In Depth Salesforce CPQ Interview Questions

Whatsapp Link for Salesforce CPQ Group

Salesforce CPQ Interview Questions Part 2

1.What is Salesforce CPQ?

The CPQ in Salesforce CPQ is short for Configure, Price and Quote. You can use it to generate new product details, sell appropriate product combinations, decide on product quantities, target specific customers, determine selling rates, regulate discounts, check stocks, automate approvals and record sales.

2.What are the key Features of Salesforce CPQ?

1. Product Configuration: Salesforce CPQ allows users to configure products or services based on predefined rules and constraints. It ensures that only valid and feasible products or services can be selected, eliminating configuration errors and increasing customer satisfaction.

2. Pricing and Discounting: Salesforce CPQ enables businesses to define pricing rules and discounts based on various criteria such as quantity, customer type, or specific promotions. It ensures consistent and accurate pricing, eliminating manual calculations and reducing pricing errors.

3. Quoting and Proposal Generation: With Salesforce CPQ, sales representatives can quickly generate professional-looking quotes and proposals customized to meet specific customer requirements.

4. Guided Selling: Salesforce CPQ provides guided selling capabilities, helping sales representatives recommend the most suitable products or services based on customer needs, preferences, and constraints. It ensures upsell and cross-sell opportunities are maximized, increasing sales effectiveness.

5. Integration with CRM: As a native Salesforce application, Salesforce CPQ seamlessly integrates with the Salesforce CRM platform. This integration enables a unified view of customer data, including quotes, orders, and customer history. It allows sales teams to have a holistic understanding of customer interactions, facilitating better decision-making and customer relationship management.

3.What is the product?

It is an item, bundle or service offered to customer for a price.

4.What is Standard Price Book?

 In the “Standard Price Book,” we list the regular prices for the product. These were the prices that most customers paid when they visited her shop.

5.What is Custom Price Book?

It is the pricebook created to provide special prices to different customers based on various scenarios. Example, price can vary based on region, country etc so there will be different pricebook for each region to sell that product for that price in that specific region.

6.What is Pricebook Entry?

To connect the products with their respective price books we create price book entries. You can think PriceBook Entry is the common friend which connects Product and Pricebook together.

7.What is Product-based Selling?

Item: It is offering single item to the customer. Eg shoes, ice-cream etc.

Bundle: Package multiple products together and sell it to customer

Perfect example is Cadbury celebrations.

8.What is Service Based Selling?

When selling a service, it’s important to highlight what makes service personal and how we can meet the customers’ needs. Marketing services requires building trusting relationships with customers and customizing them as necessary.

Example: Urban Clap come home and gives variety of services.

9.What is the Difference between Product and Asset?

Product is an invention of the company. Through product company makes revenue. Product won’t have depreciation value for the company.

Asset is not tagged for selling but is for own use of the company. For example, Air Conditioner company is having inside the office is asset. It can have depreciation value.

10.What is the link between product, price book and pricebook entry?

• Products are represented by Standard Object – Product2.
• PriceBooks are represented by Standard Object – Pricebook2

Data Model:

• PricebookEntry is the junction object between Product and Price Book.

11.What is Schedule?

There’s a feature called Schedules that companies can use to define delivery cycles and payments for products. Companies that provide subscription services and product shipping often use this feature.

Schedules come in two types:

• Quantity Schedule – Determines when a product is delivered.
• Revenue schedule – Determines when a product is paid for.

12.When to use Quantity Schedules?

Take for instance magazine subscription. They bill subscribers annually and deliver the products on a monthly basis. They can use quantity schedules to help in monitoring the product units that need to be shipped and if there are any pending subscription payments that need to made.

Click on Quantity Schedule Enabled Checkbox in product record to Enable Quantity Schedule.

13.When to use Revenue Schedules?

A revenue schedule is suitable when customers make regular payments but receive the product once.

For Example, customer takes car on lease, he might do $400 per month for 48 months i.e. $19200 total. So, customer has signed contract for $19200 but monthly he is paying $400 i.e. he has got the product, in this case car but making payments in regular basis.

14.How do we define price?

We manage price of product using price book. There are two types of price book:

• Standard Price Book
• Custom Price Book

Standard price book

Every product that we create, we should have a standard price.

It is the default price that is associated.

Go to Price book Object -> Click on New and Create Standard Price book

Select checkbox besides Standard Price Book and Active

Go to Related -> In the Price book -> Select Add Standard Price

So, we have created our product and we have set the standard price.

Custom price books

When we offer our products to different people with different prices, then we go for custom price books.

For example, I am selling iPhone in India and US. The price will differ for iphone in India and US market. So, there comes the concept of custom price book.

Go to Pricebook -> Click New -> Create the price book

Go to Product -> Related -> Click on Add to Pricebook

Add the List Price $30 for US and $25 for India

15.What is OWD Setting for Pricebook Object?

If we go to sharing settings, go for price book, and we will see that by default setting is set to Use

16.How to use Price Books to sell products in multiple currencies?

If a company has a single price for a product regardless the currency, it can enable the multicurrency feature in Salesforce. Then, the conversion rates entered in Salesforce will automatically apply to product prices added to an Opportunity.

17.Can we delete Standard Price book?

A company can deactivate Standard Price Book, but not delete or archive it. In case a company changes prices in Standard Price Book, it may affect open and even closed Opportunities.

18.Can we delete Custom Price book in Salesforce?

It’s not possible to delete Price Book while it’s in use on Opportunities or Quotes.

19.What is the means to archive a price book?

If a company decides that it won’t need a certain Price Book in the future, it can archive a Price Book even if it’s being used in Opportunities or Quotes. Once archived Price Books can’t be recovered.

20.How can we determine which price books are assigned to a user?

By default, the org-wide default setting for price book is “Use”.  This means that any user with read access to both the “Product” and “Price Book” object will be able to select any active price book.

21.How to control access to Salesforce Price Books?

A company can control access to Price Books by setting the Organization-wide sharing rule on Price Books to “View only” or “No Access” and then giving access to a particular Price Book based on the Role, Public Group.

22.How to set access Level of Product?

The products object does not use the standard record sharing model.  Access to manipulated products is controlled by object-level security (profile & permission sets).

23.How to modify prices in Price Books?

User can modify prices in both Standard and Custom Price Books. This can be achieved in two ways:

• Manually
• Using Apex Data Loader

24.What is Price Rule in Salesforce CPQ?

The Price Rule helps you decide how to set the prices or apply discounts based on certain conditions.

For example, let’s say you want to have a “Buy One, Get One Free” offer. You can create a Price Rule that says whenever someone buys one packet, they get another packet for free or maybe you want to have a discount for a limited time.

The Price Rule allows you to set different pricing actions and conditions. You can define discounts, special offers, or even adjust the prices based on specific conditions like the quantity purchased or the customer’s membership status.

25.What is the structure of the Price Rule?

The price rule included three related records:

1. Price Rule
2. Price Condition
3. Price Action

26.What is the Relationship between Price Rule, Price Condition and Price Action?

The price Rule has a Master-Detail relationship with Price Condition and Price Action.

By connecting the Price Rule with the relevant child Price Conditions, the pricing system ensures that the appropriate rules are applied based on specific conditions. Price Action defines the actions that need to be taken when the associated Price Conditions are met. It specifies how the pricing or other field values should be modified based on the rule criteria

27.Difference between Calculator and Configurator Evaluation Scope in price rule in Salesforce CPQ?

The Evaluation Scope field is like using that magical calculator. When you have price rules with the Calculator Evaluation Scope, they are used by the calculator to decide how much something should cost. It has two picklist values:

• Calculator Evaluation Scope – Scope is about using special rules to calculate prices. This scope helps you calculate special offers, discounts, and quantity.
• Configurator Evaluation Scope – The Configurator Evaluation Scope ensures that you follow certain rules when selecting different options,

28.Explain calculator evaluation event?

“On Initiate” marks the beginning of the calculation process.

“On Calculate” performs the actual price calculation

“Before Calculate” applies any final checks or rules just before the calculation.

“After Calculate” allows for additional actions or surprises after the prices have been determined.

1. On Initiate:

– Suppose you have a price rule that states if the customer is a loyal member, they get a 5% discount on all candy purchases.

– This price rule would have the evaluation event set to “On Initiate.”

– When the customer initiates the price calculation process, such as by starting a new quote, the system checks if they are a loyal member and applies the 5% discount

2. On Calculate:

– Imagine you have a price rule that offers a bulk discount if the customer buys more than 10 candies of any flavor.

– This price rule would have the evaluation event set to “On Calculate.”

3. Before Calculate:

– Let’s say you have a price rule that states if the customer has selected candies with a total price over $30, they receive a complimentary candy bag.

– This price rule would have the evaluation event set to “Before Calculate.”

– Just before the final calculation is performed, the system checks if the total price of the candies exceeds $30. If it does, the price rule is triggered, and a complimentary candy bag is added to the cart.

4. After Calculate:

– Suppose you have a price rule that gives a special promotional offer of “Buy 2, Get 1 Free” for a specific candy flavor.

– This price rule would have the evaluation event set to “After Calculate.”

– After the final calculation is completed, the system reviews the customer’s selected candies and identifies if they qualify for the “Buy 2, Get 1 Free” offer. If they do, the price rule is triggered, and the system adds the free candy to the cart.

What is the significance of the “Condition Met” field in a Price Rule?

Let’s explain the concepts of “Condition Met – All” and “Condition Met – Any”

1. Condition Met – All:

– Imagine you have a candy store with a special promotion: If a customer buys at least 5 candies and the total price exceeds $10, they receive a free candy bag.

– This price rule would have the condition met set to “All.”

– When a customer adds 5 or more candies to their cart and the total price of those candies exceeds $10, all the conditions are met!

– As a result, the system recognizes that the customer qualifies for the promotion, and a free candy bag is automatically added to their order at checkout.

2. Condition Met – Any:

– Now, consider a different price rule: If a customer purchases any candy with a specific flavor, they receive a discount of 20%.

– This price rule would have the condition met set to “Any.”

– When a customer either selects a candy with the “Cherry” flavor or adds more than 10 candies to their cart, any one of the conditions is met!

29.Can you explain Lookup Object field in a Price Rule with help of scenario?

In your candy store, you have different types of candies with unique features. The Lookup Object field in the Price Rule object is like a special connection that helps you apply specific rules

The Lookup Object field in the Price Rule object is a feature that allows you to establish a relationship between the Price Rule and another object in your Salesforce org.

1. Establishing the Lookup Relationship:

– When creating a Price Rule, you can select a related object in the Lookup Object field.

– This establishes a lookup relationship between the Price Rule and the chosen object.

– The related object can be a standard Salesforce object (like Product or Account) or a custom object specific to your business needs.

2. Accessing Related Data:

– Once the lookup relationship is established, you can access the related data from the chosen object within the Price Rule.

– This means you can retrieve information from specific fields on the related object and use it in your price rule logic.

– For example, if the lookup object is set to “Product,” you can access the fields on the Product object, such as Product Name, Price, or any custom fields related to the product.

3. Utilizing Lookup Object in Price Rule Logic:

– With the Lookup Object field, you can leverage the related data from the chosen object to drive the conditions and actions of the price rule.

30.What is the significance of Active checkbox in Price Rule?

When the “Active” checkbox is checked, it indicates that the Price Rule is active and only then it will be evaluated during the pricing calculation process.

31.How does the Evaluation Order field impact the application of Price Rules?

The “Evaluation Order” in a Price Rule is essential for defining the sequence in which the rules are evaluated during the pricing calculation process. It helps establish the priority and hierarchy of rules when multiple rules are applicable. Rules with lower Evaluation Order values are evaluated first.

32.How can you define complex conditions using the Advanced Condition feature in a Price Rule?

With the Advanced Condition feature, you can define a complex condition that involves multiple fields and comparison values.

33.We can add the product in the lookup object field instead of product field in salesforce so what is the difference?

You’re correct! In addition to selecting the product directly in the “Product” field of a Price Rule, you also have the option to reference the product through a lookup relationship field using a lookup object. Let’s explore the difference between the two approaches:

1. Product Field:

– When you select the product directly in the “Product” field of the Price Rule, you are associating the price rule directly with a specific product.

– This approach is useful when you want to define pricing actions or conditions that apply to a particular product or group of products.

– It is a straightforward way to target specific products within your catalog and define rules exclusively for those products.

2. Lookup Object:

– Using a lookup object, you can establish a relationship between the Price Rule and another object in Salesforce, such as a custom object or a standard object like an Account or Opportunity.

– This allows you to reference the product indirectly through the related object.

– By using a lookup relationship, you can define pricing actions or conditions based on data from both the related object and the associated product.

– This approach provides more flexibility in creating rules that depend on information from other objects in addition to the product itself.

34.Can Price Rules be used to update field values on a record? Explain.

No, Price Rules in Salesforce CPQ are primarily used for pricing calculations and adjustments rather than directly updating field values on a record.

While Price Rules can affect the pricing outcomes and results, they are not designed to directly update field values on a record outside of the pricing context.

35.What is the difference between a Price Rule and a Discount Schedule?

Price Rule:

– A Price Rule allows you to define specific pricing actions or adjustments based on certain conditions

– For example, you can create a Price Rule that applies a 10% discount to all candies during a promotional period.

– Price Rules provide flexibility to apply different pricing logic, discounts, or adjustments based on various conditions for specific candies or groups of candies.

Discount Schedule:

– In the same candy store scenario, a Discount Schedule would be used to manage standardized discounts that apply across multiple candies.

– A Discount Schedule provides a consistent approach to apply predefined discounts uniformly.

– For example, you can create a Discount Schedule called “10% Off” that offers a 10% discount on all candies storewide.

– Discount Schedules help maintain consistent pricing across different candies or pricing tiers, ensuring that the same discount is applied to multiple products without needing individual Price Rules.

36.What is the significance of Object and Field in Price Condition?

When creating a Price Condition, you select the appropriate object from the available options in the “Object” field. This specifies the related object that you want to reference in the condition. Once you select the object, you can then choose the specific field from that object in the “Object Field” field.

For example, let’s say you have a Price Condition that checks if the “Candy Flavor” field on the related Quote Line object is equal to “Lemon”. In this case, you would select the “Quote Line” object in the “Object” field and then choose the “Candy Flavor” field.

Set up a Price Condition to check if the “Type” field of the Candy associated with the Quote Line is equal to “Gummy Bear.”

Here’s how it works:

1. In the Price Condition record, you would select the “Quote Line” object in the “Object” field. This indicates that you want to evaluate a field from the Quote Line object.

2. Next, in the “Object Field” field, you would choose the “Candy.Type” field. This specifies that you want to reference the “Type” field from the related Candy object associated with the Quote Line.

3. To complete the condition, you would set the operator as “Equals” and provide the value “Gummy Bear.” This condition will check if the Candy type for the associated Quote Line is “Gummy Bear.”

37.What is Tested Variable Field in Price Condition?

The “Tested Variables” field in the Price Condition object allows you to store and reference intermediate values during the evaluation of the condition.

38.What is the use of Tested Formula Field in Price Condition?

The “Tested Formula” field in a Price Condition allows you to define a formula expression that is evaluated to determine whether the condition is met or not. It allows you to create dynamic conditions that consider different factors.

39.What is the use of the “Operator” field in a Price Condition?

This field determines the comparison or logical operation to be performed when evaluating the condition.

The available operators in the “Operator” field may vary depending on the data type of the field being compared. Here are some common operators you may encounter:

– Equals (=): Checks if the field value is equal to the specified value.

– Not Equals (!=): Checks if the field value is not equal to the specified value.

– Greater Than (>): Checks if the field value is greater than the specified value.

– Less Than (<): Checks if the field value is less than the specified value.

– Greater Than or Equal To (>=): Checks if the field value is greater than or equal to the specified value.

– Less Than or Equal To (<=): Checks if the field value is less than or equal to the specified value.

– Contains: Checks if the field value contains a specific substring or value.

40.What is Use of Filter Type field in Price Condition Object?

1. Variable: Allows you to select a summary variable that holds a specific value. Summary variables are used to store and reference calculated values based on formula logic or aggregations.

2. Formula: Allows you to specify a formula or expression that determines the condition for the Price Rule to be applied. You can use formula functions, operators, and field references to create complex conditions based on the values of the quote line item or other related objects.

3. Value: Specifies a specific value that the field on the quote line item will be compared against. It is typically used in conjunction with the “Field” and “Operator” fields to define the condition.

Together, the “Variable”, “Formula”, “Value” allow you to define the conditions that determine when the Price Rule should be applied to a specific quote line item.

41.What is Filter Value Field in Price Condition?

The filter value represents the expected value or threshold against which the field on the quote line or quote line group is compared. The filter value can be a numeric value, text value, date, or any other appropriate data type depending on the field being used in the condition.

42.What is the use of Filter Variable Field in Price Condition?

The Filter Variable Field in the Price Condition allows you to reference a custom variable specific to a quote line or quote line group and use it in the condition evaluation.

43.How do we use Filter Formula field in price condition?

The filter formula field in the Price Condition allows you to define a formula-based condition to determine if the rule should be applied. Let’s consider an example in the

44.What is the use of Index Field in Price Condition?

The “Index” field in the Price Condition object can be used to define the order in which the conditions are evaluated for applying pricing rules. Let’s consider an example to understand its use:

45.What is the use of Price Rule Field in Price Action object?

Connects Price Action with Parent Price Rule. It signifies which Price Rule the Price Action is associated with and determines under which rule the condition should be evaluated.

46.What is the significance of Target Object in Price Action?

Target Object in Price Action determines where the pricing changes specified in the Price Action will be applied.

Suppose you have a Price Action that applies a discount of 10% to the Unit Price of gummy bear candies when the quantity exceeds 100. The Target Object field in the Price Action determines which records will receive this discount.

In this case, you would select the “Quote Line” object as the Target Object in the Price Action. This means that the discount will be applied to the Quote Line records that represent the gummy bear candies in the quote.

47.What is the significance of Value field in Price Action?

The Value field in the Price Action object is used to specify the specific value or data that needs to be set field in the target object. It defines the outcome of the Price Action, indicating the desired result or change that should occur.

48.What is the use of the Formula field in the Price Action object and the Formula field in the Price Condition object?

Let’s understand when to use the Formula field in each object.

• The Formula field in the Price Action is used to calculate and directly apply the discount amount or field value based on certain criteria.
• The Formula field in the Price Condition sets conditions or calculates values that determine when the Price Action should be executed.

49.What is the Significance of Source Field in Price Action?

The “Source Field” in Price Action specifies the field from which the value will be fetched and used in the Price Action.

50.Difference between Source Field and Source Lookup Field in Price Action?

Source Field:

– The Source Field refers to a specific field on the source object from which data is fetched and used in the Price Action.

Source Lookup Field:

– The Source Lookup Field, on the other hand, is used when you want to fetch a related record’s field value through a lookup relationship. It allows you to traverse through a lookup field to access fields on the related object and use them in the Price Action.

51.What is a Bundle?

A bundle is a logical grouping of products that are sold together and form a single quote line item. For example, if you buy laptop from a store, you may receive multiple products such as mouse, keyboard, and laptop bags, but you will pay for a single product, the laptop.

Products can be sold together as part of a bundle or standalone. Bundles can have complex logic applied to them through Product & Price Rules. 

52.What is the Product Rule?

Product Rules define what features can and cannot be selected for CPQ products. They can even select features for reps. 

Product rules can be applied in four ways:

Product Selection Rules

Selection Rules intelligently select, deselect, show, and hide options based on a number of parameters.  This can greatly simplify configuring CPQ complex products.  They can be driven by prior selections within a bundle, for example, if option A is selected, and option B is no longer valid, a rule can deselect and/or hide the option from the rep.  Or if option B is required, the rule can select and/or show an unselected or hidden option.

Product Validation Rules

Validation Rules work like standard Salesforce validation rules, and they prevent the rep from saving a record under a specific condition.  They are similar to selection rules, but offer an error message to the rep, and can provide guidance on how to continue.

Product Alert Rules

Alert Rules are similar to validation rules, except the rep can continue without making changes.  Typical use is to alert the rep when they have crossed a certain threshold that quote approval will be required.

Product Filter Rules

Filter Rules can dynamically filter available options in each scenario, ensuring the correct options are available for selection.

53.What is a Summary Variable and how is it different from a Roll Up Summary?

Summary variables summarize number fields (such as quantity or price) and allow you to define criteria for the summary such as product code or product family. Summary variables run specifically within the quote line editor and the value is not retained* in the system once the calculation is performed.

Roll up summary fields behave in the same way, but the value is not calculated until the record is saved – whereas Summary Variables are calculated within the quote line editor and are usually used for the purposes of triggering product or price rules. 

Example: If you are offering a discount on all quotes over a certain threshold i.e. $100. You would define a summary variable to add up the gross amount of all quote line items, and if the value is over $100, then a price rule could be triggered to automatically apply a 20% discount to the entire quote.

54.What are CPQ Twin Fields?

IT automatically map data between two fields on different CPQ objects. Typically, data from Quote Line records needs to be copied to resulting subscription records, order product records, and opportunity product records. Admin can create the same field type with the same API name on every object, and the system will copy the value upon the record’s creation. 

55.What are Contracted Prices?

Contracted Prices are related to a specific account and override the Regular Price of a quote line, based on a special price the customer has agreed. Contracted Prices will get pro-rated in Amendment scenarios. 

56.What are Contract Amendments?

Contract Amendments are used to upsell or cross-sell an existing customer during their existing contract term. For example, a user sells ten software licenses to a customer for a one-year term, starting 1 January 1 and ending December 31.

In March, the customer comes back to you for five more licenses. The user would create a Contract Amendment to sell the five extra licenses from March-December rather than starting a new contract from March-February. 

Using Contract Amendments ensures all subscription products renew on the same date, making it easy to handle renewals when the time comes. 

57.Explain the difference between Products and Product Options?

Products are the records that hold specifics such as Product Name, Product Code, Product Description, etc. 

Product Options are records related to two Product records, the Configured SKU (the Parent or Bundle product) and the Product record that holds the Option itself. 

An example would be as follows:

• The Parent Product is the Solar Controller Hub.

• The Product Options are items like the solar panels and mounting kits.

Product Option records are related to two Product records, the Configured SKU (Solar Controller Hub) and Optional SKU (Solar Panel, Mounting Kits, etc.). 

Product records which are not to be sold outside a bundle must have the field “Component” checked. This removes them from the Product Catalog.  

58.Explain the difference between a Quote and an Order?

Quotes are used to create proposals for the prospect or customer and will contain things like optional products, quote terms and can be used to capture a signature. 

Orders are created by Sales Ops or the Finance team and are used to prepare invoices for the customer based on what they have purchased. Data from the primary quote will flow downstream to the Order record such as Account Name, Opportunity Name, Quote Lines > Order Products, etc.

59.What is the difference between Product Rules and Option Constraints?

Option Constraints are a simplistic version of product rules allowing users to exclude or require an option based on the selection of another option, e.g. a user selects option A so they must also select option B. 

Product rules are far more sophisticated and have four types of rules: validation, alert, selection, and filter. The selection type will provide the same functionality as Option Constraints but with more features. 

60.Explain how to roll out Salesforce CPQ ?

Salesforce CPQ will require a phased deployment and the process should be planned well in advance. At a high level, the following steps are required: 

• Install CPQ package in Production environment for admins only.
• Migrate fields to Production.
• Migrate relational data to production. 
• Update Global Package settings.
• Smoke test with admins and a small group of test users who have been given the required permissions.
• Add Permission Set License to all users who require CPQ permissions.
• Add relevant permission sets to all users who require CPQ permissions.
• Monitor usage and monitor hypercare channels (email, Slack, etc.).

61.Can you explain the difference between standard and custom quote templates in Salesforce CPQ?

In Salesforce CPQ, quote templates are used to format and present quotes to customers. There are two types of quote templates: standard and custom.

1.Standard quote templates are pre-built and provided by Salesforce, and they are basic templates that can be used right out of the box. They come in a variety of formats, such as HTML, PDF, and Microsoft Word, and can be customized to a certain extent.

2. Custom quote templates, on the other hand, are completely customizable and can be tailored to match the specific needs of an organization. They are created using the Salesforce Lightning Component framework, and they offer a great deal of flexibility and control over the layout, design, and content of quotes. Custom quote templates allow organizations to brand their quotes, incorporate custom images, and add additional information and functionality that is specific to their business needs.

62.Can you explain the role of the Approval Process in Salesforce CPQ ?

The Approval Process in Salesforce CPQ (Configure, Price, Quote) plays a critical role in automating the process of approving quotes, contracts, and orders in the organization. The process helps in streamlining the quote-to-cash cycle, reducing manual effort, and improving the speed of quote approvals.

63. What is price rule’s configurator evaluation?

When Salesforce CPQ applies a price rule to its target, the configurator evaluation event determines when the rule is applied. To ensure sales reps see the price rule’s results, you can adjust the assessment event.

64.When does the Quote Calculator perform a calculation?

The Quote Calculator performs a calculation whenever there is a change in the quote configuration, such as adding or removing products, changing quantities, updating pricing rules, or modifying discount percentages.

65.How do you Disable Real-Time Calculation for CPQ Quotes?

To disable real-time calculation for CPQ quotes, follow these steps:

• Go to the CPQ app in Salesforce.
• Click on the “CPQ Settings” tab.
• Click on the “Configure CPQ” button.
• In the “General Settings” section, uncheck the “Real-Time Calculation” option.
• Save the changes.

66. What is the purpose of Asynchronous Calculation?

Calculations conducted outside the quote line editor typically time out after 30 seconds. However, enabling asynchronous calculation can avoid timeouts. This method doesn’t affect calculations within the quote line editor but may prolong the time it takes to complete them.

67. What are Custom Scripts?

Custom scripts can add extra functionality to the quote line editor.

68. What are Advanced Approvals?

The Advanced Approvals package offers valuable automation and customization features for your approval process. With the ability to automate resubmitted approvals and regulate the sequence in which approvers receive requests, you can streamline your workflow and save valuable time and resources.

69. What is the meaning of the term Block Price?

Block Price Allows you to assign a fixed price to a product based on quantity, overriding the automatic calculation of quantity unit price.

70. What are Co-Terminated Subscriptions?

Co-Terminated Subscriptions are prices you’ve agreed to with certain customers, and they should be applied to all quotes for that client. They can be used to any product in any price book and are available on the account. Contracted rates might be limited to a certain time frame.

71.What happens when you Translate a record?

When you translate a record, you simply declare the translated values for the text fields in that record. You can have various translations for different records within the same object this way. The translated values are saved in a localization record in Salesforce CPQ.

72. What is Multi-currency in Salesforce CPQ?

Salesforce CPQ can be used to build Quotes and compute pricing using the available

73. How do you Add a Signature Block to a Quote Template?

In order to include a signature block or two signature blocks in the footer of your template, simply drag the Text/Image Field into the designated space. To ensure a right-aligned signature block, two columns can be used. Additionally, labels such as Signature, Name, Title, or Date can be added to each line for clarity and organization.

74. Describe merge fields?

Salesforce CPQ quote Templates offer a solution for creating mail-merge documents that automatically populate your quote with dynamic information. Merge Fields can be utilized to establish placeholders in your template content or dynamic quote terms, which can then generate a PDF Document using the layout provided by your quote Template.

75. What are the four pricing methods in CPQ?

Block pricing involves pricing products according to different quantity ranges against which Salesforce CPQ can check new products and price accordingly.

Cost-and-markup pricing involves pricing products according to their costs and markup amounts. In batch pricing, the prices of the components and accessory bundle products depend on static amounts per their quantity ranges.

Contract pricing involves using negotiated product prices on new, renewal and amendment quotes.

76. Give a brief idea about QTC?

QTC refers to Quote to Cash, a term used in the technology designed to allow automated management of the user business processes. It includes integrating the business processes on the seller side related to the product or service configuration, quote creation, pricing, invoicing, payments, etc.

77. What are product options?

Product options are what really brings the bundle together. A bundle is created when you add Options to a Product in the Options related list.

Important fields on the Product Option record are:

The Number field specifies the display order of this option within its feature, lower numbers being displayed first.

The Selected checkbox makes the option pre-selected when the user enters configuration, and he’ll be able to deselect it if necessary. On the other hand, the Required checkbox makes the product option required for that configuration, and the user is not allowed to uncheck it. 

The Quantity field defines the default quantity of this product option that will be added to the quote. We can specify in the Quantity Editable field whether the product’s default quantity is editable or not on the quote line editor. Furthermore, we can set Min Quantity and Max Quantity allowed for this product within the bundle, for example – no less than 10.

78. What is the refresh quote price?

‘Refresh Quote Prices’ button allows to update quote line prices with the latest list prices from price books, ensuring quotes always reflect the most current pricing. Salesforce CPQ evaluates the price book entries for the quoted products, updating each quote line’s original price and list unit price.

79. What is Profile Eligibility?

This custom “Profile Eligibility” field would then be leveraged in the Price Rule Conditions, ensuring that only users with the specific profiles can edit the List Price, enforcing the necessary pricing controls.

80. What is Block Pricing Field?

The Block Pricing Field allows you to adjust the price based on various factors like quantity.

Creating Block Pricing Tiers

For this example, we’ll create two:

 Less than 300 licenses: price is $2500

 More than 300 licenses: price is $3000

81. What is Salesforce CPQ Amendments?

Salesforce CPQ Amendments are a powerful tool that lets users modify their customer’s current contracts. Changes such as adding new products, adjusting asset or subscription quantities, or terminating existing products can be made using Amendments.

82. What are the limitations of Amendments?

1.Amendments don’t allow for price adjustments. If you’re making changes to existing products, the pricing can’t be modified.

2.Another thing to keep in mind is that Amendments only work if there’s a quantity change.

3.It’s important to note that changing dates isn’t a supported use case for Amendments. You can terminate existing products, add new ones, or increase or decrease the quantity, but you can’t change the end date of a subscription.

83. What can be done with Amendments?

You can change quantities of existing products while maintaining the same discount as the original quote, change quantities or add new products and co-terminate existing contracts, or terminate existing products.

84. What is the price rule audit field?

This field allows you to keep track of when and how Price Rules are being applied, so you can easily identify any issues that may be affecting the accuracy of your pricing.

By leveraging the Price Rule Audit field, you can quickly see which Price Rule was triggered and what calculations were performed to arrive at the final price.

85. How to prevent sales rep from entering negative and decimal quantities in the Quote Line Editor?

To prevent sales reps from entering negative quantities in the QLE, it’s recommended to create a product validation rule. This rule will prevent the user from saving a quote that is configured incorrectly.

86. How to limit decimal quantities?

Salesforce CPQ provides a Quantity Scale field that specifies the number of decimal places used in the Quantity field.

87. What is order product termination date?

When you cancel a subscription by Amending a contract, the Terminated Date field on the Contract Line Item (Subscription) is stamped. The related original Order Product inherits the same Terminated Date field.

Please note, if you contract from Opportunity, the Terminated Date on the original Order Product doesn’t get populated. This happens only when you contract from Order.

88. How to hide a product from Product selection?

When you need to disable one Product Option while another Product Option within the same bundle is selected, the solution is the Exclusion Option Constraint. It prevents two Options from being selected concurrently. When one option is selected, the checkbox for the other is disabled.

Exclusion Option Constraint acts on Product 1 and Product 3. 

Selection Product Rules can help us hide a specific product within a bundle or a specific category of products.

The next step is to create the Error Condition that causes the rule to trigger

Finally, create a Product Action that will remove all Products whose Product

89. How to prevent sales rep from reconfiguring certain products?

Salesforce CPQ allows you to control when sales reps can configure bundles by changing the product’s Configuration Event and Configuration Type fields. This setting prevents users from clicking the Reconfigure wrench icon on quote lines for a certain product within the Edit Lines page, meaning that the product can only be configured when first added to a quote.

Reconfigure Line wrench icon is a Custom Action. It is possible to set up conditions so that a specific custom action appears or not in the quote line editor or configurator.

90. How can we generate contract in salesforce CPQ?

In order to generate a Contract in Salesforce, you either select the “Contract” checkbox on the Opportunity record or the “Contract” checkbox on the Order record. 

When creating Contracts from Orders, you should respect the following:

• There should be at least one Subscription Order Product on the Order.
• All Subscription Order Products are activated.
• The related Opportunity hasn’t been contracted yet for the Quote related to the Order.
• Order Products must be related to the Quote Line of the Quote from which the Order was generated.

When creating Contracts from the Opportunity, two requirements must be met:

• There should be at least one Quote Line with the Subscription Pricing field set to “Fixed Price” or “Percent of Total” on the Primary Quote.
• You must define the Start Date either on the Primary Quote, Quote Line Group, or the Quote Line itself.

91. Explain relation between amendments and contracts?

If you need to amend a Contract that has the Renewal Opportunity created but doesn’t have the Renewal Quote generated yet. In this scenario, the amendment is synchronized with the Renewal Opportunity because amendments will update the Renewal Opportunity automatically to reflect the new product quantities. 

However, if Renewal Quote is already generated (Renewal Quoted checkbox on the Contract is set to TRUE). Salesforce CPQ doesn’t automatically update the Renewal Opportunity with the additional amendments to the current Contract.

92. How to setup dependent picklist on quote line editor?

The quote line editor interface  can be organized to remove excess line editor fields by placing some of the fields in a collapsible drawer below each line. You can set up different “Quote Line Views” and/ or “Quote Views” to show different sets of fields either on the Quote level or on the Quote Line level depending on the type of quote, stage, or task they have at hand. Or you can control what values appear in a picklist field depending on the product added to the cart without having the sales rep click on anything. 

93. What is contracted pricing in Salesforce CPQ?

Contracted Pricing in Salesforce CPQ is a way of storing and applying immediately negotiated prices and discounts for individual accounts.

According to the Salesforce documentation on Contracted Pricing, “During quote line list price calculation, Salesforce CPQ applies this discount to the product’s price book entry. Salesforce CPQ ignores any block pricing on the product.”

It means Salesforce CPQ looks only at the price book entry prices when applying the Contracted Pricing logic.

94. What is Multi-Currency in Salesforce?

Activating Multi-Currency in a Salesforce environment enables you to create quotes and calculate prices in different currencies. However, for a product to be visible on the Product Selection screen, it must have a Price Book entry in the same Price Book and currency as the quote. Note that Price Books can have prices for several currencies, so you don’t have to create a Price Book for each currency and once the multi-currency is enabled, it can’t be disabled.

95. How to delegate responsibility to user for approval of Quote?

In the “Delegate Information” section on the Approver record to delegate the responsibility of reviewing approvals when users are away and cannot do it themselves.

It is important to specify the Delegation Start date. Delegation is applied only to the new submissions, not to the approvals that have already been submitted.

96. What is an invoice?

When a sales rep finalizes a quote and then orders it within Salesforce CPQ, Salesforce Billing receives the information, and an invoice is generated. It is a document that contains a list of products and (or) services alongside the total amount the customer has to pay. 

In Salesforce Billing, invoices are records that hold this information. Invoices and invoice lines are generated based on the order and order products.

The invoice has a lookup to the originating order, and the invoice lines have lookups to the originating order products.

Invoice lines also have lookups to the product record, and the invoice has a lookup to the account record.

 The invoice lines are displayed in the Related List and show the products for which we are asking the customer to pay. 

97. Explain different Pricing Methods in CPQ?

There are four native pricing methods in Salesforce CPQ:

1. List – list price is retrieved from Price Book Entry. This method works for products that have fixed, static prices that should be pulled directly from the price book entry.

2. Cost – allows setting a price based on its cost and markup, rather than list price and discount: For this purpose, a cost record must be created from the Costs Related List on the product record. It will be used to generate the price of the product.

3.Block – allows to price a product based on ranges of quantities determining block price tiers.

4.Percent of Total (PoT) – also called “dynamic pricing” calculates the price of a certain product based on a percentage of the sum of other product prices. For example, the tip for a bill at a restaurant is generally a percentage (10-20%) of the total order.

Salesforce CPQ can also adjust or replace the prices it gets from price books with the help of:

Option Pricing Override. This works only for products within a bundle. If a product is sold alone, it has a price; if it is sold in combo or bundle – it has a lower price.

Batch Pricing applies only to product options in a bundle. It doesn’t work for standalone products. It is used to price components and accessory product options based on quantity ranges.

Example:

1 – 15 items: USD12

16 – 30 items: USD24

31 – 45 items: USD32

Contracted Pricing sets account-specific prices for certain products using product look-up fields. For example, a certain customer has negotiated to buy a laptop at USD400 per unit, while everyone else pays USD500.

This can be achieved by:

• direct price override
• discount percentage
• discount schedule

Contracted Prices can be limited in time: you can set an Effective Date and/ or an Expiration Date.

98. What is Custom Product pricing?

User can define a Custom Product Pricing if the Pricing Method Editable field on the product record is set to True.

In this case, sales reps will be able to change the Pricing Method to custom and manually adjust the customer unit price.

99. Explain various discounting tools in Salesforce CPQ?

Thus, CPQ has the following discounting tools:

1. Option Discounts are used to offer discounts on specific products when purchased in a bundle. 

2. The Discount Schedule is used to offer quantity-based discounts, the more the customer buys, the higher is the discount, and term-based discounts which are based on the length of the subscription term.

3. Compound Discounts provide discounts that automatically change for every unit of your product. A compound discount is calculated based on a mathematical formula.

4. Additional (Manual/Discretionary) Discounts are applied via the Additional Discount field either as a percentage, amount, unit price override, or a total line price override.

5. Channel Discounts include Partner Discounts and Distributor Discounts which are leveraged when partners or distributors are involved with a deal.

100. How to make sure that the sales reps are selling a product respecting the minimum quantity required?

If the product is part of a bundle as a Component is to use the Min Quantity field on the product option, which sets the minimum quantity allowed for a certain option.

If you a dealing with a single product then use the Default Quantity field on the Product record, which specifies the starting quantity of the product when added.

However, the Default Quantity field doesn’t guarantee that the sales reps don’t add less than the minimum quantity per the business requirement if the Quantity Editable field is checked.

101. Difference between configuration and global attribute?

Sometimes we want to specify additional information for a product during the configuration process. It could be location, color, size, or anything that can further describe the product. This can be achieved with the help of configuration or global attributes.

There are two types of attributes that can be used in Salesforce CPQ:

Configuration attribute is related to a single bundle while the global attribute is not directly associated with a product, it can be related to multiple options, and you can reuse it even across bundles.

102. How to generate Multiple Orders from a single Quote?

It is important to ensure that the Allow Multiple Orders setting is set to True in CPQ Managed package.

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

• 1. Automatically
  2. Manually

 

1.Splitting Orders Automatically

This can be achieved with the help of the Ordered checkbox. 

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.

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

You can split orders by certain shared values of the quote lines.

C. 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.

 2.Splitting Orders Manually

 

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.

103. Explain Price Waterfall?

It is referred to as price waterfall because each price from top cascades down and affects the subsequent prices.

104. Explain different types of Products in Salesforce?

Non-Subscription Products: During contract creation, non-subscription products can convert to an Asset depending on the option chosen in the Asset Conversion field. Assets are the records of non-subscription products that were quoted or sold to customers.

Subscription Products: During contract creation, these products convert to Subscription records. If product is a subscription the Subscription Pricing field is populated.

• Fixed Price Subscription Products 
• MDQ (multi-dimensional quoting) Products

Based on the Subscription Type, products can be Renewable or One-time. Renewable products are added to Renewal quotes, while one-time products are not.

105. What is Evergreen Subscriptions?

Evergreen subscriptions can be enabled from the Salesforce CPQ package settings in the Subscriptions and Renewals tab. Evergreen subscription products remain active until canceled and can’t be renewed.

 

106. Explain type of product bundles?

• Static bundles will place the same options on a product every time it’s added to a quote.
• A configurable bundle will allow your sales reps to customize the product options included in the bundle.

107. Is it possible to nest product bundle into another bundle?

Bundles can also be nested within other bundles. This can be simply achieved by adding the parent product of a bundle as an option to another bundle.

108. What are dynamic bundles?

These functions let your sales reps choose their own options by filtering the options they are allowed to choose from.

109. What is a usage-based product?

It is how much of the product or service they use, for example, a mobile plan.

110. Explain steps for order generation?

The process starts with the opportunity, then a quote, the next steps will be ordering 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:

 

 

111. What is quote line editor?

The quote line editor interface is where you can view your quote lines and make changes across the entire quote or to individual lines. It can be accessed from the Edit Lines button on the quote record.

112. What is the use of Add Products button in quote line editor?

This button leads to the Product Lookup page where products can be selected and added to the quote. We can make it appear conditionally and we can make it dynamic.

113. What is the use of Add Group button in quote line editor?

We can categorize the quote lines into various groups with the help of the Add Group button which can be important for visually organizing the page and it can be important for our output document, and creating groups also can help create separate orders automatically.

 

115. What is the use of Delete Line button in quote line editor?

This is a package setting that allows you to select several lines and delete them with the click of a button.

114. What is the use of Calculate and Quick Save button in quote line editor?

We need to click the Calculate button to see what are the values would be if we actually saved the record. When we click the Calculate button the changes don’t get saved and they are not reflected on the quote record.

When we click Quick Save, the quote record gets updated.

115. How we can display fields on the Quote Line Editor?

Under the Quote Information header, there is the Line Editor Fieldset on Quote. It contains the quote fields displayed in Edit Lines page above the line items table.

With the help of this Line editor fieldset, you can show information about the quote.

The line items table comprises another field set. This one lives on the quote line object and it’s called the Line Editor Fieldset on Quote Line.