Discounting Methods: Partner Discounts

by Community Manager on ‎08-04-2015 05:42 PM - edited on ‎07-06-2016 01:45 PM by Community Manager

SteelBrick CPQ Enterprise Edition allows you to set up discounts using a variety of methods:

  • Compound Discounts are discount methods, expressed as a percentage, that calculates the discount on a product based on the quantity
  • Volume Discounts are price reductions based on a schedule of the quantity purchase.
  • Non-Discountable products are selected products that are exempt from additional discounts.

 

OVERVIEW

If your organization sells through a channel, you can give a partner discount on quote or the individual product line item on the quote. By default, partner discounts are calculated on top of any other discounts - such as contracted prices - that you set on the account or that are manually entered by the rep. SteelBrick CPQ categorizes these types of discounts and lets you control when each is applied relative to partner discounts. Before you begin, determine when you want partner discounts applied.

 

CHANGE DEFAULT SETTING

  1. Create one of the following custom formula fields on the Quote object, using the name specified below, that returns 1 when you want the appropriate order applied: 
    1. ApplyPartnerDiscountFirst: This takes the partner discount first off List Price, then any automatic discounts, and manual additional discounts last.
    2. ApplyAdditionalDiscountLast: This takes the automatic discounts first of List Price, then partner discounts, and manual additional discounts last.
    3. ChannelDiscountsOffList: This takes all discounts off List Price without calculating them sequentially. Use this value to apply each discount to the List Price.

Note: Do not create more than one of the above fields, as one will conflict with any others.

APPLY PARTNER DISCOUNT ON QUOTE

  1. Navigate to a quote.
  2. Enter the discount percent in the Partner Discount field. In Picture A below, a quote for $125,000 receives a Partner Discount of 15%, leading to a $182,750 Net Amount.partnerdisc.png

Any product line items on the quote that do not have a discount specified receive the discount entered in this field. 

 

USE CASE:

The Use Case will display how Net Amounts are calculated when Partner Discounts are used alongside other discounts and processed with the custom formula fields noted above.

 

An organization has a Quote with the following prices and discounts:

Price Partner Discount Automatic Discount Additional Discount
$215,000 15% 10% 5%

 

  1. ApplyPartnerDiscountFirst: 215000 * .85 = 182750 * .9 = 164475 * .95 = $156,251.25
  2. ApplyAdditionalDiscountLast: 215000 * .9 = 193500 * .85 = 164475 * .95 = $156,251.25
  3. ChannelDiscountsOffList: 15% +10% + 5% = 25%. 21500 * .75 = $161,250

 

ENABLE PARTNER DISCOUNTS AT PRODUCT LINE ITEM LEVEL

You can give partner discounts on individual product line items on the quote. This requires enabling a feature that adds custom fields to the products.

  1. Navigate to: Setup | Build | Create | Objects | Quote Line.
  2. Select the Line Editor Field Label from the Field Sets section.
  3. Drag & drop Partner Discount from the available Field Sets to In the Field Set.partner discounts field set.png
  1. Click Save.

Users will now see a P Disc % field when they click Edit Lines from a quote. Any discounts entered in this field are calculated after the Partner and all other relevant discounts have been entered on the Quote object. Picture B below displays the Quote Lines from Picture A after the 15% Partner Discount was applied in Step 2. An additional 25% Partner Discount was applied to the first line item:partner discounts 2.png

Comments
by alyssa-barton
on ‎02-19-2016 04:06 PM

Are Distributor Discounts also applied before manual additional discounts when using ApplyAdditionalDiscountLast?

by rich_e_veltig
on ‎08-08-2016 03:13 PM

ChannelDiscountsOffList is not working...  How do we make this work?  Looking at the Product Line Level and using MDQ too.  There are no discounts being calculated at all now...


 CHANGE DEFAULT SETTING

  1. Create one of the following custom formula fields on the Quote object, using the name specified below, that returns 1 when you want the appropriate order applied: 
    1. ApplyPartnerDiscountFirst: This takes the partner discount first off List Price, then any automatic discounts, and manual additional discounts last.
    2. ApplyAdditionalDiscountLast: This takes the automatic discounts first of List Price, then partner discounts, and manual additional discounts last.
    3. ChannelDiscountsOffList: This takes all discounts off List Price without calculating them sequentially. Use this value to apply each discount to the List Price.

Note: Do not create more than one of the above fields, as one will conflict with any others.

APPLY PARTNER DISCOUNT ON QUOTE
  1. Navigate to a quote.
  2. Enter the discount percent in the Partner Discount field. In Picture A below, a quote for $125,000 receives a Partner Discount of 15%, leading to a $182,750 Net Amount.partnerdisc.png

Any product line items on the quote that do not have a discount specified receive the discount entered in this field. 

 

  1. ChannelDiscountsOffList: 15% +10% + 5% = 25%. 21500 * .75 = $161,250

 

ENABLE PARTNER DISCOUNTS AT PRODUCT LINE ITEM LEVEL

You can give partner discounts on individual product line items on the quote. This requires enabling a feature that adds custom fields to the products.

  1. Navigate to: Setup | Build | Create | Objects | Quote Line.
  2. Select the Line Editor Field Label from the Field Sets section.
  3. Drag & drop Partner Discount from the available Field Sets to In the Field Set.partner discounts field set.png
  1. Click Save.

Users will now see a P Disc % field when they click Edit Lines from a quote. Any discounts entered in this field are calculated after the Partner and all other relevant discounts have been entered on the Quote object. Picture B below displays the Quote Lines from Picture A after the 15% Partner Discount was applied in Step 2. An additional 25% Partner Discount was applied to the first line item:partner discounts 2.png


by KP
on ‎11-15-2016 04:44 PM

I am having the same issue,  when I set ChannelDiscountsOffList to 1, the addional discount is calulated on the Customer Total, but the net Total stays at list.  As we discount to customers as well as partners I need this to work to get to the right totals for our quotes.

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