A quote or a proposal is a formal statement of promise that lists the products and services to be sold to a customer at a defined price. Quote creation involves configuring products and services, pricing them, and generating quotes based on predefined rules. CPQ is a sales tool for companies to generate quotes for orders quickly and accurately. CPQ produces accurate quotes making complex products, pricing, and business rules centralized, automatic, and available in real-time.

As an administrator, you can use CPQ to achieve Configuration, Pricing, and Quoting tasks involved in generating a quote. Configuration involves creating products, options, attributes, categories and associating them appropriately with each other for visibility on Catalog. A product can be created as a standalone product or as a bundle product with options and attributes. You can control the selection of a product on the catalog by configuring constraint rules. You can also control the selection of attributes on the configuration page of a product by setting up attribute-based configuration for that product.

Pricing enables you to set up pricing structures for the products so that the price for all products is calculated accurately. Pricing comprises of mainly two components: Price Lists and Price List Items. A price list controls the visibility of products to the user. A price list contains several price list items, each linked to a product. CPQ calculates the price for each product based on the applied price list, price list items, and various pricing and discounting rules. You can price any products or bundles based on their features or options selected. You can set up pricing rules, constraints, dependencies, and extraneous variables in CPQ to calculate the price for any product.

You can enable quote collaboration to allow a Sales Representative to get other users to contribute in configuration and pricing. The Collaborators can add or remove products and adjust pricing on the same configuration.

CPQ enables you to create templates for quote creation with details such as configuration and pricing details, a summary of the quote, and associated opportunity. In addition, by integrating CPQ with your contract processes, you can automate renewal quotes based on previously agreed upon pricing and terms.

CPQ allows to manage the assets of a customer with a variety of billing models to ensure efficient collections and accounting. You can define the asset management functions with different data objects to track quote and contract details until an order is fulfilled.

CPQ allows an administrator to perform the following administrative tasks:

  • Manage products
    • Create, edit, clone, and delete standalone, bundle (including multi-level bundles), option products, option groups, and product groups
    • Create multi-level bundles
  • Manage categories and category hierarchies
    • Create, edit, and delete categories and category hierarchies
  • Manage attributes
    • Create, edit, and delete product attribute values
    • Create, edit, and delete product attribute groups
  • Configure product visibility
    • Set up Refine You search
    • Configure Search Filter(CPQ)
    • Configure visibility rules
  • Configure product comparison
    • Set up feature sets
  • Configure constraint rules
    • Create, edit, clone, and delete constraint rules, constraint rule conditions, and constraint rule actions
  • Attribute-based configuration
    • Create, edit, and delete attribute value matrices
    • Create, edit, and delete product attribute rules
    • Associate product attribute groups with products
  • Manage pricing
    • Create, edit, clone, and delete price lists and price list items
    • Configure related pricing
    • Enable price ramps
    • Configure tiered pricing
    • Enable multiple adjustments at line items
    • Enable contract pricing
    • Configure price breakup
    • Configure cost and profitability
    • Set up unit of measure and conversion rate
    • Define currency rounding
  • Manage price rule
    • Create price ruleset, price rule
    • Create price matrices
  • Manage Cart
    • Configuring save as favorite
    • Enable quote collaboration
    • Cart locking for concurrent access
  • Manage quote/proposal
    • PDF security for generated quote/proposal documents
    • Synchronize cart lines with quote
    • Set up quick quote mode
  • Manage promotions
    • Configure coupons
    • Configure promotions
  • Manage assets
    • Configure asset management flow
  • Manage asset-based ordering
    • Configure asset-based ordering
    • Set up asset-based pricing
    • Configure installed product page
    • Set up opportunity-based renewals 

Key Terminology

It is important to understand how terms are used when working with CPQ.

Term

Description

ABO

Asset-based ordering (ABO) functionality enables the customers to manage their existing subscriptions or install base using actions such as change, renew, swap, and terminate.

Administrators

Individual responsible for maintaining and mapping product catalogs and pricing.

Attribute-Based Pricing

The price is determined by factoring in attributes of a product.

Assets

Assets define a purchased product or service. An asset is associated with an account. After being processed and fulfilled, the line items associated with new quotes, agreements, or orders result in the creation of new assets, which can then be viewed or managed from the customer’s account.

Asset PricingA pricing method that allows you to leverage the sale price of an asset for its ongoing management.

Attributes

Features of a product, such as color, size, weight, and more.

Attribute Groups

A group that contains attributes that are shared by multiple products. For example, attributes of a computer are color, size, RAM and so on. These attributes are shared across different types of product such as a computer

Bundled Products

A combination of standalone products that offer added value to the customer while increasing overall sales.

Cart

A product and pricing view for the user to review all configuration and pricing information at a glance.

Catalog

A view that allows hierarchical categorization of products for users to search through and add to their configuration.

Categories

High-level logical groupings of products. Their grouping affects the way the end user sees them for selection in a product catalog. A category is created for browsing products in the selection pages, or they can be created to use options groups for a bundled product. Products are associated to a category through a category hierarchy. Category hierarchies are maintained using the Hierarchy Manager. They are also used to organize product prices into logical groupings.

Category Hierarchy

Products are associated to a category through a category hierarchy. Category hierarchies are maintained using the Hierarchy Manager

Clone

To replicate a field, record, template, etc.

Constraint Rules

Rules that drive automatic inclusion, exclusion, recommendation or replacement of products selected in the catalog page. Each Constraint Rule is composed of three parts: the Rule Detail, the Rule Condition, and the Rule Actions.

Contract Price ListA price list that helps the customer keep track of specific price agreements as applicable for that account.

Opportunity

A contact or an account that has a possibility or intent of business with you. An opportunity record is created when a new opportunity is created in the CRM. Sales representatives create quotes for an existing opportunity. Optionally, opportunities can also be created automatically as a part of the CPQ renewal automation process to provide visibility into the renewal pipeline.

Option Group

A group of product options that are associated with a bundled product.

OrderA confirmation document created by CPQ for a customer before delivering the goods or services.

Price Lists

Containers of items that are grouped in a price list. A price list controls which products are visible to the end user. A price list contains several price list items; each linked to a product. A product can be set up with one or more price list items.

Price Matrix (Matrices)

These are an advanced pricing concept used to define tiered pricing paradigms, or complex pricing structures with multiple criteria. Common examples are pricing tiers for a product based on user count or particular customer or transactional dimensions.

Price Ramps and Price Tiers

Pricing mechanisms that establish pricing that varies by time (ramp) or quantity (tiers).

Price Rule

Represents a single rule in a price ruleset.

Price Rule Sets

Price Rulesets are a mechanism to allow particular families, categories or groupings of products to have either line item pricing adjustments applied or summary pricing adjustments applied. Typical examples of these are volume discounting rules or promotional pricing rules.

Product

A product or service that can be sold on its own as a standalone item, an option of other products, or as part of a bundled product.

Product Attribute Group

Represents a product attribute group that contains attributes shared by products.

Product Attribute Value

Represents the attribute values for a product class. For example, color has attribute values such as red, green, blue, orange and so on.

Product Group

A logical grouping of one or more product records. This construct allows you to create combinations of products with similar characteristics/qualities for use in a Rule.

Quote or Proposal

A structured definition of a prospective sale that contains product configurations, pricing, and customer opportunity information.

Standalone Products

Refers to a device or software that is self-contained, one that does not require any other devices or software to function.

Service CPQ

A feature that caters to customer requirements related to services for existing or newly purchased products from Conga. A sales rep associates a service product eligible for the equipment or an asset. The Eligibility rules, which are client-side constraint rules, play a vital role in guiding the association between a service product and an asset. A sales rep can set an existing asset as a service or equipment while the service pages (Installed Products, Catalog, Config, and Cart pages) leverage the end to end cycle for service management.