Every Possible Interview Question in Salesforce CPQ

1.What is CPQ?

CPQ is Configure Price Quote. It is a Sales related tool.

Let’s understand with help of example. Prospective customer goes to mall and see the products. Customer fill forms and give number to sales agent. So, he become lead for that product. Now sales person makes to the prospective customer call asking interest in product. So, from lead prospect, there is qualification. Now, prospective customer says I am interested but request for discount. This is called pricing negotiation. So the sales person sends quote with price to customer. After that again customer bargains which is called negotiation. After Quote is Finalized, order is placed for the product. If it a subscription product then contract is created. If it is non subscription product then asset is created

 

2.How many types of products are there?

There are 4 types of products

1. Perpetual / One Time product: Product which becomes asset is called one time product like Fridge, TV
2. Subscription Product: It is Netflix and Amazon Prime which are subscription products.
3. Usage Based Product: Jio Data Plan is an example of usage based product. Upto 5GB it is free after that it is charged based on usage.
4. Multi-Dimensional Product

 

3.Why we use CPQ?

In Salesforce we have Product Catalog. Without CPQ we need to maintain product list in excel. Excel had number of products, product family and use filter. Now if 10 products are added or removed we need to maintain excel or if a product feature is removed we need to update the excel which is complicated.

Another problem is managing pricing. Different products can have different prices in different countries and the value can change daily based on currency. Now updating daily this in excel is very complicated.

Giving discounting is also hard without CPQ. With CPQ we can automate discounting process.

The benefit of using CPQ is it increases sales productivity.  It reduces manual effort of sales team.It reduces probability of making human errors.

4.What is CPQ Lifecycle?

Lead -> Opportunity-> Quote-> Order

 

5.What is product?

Product can be individual product or combination of multiple products and generate revenue for the company.

 

6.What is product bundle?

Group of products sold together is product bundle.

 

7.How many times of bundle in salesforce?

Static Bundle

Dynamic Bundle

Nested Bundle

 

8.What are the steps in Quote to cash process in CPQ

1. Product Configuration
2. Pricing
3. Quoting
4. Approvals
5. Contracting
6. Order Management
7. Invoicing
8. Revenue Recognition
9. Renewals and Amendments

10.Explain Pricing Methods in Salesforce CPQ ?

list price in Salesforce CPQ

List price is the price that is retrieved from the price book entry.  Each product must have a price book entry or else the product will not get listed on the selection page of the quote line editor.

 

 

Cost Price

Cost price is used when a product costs a specific amount to obtain, then you can add cost price and add markup price on the product.

Block pricing

Block pricing is the pricings that are updated based on the quantities of the product purchased. For e.g., a pack of 1-10 units will cost 10$, 10-20 units will cost 18$ and so on.

To set up the block pricing we need to update the 4 pieces of information.
Name: Set the name to block the pricing method.
Lower bound: The lowest quantity for the quantity range.
Upper bound: The highest quantity for the quantity range.
Price: Price to be set up for the given quantity range.

Note: A block price’s upper bound and the next block price’s lower bound must be the same.

Percent of Total
Percent of the total is calculated based on the percent of the sum of all the other product that is purchased. For example, the tip for a bill at a restaurant would be calculated in this category.
11.Explain the concept of “Option Pricing”?

Imagine you’re throwing a pizza party and Domino’s has this deal called the “Pizza Party Pack.”- which includes pizzas, sides, and drinks.

Here’s how it works:

Option Pricing: In the “Pizza Party Pack,” garlic bread doesn’t cost $5; it’s just $3.75! It gets a price cut because it’s in a bundle.

Steps:

1. First, you add garlic bread to your cart – it’s still $5.
2. Then, you choose the “Pizza Party Pack” and the garlic bread in your bundle is now priced at $3.75.

What’s happening here, due to the concept of Option Pricing, is that the system checks if garlic bread is part of the “Pizza Party Pack.” the discounted price of $3.75, as specified in the bundle option, kicks in.

12.Explain Limitations in Option pricing?

Option pricing does not support multicurrency, so it’s only possible to define the override price in a single currency.

13.Explain Contracted Pricing in Salesforce CPQ?

Imagine Domino’s has a loyal customer company, “Pizza Lovers Texas Inc.,” a local business that orders pizzas for its staff every Friday. Since they order so frequently and in bulk, Domino’s wants to offer them a special deal.

Here’s how it works:

1. Normally, a large veggie pizza costs $15. But for Pizza Lovers Texas, Domino’s sets a contracted price of $12 per pizza, a loyalty gesture.
2. On Domino’s Salesforce CPQ system, they go to Pizza Lovers Texas’s account.
3. Navigate to the “Related” tab, and in the “Contracted Prices” section, they click “New.”
4. They select the veggie pizza in the “Product” field and enter $12 in the “Price” field- the contracted price is set.

14.Explain Price Waterfall?

The CPQ Pricing Waterfall is a multi-step process/sequence that utilizes different prices and discounts to get us to the Net Price . It is described as a waterfall as it works its way from top to bottom through the different prices and discounts/adjustments.

1. List Price:

This is the starting point – the menu price. Let’s say the List Price for Domino’s “ExtravaganZZa” large pizza is $20, as listed in their Price Book.

2. Contracted Price:

Domino’s has loyal customers, like the “Pizza Club,” who dine-in every Tuesday. They’ve negotiated a 5% discount on all pizzas through a loyalty program. So, for them, the Contracted Price for the “ExtravaganZZa” isn’t $20 but drops to $19 ($20 minus 5%).

3. Special Price:

On occasions, Domino’s offers a special one-day promotion, like “Cheesy Thursday,” where all pizzas have an additional 10% off. This promo is applied on the Contracted Price or the List Price. For the loyal “Pizza Club,” this takes their $19 pizza down to $17.10 for that day.

4. Prorated Price:

Suppose one member of the club wants to buy half of an “ExtravaganZZa” and half of a “Veggie Delight” (also priced at $20). Dominos calculates a Prorated Price, where they take the Special Price ($17.10) and multiply it by a factor considering the half-and-half scenario, let’s say 0.5 for each half, equating to $8.55 for each half-pizza portion.

5. Regular Price:

If there’s no special scenario, the Regular Price kicks in. It’s either the Prorated Price or goes back to the original List Price. So $19 per “ExtravaganZZa.”

6. Customer Price:

It is the final price that a direct consumer pays after all applicable discounts and special prices are considered. For the “Pizza Club” members dining on a “Cheesy Thursday,” their Customer Price for an “Extravaganza” would be the special rate of $17.10.

7. Partner Price:

The Partner Price is a special rate offered to business partners, usually lower than the standard rate, to accommodate the partners’ profit margins. For instance, a food delivery app ’Uber’ might receive the “ExtravaganZZa” at a Partner Price of $16, allowing them to mark it up for their customers.

8. Net Price:

It is the revenue that the seller keeps from the sale after all discounts, allowances, or rebates are deducted. The Net Price reflects the actual revenue the seller makes on the product before their internal costs are subtracted.

In the Domino’s case, the Net Price is the amount Domino’s records as revenue for the “ExtravaganZZa” pizza sold to the club member on “Cheesy Thursday”.

15.Can sales reps offer product as part of a bundle at a different price with Salesforce CPQ, even though it’s the same product listed in the price book?

Yes! Salesforce CPQ allows for advanced pricing configurations. For instance, a bottle of “Coke” might be priced at $2 when sold individually. Still, when part of the “Family Feast” bundle (which includes pizzas, sides, and a drink), the effective price of the “Coke” within the bundle might be just $1.50. This differential pricing is possible within the same price book due to the flexibility of Salesforce CPQ.

16.What is the use of Bundled Checkbox?

If Domino’s decides that the “Party Combo” is a special promotion and the individual items in it (the options) should not be priced as they usually are when sold separately, they will check the “Bundled” checkbox in Salesforce CPQ for this combo.

This means that even if a “Veggie Pizza” usually costs $18 on its own, within the “Party Combo,” it’s priced at $0.00, as are the other items in the combo.

17.Explain Discounting in Salesforce CPQ ?

18.What is optional Discount in CPQ?

Domino’s offer a Product Bundle, similar to a combo deal, called the “Pizza Fiesta.” This bundle includes a large “Veggie Extravaganza” pizza, “Cheesy Bread,” and a soda.

19.Explain Partner and Distributor Discount in Salesforce CPQ?

This method is used when we want to give an additional partner discount to the client. The values for these discounts are displayed in the Distributor Discount and Net Unit Price fields on the Quote Line object. They are calculated by the following formulas:

Partner Price = Customer Price – Partner Discount

Net Price = Partner Price – Distributor Discount

20.Explain Volume Based Discounting?

Domino’s wants to give an incentive to customers to order more pizzas during a cricket world cup by offering volume-based discounts.

21.Explain Manual Discount feature in Salesforce CPQ?

Imagine a regular customer places a bulk order for an upcoming party. They ordered 20 “Veggie” pizzas, each originally priced at $10. To reward this bulk purchase, the sales manager has decided to offer a special discount. Instead of the regular price, they want the total cost for the 20 pizzas to be $150, instead of $200.

 

 

 

 

 

 

 

 

22.How to setup multi currency for the product?

 

1. Go to Setup –> Company Information
2. Click on the Edit button
3. Check the Activate Multiple Currencies box and click Save
4. You will now see an extra button called Currency Setup, click it
5. By default, Advanced Currency management will be off
6. By default Parethentical Currency Conversion will be on – this is what you will see on any currency field when your default currency and the currency of the record you are on do not match.
7. In the Active Currency section, click New
8. Select your Currency Type, add your conversion rate, and set your decimal places

23.What is a Subscription Product?

A subscription product is a product that has some recurring payment element to it, whether it be a monthly payment, or an annual subscription.

24.I want to give pricing slab 1-10-100,1-20-300,1-30-400 getting increase of every product how to setup in CPQ?

To set up a pricing slab in Salesforce CPQ where the price increases with the quantity, you can use the Price Book Entries and Block Pricing. Here’s a step-by-step guide to set up the pricing slabs you described (1-10 units at $100 each, 1-20 units at $300 each, 1-30 units at $400 each):

1. Create the Product
2. Set Up Price Book Entries
3. Create Price Book Entries
4. Configure Block Pricing

 

25.Explain Quote Line Editor?

Quote Line Editor in Salesforce CPQ provides options to add or remove products, adjust product quantities, apply discounts or markups and calculate prices for the products added on the quote.

By default, Quote Line Editor shows products added on the quote and specific fields from the Quote Line object.

 

26.What is product bundle in Salesforce CPQ?

1. Products: The bundle product as well as all the sub-products included in the bundle.
2. Product Options: A Product Option record for EACH sub-product to associate it with the bundle product. One Bundle can have many Product Options.
3. Product Features: Optional. Product Options having similar characteristics can be grouped together using a Product Feature. One Bundle can have many Product Features.
4. Option Constraints: Optional. Option Constraints ensure that all users select only compatible options.
5. Configuration Attribute: Optional. Set the value of a specific field on multiple Product Options included in a Bundle or Feature.

27.Subscription Product in Salesforce CPQ?

CPQ provides additional fields on products that allow you to do subscription pricing.

Subscription Pricing – Type of pricing to use for this subscription, either None, Fixed Price or Percent of Total. None means this product is NOT a subscription product.

Subscription Term – Term length of this subscription. Only applicable if the product is a subscription. A BLANK value means this product is NOT a subscription product.

Subscription Type – Select the type of Subscription, either Renewable or One-time. Renewable Subscriptions transfers to Renewal Quotes. One-time Subscriptions will not.

To enable a product to be ordered as a subscription product, Subscription Pricing, Subscription Term and Subscription Type fields have to be set up appropriately.

28.What is Option Constraints?

Option Constraints allow you to enable or disable a Product Option for selection based on the selection of another product option in the same bundle product.

Option Constraint Types

Based on its behavior, Option Constraints are of two types, Dependency and Exclusion. It is determined by the Type field on the Option Constraint record.

Dependency

• Selecting the Constraining Optionenables the Constrained Option for selection.
• For example – Enable Product A only if Product B is selected.

Exclusion

• Selecting the Constraining Optiondisables the Constrained Option for selection and vice versa.
• For example – Disable Product A if Product B is selected.

 

29.What is use of lookup query in salesforce CPQ?

Imagine you work for Dell, which sells laptops. Dell offers special discounts based on where the customer is located. We set up a Lookup Query to make this happen automatically.

 

 

30.How to add Additional Discount in CPQ?

In Salesforce CPQ, additional discounts can be applied directly in the Quote Line Editor. This allows sales representatives to apply extra discounts on top of existing pricing rules and discounts.

31.What is a Quote Template?

A quote template is a pre-designed document layout that sales teams use to generate consistent and professional quotes for their customers.

These templates typically include fields for product descriptions, quantities, pricing, terms and conditions, and other relevant information.

 

By using quote templates, businesses can ensure that all necessary details are included in each quote, reducing the likelihood of errors and streamlining the quoting process.

In the CPQ process, quote templates are essential. After configuring the product and pricing,

 

32.What Are Quote Templates in Salesforce?

1. Standard quote templates: These are the default templates provided by Salesforce. They offer basic functionality and can be used to create quotes without any additional customization. They include elements like product details, pricing, terms, and conditions.
2. Custom quote templates:Custom templates offer a high degree of flexibility and can be tailored to specific requirements including company branding, specific fields, custom layouts, and more detailed information.

 

33.What is the Difference Between Invoice and Quotation Template?

invoices serve as legally binding documents, detailing purchased items and services, as well as the total amount owed by a customer. The invoice record stores essential data such as the balance, due date, and payment status.

On the other hand, a quote template is used to create and customize non-binding quotes for potential customers. It outlines the proposed products, services, pricing, terms, and conditions before a sale is finalized.

 

 

 

34.How are Orders created in Salesforce CPQ?

Orders are an agreement between a company and a customer.

Typically, the process starts with the opportunity, which is a potential sale, then a quote is created. The next steps will be order generation, where quote specific information is going to be copied on the order record, and the quote lines information will be transferred to their corresponding order products, then finally comes order activation.

 

 

In Salesforce, there are four ways to generate orders that can be used for different business situations:

 

1. Ordered Checkbox on Opportunity

This method is used when an opportunity has been finalized, and you need to create an order based on that opportunity.

 

2. Ordered Checkbox on Quote

This method is used when a quote has been accepted, and you want to generate an order directly from the quote.

 

3. Create Order Button on Opportunity

This method is useful when you prefer a manual approach to generate orders from opportunities, offering more control over the process.

 

4. Create Order Button on Quote

Similar to the opportunity-based button, this is used for manually generating orders from quotes, giving you the flexibility to review details before creating the order.

 

Each method provides a different level of automation and control, allowing businesses to choose the approach that best fits their workflow:

 

35.How Contract can be created in Salesforce CPQ?

In Salesforce CPQ, a Contract can be generated for subscription products by selecting the “Contracted” checkbox on either the Opportunity record or on an Order record.

 

36.How to create Contract from Opportunity?

To create a Contract from an Opportunity, select Contracted on your Opportunity record, and then save your changes. The contract inherits its start and end dates from your Primary Quote’s start and end dates. Salesforce CPQ then creates a Subscription record for each of your Subscription Products from the Primary Quote.

37.How to create Contract from Order?

To create a Contract from an Order, select Contracted on your Order record, and then save your changes. By default, Salesforce CPQ creates a Contract for each group of Subscription Order Products with matching end dates.

 

38.How do renewals and amendments work in Salesforce CPQ?

A renewal is when a customer decides to continue their contract after it ends, kind of like renewing a library book so you can keep it longer.

An amendment is when you change something in the contract while it’s still going on, like if a customer wants more services or needs to cancel something they don’t use anymore.

39.How to create a renewal opportunity and quote?

• Create a renewal opportunity by clicking on ‘renewal forecast’ checkbox on contract.
• Create a quote for renewal opportunity by clicking the ‘renewal quoted’ checkbox on contract.

40.What happens when ‘Contracted’ checkbox is checked on opportunity?

When ‘contracted’ checkbox is checked then

• A new contract gets created.

• The created Contract is attached to the related list of Account.

• Subscriptions and Assets are attached to the related list of Account

41.What are some important fields on contract?

• Account Name
• Status
• Contract Start Date
• Contract End Date
• Contract Term

 

42.Why are only ‘Subscriptions’ are shown but Assets not shown as related list of contracts?

Assets are only one time purchase so they are not added to contracts.

43.Can you discuss the standard process for creating and managing a renewal in Salesforce CPQ?

So, imagine a customer’s contract is about to end, and we want them to continue using our service. In CPQ, we create a “renewal opportunity” which is like a reminder that we need to get them to sign up again. Then, we make a “renewal quote” with all the pricing info. We can change things if we need to, like the price or what’s included.

What are some best practices or advanced strategies for managing early renewals in CPQ?

Early renewals are when customers decide to renew their contract before it ends. This can be good for them because they might get better deals.

44.Can you handle bulk amendments or bulk renewals in Salesforce CPQ, and if so, how?

Yes, we can! Handling lots of changes or renewals at once is called “bulk” processing. This can be done through data loaders or by using CPQ’s own bulk features.

45.How do you deal with proration on amended subscriptions in Salesforce CPQ?

“Proration” is when you adjust the price based on the time. Like, if a customer adds a service halfway through their contract, they shouldn’t have to pay the full price for that month. In Salesforce CPQ, we set up proration rules that automatically figure out these adjustments. This makes sure customers are charged fairly, and everything adds up correctly at the end of the day.

46.Can you walk us through the steps you take for adjusting a contract when a customer is being double-charged due to an early renewal?

If a customer’s being charged twice because they renewed early,

1. First, I go into their account and find the current contract.
2. Then, I click ‘Amend’ to start making changes. I need to give them back the money for the time they were double charged, so I set the start date for the changes to when the new period begins.
3. Once you click on amend button you see list of subscriptions which can be ammended
4. Once we click on amend button an amendment opportunity is created in the backed
5. You are taken to Quote line Editor screen where you can make changes.
6. The quote will be created and attached to Amendment Opportunity.
7. You will not see all the products but only the products with changes made.

Note – Amendment opportunity doesn’t create additional contract but keep all the changes to existing contract.

1. When you go to the contract, the new amendment quote will be added as related list as ‘Co – Terminated Quotes’

47.Could you explain the importance of the ‘Amend’ function in Salesforce CPQ during the contract renewal process?

The ‘Amend’ function is super important when we’re dealing with contracts. It lets us make changes to a contract that’s already going on, like when we need to give a customer their money back because they renewed it early.

48.In your experience, what are the common challenges you face during the early renewal process and how do you handle them?

• One big challenge is making sure you don’t mix things up when some products are being renewed and others aren’t.
• Another challenge is making sure the credit is right.

 

 

 

 

 

 

49.What are renewal pricing methods?

Same – This will take the same price, including discounts, from the original Opportunity and apply them to the Renewal Opportunity /Quote at the time of creating the Renewal.

List – It takes the List price of the Product based on the Pricebook in used in the Original Opportunity unless you have noted a Renewal Pricebook ID on the Contract, in which case it will take that List Price. There will be no flow-through of Discounts if this option is selected.

Uplift – This is the only option that requires additional setup if you choose to use it. Uplift is for when you want to take your Customer price and add some percentage of increase on the Renewal Quote.

50.What’s the difference between ‘Co-Terminated Quotes’ and regular quotes in Salesforce CPQ?

‘Co-Terminated Quotes’ are special because they’re used when we make changes to a contract that’s already going on. Regular quotes are just the usual offers we make to customers.

51. In Salesforce CPQ, how do you handle a scenario where a customer wants to downgrade or remove services during renewal?

If a customer wants less or different stuff at renewal, I use the ‘Amend’ function to remove or change what they don’t want anymore.

52.What steps do you take in Salesforce CPQ when a customer wants to renew their contract earlier than the original end date?

When customers want to renew early

• I first create a new quote for the renewal.
• I then adjust the start date to match when the customer wants to renew and make sure any old charges stop when the new contract starts. This way, the customer doesn’t get charged twice for the same thing.

53.Can you explain the process of transferring assets during an amendment in Salesforce CPQ?

In Salesforce CPQ, if a customer wants to move a service from one contract to another, I use the ‘Amend’ feature to move it, making sure it’s removed from the old contract and added to the new one.

54.What is the difference between contract-based renewals and asset-based renewals?

Contract-based renewals involve the entire contract, while asset-based renewals deal with specific assets or subscriptions within a contract.

55.What is contracted pricing in Salesforce CPQ?

Contracted pricing refers to special prices associated with a particular customer, which are considered during the quoting process.

56.Can you set contracted pricing at different levels?

Yes, you can set contracted pricing at the product level or the quote level.

57.What is the role of the “Renew Contracts” button in Salesforce CPQ?

This feature allows users to select multiple contracts for an account and merge them into one master contract for renewal.

58.Can you change the pricing of existing products during the amendment process?

No, you can’t change the pricing of existing products; you can only modify quantities or add new products.

59.Why is there a separate opportunity and quote created for amendments?

This helps in maintaining a detailed history and traceability between the original and amended contracts.

60.What happens if you set the “Generate Contracted Price” action at the quote level?

It will apply the contracted price only for that quote.

61.How does Salesforce CPQ support early contract termination?

Users can set the quantity to zero for all SKUs from a specific date, effectively terminating the contract early.

62.What records does Salesforce CPQ create when you initiate an amendment?

Salesforce CPQ creates an amendment opportunity with a close date equal to your contract’s start date and an amendment quote with start and end dates matching your contract’s terms. The opportunity and quote will include specific naming conventions and details reflecting their nature as amendments.

63.How does Salesforce CPQ calculate product quantity and price on your amendment opportunity?

Product quantity and price on your amendment opportunity are calculated based on the difference between the original quote and the amendment quote. The amendment opportunity also updates its ‘Amended Contract’ and ‘Primary Quote’ fields with links to the contract you amended and your original quote.

If several contracts under an account are due for renewal, how does Salesforce CPQ consolidate them?

When multiple contracts are due for renewal, Salesforce CPQ allows you to select all the contracts you want to renew from the account’s Contracts related list. After clicking “Renew Contracts,” you’re prompted to pick a master contract. The system then creates a single renewal opportunity and quote, consolidating all the subscriptions and covered assets from the selected contracts.

 

64.What happens if you just select ‘Renewal Quoted’ and not ‘Renewal Forecast’?

You can also skip clicking Renewal Forecast and click Renewal Quoted to create your renewal opportunity and renewal quote at the same time. However, it’s recommended to use Renewal Forecast so you can track pipeline opportunities for record-keeping purposes before finalizing the renewal quote.

What are the steps to create renewal opportunities?

1. Close-Won your opportunity
2. Ensure that there is a CPQ quote related to the Opportunity and that it is the Primary Quote for the Opportunity
3. Click the Contracted checkbox to kickoff the renewal process

NOTE: A Contract will only be generated if you have a Primary Quote and there are Subscription based Products on that Quote

4. On the Contract, you will note that Subscriptions were automatically generated based on the Products and the setup for the Products
5. Click the Activate button to “turn on” your Contract
6. Click the Renewal Forecast checkbox – this will create the Renewal Opportunity automatically
   1. By default, the name of the Renewal Opportunity will be just that “Renewal Opportunity
7. You now have a Renewal Opportunity that can be amended and later can be Quoted.

65.When we are creating an Amendment/Renewal Opportunity from an existing Opportunity, we want a custom field value to be populated from the respective contract custom field?

Creating Twin Fields – Creat custom field in contract object and opportunity with same API name and field type

 

66.How to allow Multiple Orders from single Quote?

First of all, it’s necessary to ensure that the Allow Multiple Orders setting is set to True (by default it is set to False when the CPQ Managed Package is installed)

Multiple Orders from a single Quote can be generated in two different ways:

• Automatically
• Manually

 

Splitting Orders Automatically (Ordered checkbox)

This can be achieved with the help of the Ordered checkbox. By default, this checkbox generates a single order but, when used in conjunction with either Order By Quote Line Group checkbox field, or the Order By picklist field, it can split a single quote into multiple orders.

A.Orders can be split automatically by Group

If groups are added to a quote, with the help of the Order by Quote Line Group checkbox field on the quote, orders can be split based on the quote line groups.

1. Orders can be split automatically by a quote line field

You can split orders by certain shared values of the quote lines. All you have to do is add the API name of the quote line field to the Order By picklist field.

1. Orders can be split based on both quote line groups and other quote line fields. 

If both these fields are checked, an order is generated for every combination of group and separate shared value. Thus, two groups and two Size__c values will result in four separate orders.

 

 Splitting Orders Manually (Create Order button)

After you click the Create Order button on a quote and complete the details, and then you get to the Edit Products page, you have the possibility to select only some of the quote lines, and not all of them. The selected products will be converted into Order Products.

67.Which system is used for fulfilment?

Salesforce Billing is highly effective for many aspects of the billing and payment process, especially when integrated with Salesforce CPQ. Here’s where Salesforce Billing shines:

Use Cases for Salesforce Billing

1. Invoicing

– Automatically generate invoices based on orders or contracts.

– Customize invoice templates and formats.

2. Payments

– Process payments through various payment gateways.

– Handle one-time, recurring, and partial payments.

3. Subscription Management

– Manage renewals, upgrades, and downgrades for subscription services.

– Automate billing for recurring services.

4. Revenue Recognition

– Automate revenue recognition schedules based on subscription and usage.

– Ensure compliance with accounting standards.

5. Credit and Collections

– Manage credit terms and collections processes.

– Track overdue payments and send reminders.

 

Scenarios Where Salesforce Billing is Sufficient

– Standard Invoicing and Payments: For companies needing straightforward invoicing and payment processing directly from Salesforce.

– Subscription-Based Models: Perfect for SaaS companies managing recurring billing and subscriptions.

– Integrated Revenue Recognition: When you need to ensure compliance with revenue recognition standards using data from Salesforce CPQ.

 Scenarios Where Third-Party Systems Might Be Needed

While Salesforce Billing is powerful, there are scenarios where third-party systems might offer enhanced capabilities or fill specific needs not fully addressed by Salesforce Billing alone.

Complex Subscription Management

Tool: Zuora, Chargify, Recurly

– Managing highly complex subscription models with advanced billing rules, tiered pricing, or usage-based billing.

– Handling a large volume of subscription changes, cancellations, or upgrades.

Advanced Payment Processing

Spreedly, Stripe, PayPal

– Integrating with a wide range of payment gateways not natively supported by Salesforce Billing.

– Offering advanced payment options like digital wallets, ACH payments, or multi-currency transactions.

Comprehensive Order Management and Fulfillment

ShipStation, Skubana, Orderhive

– Managing inventory and fulfillment across multiple warehouses or locations.

– Automating complex shipping workflows and integrating with numerous carriers for real-time shipping rates and tracking.

Specialized Revenue Recognition and Compliance

SaaSOptics, RevPro by Zuora

– Advanced revenue recognition needs beyond standard accounting practices, particularly for ASC 606 compliance.

– Detailed financial reporting and metrics specific to SaaS or subscription-based businesses.

Advanced Shipping and Logistics

EasyPost, ShipperHQ, AfterShip

– Automating shipping processes with multiple carriers and providing real-time tracking updates.

– Handling complex logistics requirements, including return merchandise authorizations (RMAs) and international shipping.

Example

Let’s consider a scenario with Dell selling both physical products and subscription-based software services. Here’s how Dell can use Salesforce Billing and third-party tools effectively:

1. Salesforce Billing for Subscription Services:

– Dell uses Salesforce Billing to manage invoicing, payments, and revenue recognition for its subscription-based software services.

– Handles recurring billing and automated renewals directly within Salesforce.

2. Zuora for Complex Subscription Management:

– For its enterprise customers with complex subscription needs, Dell integrates Zuora to manage advanced billing rules, tiered pricing, and usage-based billing.

– Zuora provides flexibility and scalability for Dell’s growing subscription business.

3. ShipStation for Order Fulfillment:

– Dell integrates ShipStation with Salesforce to automate order fulfillment for its physical products.

– ShipStation manages shipping label creation, carrier selection, and real-time tracking.

4. EasyPost for Advanced Shipping:

– Dell uses EasyPost to integrate multiple shipping carriers within Salesforce, ensuring efficient logistics management and real-time shipping updates.

– Automates label generation and provides tracking information directly to customers.

5. SaaSOptics for Revenue Recognition:

– Dell integrates SaaSOptics to automate revenue recognition and ensure compliance with ASC 606 for its SaaS products.

– Provides detailed financial reports and metrics, supporting Dell’s financial planning and analysis.

 

68.Provide Lifecycle from Order to Contract?

1.Create Opportunity ➔ 2. Generate Quote ➔ 3. Create Order ➔ 4. Fulfill Order ➔ 5. Generate Contract ➔ 6. Manage Renewals and Amendments

 

69.How to integrate billing system with Salesforce CPQ?

Integrating a billing system with Salesforce CPQ involves connecting Salesforce with third-party billing solutions or leveraging Salesforce Billing.

Types of Integrations with Billing Systems in Salesforce CPQ

1. 1. Native Integration with Salesforce Billing
2. Third-Party Billing System Integration
3. Payment Gateway Integration
4. ERP System Integration
5. Accounting Software Integration

 

1. Native Integration with Salesforce Billing

extends the functionality of Salesforce CPQ to handle invoicing, payments, and revenue recognition. Here’s how this integration works:

 

2. Third-Party Billing System Integration

Integrating third-party billing systems (like Zuora, Chargebee, or Recurly) with Salesforce CPQ involves connecting these systems to handle complex billing scenarios.

 

3. Payment Gateway Integration

Integrating payment gateways (like Stripe, PayPal, or Authorize.net) with Salesforce CPQ enables processing of payments directly within Salesforce.

 

4. ERP System Integration

Integrating Enterprise Resource Planning (ERP) systems (like SAP, Oracle ERP, or Microsoft Dynamics) with Salesforce CPQ ensures comprehensive management of financial and operational data.

 

5. Accounting Software Integration

Integrating accounting software (like QuickBooks, Xero, or NetSuite) with Salesforce CPQ helps in managing financial data and ensuring accurate accounting records.

 

70.What is invoice in Salesforce billing?

An invoice in Salesforce Billing is a document that itemizes and records a transaction between a buyer and a seller. It includes details about the products or services sold, quantities, prices, taxes, and the total amount due. Salesforce Billing automates the creation, management, and distribution of invoices based on data from Salesforce CPQ and other integrated systems.

 

71.Can you explain what the ‘Custom Pricing Method’ in Salesforce CPQ is and how it differs from standard pricing methods?

The ‘Custom Pricing Method’ in Salesforce CPQ allows sales representatives to manually adjust the Customer Unit Price of a product, overriding standard pricing tools and discounting techniques. Unlike the default ‘List’ or ‘Cost’ pricing methods, which calculate prices based on predefined rules or cost-plus models, the ‘Custom’ method gives the rep full control to set a unique price, potentially bypassing automatic pricing rules and discounts.

 

72What are the potential risks associated with allowing sales representatives to use the ‘Custom Pricing Method’?

Allowing sales representatives to use the ‘Custom Pricing Method’ can lead to unintended pricing discrepancies, as it enables them to override standard pricing rules and discounts. This can result in significant deviations from intended price points, potentially impacting revenue and profitability. Therefore, it is crucial to implement controls like validation rules or approval processes to monitor and regulate these manual adjustments.

 

73.How does the ‘Custom Pricing Method’ interact with the Additional Discount field in Salesforce CPQ?

When a product’s pricing method is set to ‘Custom,’ the Additional Discount field becomes non-editable. This means any predefined discounts in that field are essentially ignored, as the manually set Customer Unit Price under the ‘Custom’ method takes precedence, rendering the additional discount void.

 

74.What happens to the Customer Unit Price and the additional discount when you switch back from ‘Custom’ to ‘List’ pricing method?

 

When switching from ‘Custom’ back to the ‘List’ pricing method, the Customer Unit Price is recalculated based on the standard list price and any applicable discounts, including those in the Additional Discount field. The system effectively resets the price, acknowledging all standard pricing rules and discount fields.

 

75.If the Additional Discount becomes non-editable under the ‘Custom Pricing Method,’ what other discounting fields can be used to apply price reductions?

Even when using the ‘Custom’ pricing method, other discounting fields such as ‘Partner Discount’ or ‘Distributor Discount’ remain accessible and can be used to apply percentage-based reductions. These fields are applied further down the pricing waterfall, allowing for additional price adjustments after setting the Customer Unit Price.

76.Can you describe a situation where you can use the ‘Custom Pricing Method’ in Salesforce CPQ?

We can use the ‘Custom Pricing Method’ to offer a special promotional price for a key client who are purchasing a large volume of our product. The standard pricing rules might not accommodate the promotional discount we wanted to offer, so manually set the Customer Unit Price. To ensure this adjustment was appropriate, the custom pricing required approval from senior management, which we obtained, ensuring the price was competitive yet profitable.

 

77.How can you control when sales reps can configure bundles in Salesforce CPQ?

In Salesforce CPQ, the ability for sales reps to configure bundles can be controlled by setting the product’s Configuration Event  and  Configuration Type  fields. Additionally, the reconfiguration capability can be completely disabled by setting the ReconfigurationDisabled  checkbox on the product record. This prevents users from reconfiguring a product after it has been added to a quote.

 

78.What is the function of the  ReconfigurationDisabled checkbox on the product record?

The  ReconfigurationDisabled  checkbox, when set to true, prevents users from clicking the Reconfigure wrench icon on quote lines within the Edit Lines page for a specific product. This means the product can only be configured when it is first added to a quote and cannot be reconfigured afterward. This setting overrides the Configuration Event field, even if it is set to Edit or Always.

 

 

 

 

79.How can you restrict reconfiguration of products only on certain types of quotes, such as renewals?

To restrict reconfiguration only on certain types of quotes, such as renewals, you can use Custom Actions in Salesforce CPQ. The Reconfigure Line wrench icon itself is a Custom Action that can be displayed or hidden based on conditions. You can set up conditions to control when this custom action appears in the quote line editor or configurator, using logical operators to compare field values.

80.Can conditions for Custom Actions in Salesforce CPQ be used on pages other than the quote line editor or configurator?

No, conditions for Custom Actions in Salesforce CPQ are specifically used to control actions in the quote line editor or configurator. They do not apply to other pages or areas within Salesforce CPQ.

81.What steps would you take to set conditions for a Custom Action to appear only on new or amendment quotes, but not on renewal quotes?

To set conditions for a Custom Action like the Reconfigure Line icon to appear only on new or amendment quotes and not on renewal quotes, you would:

– Navigate to the Custom Action setup in Salesforce CPQ.

– Define a new condition or edit an existing one.

– Set the condition to check the type of the quote, such as comparing the quote type field to values indicating a new quote or amendment.

– Ensure the logic explicitly excludes renewal quotes.

– Test the setup to confirm that the Custom Action behaves as intended under different quote types.

82.What are the main similarities and differences between Product Rules and Price Rules in Salesforce CPQ?

Both Product Rules and Price Rules share a similar structure, comprising general properties, conditions, and actions. However, Product Rules primarily enforce business logic related to product configurations, ensuring compatibility and optimizing product selection. In contrast, Price Rules automate price calculations and update fields on quotes and quote lines, affecting pricing and other related attributes.

 

83.How do Product Rules function in the Salesforce CPQ configuration and quoting process?

Product Rules are used to enforce specific business logic during product configuration and quoting. They help automate feedback for sales reps, ensure the correct products and bundles are selected, and streamline the quoting process. Product Rules can act as Validation Rules (hard stop), Alert Rules (soft stop), Selection Rules (guiding product selection), and Filter Rules (creating dynamic bundles).

84.Can you explain the purpose of Validation Rules within Product Rules and provide an example?

Validation Rules within Product Rules ensure a technically valid solution by evaluating conditions and preventing users from proceeding if the conditions are not met. For example, a Validation Rule might prevent a user from selecting incompatible product options within a bundle, displaying an error message until the issue is resolved.

85.What are Price Rules in Salesforce CPQ, and what functions do they serve?

Price Rules in Salesforce CPQ are used to inject values into quote or quote line fields, influencing pricing calculations. These rules can apply static values, calculated values (like formula fields), or summary variables.

86.Describe a scenario where you would use a Selection Rule within Product Rules.

A Selection Rule can be used in a scenario where certain products are automatically added or suggested based on a sales rep’s selection. For instance, if a customer chooses a particular software package, the Selection Rule could automatically add necessary licenses or complementary products to the quote, guiding the sales rep towards a complete and optimized configuration.

87.Why might you use a Filter Rule within Product Rules, and what is a “dynamic bundle”?

A Filter Rule is used to create dynamic bundles by pulling in product options from the product catalog based on specific criteria. A dynamic bundle adjusts its contents based on the conditions set in the rule, allowing for more tailored product offerings. For example, a Filter Rule might include certain accessories in a laptop bundle only if the customer selects a high-end model.

 

88.In what scenarios might Price Rules be used instead of  Flows or Triggers in Salesforce?

Price Rules are often used when the focus is on influencing pricing calculations or making specific updates to quote-related fields that are closely tied to the sales process. For instance, setting dynamic discounts based on volume or customer type, marking quotes that need approval, or updating quantities automatically based on certain conditions are scenarios where Price Rules can be more efficient and contextually appropriate than flows or Triggers.

 

89.What are Configuration Attributes in Salesforce CPQ, and how do they simplify the configuration process?

Configuration Attributes in Salesforce CPQ are fields, often picklist fields, that allow users to input values directly on the configuration page of a product bundle. This feature simplifies the configuration process by eliminating the need for separate SKUs for all possible product variations, such as sizes and colors. Sales reps can specify these attributes during the product configuration, making the process more efficient.

 

90.Why might Configuration Attribute values not appear when reconfiguring a bundle, and how can this issue be resolved?

Configuration Attribute values might not appear during the reconfiguration of a bundle because these values are not saved to a record by default. To resolve this, it’s necessary to create a corresponding “twin field” on the Quote Line object. This twin field should have the same data type and API name as the Configuration Attribute on the Product Option object. This ensures that the values are properly saved and auto-mapped when reconfiguring the bundle.

 

91.What are Option Constraints in Salesforce CPQ, and how do they differ from Product Rules?

Option Constraints in Salesforce CPQ are used to control the selection of product options within a bundle based on dependency or exclusion logic. They cannot automatically select products but can deselect them based on conditions. In contrast, Product Rules are more versatile and powerful, capable of automatically selecting, adding, removing, showing, hiding, enabling, or disabling product options. Product Rules are also more scalable across different bundles and can be used for validations, alerts, and dynamic bundle configurations.

 

 

92.In what scenarios would you prefer to use Option Constraints over Product Rules?

Option Constraints are preferred when the requirement is straightforward dependency or exclusion between product options. They are particularly useful for real-time processing, as they provide immediate feedback to the user upon selecting or deselecting options. This immediate response is advantageous in scenarios where users need instant validation of their selections without triggering a full rule calculation sequence.

The real-time processing capability of Option Constraints means that when a user selects or deselects an option, the dependency or exclusion logic is applied immediately, providing instant feedback. This immediate response helps users quickly understand and adjust their configurations based on the constraints. In contrast, Product Rules require an evaluation event (such as Load, Edit, Save, or Always) to trigger rule calculations, which can introduce a slight delay in feedback.

 

What are the primary use cases for Product Rules in Salesforce CPQ?

Validation: Ensuring that configurations are valid and meet business requirements.

Alert:  Providing warnings or messages to users during the configuration process.

Product Selection:  Automatically adding or removing products from a configuration.

-Product Filtering: Dynamically adjusting product options in bundles.

 

93.Explain the significance of the “Apply Immediately” checkbox in the context of Product Rules.

The “Apply Immediately” checkbox in Product Rules indicates that a rule evaluation event should be triggered as soon as the user makes a change to a relevant Product Option. This feature is useful for providing quicker feedback compared to waiting for a specific event like saving or loading. However, it should be used judiciously to avoid potential performance issues due to frequent rule calculations.

94.How do Option Constraints handle the scenario where conditions are no longer met? How does this compare to Product Rules?

When conditions for Option Constraints are no longer met, the affected product options are automatically deselected and grayed out. This built-in logic simplifies the management of dependencies and exclusions. In contrast, Product Rules require explicit definition of all logic, including what should happen when conditions are met or not met. If a Product Rule is set to add products under certain conditions, it won’t automatically remove them if those conditions change, unless specifically programmed to do so.

 

95.Can Product Rules and Option Constraints be used together, and if so, how?

Yes, Product Rules and Option Constraints can be used together in Salesforce CPQ to create a more comprehensive configuration experience. For example, Option Constraints can handle straightforward dependencies and exclusions with real-time feedback, while Product Rules can manage more complex scenarios like dynamic product selection, validations, and conditional actions.

 

96.What is a bundle in Salesforce CPQ, and what are its primary components?

In Salesforce CPQ, a bundle is a collection of products that are commonly sold together. The primary components of a bundle are:

Bundle Parent Product: The main product that represents the bundle itself.

Product Options: These are the individual products included within the bundle. They can be thought of as the “children” of the bundle parent.

Features: These are categories that group product options within the configuration for better organization and can drive additional logic, such as Min/Max Options.

 

97.Can you describe the three main types of bundles in Salesforce CPQ?

Static Bundle:  A fixed set of products sold together at a pre-set price. No customization or configuration by the user is allowed.

Configurable Bundle: This type allows users to select different options to customize the bundle according to customer needs, with certain restrictions to prevent invalid configurations.

Nested Bundle:  Bundles within bundles, where one bundle includes another as an option. It’s recommended to keep nesting to three levels deep for optimal performance.

 

98.What are Virtual Bundles in Salesforce CPQ, and how are they typically priced?

Virtual Bundles act as containers for other products but do not themselves have a price. They are typically associated with a price of $0.00. If the price of a Virtual Bundle needs to be displayed on output documents, you must add a new line column to the quote template for the relevant Quote Line field (e.g., SBQQ__PackageTotal__c) and ensure the “Show All Package Products” box is checked on the Quote Template.

 

99.How do Dynamic Bundles differ from other bundle types, and what are their advantages and disadvantages?

Dynamic Bundles use product filter rules to allow sales reps to choose from a pre-filtered list of options. The main advantage is ease of maintenance, as they can adapt to frequent changes without needing to update product option records. However, the downside is the lack of control over these options, such as not being able to set minimum or maximum quantities, making them less suitable for products requiring strict business logic.

 

100.Explain how to add a bundle to a quote in Salesforce CPQ?

To add a bundle to a quote in Salesforce CPQ:

– Navigate to the desired quote and click “Edit Lines.”

– Click “Add Products,” search for the bundle product, check the box next to it, and click “Select.”

– If the bundle is configurable, the configuration page will open, allowing you to select options.

– After configuring the bundle, click “Save” to return to the Quote Line Editor, then click “Save” again to complete the process.

101.What functionality does Salesforce CPQ provide to enforce business logic within bundles, and can you provide an example?

A business might set a rule where Product A requires Product B, ensuring that both are added together, or it may exclude Product A if Product C is selected, preventing incompatible products from being sold together.

 

102. What role do Product Options play in creating a bundle in Salesforce CPQ?

Product Options are essential in forming a bundle in Salesforce CPQ. They act as the “children” products that are associated with a “parent” product in the bundle. The relationship between the parent product (configured SKU) and the optional products (optional SKUs) is defined through the Product Option records. This setup allows for detailed customization and configuration of the bundle.

 

103.How does the ‘Number’ field on the Product Option record affect the display of options?

The ‘Number’ field determines the display order of product options within their feature category in the configuration interface. Options with lower numbers are displayed first. This ordering helps organize options logically, improving the user experience during product selection.

 

104.Explain the significance of the ‘Selected’ and ‘Required’ checkboxes on the Product Option record ?

The ‘Selected’ checkbox, when checked, pre-selects the product option when a user enters the configuration. The user can still deselect it if it’s not required. In contrast, the ‘Required’ checkbox ensures that the product option is mandatory in the configuration, preventing the user from deselecting it. This is useful for enforcing necessary components in a bundle.

 

105.What are the purposes of the ‘Quantity’ and ‘Quantity Editable’ fields in the Product Option record?

The ‘Quantity’ field sets the default quantity of a product option that will be added to the quote. The ‘Quantity Editable’ field specifies whether this default quantity can be edited by the user in the quote line editor. This allows for flexibility in how product quantities are handled within a bundle.

 

106.How does the ‘Quote Line Visibility’ field impact the display of Product Options in the Quote Line Editor and Output Document?

The ‘Quote Line Visibility’ field controls when and where product options are displayed after configuration. Options can be set to appear in the Quote Line Editor, on the Output Document, or both, allowing for tailored visibility of bundled products depending on business requirements and customer-facing documents.

 

107.What does the ‘Bundled’ checkbox signify on the Product Option record, and how does it affect pricing?

The ‘Bundled’ checkbox, when checked, indicates that the product option is included with the parent product at no additional cost. This means the List Price will show as “Included,” and the Net Price will be $0.00, regardless of the option’s actual price in the price book. If the product option should contribute to the total price, this checkbox must be left unchecked.

 

108.Explain the function and implications of the ‘Apply Immediately’ field on the Product Option record.

The ‘Apply Immediately’ field, when checked, triggers the evaluation of rules immediately after a product option is selected, with changes taking effect in the configurator right away. This setting provides instant feedback and updates but should be used sparingly to avoid performance issues and a slow user experience. If not checked, changes apply only after the user saves or navigates to another bundle level.

 

109.What role do features play in the configuration of bundles in Salesforce CPQ?

Features in Salesforce CPQ serve as categories of options within a bundle. They help organize product options, enhancing the user experience during configuration. Features can contain multiple options and are used to structure the selection process. Additionally, features can drive business logic, such as enforcing minimum and maximum option selection limits to ensure valid configurations.

110.Explain the significance of the ‘Configured SKU’ field in a Feature record.

The ‘Configured SKU’ field in a Feature record automatically populates with the parent product’s SKU when the feature is created from the bundle product’s detail page. This field links the feature to the bundle product, indicating which parent product is housing the feature and its associated options.

 

111.What are the three Option Selection Methods available in Salesforce CPQ features, and how do they differ?

Click: Displays options as a list with checkboxes, allowing users to select multiple options directly.

Add:  Collapses the options into an ‘Add Options’ button. Users click this button to navigate to a separate page to view and select products. This method is useful for bundles with many features and lengthy option lists.

Dynamic: Similar to ‘Add,’ but the ‘Add Options’ button presents a pre-filtered list of products available for selection, leveraging Salesforce CPQ Filter Product Rules for Dynamic Bundles.

 

112.How do Min Options and Max Options fields on the Feature record affect the configuration process?

The Min Options and Max Options fields define the minimum and maximum number of product options that a user can select within a feature. If a user attempts to select fewer or more options than allowed, the system displays an error message, preventing the configuration from being saved until the issue is resolved. For example, if Max Options is set to 1, the system will display radio buttons instead of checkboxes, allowing only one selection.

 

113.What considerations should be taken into account when setting the Option Selection Method to ‘Dynamic’?

When setting the Option Selection Method to ‘Dynamic,’ it’s important to set up a Salesforce CPQ Filter Product Rule. This rule pre-filters the list of products available for selection, streamlining the process for users by only showing relevant options.

 

114.What is the purpose of using Option Constraints in Salesforce CPQ?

Option Constraints in Salesforce CPQ are used to enforce specific rules and dependencies among product options within a bundle. They ensure that only valid combinations of products are selected, preventing incompatible or inappropriate configurations. This functionality helps maintain product integrity and ensures that sales reps adhere to predefined sales and product logic.

115.Describe a scenario where Option Constraints with grouping would be necessary.

An Option Constraints with grouping scenario is necessary when a product option should only be available if multiple other options are selected. For example, if Product A should only be sold when both Product B and Product C are also included in the bundle, you would create two separate Option Constraints, each linking Product A to Product B and Product C, and group them together. This ensures that Product A can only be selected if both B and C are present.

 

116.Walk us through the steps to create an Option Constraint in Salesforce CPQ using the example provided?

– Navigate to the  Products tab and select the relevant product (e.g., ProductPack1).

– In the  Related  tab, find the Options related list and note the Option Name numbers for Product A, Product B, and Product C.

– Go back and in the Option Constraints  related list, click New

– For the first constraint, enter a descriptive name like “Product A requires Product B” in the Constraint Name field, select the Option Number for Product A in the Constrained Option field, and the Option Number for Product B in the Constraining Option field. Enter “AA” in the Option Constraint Group field.

– Click Save

 

117.What is the purpose of the configured code in Salesforce CPQ for bundle products?

The configured code in Salesforce CPQ for bundle products is used to dynamically generate a unique identifier that represents the components of a bundle. This code helps in tracking and referencing specific configurations of a bundle, simplifying communication with the orders team and ensuring consistency in product identification.

 

118.What are Field Sets in Salesforce, and why are they useful?

Field Sets in Salesforce are groupings of fields for different objects that allow you to control which fields are visible and available for specific scenarios or users. They are useful for customizing the user interface, particularly in applications like Salesforce CPQ, where different products or configurations may require different sets of fields to be displayed. Field Sets can be created for both standard and custom objects and can include both standard and custom fields.

 

119.Describe the process of creating a Field Set in Salesforce for a Product Option?

To create a Field Set for a Product Option in Salesforce:

– Navigate to Setup > Object Manager > Product Option

– Click on Field Sets, then click New

– Enter the Field Set Label and Field Set Name.

– Save the Field Set.

– In the ‘Where is this used’ field, enter a description, such as “Configurator”.

– Add the necessary fields into the In the Field Set box and save the configuration.

 

120.How do you apply a newly created Field Set to a Product Feature in Salesforce CPQ?

To apply a newly created Field Set to a Product Feature:

– Go to Setup > Object Manager > Product Feature.

– Navigate to Fields and Relationships and select Configuration Field Set

– In the Values list, click New and enter the API name of the Field Set created earlier.

– Save the changes.

121.What is the purpose of the “Configuration Field Set” field on the Product Feature object?

 

The “Configuration Field Set” field on the Product Feature object specifies which Field Set should be used to display fields for that particular feature in the product configuration. This field allows you to control the visibility and availability of fields, ensuring that sales reps see only the relevant information for specific products or configurations.

 

Based on the scenario provided for creating a validation rule in Salesforce CPQ to ensure that the number of Product B’s is at least equal to the number of Product A’s in a bundle, here are some interview questions and answers:

 

122.What is the purpose of creating Summary Variables in Salesforce CPQ?

Summary Variables in Salesforce CPQ are used to calculate aggregate values, such as sums, averages, or counts, across multiple records within a configuration. They are particularly useful in scenarios where you need to enforce business logic based on aggregated data, such as ensuring the total quantity of one product is equal to or greater than another in a bundle configuration.

 

123.Explain the process of creating a Summary Variable to calculate the total quantity of a specific product in a bundle.

– Navigate to the Summary Variables tab and click New

– Enter a meaningful Variable Name  such as “Total quantity of PRODUCTA”.

– Set the Target Object to “Product Option”.

– Choose Sum as the Aggregate Function and select “Quantity” as the Aggregate Field

– For the Filter Field, select “Product Code”, set the Operator to “equals”, and enter the specific product code (e.g., PRODUCTA) in the Filter Value  field.

– Save the Summary Variable.

 

124.How do Error Conditions work within a Product Rule, and what is their function in this scenario?

Error Conditions within a Product Rule define the specific criteria that trigger the rule’s actions, such as displaying an error message. In this scenario, the Error Condition checks if the Summary Variable for Product B’s total quantity is less than the Summary Variable for Product A’s total quantity. If this condition is met, the rule fires, and the system prevents the user from saving the configuration until the condition is resolved.

 

125.What is the purpose of a Configuration Rule in Salesforce CPQ, and how is it applied in this example?

A Configuration Rule in Salesforce CPQ associates a Product Rule with a specific product or bundle, ensuring that the rule applies to the correct configuration scenarios. In this example, the Configuration Rule links the validation rule to the ProductPack1 bundle, making sure the rule is enforced whenever this bundle is configured.

 

Based on the explanation provided about Dynamic Bundles in Salesforce CPQ, here are some interview questions and answers:

 

126.What are Dynamic Bundles, and how do they differ from standard Bundles in Salesforce CPQ?

Dynamic Bundles allow sales reps to choose their own options within a bundle, based on predefined filter rules. Unlike standard bundles where all products are predefined and fixed, Dynamic Bundles use filter rules to dynamically display options that meet certain criteria. For example, if a sales rep is configuring a “Cables and Adapters” bundle, they will only see options relevant to that category, such as products that start with “USB.”

 

127.How do filter rules work in the context of Dynamic Bundles in Salesforce CPQ?

Filter rules in Salesforce CPQ are used to control which product options are displayed to sales reps when configuring a bundle. These rules filter the available options based on specific criteria, such as product attributes, categories, or other field values. This ensures that only relevant options are presented, simplifying the configuration process and helping sales reps quickly find the products they need.

 

129.What are the steps to implement a Dynamic Bundle in Salesforce CPQ?

To implement a Dynamic Bundle in Salesforce CPQ, follow these steps:

– Create a Feature: Define a feature to categorize product options within the bundle.

– Create a Product Rule:  Set up a product rule to specify the logic for which products should be included or excluded based on the filter criteria.

– Create an Action:  Define actions to automatically add, remove, show, or hide products based on the product rule conditions.

– Create a Configuration Rule: Link the product rule and actions to the specific bundle to ensure the filtering logic is applied during the configuration process.

 

130.What is the ‘Custom Pricing Method’ in Salesforce CPQ, and how does it differ from standard pricing methods?

The ‘Custom Pricing Method’ in Salesforce CPQ allows sales representatives to manually adjust the Customer Unit Price of a product, overriding standard pricing tools and discounting techniques. Unlike standard methods such as ‘List’ or ‘Cost’ pricing, which follow predefined rules, the Custom Pricing Method provides flexibility for sales reps to set prices based on specific deal requirements or negotiations.

Based on the detailed explanation of Block Pricing and Batch Pricing in Salesforce CPQ, here are some interview questions and answers:

 

131.What is Block Pricing in Salesforce CPQ, and how does it differ from standard pricing methods?

Block Pricing in Salesforce CPQ is a method where products are sold in predefined quantity ranges or “blocks,” each with a specific price. The unit price decreases with larger blocks, incentivizing customers to buy more. Unlike standard pricing, where each unit has a consistent price, Block Pricing offers a set price for a range of quantities. For example, 1-50 units may cost $50, and 51-100 units may cost $95.

 

 

132.How does Salesforce CPQ handle the effective quantity for Block-Priced quote lines, and what is its impact?

For Block-Priced quote lines, Salesforce CPQ sets the effective quantity to 1, regardless of the actual number of units sold within that block. This means that all subsequent pricing calculations and sync operations with related opportunity products consider the quantity as 1. This simplification helps in maintaining consistent pricing calculations and reporting.

 

133.What is Batch Pricing, and for what types of products is it typically used in Salesforce CPQ?

Batch Pricing is a pricing method used specifically for component and accessory product options in Salesforce CPQ. It involves setting a batch quantity, which defines the number of units in a batch. The total quantity entered is divided by the batch quantity to determine the quote line quantity. This method is not applicable to standalone products, related product options, or bundle parents.

 

In Batch Pricing, if a product option’s quantity is set to 4 and the batch quantity is 2, Salesforce CPQ calculates the quote line quantity by dividing the total quantity (4) by the batch quantity (2), resulting in a quote line quantity of 2. If the unit price of the product option is $100, the Net Total is calculated as 2 (quote line quantity) * $100 (price per unit), equaling $200. If the division yields a fractional result, it is rounded up to the nearest whole number.

When the division of the total quantity by the batch quantity results in a fraction, Salesforce CPQ rounds the result up to the nearest whole number. For example, if the calculated quantity is 2.5, it will be rounded up to 3, ensuring the quote line reflects a whole number quantity for consistent pricing and inventory management.

 

134. What are the key differences between Block Pricing and Batch Pricing ?

Block Pricing is used for selling products in specific quantity ranges with set prices, suitable for encouraging bulk purchases. Batch Pricing is used for component and accessory options, focusing on batch quantities for pricing.

Block Pricing sets the effective quantity to 1 for pricing calculations, while Batch Pricing calculates the quote line quantity based on the total quantity divided by the batch quantity. Batch Pricing allows for quantity adjustments in both the Configurator and Quote Line Editor, whereas Block Pricing applies a predefined price to quantity ranges.

 

135. What is the significance of activating Multi-Currency in Salesforce, particularly in the context of Salesforce CPQ?

Activating Multi-Currency in Salesforce allows businesses to create quotes and calculate prices in different currencies, which is essential for companies operating in multiple countries or dealing with international customers. In Salesforce CPQ, this feature ensures that products can be quoted in the currency of the customer, aligning with their local market conditions and facilitating smoother transactions.

 

136.Why must products have a Price Book entry in the same currency as the quote in Salesforce CPQ?

Products must have a Price Book entry in the same currency as the quote to ensure accurate pricing. Salesforce CPQ uses these Price Book entries to determine the prices of products in the currency specified in the quote. Without corresponding Price Book entries in the correct currency, products cannot be displayed on the Product Selection screen, leading to potential issues in quoting.

 

137.Can the multi-currency feature be disabled once it is activated in Salesforce?

No, once the multi-currency feature is activated in Salesforce, it cannot be disabled. This setting is a permanent change to the Salesforce environment, emphasizing the need for careful planning and consideration before activation.

 

138.Why is it necessary to create a twin field on the Quote Line object for product fields used in filtering Contracted Prices?

Creating a twin field on the Quote Line object is necessary because Salesforce CPQ uses these fields to filter and apply Contracted Prices. Without the corresponding field on the Quote Line object, the system cannot correctly identify and apply the appropriate Contracted Price based on the product filter criteria, leading to potential discrepancies in pricing.

Based on the detailed explanation of the different pricing methods in Salesforce CPQ, here are some interview questions and answers:

 

139.What is List Pricing in Salesforce CPQ, and when is it typically used?

List Pricing in Salesforce CPQ refers to using the fixed price from a product’s price book entry. This method is typically used for products with a static price that does not vary between customers or sales scenarios. For example, a book sold in a bookstore at a fixed price of $20 for all customers is an example of List Pricing. The price can be made editable if necessary, allowing for adjustments.

140.How does the Cost Pricing method work in Salesforce CPQ?

Cost Pricing in Salesforce CPQ involves setting a product’s price based on its cost and an additional markup, rather than using a fixed list price. This method is similar to how a car dealership might sell a car: the car costs the dealer $29,000, and the dealer sells it for $33,000, with the $4,000 difference being the markup. A cost record must be created for the product, and the markup can be applied as a percentage or fixed amount in the quote line editor.

 

141.Can you explain Block Pricing with an example?

Block Pricing is used for products sold in quantity ranges or “blocks,” each with a fixed price. For instance, if you buy envelopes, 50-250 units might cost $47.95, 250-500 units might cost $75.95, and 500-1000 units might cost $111.95. In Salesforce CPQ, block prices are non-editable even if the Price Editable checkbox is selected. This method helps simplify pricing for products sold in bulk.

 

142.What is Percent of Total (PoT) pricing, and where might it be used?

Percent of Total (PoT) pricing, also known as “dynamic pricing,” calculates the price of a product as a percentage of the total price of other products in the quote. For example, a service fee in a restaurant might be 10-20% of the total bill amount. This method is used in scenarios where the price of a product depends on the overall order value.

 

143.How does the Option Pricing Override function in Salesforce CPQ?

Option Pricing Override allows for different pricing when a product is sold as part of a bundle versus when it is sold alone. For example, a coffee might cost $2 when sold separately, but only $1 when bundled with a sandwich. This is set up by entering a value in the Unit Price field on the option record, which overrides the price book value. However, it doesn’t apply to products with Block or Percent of Total pricing methods, or if the Bundled checkbox is checked.

 

144.Describe the purpose of Contracted Pricing in Salesforce CPQ.

Contracted Pricing sets specific prices for products for certain accounts, based on negotiated agreements. For example, if a customer has negotiated to buy notebooks at $4 per unit while others pay $5, this can be implemented using Contracted Pricing. It allows setting a direct price override, a discount percentage, or a discount schedule

145.What is the Custom Product Pricing method, and when might it be used?

The Custom Product Pricing method allows sales reps to manually adjust the customer unit price and select different pricing methods, provided the Pricing Method Editable field is set to True on the product record. This method is useful in situations where standard pricing methods do not apply, and a custom approach is needed to meet specific customer requirements or deal negotiations.

 

146.What is a Quote in Salesforce CPQ, and how does it function in the sales process?

A Quote in Salesforce CPQ is a document generated during the sales process that outlines the products or services being offered, along with their prices, terms, and conditions. It serves as a formal proposal to a customer, detailing the costs and specifics of the sale. For example, if a company offers IT services, a quote would list services like “Network Setup” and “Monthly Maintenance,” along with their respective costs.

 

147.What is a Quote Line, and how does it differ from a Quote?

A Quote Line in Salesforce CPQ represents an individual product or service listed on a quote. Each quote line includes specific details such as the product name, description, quantity, unit price, and any applicable discounts. For instance, if the quote includes “Laptop” and “Printer,” each would be represented as separate quote lines, specifying the number of units, the unit price, and any discounts applied to those items.

 

148.Can you explain what a Quote Line Group is and provide an example of its use?

A Quote Line Group is a way to organize and group multiple quote lines within a single quote. It is used to categorize similar products or services, apply group-specific discounts, or present a more organized quote to the customer. For example, in a quote for office equipment, Quote Line Groups might be used to separate “Computers and Accessories” from “Furniture and Fixtures,” making it easier for the customer to see the categories and total costs for each.

A Quote Line Group improves the presentation of a Quote by organizing items into logical categories, making the document easier to read and understand. This grouping can highlight related products, simplify complex quotes, and make it easier to apply discounts to specific sections. For example, a Quote Line Group titled “Software Licenses” could aggregate all software-related products, showing a subtotal and making it clear what the customer is paying for each category.

 

 

149.Can discounts be applied differently to a Quote, Quote Line, and Quote Line Group? Provide an example.

Yes, discounts can be applied at different levels:

– Quote Level: A general discount applied to the entire quote. For example, a 5% discount on the total quote value for a bulk purchase.

– Quote Line Level: A discount specific to individual products or services. For example, a 10% discount on laptops in the quote.

– Quote Line Group Level: A discount applied to a specific group of products or services. For example, a 15% discount on the “Office Supplies” group within the quote.

 

150. Can you explain how Option Discounts work with an example?

Option Discounts are applied to specific products when they are part of a bundle. For example, if you purchase a “Home Office Setup” bundle that includes a laptop, printer, and desk, the laptop might have a $100 discount only when bought as part of this bundle. If purchased separately, the discount does not apply. This encourages customers to buy the complete bundle for a better deal.

 

151.What are Discount Schedules, and how are they typically used?

Discount Schedules in Salesforce CPQ offer quantity-based discounts or term-based discounts. For instance, a company might offer a 10% discount on software subscriptions if the customer commits to a 12-month term instead of a monthly subscription. Similarly, a discount schedule might provide increasing discounts as the purchase quantity increases, like a 5% discount for buying 10-20 units, and a 10% discount for 21-50 units.

 

152.How can sales reps apply Additional (Manual/Discretionary) Discounts in Salesforce CPQ?

Sales reps can apply Additional Discounts via the Additional Discount field on the quote line, which can be set as a percentage or a specific currency amount. For more granular control, the AdditionalDiscountUnit special field can be created, allowing discounts to be applied as a unit price override or a total line price override.

 

153.What are Channel Discounts, and when are they typically used?

Channel Discounts include Partner Discounts and Distributor Discounts, which are applied when sales involve partners or distributors. For example, a distributor might receive a 5% discount on all products to account for their role in selling and supporting the product.

 

154.How do Price Rules interact with discounting methods in Salesforce CPQ?

Price Rules can automate the application of discounts like Additional, Partner, and Distributor Discounts. For instance, a Price Rule could automatically apply a 10% discount on bulk purchases over 100 units, or adjust the distributor discount based on regional market conditions. This automation ensures consistent application of discount policies across all sales transactions.

 

155.Explain the purpose of the Non Discountable checkbox on a product record.

The Non Discountable checkbox prevents additional discounts from being applied to certain products. For example, a company might use this setting for its flagship product to preserve its market positioning and profit margins.

 

 

 

 

 

 

156.How does Salesforce CPQ handle the list price and contracted price in the price waterfall?

 

Salesforce CPQ first considers the contracted price (if available) when calculating the Special Price. If no contracted price exists, the system defaults to the list price from the price book. This ensures that any negotiated pricing agreements with specific accounts are honored before standard pricing mechanisms are applied. For instance, if a product’s list price is $100, but there’s a contracted price of $90 for a particular customer, the CPQ system will use $90 as the starting point in the price waterfall.

 

157.Can you describe a scenario where multiple discounts are applied to a quote line in Salesforce CPQ, and explain how the price waterfall processes these discounts?

Consider a scenario where a sales rep is applying discounts to a software subscription product. The product has a list price of $200 per month. Here’s how the price waterfall processes various discounts:

– Contracted Price: No specific contracted price is set, so the list price of $200 is used.

– Discount Schedule: A discount schedule offers a 10% discount for subscriptions longer than 12 months, reducing the price to $180.

– Partner Discount: A partner involved in the deal is granted a 5% discount, bringing the price down to $171.

– Additional Discount: The sales rep applies an additional manual discount of 3%, further lowering the price to $165.87.

– Distributor Discount: If applicable, a distributor discount could also be applied, but it’s not mentioned in this case.

The final price (Net Price) the customer sees and pays is $165.87 after all these discounts are processed in sequence according to the price waterfall.

 

158.What are special fields in Salesforce CPQ, and how can they alter the order of the price waterfall?

Special fields in Salesforce CPQ are custom fields that administrators can create to alter the default sequence in which discounts and price adjustments are applied in the price waterfall. Examples include:

– ChannelDiscountsOffList__c: Ensures that Channel Partner and Distributor Discounts are calculated from the List Unit Price.

– ApplyPartnerDiscountFirst__c: Applies the Partner Discount before any volume or manual discounts.

– ApplyAdditionalDiscountLast__c: Applies Additional Discounts at the end of the discounting sequence, after other discounts like Partner and Distributor Discounts.

159.Provide an example where the order of discount application is critical in Salesforce CPQ?

Consider a scenario in a technology company where they sell hardware through a network of partners and distributors. The product’s list price is $1,000. The company offers a 10% Partner Discount and a 5% Additional Discount.

– Standard Order: If the Partner Discount is applied first, the price drops to $900. Then, applying the Additional Discount of 5% results in a final Net Price of $855.

– Modified Order: If the Additional Discount is applied first, the price drops to $950. Applying the Partner Discount next would reduce the price by 10% to $855. However, with the special field ApplyPartnerDiscountFirst__c, the Partner Discount is applied first, ensuring partners get their full discount benefit before any manual adjustments.

 

160.What is the purpose of using multi-dimensional quoting (MDQ) in Salesforce CPQ?

The purpose of using MDQ in Salesforce CPQ is to manage and present subscription products or services in segmented time periods, such as months, quarters, or years, within a single quote line. This approach allows each segment to have its own quantity, discount, and pricing adjustments, providing greater flexibility and accuracy in pricing complex subscription-based products.

 

161.Provide an example of how a Price Rule can be used to update a discount field in Salesforce CPQ?

Imagine a scenario where a company offers a 10% discount on all accessories if a customer purchases a laptop. A Price Rule can be set up with the following components:

• Condition: Check if the quote includes a laptop.
• Action: Apply a 10% discount to all quote lines categorized as “Accessory.”

 

162. Describe a scenario where customizing a quote template with a company’s branding can enhance the customer experience.

Consider a company, “sfdcamplified” that wants to reinforce its brand identity with every customer interaction. By customizing the quote template with the company’s logo, slogan, and branding colors (e.g., Shading Color: EA781F, Border Color: ED8739), the quotes become a direct extension of the company’s marketing and branding efforts. This attention to detail enhances the customer experience by making the document not only professional but also visually aligned with the company’s brand, helping to strengthen brand recognition and loyalty.

 

163. What are custom action in Quote Line Editor?

In Salesforce CPQ, you can customize the Quote Line Editor by adding custom buttons and actions. These buttons can be used to perform specific tasks or trigger certain actions, such as applying discounts, recalculating prices, or navigating to different sections.

 

164. What is the Quote line editor drawer and its uses? 

• The Quote Line Editor Drawer in Salesforce CPQ is a feature that provides a compact and efficient way for users to view and edit quote line items.
• In each quote line item, there is a row action by clicking on it sales reps can use the drawer

Steps to configure Drawer-

1. Go to Setup and click on Object Manager
2. Go to quote line object ( Make sure this is not a salesforce standard quote object, it is a CPQ Quote Line object SBQQ__QuoteLine__c)
3. Click on Fieldset and then Standard Line Drawer
4. Drag the fields that you want to add to the fieldset
5. Click on Save

 

165. 
     How does integrating Salesforce CPQ with DocuSign enhance the quoting process?

Integrating Salesforce CPQ with DocuSign enhances the quoting process by allowing users to send quotes for electronic signature, track the status of documents, and manage signed agreements all within the Salesforce platform. This integration speeds up the sales cycle by eliminating the need for manual signatures, provides a secure and legally binding method for capturing signatures, and ensures a seamless transition from quote to contract.

 

166. What are the key differences between using a standard quote template and DocuSign for managing quotes?

• Standard Quote Template: Focuses on generating and formatting the quote document. It is primarily used for presenting information clearly and consistently, and it does not inherently include functionality for electronic signatures.
• DocuSign Integration: Adds functionality for electronic signatures, document tracking, and secure storage. It extends the capability of standard quote templates by enabling digital workflows, reducing paperwork, and ensuring compliance with legal requirements.

 

 

167. Define a CPQ project you have worked on and the CPQ tools you used?

Project Overview: I worked on a CPQ implementation project for a company that provides therapy services to students. The goal was to streamline the sales process, automate pricing and discounting, and improve the accuracy of quotes and contracts.

Products offered

• One-Time Services: Initial Consultation – Price: $100 per session

Specialized Assessments: Psychological Assessment, Cognitive Evaluation. Price: $250 per assessment

Workshops and Educational Mindfulness Workshop, CBT Skills Training. $150 per session

2. Subscription-Based Services:

• Monthly Therapy Plans
• Annual Therapy Memberships
• Wellness Packages

3.Usage-Based Services:

• Group Therapy Sessions: – Anxiety Group, Stress Management

 4.Bundled Services:

• Family Therapy Bundle: Discount: 20% off family sessions

 

168. When exactly the Product Rules are executed during the quoting process?

Product Rules are executed either on the Product Configuration Page or on the Quote Line Editor. This is decided based on below Product Rule Fields-

1. SCOPE– (Values: Product/Quote) – The Scope field on the product rule record tells CPQ WHERE the rule should run. A scope of “Product” means the rule will run during product configuration, and a scope of “Quote” will make it run on the Quote Line Editor.
2. EVALUATION EVENT – (Values: Load/Edit/Save/Always) – The Evaluation Event field on the product rule record tells CPQ WHEN the rule should run.

 

169. Dell Corp. sells both Software and Hardware products. There is a field called “Type” on the quote to indicate whether the products being quoted are Software or Hardware. As a Product Manager, how would you configure Salesforce CPQ to display only the products that match the Quote’s “Type” field, ensuring that when the quote type is set to Software, only Software products are shown, and when set to Hardware, only Hardware products are shown?

 

To achieve this requirement in Salesforce CPQ, you can use Product Rules to control the visibility of products based on the “Type” field on the quote. Here’s how you can configure this with a detailed example:

Create Two Opposing Product Rules:

– Rule A: Show Software Products and Hide Hardware Products

– Rule B: Show Hardware Products and Hide Software Products

 

170. What is the purpose of using Lookup Queries for Product Rules?

Lookup Queries are used to dynamically define Product Rule conditions and actions based on a pre-defined set of data from custom object (lookup object) records. They reduce the number of rules you have to create by allowing for more dynamic filtering and actions based on data retrieved from the lookup object.

• Real-Time Example: If Dell Corp. frequently changes the conditions under which certain discounts are applied based on product attributes or customer categories, using Lookup Queries can streamline this process. Instead of creating multiple rules for each scenario, you can set up a single Product Rule that dynamically adjusts based on data pulled from a custom object, like a “Discount Conditions” table. This setup ensures that as new conditions or products are added, the system remains flexible and requires less manual updating.

 

171. How should a bundle with 20 Product Features and 50+ options each be configured to avoid excessive scrolling during quoting?

Option Selection Method: Set the Option Selection Method to “ADD” for all Product Features. This replaces long lists with an “Add Options” link, minimizing scrolling.

 

172. What are the differences between Configuration Attributes and Global Attributes?

• Configuration Attributes: Specific to bundles, directly associated with the bundle product.
• Global Attributes: Reusable across multiple product options and bundles, indirectly associated.

Real-Time Example: Dell uses Configuration Attributes for specific bundle features, like laptop colors, and Global Attributes for more general traits, like warranty terms.