Managing Discounts in SAP CPQ

Objective

After completing this lesson, you will be able to manage discounts in SAP CPQ.

Discounts

SAP CPQ discount administration allows price adjustments after a quote is created. Administrators can create discount rules using the following parameters:

User
User Type
Category
Product
Product Type

The Maximum, Minimum, and Default Values for Discounts

The steps in the Discounts screen are displayed.

Discounts have maximum, minimum, and default values. The default value is used when you first generate a quote. The maximum and minimum values allow the administrator to set a percentage threshold for the discount.

Also, an administrator can allow or prevent overriding a discount value. Allowing a value to be overridden and violate the discount threshold will trigger an approval process before the quote documents can be created and sent to the customer.

Note

The default discount value is applied to the cart once generated. Reopening a cart after modifying a value will display the modified value.

The number entered into the discount field represents a percentage value. For example, entering the number 30 in one of these fields creates a discount of 30%.

Discounting Priorities and Their Impact on Processing Discounts

The Discounting Priorities dialog is displayed.

More than one discounting rule can apply. With multiple discounting rules in place, use Discount Priorities to set the ranking order in which the discounts are processed. A ranking of 1 is the highest priority.

When two or more rules are relevant to a quote, the rule with the highest priority is applied. For example, consider two rules created for a user type and product and how the priorities are applied to the quote.

Rule 1

Created for user types, Sales, and has the following values:

Minimum value: 0
Default value:0
Maximum value: 20

Rule 2

Created for a product, ST Laptop with the following values:

Minimum value: 0
Default value:10
Maximum value: 30

Suppose the product rule (Rule 2) has a higher priority than the user type rule (Rule 1): When you log in as a user (belonging to sales user type) and add the product ST Laptop to a quote, both Rules 1 and 2 apply to the quote. However, the priority of Rule 2 is higher than Rule 1. In this case, Rule 2 (the product rule) is applied, allowing the entry of a discount of up to 30%.

Let's create a discount in the following exercise.

Create Discounts

Business Scenario

When sales representatives create quotes, Supertech wants them to give customers a discount up to 20%, at their discretion. Any discounts exceeding 20% must go through the approval process, which will be set up later.

Task Flow

In this exercise, you’ll learn how to:

Create a discounting rule for a user type
Set up discount priorities

Exercise Options

To carry out the two tasks of this exercise, you can choose the following option: Platform Simulation: Watch the step-by-step instructions within the simulation.

To start the simulations, choose Start Exercise in the figures below.

Task 1: Create a Discounting Rule

ExerciseStart Exercise

Task 2: Set Discounting Priorities

With the discounts configured, Supertech wants to set discounting priorities, or a ranking of the order, in which each discount is executed.

ExerciseStart Exercise

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