Adding Price Details in SAP CPQ

SAP CPQ accepts pricing methodologies designed for flexibility and multiple pricing models to cater to a wide range of business needs and simplify the quotation process for price accuracy and consistency.

Price details are defined for products and their associated attributes using the following methodologies:

• Custom Pricing
• Variant Pricing
• Pricebook Lookup

The following two places will accept price details in CPQ:

• Products
• Associated attributes

First, let's look at Custom and Variant Pricing methodologies.

Learn about custom and Variant pricing

A Base Price can be entered for the product. If the price consists of more than just the base price plus the sum of the attribute prices, then an expression can be entered through the Pricing Formula.

Custom Pricing helps define a base price, which is a one-time price for a product. 

(Total product price) = (Product base price) + Sum (attribute prices)

Use Formula Builder to define a Base Price and a Product Price. The Formula Builder can also be used to create a formula placed in the Pricing Formula box to calculate the price of a product.

Variant Pricing -  option becomes available and automatically selected on VC integrated solutions. 

Let's add a price to a product in the following exercise!

-Describe custom pricing and Pricebook lookup

Pricebooks in SAP CPQ are configurable data tables that define product prices for specific markets. They link products with their prices and enable flexible and accurate price calculations. Pricebooks provide a lookup mechanism to retrieve specific data related to prices in SAP CPQ.

Each user is assigned a default pricebook. However, users can select another pricebook (or market) made visible to them.

Products with multiple prices that include discounts, special offers and other variables require a separate pricebook for each price. Multiple pricebooks are grouped and organized under a market.

Pricebooks within a market are created using the following rules:

• All products in a market share the same currency.
• Each Pricebook has a unique name.
• Pricebooks can look up pricing by part numbers.
• A Pricebook can default to values from a parent pricebook.

Before a user can access a pricebook, the administrator must first make the pricebook visible to them.

There are several methods and levels of visibility available. These include:

• Defining visibility to everyone.
• Using advanced visibility to define a formula.
• Using specific visibility conditions.

In the Definition tab for a pricebook, select Visible to everyone to make the pricebook visible to all SAP CPQ users. Selecting Advanced Visibility displays a Visibility formula box.

A formula for Pricebook visibility is defined using quote-level and user-level tags in the Available Tags column.

Selecting 1 in the Formula box enables visibility to all users.

Visibility Conditions creates conditions for pricebook visibility in varying complexity levels.

• To create a simple filter, select a field type, an operator, and enter a value. Simple visibility relies on OR logic applied between visibility conditions that include User and Customer fields.
• If more complex conditions are required with AND logic between them, an advanced formula can be created. The system supports multiple filters.

When retrieving prices for products in a new quote, SAP CPQ first looks for the user's default pricebook. The default pricebook is set via the following two ways:

• User Page: In SAP CPQ Catalog page, select the User Page from the Shell Bar. Because a Pricebook is market-specific, select the default market first, and then the default Pricebook. Under the field Default Market, select USA in $. Then under Default Pricebook, select Supertech US market.
• Administrator Page: Alternatively, administrators can select the default market and pricebook for each user under Setup.

If the fields for selecting a default pricebook on the User Page and under Quote do not display, resolve one of the following scenarios first:

• The logged-in user doesn't have the rights to see any pricebooks.
• The visibility conditions set up for pricebooks prevent the fields from showing on certain quotes.
• The tenant doesn't have any pricebooks defined because custom tables are used.

SAP CPQ allows clients to manage complex pricing scenarios where a product's price depends on multiple conditions. Pricebooks in CPQ are organized in parent/child hierarchies in levels within a market. You can create as many parent and child pricebooks as needed to achieve specific business goals.

When managing a quote, the user first selects a market. The market's default pricebook automatically displays. If only one pricebook is available, the system selects the market by default. When the market has multiple pricebooks, the user can override the default selection by choosing another pricebook from the dropdown menu.

The system filters the user's available pricebooks by the visibility rules set by the administrator.

For example, Supertech sells IT equipment through sales channels that are organized into Bronze, Silver, and Gold groups. Each group has multiple underlying sales channels. Because Gold vendors have a long-lasting commercial relationship with Supertech, they can buy computers at discount prices. Both Bronze and Silver vendors also receive discounts, but not as steep as Gold vendors. Each group requires a separate custom pricegroup to accommodate their special discount.

A visibility formula is created for each customer-specific pricebook:

[EQ](<*CTX( Quote.Customer(BillTo).Company )*>, Customer Name).

With this formula, the customer-specific pricebook can be retrieved when users select the customer as the Bill To Customer.

Simple products can have defined price codes. If a price is derived from CPQ standard pricebooks, it will be calculated based on part numbers and price codes.

Consider a product that is sold through multiple channels. Each channel maintains a different price. A CPQ administrator will create several products with the same part number but with different price codes for each channel. These different prices are maintained in pricebooks.

Defining a price code allows the administrator to give differentiated pricing to multiple products with the same part number.

If a product defines a price code, it will be used in addition to the part number to look up the price in a pricebook.

Let's set up a new price book in the following exercise!