Select a service bundle and Click Configure.
  6. Select a service option and click Go to Pricing. The Cart page is displayed.
  7. Hover the mouse on the service bundle or service option name, click the more icon () and select Related Line Items. The asset component(s) that you selected on the Installed Products page is displayed. 

Bundle to Bundle and Components

To sell general entitlements that cover the equipment(s). Also, you want to maximize the revenue on a service contract by selling specialized service entitlements for more than one special component of the equipment items:

  1. Navigate to the Installed products page.
  2. Select an asset bundle. Bundle and its components are displayed.
  3. Click Relate. The Service Catalog page is displayed.
  4. Select a service bundle and click Configure
  5. Select a service option and click the  icon. Asset bundles and its components are displayed. Select the required asset option(s) and click Save.
  6. Click Go to Pricing. The Cart page is displayed. 
  7. Hover the mouse on the service bundle or option name, click the more icon () and select Related Line Items. For service bundle, the asset bundle that you selected on the Installed Products page is displayed. For service options, the asset component(s) that you selected on the Installed Products page is displayed.

Service pricing

Enable the following properties in Custom Settings -> Proposal System Properties to define the mode used for service pricing.

  • Rollup – Used when the customer has a need to pool and price related equipment with different service prices
  • Allocate – Used when the customer has a need to create a service line only for similarly priced related equipment line items. In this case, the dimensions from the first set of the related line items are used to price the service

The service pricing flow is as follows:

  • Create as many dimensions in the matrix as the number of your asset dimensions Set up the matrix pricing for the service bundle and the service component individually  Use component name as a matrix dimension to price for individual component (refer to the S-Probe, T-Probe entries in the matrix)
    The system relies on the first match for the service price. Specify entries with less ambiguity (wild card) at the beginning of the matrix.

  • Configure the Config System Properties > Service Price Distribution Method.

  • For Relate Component - Bundle to Bundle scenario: Related line items created only at the bundle level for the equipment items selected. Service is priced individually at the service bundle level and the at the service option level for each related line item  Individual service prices are then averaged to obtain the base price of the service line item and are then further rolled up to arrive at the price for the service line.

  • For Relate Component - Bundle to Component scenario:  Related line items created only at the component level for the selected components of the equipment
    (Note the behavior change from the previous releases – no related line items are created for the equipment bundles – you can see bundle associated with the component as an associated column on the same related line item). Service is priced individually at the service bundle level and the at the service option level for each related line item. Individual service prices are then averaged to obtain the base price of the service line item and are then further rolled to arrive at the price for the service line.

  • If there is no matching entry in the price matrix then it will take price as zero.

  • Weightage of the service line is derived from its contribution.

  • The option of splitting a service line using a button click based on the flow level settings. (Refer to Splitting the Related Line Items from Services)


Splitting the Related Line Items from Services

The Split feature allows you to clone a service with some or all related line items using in the Service Cart. The Split feature is available only at the service bundle level. You can clone the service to discount or negotiate various equipment items differently. This feature splits the related line items based on the split criteria defined by the administrator.

In many scenarios, Sales Representatives belonging to a specific region have identical needs for negotiation. However, there may be scenarios where the Sales Representatives may not want to break the service line.

Prerequisites

The split criteria must be defined in the Service Line Split Criteria setting in Config System Properties. You can define split criteria that apply globally or create split criteria for a specific flow. In case the split criteria is defined for a specific flow, the Split button is not displayed in other flows. For more information, see "Defining Split Criteria" in CPQ on Salesforce Administrator Guide.

To split related line items from services

Perform the following steps to split a related line item from a service:

  1. On the Service Cart page, hover the mouse on the service bundle, click the more icon () and select Related Line Items.
  2. Click Split
  3. Select one or more criteria and click Split.

After you click Split, the service is cloned. The related line items are removed from the original service and associated to the cloned service based on the split criteria. The price is recalculated based on the related line items associated with the service.