Automating Asset Upgrades

by Community Manager on ‎08-11-2015 10:56 AM - edited on ‎04-05-2017 03:38 PM by Community Manager

OVERVIEW

If your organization has set renewals to automatically create contracts and assets for a renewal quote, you can automate upgrades for those assets. You can also automatically apply credits to the upgrade SKU if you discount customers for upgrading, or apply discounts for unused maintenance on those products.

 

Example:

You may sell a Standard Edition license at a price of $100 and a Professional Edition license for $500. You incentivize customers by charging $300 to upgrade from the Standard to Professional Edition, plus a $50 discount toward their next subscription license. SteelBrick CPQ handles proration for you by retiring the original Standard Edition asset and automatically replacing it with the new one. 

 

AUTOMATIC ASSET UPGRADE SETUP

1. Create asset products, such as Standard Edition and Professional Edition

2. Create an upgrade target, such as Standard-to-Professional Edition Upgrade. This upgrade target will represent the price to upgrade from the Standard to Professional Edition.  

3. Navigate to your upgrade product, Standard-to-Professional Edition Upgrade, and fill in the following fields:

 

Upgrade Source

Standard Edition (this will be retired and replaced with the product in the upgrade target field)

Tip: Upgrade Products can be configured to have multiple Upgrade Sources by using the Upgrade Sources Related List to create the Upgrade Source records. For example, an Enterprise Edition may have both Standard Edition and Professional Edition as Upgrade Sources, using the Upgrade Source Related List we would create a Standard Edition Upgrade Source and Professional Edition Upgrade Source. 

Upgrade Target

Professional Edition (This is the Product that will replace the upgrade target when an Asset is generated)

 

4. If you offer a discount or credit to customers making the Standard to Professional Edition Upgrade, create a Product, such as Standard Edition Upgrade Credit, with a negative price and add this as the Standard Edition’s Upgrade Credit.

 

5. Enable Asset Upgrades:

  • Click Setup | Installed Packages and click Configure next to the SteelBrick CPQ installed package. Select the Enable Asset Upgrades field and click Save.

 

6. Users will now be able to upgrade assets by:

  • Clicking the Upgrade Assets button on the Edit Lines page
  • Clicking Show Available Upgrades in the Product Option configuration page

 

USE CASE: UPGRADING AND SWAPPING ASSETS IN A CONTRACT AMENDMENT

As of Minor Release 25.1, users can make amendments to upgrade Assets within product bundles and decrease the quantity of existing assets when an upgrade target is present on an Amendment Quote. This will allow users to swap or upgrade user licenses, add additional licenses and add new products all using the amendment process.

 

Note: To use this feature, you must enable the Package setting "Include Net-New Products in Maintenance." Without this setting enabled, any new Products you add to an Amendment - including upgrades - won't get included in existing Percent of Total Subscription maintenance. Thus, they won't carry through to subsequent Renewals and Amendments unless you add a new Percent of Total Subscription that covers them.

 

In this example, you have 5 Bronze Widgets already on a Contract within an Account and wish to upgrade 3 of these to Silver Widgets. The Quote Line containing these Bronze Widgets is covered by a Percent of Total Subscription.

 

This use case requires that you have:

  1. A Bronze Widget Product and a Silver Widget Product
  2. A Contract that contains 5 Bronze Widgets Assets, covered by a Subscription Percent of Total Product
    • Note: In Contract-based Renewal Models, only Assets used to calculate a Subscription Percent of Total Product Price can be amended / upgraded through the contract amendment process. Standalone Assets and Assets on an Asset-based renewal model Account can be amended by clicking the Amend Assets Button on the Account Page
  3. A Bronze-to-Silver upgrade target
  4. Optional: Upgrade Credit Product to offer a discount for upgrading from Bronze to Silver

     

 

Walkthrough:

  1. Locate the Contract containing your Subscription Percent of Total Product that covers the 5 Bronze Widgets as a Subscribed Asset.
  2. Click the Amend button on the Contract page. You should now see the Subscription Percent of Total Product. Click Amend to create an Amendment Quote and Opportunity.
    • Note: For Asset-based renewal models or for standalone Assets, click the Amend Assets button on the Account Page 
  3. On the Edit Lines page of the Amendment Quote, reduce the quantity of the Bronze Widgets from 5 to 2. Click Save.

    • If an upgrade product is not already present as a line item a validation error will appear: "The quantity of an existing asset can only be decreased if an upgrade product is added". Adding an upgrade target in the next step will remove this error.amend1.png
  4. Click the drop-down button on the Add Products button and select the Upgrade Assets button, which will display all the Assets on the Account. Select the Bronze Widget with quantity of 5.
    • Note: If your Bronze Widget is located in a Product Bundle, instead of clicking the Upgrade Assets button, click the configuration wrench on the parent Product, locate the Feature containing the Bronze Widget and click the Show Available Upgrades button located at the bottom of the feature.
  5. You will now be on the Asset Selection Screen. Select the Bronze to Silver Upgrade option and then click Select.
    • Note: All upgrade targets that reference Bronze Widget as the Upgrade Source should appear in the Asset Selection Screen and Show Available Upgrade Options section of the Bundle Feature containing the Bronze Widget.amend2.png
  6. The Bronze to Silver upgrade targets will be added to the Quote and visible on the Edit Lines page. Since we are swapping 3 of the Bronze Widgets for 3 Silver Widgets, adjust the Bronze to Silver Upgrade Product’s quantity to 3 and click Calculate to finalize.
    • Note: If you are upgrading Assets within a Product Bundle, this Quantity adjustment should be done in the configuration page. Also, if you have an Upgrade Credit Product configured, it will be added as a Quote Line at this time. 
    • Note: Using the Upgrade Asset button on the Edit Lines page will add the upgrade target as an ad-hoc quote line not structured within a bundle.amend4.png
  7. Save the Quote and Contract your Amendment Opportunity. When you Contract the Amendment Opportunity, the Bronze to Silver upgrade target will convert to its Upgrade Target - the Silver Widget - and Asset records will then be created to reflect the changes made in the amendment.
  8. Navigate to your Account and find the Assets related list. You should see the following Asset record information:
    • Bronze Widget with quantity of 5 This represents a historical record of the original purchase.
      Bronze Widget with quantity of -3 This represents the Bronze Widget quantity reduction from 5 to 2 that we performed on the Amendment.

      Silver Widget with

      quantity of 3

      This represents the upgraded widgets.
    • Note: If your Bronze Widget was in a product bundle and you used the Show Available Upgrade Options button to select the Bronze to Silver Upgrade Product, upon renewal the Bronze to Silver Upgrade Product's Target (Silver Widget) will appear as a new Product Option within the Bronze Widget's feature.  

Decommissioning Assets: As of Spring '16 Minor Release 25.1, Assets in the upgrade process can be decommissioned by setting their quantity to 0. In the example above, you could reduce the Bronze Widget quantity from 5 to 0 as long as the Bronze-to-Silver Upgrade Product quantity is equal to the difference. When contracted, SteelBrick will update the Account's Assets so the Bronze Widget Asset with a quantity of -5 will have a usage end date that is one day before the Amendment Quote's Start Date.