Renewal Overview 1 - Setup

by Community Manager on ‎08-11-2015 10:59 AM - edited on ‎04-03-2017 01:32 PM by Community Manager

RENEWAL OVERVIEW

Renewals automate the process of creating quotes for subscription products that renew at the end of a contract. They use Salesforce's standard /account-related contracts. Additionally, they create assets for each non-renewable quote line item on the Account record, as well as subscription assets, for each renewable quote line item on the contract. You configure SteelBrick CPQ to automatically create a renewal opportunity with the appropriate line items.

 

RENEWAL PROCESS  LIFECYCLE

1. User Creates a Quote 2. Opportunity is Closed Won 3. Contract Expires
The type for the initial quote is simply "Quote". After the contract expires, the subsequent quote is created with the type of "Renewal", so you can distinguish all initial and renewal quotes.

Your workflow rule automatically selects the Contracted checkbox on the opportunity, which triggers the following: 

  • Creates a contract on the account.
  • Creates subscription assets on the contract for any quote line items that have a Subscription Pricing value, such as "Fixed Price" or "Percent of Total".
  • Creates assets on the account for all non-renewable quote line items that have a Subscription Pricing of "None"

Note: SteelBrick CPQ will create more than one contract if subscription quote line items have different durations. For example, if one quote line item has a term of 12, and another has a term of 36, it will create two contracts: one for a year and one for three years.

Your predefined workflow rule fires before the Contract End Date to automatically select the Renewal Quoted checkbox on contracts, which triggers the following: 

  • Creates an opportunity with a line item for each renewable subscription asset on the contract. These are just the products that have a Subscription Pricing selection. Assets for non-subscription products have a zero amount.
  • Creates a renewal quote with all the line items on the associated opportunity.

Tip: Users can click the Add Subscription button on the product selection page to filter out al products, except subscription products on the account.

 

You can set up SteelBrick CPQ to automatically put these triggers into action based on your unique renewal process. For example, you can have your workflow automatically select the Contracted checkbox on the opportunity with its Closed Won, or any other conditions that signify it is a contracted deal. Additionally, you can configure Salesforce to automatically set contract end dates based on term and your workflow to select the Renewal Quoted checkbox can be scheduled any number of day or weeks in advanced of your contract end date.

 

RENEWAL SETUP 

  1. Add the Asset Conversion field to your Product Page Layout.
  2. Make a selection for each product based on the following: 
    1. One per unit: Choose to create a separate asset for each item in a quote line item. use this option if each asset should have its own serial number, regardless of quantity.
    2. One per quote line: Choose to create an asset for each quote line item, regardless of quantity.
  3. Create a workflow rule on the Opportunity object that fires a field update to select the Contracted checkbox when the opportunity is Closed Won, and/or any other conditions that should be met before a contract is created and opportunity line items are converted to assets.
  4. Tip: Use the Opportunity:Won in your rule criteria so that more than one stage can trigger this. Ensure it will still work if you change the name of Closed Won to a different term.
  5. Create a time-based workflow rule on the Contract object that fires a field update to select the Renewal Quoted checkbox. This will automatically create the renewal opportunity and quote. You can filter which contracts are automatically renewed in your workflow rule criteria. your rule criteria can filter only activated contracts while your time-based workflow action can be hours or days before the contract expiration.
  6. Tip: To set a time-based workflow to trigger any number of hours or days before the Contract End Date, create a formula date field to store the contract end date because it is not available in Salesforce's time-based criteria.
  7. Make the following selections on Accounts to co-terminate contracts: 
    1. Contract Co-Termination
      1. Prompt: Will prompt users to choose an existing contract to co-terminate with the quote.
      2. Always: Will co-terminate all contracts.
    2. Co-Termination Event
      1. Add-on: The second contract will be a partial sale, based on the remaining term. SteelBrick CPQ will prorate all subscriptions accordingly.
      2. Renewal: The second contract is a full sale.
  8. TipAlthough these fields do not need to be required on accounts for contracts, they need to be required for SteelBrick CPQ renewals to work.
  9. Change the default values for the Contract Co-Termination and Co-Termination Event picklist fields on Accounts to suit your business process.
  10. Add the following fields to your Accounts Page Layouts as necessary: 
    1. Combine Asset Quantities: Summarizes the quantity of similar assets on renewals.
    2. Combine Co-Termed Contracts: Combines contracts into one group, as opposed to separate groups.
      • This is what you would select if you want to merge 2 Contracts into 1 Renewal Quote. For example: You created an initial Quote and convert it to a Contract and Subscription, then created an Add-On, but decided not to add it to the existing Contract (therefore a second Contract was added to the Account). So for the Renewal, you only want 1 Opportunity with all Subscriptions from both Contracts associated with it.
  11. Add the Start Date field to your Quote Page Layout and make it required. This determines the contract start date.
  12. Add the Subscriptions related list to your Contract Page Layout to allow users to link back to the original quote.
  13. Add the Co-Terminated Quotes related list to your Contract Page Layout to allow users to link back to the original quote.
  14. SteelBrick CPQ automatically selects these fields: 
    1. Default Renewal Contract Roles: Includes contract roles form the original opportunity in the renewal opportunity.
    2. Default Renewal Partners: Includes the original opportunity's partner in renewal opportunities.
  15. Create a workflow rule to change these defaults if you do not want renewal to include either partners or contract roles.
  16. Add the following fields to your Contract Page Layouts, as needed. Use these fields in a workflow if you want a different user or record type on renewals: 
    1. Renewal Owner: Stores the original opportunity owner.
    2. Renewal Opportunity Record Type ID: Stores the record type of the original opportunity.
  17. Use the Renewal Uplift (%) on the subscription line item if you want users to be able to raise prices on subscription items.
  18. SteelBrick CPQ automatically sets the Renewal checkbox field on opportunities but you can display it in reports SteelBrick CPQ as necessary. Use this field to trigger a workflow rule to change the name of the renewal opportunity to fit your renewal naming conventions.

Troubleshooting

  • If you are unable to see the Contract Selection picklist when creating a Co-Term Contract, double-check that a custom "New Quote" button which bypasses standard logic has not been implemented.

 

Creating a Renewal from SteelBrick KnowledgeBase on Vimeo.

  

Modifying the Contract Co-Termination Visualforce page to include other informational fields

Tip: Your users will manually approve Contracts as usual, so be sure to set up your Contract business process before enabling renewals. Salesforce CPQ will only create renewal opportunities and quotes for activated contracts. Salesforce CPQ can also use a custom Contracts field to determine when a Contract is active: Create a new Contracts number field called CustomActiveContract, with an API name of CustomActiveContract__c, and set its value to 1. Salesforce CPQ will view the Contract record as active as long as this field is set to 1.

Tip: When the Allow Renewal Quotes Without Assets checkbox is selected, all non-subscription lines on renewal products are treated as renewed products. This option essentially disables add-ons on renewal quotes since all non-subscription lines will have their prices zeroed out. When the Allow Renewal Quotes Without Assets checkbox is not selected, new non-subscription products will not be marked Renewal; new non-subscription products may still be added onto renewal quotes (but the old assets carried over will still be labeled "0").

 

Continue to Renewal Overview 2 - Use Cases.

Comments
by MridulaC
‎05-10-2017 04:14 PM - edited ‎05-12-2017 04:09 PM

Is it possible to separate creation of the renewal opportunity and the renewal quote? We would like renewal opportunities to be created as soon as a contract is activated to perform accurate revenue forecasting, but would not like to create renewal quotes until 3 months before the contract expiration date.



Update: I discovered that there are two flags on the contract- the 'Renewal Forecast' when set to true on an activated contract creates a renewal opportunity; the 'Renewal Quoted' auto-generates the renewal quote

 
by ob
3 weeks ago

When I generate a renewal quote, there are several custom fields that I want to be populated with values copied from the quote that created the contract. What is the best way to do this?

 

Some of these fields are needed for the initial calculation run when the quote lines are being created, so it's important that they be populated on the quote as it's first created.