CPQ Interview Questions

Salesforce CPQ Price Waterfall 

Description

Salesforce CPQ uses a multi-step pricing process to derive a net price from a list price when using 'List' as the pricing method. The steps are outlined below, as well as features that can be used to manipulate the method.

Resolution

The pricing waterfall by default flows as follows:

List Price

Price pulled from the quote's associated Price Book

System Discounts and adjustments

Includes contracted prices, discount schedules, proration, and Special Price if a value exists for Special Price Type

Regular Price

Prorated list price after system discounts or the Special Price if a Special Price Type is specified

Additional Discounts

Value entered by sales users or pricing guidance

Customer Price

Regular Price minus Additional Discount

Partner Discount

Discount given to selling partner, entered by the sales user

Partner Price

Customer Price minus Partner Discount

Distributor Discount

Discount given to distributor, entered by sales user

Net Price

Partner Price minus Distributor Discount, final price for the line

 

More information can be found in the Product Pricing Overview.

 

Please see the following articles on what tools we have to affect the waterfall:

Additional Discount Unit

Changes how Additional Discount is calculated, providing more options than percent of the flat amount

Apply Additional Discount Last

Applies an Additional Discount to the Net Price, after all other discounts

Apply Partner Discount First

Moves the Partner Discount and Partner Price to before system discounts and regular price

Channel Discounts Off List

Calculates the values of Partner and Distributor discounts, expressed as a percentage, off of the List price rather than the discounted price

Prorate Amount Discounts

Multiplies a flat amount discount in the Additional Discount field by the prorate multiplier

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