Whatsapp Link for Salesforce CPQ Group
Topics Covered
- Contract Lifecycle Management
- Integration of Conga in Contract Management
- Integration of e-signature tools such as DocuSign and Adobe Sign in CPQ
- Quote to Cash
- Meaning of Different Fields in Contract Object
- What is CLM (Contract Lifecycle Management)?
Scenario – “Frosty Bliss,” is a popular frozen yogurt company, operates. It is renowned for its mouth-watering flavors like chocolate, strawberry surprise, and magnificent mango, along with a dazzling array of toppings.
Behind the scenes, there’s a web of contracts and agreements running. These range from deals with local farmers for fresh strawberries and mangoes, arrangements with chocolate suppliers for the richest cocoa, leases for the shop spaces in prime locations, and the health insurance policies for the employees.
CLM ensures all agreements with the fruit farmers are honored during harvest season, that the chocolate supplies are fair trade, and that every employee is safeguarded by their insurance. CLM key in handling contracts.
Explain the steps in the Contract Management Lifecycle?
Using the scenario of “Frosty Bliss,” a popular frozen yogurt company, I’ll explain how the contract lifecycle management (CLM) steps. I will also Incorporate Conga (a comprehensive CLM solution) and DocuSign (a digital signature application) so as to give a full understanding of how these tools are utilized in this process.
1. Contract Request: Frosty Bliss plans to introduce 3 new exotic flavors in the next quarter. The legal team uses Conga to initiate a contract request, inputting specifics for 10 new ingredient suppliers, and detailing required quantities, delivery, and quality specifics.
2. Collaboration: Utilizing Conga, the legal team collaborates with the R&D department, which has determined a need for 5 additional unique toppings for the new flavors. They use Conga’s centralized platform to create drafts, employing previous templates but modifying for the new ingredients and toppings, involving feedback from 7 different departments.
3. Approval: The contract drafts are sent to 12 key internal stakeholders via Conga. Each stakeholder uses the platform’s review feature, ensuring alignment with Frosty Bliss’s financial allowances and stringent quality benchmarks.
4. Negotiation: Negotiations commence with potential suppliers, facilitated by Conga’s communication tracking features.
5. Execution (Signing): After finalizing negotiations, contracts are sent for signing through DocuSign to expedite the process. DocuSign’s seamless interface allows for immediate and legally binding agreements, cutting down the contract signing duration from a 2-week to a 3-day turnaround.
6. Ongoing Management: Frosty Bliss, utilizing Conga, oversees the contracts’ lifecycle, tracking supplier adherence to the agreed-upon standards and timelines. The system alerts the legal team if suppliers deviate by more than 10% from the contract terms, prompting reviews for potential amendments, renewals, or terminations.
7. Analytical Insights: Conga’s advanced analytics provide Frosty Bliss with real-time insights from the contract data, revealing that 85% of suppliers consistently meet contract terms and identifying a 30% uptick in seasonal demand requiring proactive adjustments.
2. How does the integration of Conga and Adobe benefit the end-to-end contract management process within Salesforce?
Integrating Conga and Adobe with Salesforce streamlines the contract management process by facilitating features like
- contract redlining
- electronic signing
- automatic versioning of documents
This ensures a seamless transition from lead to cash, enhancing accuracy, and speeding up the contract negotiation and signing process.
3. Could you discuss the specific benefits companies experience when integrating Adobe’s electronic signature solutions?
Integrating Adobe’s e-signature solutions drastically reduces the signature cycle time, from days to mere minutes in some cases. It’s not just about speed, though. The benefits also include improved accuracy, enhanced compliance, increased adoption by sales teams, and more professional experience for both employees and clients.
e-Signature helps in the following ways:
- Set it without programmers.
- Simplify the workflow for reps.
- Stay in salesforce.
- Send and sign on any device at any time.
- Reduce errors and improve compliance.
- We can customize it.
4. What is the disadvantage of not integrating with third-party tools such as Adobe Sign or DocuSign for e-signature?
1. Manual Processes and Delays: Without integration, documents and contracts created or managed in Salesforce would need to be manually sent for signature, downloaded, or transferred to Adobe products.
2. increased Error Potential: Manual data entry or transfer between Salesforce and Adobe products increases the risk of human errors, such as inputting incorrect information or sending the wrong document version for signature.
3. Inefficiency and Poor User Experience: Users would have to switch between systems to complete tasks, leading to inefficiency and a disjointed user experience.
5. How do Conga and Salesforce CPQ handle dynamic document generation and management during the negotiation phase?
Salesforce CPQ is adept at automating the quote generation process with accurate pricing, while Conga offers advanced document generation and management features. During negotiations, changes can be tracked, and new versions created and stored within Salesforce, ensuring all parties have access to the latest information. Also, the system supports various file formats, contributing to its versatility in real-world scenarios.
6. How does automation in Salesforce help in managing renewals and avoiding contract lapses?
Automation within Salesforce significantly improves renewal management by proactively tracking contract end dates and triggering alerts for upcoming renewals. This ensures timely engagements with customers to initiate renewal discussions.
How do Conga’s AI-based capabilities enhance contract management within Salesforce?
By using machine learning algorithms, Conga can identify:
- patterns and anomalies in contracts
- suggest optimal terms.
- flag potential risks
- deviations from standard clauses
7. Which is better for Salesforce to integrate – DocuSign or Adobe Sign as electronic signature platforms?
DocuSign: Known for its ease of use, DocuSign offers features like reusable templates, customizable branding, bulk sending, and advanced fields. The user interface is intuitive, which is favorable for businesses looking for straightforward solutions.
Adobe Sign: This platform integrates well with various Adobe products and offers strong workflow capabilities.
8. Explain the concept of quote-to-cash (QTC) in Salesforce?
“Research indicates that 66 percent of all sales quotes end without a purchase. Salespeople can beat these odds when they are thorough, accurate, and timely with their sales quotes.”
To understand the Quote-to-Cash (QTC) process. Let’s use frozen yogurt business ‘Frosty Bliss’:
1. Quote Creation: A customer contacts Frosty Bliss wanting a bulk order of 150 custom frozen yogurt cups for an event, with unique flavor combinations and toppings. The sales rep, using Salesforce, inputs the customer’s requirements:
• Choice of 3 flavors: chocolate, strawberry surprise, and magnificent mango.
• 5 exclusive toppings.
• Custom-branded cups with the event’s logo.
Salesforce calculates the ingredients, labor, and customization, automatically generating a quote for $750.
2. Quote Approval: The quote is sent to the customer through an integrated app like DocuSign, offering a seamless review and electronic signature process. The customer makes adjustments, requesting an additional 50 cups, bringing the total to 200 cups and the updated quote to $1,000. They electronically sign the adjusted quote, and Salesforce is instantly updated with this commitment.
3. Order Management: Salesforce automatically converts the approved quote into an order, eliminating the need for the sales rep to manually re-enter details. The system sends an order confirmation to the customer and notifies the production team to schedule the order for a specific date.
4. Production and Delivery: The production team, informed by Salesforce, starts preparing the custom order. They use a third-party logistics integration like ShipStation or Shopify to manage the delivery. Once the order is ready, the team ships the 200 custom frozen yogurt cups, updates the status to “shipped” in Salesforce, and the customer receives a real-time notification of the shipment.
5. Billing: The finance department receives an automatic prompt from Salesforce to generate an invoice once the order is shipped. The invoice, totaling $1,000, is emailed to the customer with a note indicating a due date within 15 days, thanks to an integrated accounting tool like QuickBooks.
6. Payment: The customer completes the payment using an online link facilitated by a secure payment gateway integrated with Salesforce, like Stripe. Upon successful transaction, the payment status is recorded in Salesforce, and the order status is updated to “completed.” The sales rep, customer, and finance department are all automatically notified of the order’s successful completion.
9. Could you elaborate on how automation can be used in the sales process?
Auto-generating Orders: Once a Quote is accepted, an automation can trigger the creation of an Order, reducing manual data entry.
Discount Approval Processes: Automation can be set up to initiate approval workflows for discounts that exceed certain thresholds, ensuring proper oversight.
Contract Creation: Contracts can be generated automatically when an Order is approved, saving time, and ensuring consistency.
Syncing Quote Data: Automation can keep Quote and Opportunity data in sync, providing a real-time view of the sales pipeline.
10. In the sales process, what triggers the creation of an Order from a Quote, and what information does an Order capture?
An Order is typically created from a Quote when the customer accepts the Quote, signaling their commitment to purchase. An Order captures essential information, including product details, quantities, pricing, shipping information, and terms of sale.
11.Can you explain the role of Contracts in Salesforce in more detail? What types of information are typically included in a Contract record?
Contracts formalize agreements between the company and the customer. A Contract record in Salesforce typically includes information such as:
– Terms and conditions
– Service-level agreements (SLAs)
– Billing terms
– Start and end dates
– Renewal terms
– Pricing details
– Obligations and commitments
Contracts serve as legally binding documents that outline the terms of the relationship between the company and the customer.
12.What are the typical steps involved in automating the creation of an Order from a Quote in Salesforce?
– Defining the triggering event, such as Quote acceptance.
– Configuring Flow to initiate Order creation.
– Mapping relevant data from the Quote to the new Order record.
– Implementing error handling and validation rules to ensure data accuracy.
This automation reduces manual effort and ensures a smooth transition from Quote to Order.
13. What are some key considerations for companies when deciding whether to implement CPQ (Configure, Price, Quote) in addition to Sales Cloud?
– The complexity of their product offerings and pricing structures.
– The need for streamlined quoting processes and accurate pricing calculations.
– The desire for a more efficient and error-free quoting experience for sales teams.
14.How does the contracting process work in Salesforce CPQ, particularly from opportunities or orders?
In Salesforce CPQ, the contracting process can be initiated directly from an opportunity or order by using the contractor checkbox. Once this box is checked, it triggers the automation within Salesforce CPQ.
15.Can you explain the role of the ‘renewal model’ in Salesforce CPQ and how it affects contracts?
The ‘renewal model’ field in Salesforce CPQ is key to defining how the system tracks the products we quote and sell on our accounts. We can set the renewal model in the subscriptions and renewals package settings.
Salesforce CPQ applies that value by default to the renewal model field on the accounts. However, we can override this setting at the account level if needed. This model determines how subscription products and assets are handled during the renewal process.
16. During the contracting process, what are ‘subscribed assets,’ and how are they different from other assets or subscriptions?
‘Subscribed assets’ refer to a specific record generated during the contracting process in Salesforce CPQ. The ‘subscribed asset’ is a junction object that links the asset and the subscription, providing a detailed record of hardware products.
17. How does Salesforce CPQ handle the conversion of quoted products into assets or subscriptions?
For subscription products, CPQ automatically creates subscription records, while for perpetual products, it creates asset records based on the asset conversion criteria set for each product. For instance, if a product is marked “one per unit” for asset conversion, CPQ will create an individual asset record for each unit sold. This automation streamlines the sales process, ensuring accurate record-keeping for different types of sales.
18. Can you elaborate on the process of creating contracts from opportunities in Salesforce CPQ?
To create a contract from an opportunity in Salesforce CPQ, certain conditions and settings must be met.
- the opportunity must have at least one subscription product.
- there must be a primary quote linked to the opportunity,
- contract-based renewal method must be set on the opportunity’s account.
- the ‘contracted‘ checkbox on the opportunity is selected.
Salesforce CPQ kicks off the automation process, creating subscription records for subscription products and asset records for perpetual products based on the quote lines.
19. Can you discuss the role of “Asset Conversion” during the contracting process?
“Asset Conversion” is a field determining whether a product should be converted to an asset or not. This is particularly important for products that we don’t need to track as assets, like complementary products or swags included in a bundle. Users can set this field to “None” for such items. However, for main products, they can choose “One Per Unit” or “One Per Code Line,” which instructs Salesforce CPQ to create either individual asset records for each unit sold or a single asset record for all units included in a code line, respectively.
20. Could you elaborate on the differences between “Contract-Based” and “Asset-Based” renewal models?
The “Contract-Based” renewal model is used when you need to keep detailed records of subscription products, particularly their start and end dates. This model triggers the creation of a contract record and corresponding subscription or asset records.
Asset-Based” renewal model is more appropriate when you don’t sell subscription products or when you use only “percentage of total” products to represent them. In this model, only asset records are created, which are then associated with your account.
21. Can you elaborate on the difference between ‘One Per Unit’ and ‘One Per Quote Line’ in the Asset Conversion setting?
In the Asset Conversion setting, ‘One Per Unit’ and ‘One Per Quote Line’ are options that dictate how products are converted to assets in Salesforce CPQ.
- ‘One Per Unit’ creates an individual asset record for each unit of a product sold, beneficial for tracking items with unique identifiers like serial numbers.
- ‘One Per Quote Line’ consolidates all units of a product sold into a single asset record, useful for general tracking without the need for individual item details.
22. How does Salesforce CPQ handle zero-quantity subscription products during the contracting process?
Salesforce CPQ has a unique approach to handling subscription products with zero quantity. During the contracting process, if an opportunity includes a subscription quote line with a quantity of zero, CPQ will still create a subscription record with zero quantity on the contract. This method ensures accurate representation and tracking of all quoted products, even if their quoted quantity is zero.
23. How does the ‘Asset Conversion’ field work during the contracting process, and can you provide examples of when to use different settings?
‘None’: Use this when you do not want the product to convert into an asset. This is common for items that don’t require after-sale tracking or service, such as promotional items or swag.
‘One Per Unit’: This setting creates one asset record for each unit of the product sold. This is particularly useful for items that need individual tracking after the sale, often used for products with serial numbers or that require individual service/support.
‘One Per Quote Line’: With this, regardless of the quantity sold, only one asset record is created for each quote line. This is efficient for bulk products or when individual tracking per unit is unnecessary.
24. Can the contracting process be initiated from orders in Salesforce CPQ?
Create a contract from the order by selecting the order’s Contracted field. This process is synchronous by default. However, if you have many order products to contract, you can use Salesforce CPQ’s asynchronous contracting process instead.
25. What is the billing process in Salesforce CPQ?
Salesforce Billing is an add-on package that inherits key records and information from Salesforce CPQ. After a sales rep finalizes a quote and orders it within Salesforce CPQ, Salesforce Billing picks up the order record for invoicing, payment, and revenue recognition.
26. How do I renew a contract in Salesforce CPQ?
To renew contracts from your account, go to your account’s Contracts related list, select all the contracts to renew, and then click Renew Contracts. Salesforce CPQ asks you to pick a master contract. The renewal quote inherits its end date from the master contract’s end date.
27. What happens to products on a quote once a deal is contracted in Salesforce CPQ?
Once a deal is finalized / “contracted”, the details of the products on the quote are locked in. This means they are officially recorded and can’t be changed casually, as they are part of a formal agreement between you and your customer. These details are often used to create other records that help track what the customer has bought, like “assets” or “subscriptions.”
28. Can the renewal model on an account differ from the package’s renewal model?
Yes, it can. Imagine the “renewal model” as a set of rules for how a customer can continue their service after their initial period ends (like extending a rental).
- These rules can be standard – coming from the “package,”
- customized for a specific customer – the “account”
29. What records are created when an opportunity or order is contracted in Salesforce CPQ?
When “opportunity” or “order” is finalized, Salesforce CPQ creates a “contract” record, which is like a formal written agreement. It also creates “asset” or “subscription” records, if necessary, to keep track of what the customer bought and how long or how they can use it.
30. How does Salesforce CPQ manage amendments and renewals?
Amendments and renewals are like updates to the original agreement. If a customer wants to change something after the deal is made (amendment) or continue their service after their subscription period ends (renewal),
31. What information can be tracked for subscriptions in Salesforce CPQ?
– For subscriptions, Salesforce CPQ can keep tabs on several important details, like
- what product the subscription is for
- how long it lasts.
- the costs
- the renewal date (when the customer needs to decide if they want to continue),
- any specific terms or rules about the subscription.
32. What happens to original quote lines after contracting an opportunity in Salesforce CPQ?
The original quote lines (the initial product and pricing details offered to the customer) are preserved, meaning they’re kept as they were for reference. However, they’re also used as the basis for the official agreement or “contract.” They’re like a snapshot of what was offered and agreed upon initially.
33. What does it mean if the asset conversion field for a product is set to “none”?
If the “asset conversion” is set to “none,” it means that when the product is sold, it won’t be turned into an “asset” record in the system. It’s like saying, “We don’t need to keep long-term track of this product as a permanent item for the customer.”
34. What happens when an opportunity is marked as “Closed Won” in Salesforce CPQ?
It means the deal is successfully agreed upon with the customer. Salesforce CPQ then gets to work finalizing the details, creating a “contract” and any “asset” or “subscription” records if needed, based on what the customer agreed to buy.
35. How does the “Contactor” checkbox influence the automation process in Salesforce CPQ?
– The “Contractor” checkbox is a bit like telling the system, ” this deal is ready to be made official.” When checked, it triggers Salesforce CPQ to start certain automated processes, like creating the formal “contract” and other related records. It’s a way of moving the deal to the next stage in the system.
Sure, I’ll provide detailed yet straightforward answers to your questions about various functionalities in Salesforce, particularly focusing on contract renewals and amendments.
36. How does Salesforce track contract expiration dates for renewal purposes?
Salesforce allows users to track contract expiration dates by storing this information in the Contract object. Each contract record has a field named “Contract Term” (number of months) and “Start Date.” The system calculates the “End Date” by adding the contract term (duration) to the start date.
37. What’s the standard process for contract amendments in Salesforce?
The standard process for contract amendments in Salesforce typically involves creating an Amendment Case or using the “Amend” button. This action creates a new quote record related to the original contract, allowing users to make necessary changes like adding or removing products, changing pricing, or altering terms. Once the amendment quote is finalized and approved, it can be synced with the original contract, effectively updating it.
38. How can you create a renewal opportunity in Salesforce?
Renewal opportunities can be created manually by users or automatically through process automation. For automatic creation, you would typically set criteria that identify when a contract is due for renewal (e.g., a certain number of days before the contract’s end date), and then define an action to create a new opportunity with specific details (like stage, amount, close date, etc.) related to the renewal.
39. Can you amend multiple contracts simultaneously in Salesforce?
Standard Salesforce functionality doesn’t allow for the bulk amendment of multiple contracts simultaneously due to the complexity and unique details involved in contract amendments. However, individual contracts can be amended.
40. How do you handle contract renewals with multiple amendments in Salesforce?
For contracts with multiple amendments, each change is typically tracked with a separate amendment record related to the original contract. Upon renewal, you will consolidate all changes from the original contract and its amendments into the new renewal contract. Salesforce CPQ can streamline this process, ensuring that all amendments are reflected accurately in the renewal quote and subsequent contract.
41. Contract Created from Order vs Contract Created from Opportunity?
42. What is a subscription product?
In Salesforce CPQ you can sell different types of products :
- One-off products
- Ex.: Professional services, one-time training.
- Products that do not get tracked as assets or subscriptions downstream.
- Assets
- Ex.: Hardware, perpetual software license
- Those products will be converted to assets when you contract an opportunity or an order.
- Subscriptions
- Ex.: Maintenance, licenses, etc.
- Those products will generate subscription records when contracted.
- When added to a quote, the pricing will be affected by the subscription term.
43. What are Subscription Pricing ?
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- Fixed Price – the product will be priced according to whatever price applies when it is added to a quote.
- Percent of total – that subscription product will be priced as a percentage of some or all other quote lines present on a quote. When selected, you will also need to select a percent of total % value
44. How to create an order and order products ?
You can either set the Ordered checkbox to true on the quote or the opportunity.
Salesforce Contracts
Now that your contract has been generated, you’ll be able to manage the contract lifecycle from the record.
Once generated your contract will have some values from the quote it was generated from.
45. Explain Contract Start Date and Contract End Date?
- Contract Start date will be the start date that was selected on your quote. If your quote did not have a start date, no contract is generated.
- Contract End Date will be calculated from your contract start date + subscription term
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