Master Salesforce CPQ and Boost Your Sales

Table of Contents

1. Introduction
2. Creating Contracts 2.1. Required fields on the Opportunity record 2.2. Required fields on the Quote record 2.3. Adding Subscription Products to the Quote 2.4. Setting Subscription Pricing 2.5. Checking the Contracted Checkbox
3. Generating Contracts 3.1. Contract Creation from Opportunity 3.2. Contract Creation from Order 3.3. Opening and Activating Contracts
4. Generating Renewal Opportunities 4.1. Pricing for Renewals 4.2. Replacing Products on Renewal 4.3. Setting Renewal Forecast and Stage
5. Conclusion

Creating Contracts and Renewal Opportunities

In this article, we will explore the process of creating contracts and generating renewal opportunities using Salesforce CPQ. Contracts are essential for managing recurring relationships with customers as they facilitate amendments and renewals. We will Outline the necessary steps to Create contracts Based on opportunities that contain subscription products, ensuring accurate forecasting and Simplified quoting for your sales team.

1. Introduction

Before diving into the details of creating contracts and renewal opportunities, let's understand the importance of these processes. Contracts play a crucial role in managing ongoing relationships with customers by providing a framework for amendments, renewals, and pricing. By accurately tracking contract information, companies can ensure streamlined operations and better forecast future sales.

2. Creating Contracts

To create a contract in Salesforce CPQ, certain fields on the Opportunity and Quote records need to be populated. Let's explore these required fields in Detail.

2.1. Required fields on the Opportunity record

When creating an opportunity that will generate a contract, the following fields need to be populated:

• Opportunity Name: Provide a Meaningful name that makes Sense for internal reference.
• Close Date: Set the intended closing date for the opportunity.
• Stage: Specify the Current stage of the opportunity to track its progress.
• Account: Associate the opportunity with a Relevant account.
• Primary Quote: Select the primary quote associated with the opportunity.

2.2. Required fields on the Quote record

To generate contracts successfully, specific fields on the Quote Record must be completed:

• Primary Checkbox: Set this checkbox to "true" to indicate the quote as the primary one.
• Start Date: Specify the start date for subscription products.
• End Date or Subscription Term: Provide either the end date or the subscription term to ensure accurate pricing.
• Subscription Products: Include subscription products on the quote lines.
• Subscription Pricing: On at least one quote line, set the subscription pricing field to either a fixed price or a percentage of the total.

Pros: By setting up the required fields accurately, sales representatives can easily generate contracts and ensure the correct pricing of subscription products.

Cons: Failing to populate the necessary fields accurately can lead to the failure of contract creation or incorrect pricing for subscription products.

2.3. Adding Subscription Products to the Quote

To facilitate the creation of contracts, subscription products must be included on the quote. By adding both subscription and non-subscription products, sales representatives can accurately generate contracts based on the desired offerings.

2.4. Setting Subscription Pricing

To ensure accurate pricing for subscription products, at least one quote line on the primary quote must have the subscription pricing field defined as either a fixed price or a percentage of the total. This step is crucial for generating contracts correctly.

2.5. Checking the Contracted Checkbox

To trigger the creation of a contract, sales representatives need to check the Contracted checkbox on the Opportunity record. By marking this checkbox, they initiate the process of generating a contract for the opportunity.

3. Generating Contracts

Now that we have covered the steps to create contracts based on opportunities, let's explore how contracts can be generated and managed.

3.1. Contract Creation from Opportunity

Contracts can be generated directly from the Opportunity or the Order record. When creating contracts from the Opportunity, sales representatives need to ensure that the Contracted checkbox on the Opportunity is checked. This action triggers the system to generate the contract.

3.2. Contract Creation from Order

Alternatively, contracts can also be created from the Order record. Similar to the Opportunity record, the Contracted checkbox should be marked to initiate the contract creation process.

3.3. Opening and Activating Contracts

Once a contract is generated, it can be accessed and managed in Salesforce. By clicking on the contract number link in the Contracts related list, sales representatives can open the contract and make any necessary amendments or updates. Activating the contract confirms its validity and triggers the necessary actions, such as billing and fulfillment processes.

4. Generating Renewal Opportunities

Generating renewal opportunities is an essential aspect of managing ongoing customer relationships. Salesforce CPQ allows You to streamline this process efficiently. Let's explore the necessary steps and considerations.

4.1. Pricing for Renewals

Before generating renewal opportunities, it is crucial to determine how the pricing will be handled. This can be controlled through the Renewal Pricing Method field on the Account record. You can choose to keep the price the same, use the price from the current price book, or Apply an uplift. If an uplift is selected, the Renewal Uplift Percent field on the Quote record should be set to the desired value. The uplift is then applied as a percentage against the previous year's price.

4.2. Replacing Products on Renewal

In cases where a product needs to be replaced with another upon renewal, Salesforce CPQ provides a Renewal Product field on the Product record. By indicating the replacement product, sales representatives can ensure the accurate representation of offerings on the renewal opportunity.

4.3. Setting Renewal Forecast and Stage

To trigger the creation of renewal opportunities, the Renewal Forecast checkbox on the contract needs to be checked. By marking this checkbox, sales representatives indicate their intent to generate renewal opportunities. Additionally, they can specify the Renewal Opportunity Stage on the Contract record, overriding the default opportunity stage value. This step helps streamline the sales process and ensures accurate forecasting.

5. Conclusion

In conclusion, Salesforce CPQ offers a powerful solution for creating and managing contracts. By following the steps outlined in this article, sales representatives can easily generate contracts based on opportunities containing subscription products. Furthermore, the platform enables the generation of renewal opportunities, simplifying the quoting process and allowing for accurate forecasting. By leveraging the features of Salesforce CPQ, companies can streamline their sales operations and improve customer relationship management.

Highlights

• Salesforce CPQ simplifies the process of creating contracts and generating renewal opportunities.
• Accurately populating the required fields on Opportunity and Quote records is crucial for successful contract creation.
• Contracts can be generated from both Opportunity and Order records.
• Renewal pricing can be controlled through the Renewal Pricing Method field on the Account record.
• The Renewal Forecast checkbox and Renewal Opportunity Stage field on the Contract record allow for efficient renewal opportunity generation.

FAQ

Q: Can contracts be generated without the required fields populated?
A: No, the required fields on the Opportunity and Quote records must be populated for contract generation.

Q: What happens if there are no quote lines with the subscription pricing field defined?
A: If there are no quote lines with the subscription pricing field defined, a contract will not be created.

Q: Is it best practice to contract from the Opportunity or Order record?
A: It is recommended to contract from the Order record to avoid redundancy.

Q: Can the pricing for renewals be different from the initial contract?
A: Yes, pricing for renewals can be kept the same, use the current price book, or apply an uplift.

Q: How can products be replaced on renewal?
A: Products can be replaced on renewal by specifying the replacement product using the Renewal Product field on the Product record.