Creating Price 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.

As an administrator, you can associate a cost (custom field) to each price matrix entry because the cost varies with the price and hence the margin is affected. The price matrix entries that are applied on a line item can be accessed in the line item. A price list can have more than one price matrix. CPQ supports multiple matrix entries within a matrix (cumulative range matrix) to be applied.

In CPQ Admin UI, you can use attributes from the out-of-the-box product attribute value (PAV) extension objects in the following ways:

To create price dimensions, which can be used to create price matrices
To create price matrices of type criteria

Note:

CPQ does not support custom PAV extension objects.

To create price matrices

You must have existing price dimensions.

Select an existing price list item, click the more icon (), and click Advanced.
On the MATRICES tab, click New Matrix.
On the DETAILS tab, enter the following details.
1. Matrix Name: Enter a name for the matrix.
2. Sequence: Enter a sequence number for the matrix.
3. Short Description: Enter a description for the matrix.
4. Matrix Type: Select Dimension. If you choose Condition, note that the option or attribute pricing at the 1st level sub-bundle is not supported.
  Note:
  For Conga Billing to process Usage Inputs, ensure the Matrix Type is set to Dimension on quantity.
5. Stop Processing More Matrices: Select this checkbox to stop the system from evaluating further matrices if a match is found within this matrix.
6. Enable Date Range: Select this checkbox to enable the start and end date for price matrix to execute.
  Note:
  In Classic CPQ, the price matrix date is mapped with the start date of line item. If the start date of the line item on the Cart falls under the price matrix entry, CPQ applies the correct price matrix.

On the DIMENSIONS tab, enter the following details.

From Dimension, select a price dimension. You can enter up to six dimensions, which bring in attributes from the line items or headers of any data type within Salesforce.

From Dimension Value Type, select one of the following:

Option

Description

Cumulative Range

Applies pricing based on the total quantity of a product across all Cart Line Items. The Pricing Engine combines quantities of the same product to determine the applicable tier in the Price Matrix.

Use Case:

When you add the same product (for example, Product ABC) to the Cart multiple times, the Cumulative Range type applies pricing based on the total quantity of that product across all Cart Line Items.

Price Matrix Setup


Quantity Range	Discount
1–10	10%
11–20	8%

For instance, if Product ABC is added twice in the Cart; first with 12 units and again with 8 units— the Pricing Engine combines both line items to calculate the total quantity of 20 units.

First 10 units → 10% discount applied
Next 10 units → 8% discount applied

Here, the first line item receives a 10% discount on 10 units and an 8% discount on the remaining 2 units. The second line item (8 units) also receives an 8% discount, as it continues from the cumulative total.

In this example, the Pricing Engine applies the discount based on the aggregated quantity from all Cart Line Items, ensuring consistent pricing across the total purchase quantity.

Cumulative Range - Line Item

Applies pricing for each Cart Line Item independently. The Pricing Engine evaluates each line item separately against the Price Matrix tiers.

Use Case:

When the Cumulative Range – Line Item type is selected, the Pricing Engine applies the Price Matrix individually to each Cart Line Item, starting from the first tier for every item.

Price Matrix Setup


Quantity Range	Discount
1–10	10%
11–20	20%

For example, if Product ABC is added twice in the Cart — once with 12 units and again with 8 units— the Pricing Engine calculates discounts separately for each line item:

For the first line item (12 units):
- 10% discount applied for the first 10 units
- 20% discount applied for the remaining 2 units
For the second line item (8 units):
- 10% discount applied for all 8 units

In this case, the Pricing Engine does not combine quantities across Cart Line Items. Each item's quantity is evaluated independently against the Price Matrix tiers.

Note: Refer the APTS_DisableCumulativeQuantityAcrossCart admin setting to understand how the system disables cumulative quantity for specific ABO scenarios involving assets.

Discrete

The system only considers the specific matrix values.

Range

The system considers the matrix values as inclusive of the numbers in the range.

Click Save. The price matrix is successfully created and listed under Matrices.
Click the add icon () in the matrix detail section to add an adjustment to the price matrix. You can add more than one matrix rows by clicking and delete rows by clicking . You can also move a row up or down by clicking or .
Enter the following details and click Save.
1. In the <Dimension_Name> column, enter a value for the dimension you created. The values are inclusive. For example, the first line here indicates a range of 0-10. The second line indicates a range of 11-20, etc. All adjustments are adjusting the price list item-list price. To account for an infinite number of values, set the quantity to 999999, which will pull a range of “infinity.” In this example, setting 999999 indicates the range 41-999999.
2. In the Adjustment Amount column, enter a percentage or a number to adjust the price.
  Note:
  In this field you enter a static adjustment amount value. If you do not want the adjustment amount to be static, use the Adjustment Amount Source column.
3. From Adjustment Type, select the kind of adjustment required, if the criteria is met. An example is an override to a list price, markup, or discount.
4. In the Adjustment Amount Source column, select a CPQ formula field.
  Note:
  Use this column if you want to make the adjustment amount as a variable that is evaluated in run-time. If you want to provide a static adjustment amount, use the Adjustment Amount column.
  In the Adjustment Amount Source column, you can select a CPQ formula field that fetches a value from a numeric or currency type of custom field on the line item object. For more information, see Managing CPQ Formula Fields.
  However, you must select such formula fields that return only numeric values. CPQ applies the adjustment on the list price to derive the base price. For more information on how to use a formula field in creating a price matrix, seeTo create price matrices .

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Creating Price Matrices

To create price matrices

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