Configuring Unit of Measure (UOM) and Frequency Conversion Rate
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 Frequency/UOM Conversion Rate object, you can define UOM and Frequency conversion rates for products or product families. The system uses these conversion rates to price products based on their 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.
You can configure conversion rates at the Product or Product Family level. Product-level conversion rates take precedence over Product Family-level conversion rates. You can use Product Family to group products that share the same conversion rates and configure Product-level conversion rates when a product requires rates that differ from those defined for its Product Family.
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 define UOM and Frequency conversion rates at the Product or Product Family level. When multiple conversion rates exist for the same scope, the most recently created rate is applied.
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:
Table 1
|
Product |
Price |
UOM |
|---|---|---|
|
Dark Roast |
$10 |
Each |
|
Dark Roast |
$95 |
Box |
|
Dark Roast |
$50 |
Case |
|
Medium Roast |
$10 |
Each |
|
Medium Roast |
$90 |
Box |
|
Medium Roast |
$45 |
Case |
And the sales rep can create the following manual adjustments on the cart:
Table 2
|
Product |
Discount |
UOM |
|---|---|---|
|
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. When the Selling UOM is changed in the cart, the applicable conversion rate is applied and the cart pricing is updated accordingly.
Creating a Frequency Conversion Rate
The Frequency Conversion Rate feature lets you define how product prices are converted between different billing frequencies or units of measure. By configuring these rates, you ensure consistent pricing across products and bundles, reduce manual recalculation errors, and automatically apply the most appropriate rate based on product, product family, or product category. 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.