🔑 Unlock Interview Excellence: Top Questions on Salesforce CPQ Contract Amendments & Renewals! 💼

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

In Salesforce CPQ, renewals and amendments are ways to update customer contracts. 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.

2. 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.

3. 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

4.What are some important fields on contract?

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

5.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.

6.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. Once everything looks good, and the customer agrees, we update the contract to show they’re staying with us.

7. 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. For managing these in CPQ, it’s smart to use certain fields that control pricing, like “renewal pricing method” which decides how we price renewals. We should also check settings that control when the renewal info gets sent out so that it’s not too early or too late. And always double-check that we’re not charging customers extra by accident!

8. 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. In Salesforce CPQ, we use special tools that let us update many records at the same time, instead of one by one. This can be done through data loaders or by using CPQ’s own bulk features. It’s like going through a fast checkout at the supermarket when you have lots of items. But we have to be extra careful to make sure that all the updates are correct and that nothing gets mixed up.

9. 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.

10. 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.

1. Once you click on amend button you see list of subscriptions which can be ammended

1. Once we click on amend button an amendment opportunity is created in the backed
2. You are taken to Quote line Editor screen where you can make changes.
3. The quote will be created and attached to Amendment Opportunity.

1. 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’

11. How do you ensure accuracy when crediting back a customer during an amendment due to an early renewal?

I make sure that the start date I use for the credit matches the start of their new contract. Also, I only set to zero the products that are being renewed. If they’re not renewing everything, you must pay close attention and only select the right products.

12. 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.

13. 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.

14. 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. Meaning if you had a list price of 100 and then gave a 10% discount and it was sold for $90, then on Renewal Quote, you will see the same values flow through. Note that this discount is only on the customer price and does not take into account Partner or Distributor discounting.

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. In addition to marking the field on the Account, you will need to set the Renewal Uplift Rate at either the Subscription or Contract level. If both are set, the Subscription takes precedence over the Contract.

15. 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.

16. 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.

17. 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.

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

Transferring assets is like moving a toy from one box to another. In Salesforce CPQ, if a customer wants to move a service (the toy) from one contract (the box) 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.

19. 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.

20. 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.

21. Can you set contracted pricing at different levels?

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

22. What is the functionality of the “Ignore Parent Contracted Prices” checkbox?

It allows users to bypass the default behavior of cascading contracted prices down to related accounts.

23. 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.

24. 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.

25. 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.

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

It will apply the contracted price only for that quote.

27. 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.

28. Can you perform partial contract renewals in Salesforce CPQ, and if so, how?

Yes, this is possible through asset-based renewals, which allow for renewing specific assets or subscriptions within a contract, rather than the entire contract.

29. What is the role of the “Master Contract” in the renewal process?

A Master Contract can be created from multiple contracts for an account, consolidating them into a single contract for ease of renewal.

30. How does contracted pricing affect discount schedules on products?

The discount schedule set on the contracted price will override any existing discount schedules on the product, making it the prevailing pricing for the duration of the contract.

31. 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.

32. 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.

33. 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.

34. Explain Contract Fields?

Renewal Term

By default, this value matches the contract’s term. For example, let’s say you have a contract with a start date of 12/01/17 and an end date of 11/30/18 in an org that uses monthly subscription term units. Your renewal term by default is 12. If you want your renewal quotes to run for six months instead, you give this field a value of 6.

Renewal Uplift

Define an uplift percentage to apply to your contract records if your account has an uplift-based renewal pricing method. All subscription records on the contract inherit this value unless they have a different value defined in their own Renewal Uplift field. For MDQ products, the uplift value applies to all segments on the contract that don’t already have a renewal uplift percentage specified.

35. Explain Subscription Fields?

Discount Schedule

This field inherits the subscription quote line’s discount schedule. When you renew your subscription with a Renewal Product value, the renewal quote line inherits the subscription’s discount schedule rather than any discount schedule associated to the original product.

Renewal Quantity

Define the quantity of subscription products that appear on the renewal quote when you renew this subscription. For example, if you set this field to 4, Salesforce CPQ creates a quote line with a quantity of 4. This field defaults to 1.

Renewal Uplift

Define an uplift percentage to apply to your renewed subscription product quote lines if your account has an uplift-based renewal pricing method.

Renewal Price

Define the price of quote lines that appear on the renewal quote when you renew this subscription. This field overrides the result of price calculations from your account’s renewal pricing method. If your account uses Uplift renewal pricing, the uplift is applied directly to the Renewal Price field.

36. 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.