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 tier that matches the total quantity, charging all units at that tier's rate. Example: If pricing is 1–10 units = $10 and 11–20 units = $8, then for 15 units, all 15 are charged at $8. 15 × $8 = $120.
Cumulative Range - Line Item	Allows the system to evaluate values cumulatively. When you apply a Cumulative Range line item price matrix to a product, any ramps you create for that line item automatically inherit the matrix. For example, if you create five ramps, all five ramps receive the matrix. Example: If the quantity is 15 and the price is $10 for the range 0–10 and $8 for the range 11–15, the system calculates the total as; 10 × $10 + 5 × $8 = $140.
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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