Percent of Total Pricing

by Community Manager on ‎04-17-2016 08:22 PM - edited on ‎02-28-2017 12:49 PM by Community Manager

Percent of Total Pricing allows a user to set a Percentage on which the Product's List Price will be calculated based on the Quote, Quote Line Group, or Product Bundle's Total. Percent of Total Pricing is calculated based on non-subscription Products and Products marked as Include in Percent of Total.  


TO SETUP A PERCENT OF TOTAL PRICING ON A PRODUCT

1. Navigate to Products and select a Product of your choosing.

2. Find the Pricing Method field and select Percent of Total

3. Find the Percent of Total (%) field and enter the Percentage used in the Percent of Total calculation.

4. Find the Percent of Total Base field and determine which Total Price field should be used in the Percent of Total calculation; you may choose from the following calculation options: 

    • List: Use this option if you want the Percent of Total price calculated before any discounts. 
    • Regular: Use this option if the percent of total price should be calculated before additional, or partner, discounts.
    • Customer:  Use this option if the Percent of Total price should be calculated after additional discounts, but before partner discounts. 
    • Net: Use this option if the Percent of Total price should be calculated after all possible discounts.

Tip: To create a Subscription Percent of Total Product, set the Subscription Pricing to Percent of Total and enter a Subscription Term. See Subscription Pricing for more information on Subscription Products. 

Upgrade Note: As of Salesforce CPQ Spring '16 version 25.0, the word "Subscription" will be replaced with "Percent of Total" for the following field labels: Subscription Percent of Total [now just Percent of Total], Subscription Base, Subscription Category, and Subscription Constraint. All field labels remain unchanged and Percent of Total Pricing is now available for non-subscription products.

  

CUSTOMIZING PERCENT OF TOTAL CALCULATION

While standard Percent of Total Calculations are based off of all non-subscription products on the quote, SteelBrick allows you to customize how the Percent of Total calculation is applied by setting the following fields:

 

  1. To filter the Percent of Total calculation to a specific category, set the Percent of Total Category to a value which matches Percent of Total Category of the Products you would like to include in the Percent of Total Calculation. 

    Example
    EXAMPLE: A Percent of Total Product which is specific to Hardware Products. 
    1. Set the Percent of Total Product's Percent of Total Category to Hardware.
    2. Select any other Product you want included in the Hardware Percent of Total calculation and set the Product(s) Percent of Total Category to Hardware. 
  2. The Percent of Total Target field can be used to override the product used in the percent of total calculation. This lookup should be directed to a product with a price you would like to use for the Percent of Total calculation. 

    Example

    If you offer upgrades from one product to another using a bundle, specify a single product to be used when calculating prices for your maintenance items that are based on a Percent of Total. For example, if a customer wants to upgrade from Standard Edition to Premier Edition, you would have set up three separate products for their individual prices: one for Standard Edition, another for Premier Edition, and another product for the additional price to upgrade from Standard Edition to Premier Edition. However, you want the maintenance products included in the upgrade product bundle to use the Premier Edition, rather than the upgrade product, when calculating their percent of total price. To set this up, add the Subscription Target field to your Product Page Layouts. Go to the upgrade product bundle and select the Premier Edition product so its percent-of-total maintenance calculations are based on the price of a full Premier Edition price, rather than the price to upgrade.

    Note: Percent of Total Target should not be used for setting a Percent of Total calculation to target only one specific product in its scope. To accomplish this, you should create a separate Percent of Total Category value specific to the Percent of Total Product and the specific product used in the Percent of Total calculation. 

  3. Constrain the calculated percent of total price for the product using the Percent of Total Constraint Field:

    • List Price is minimum - Applies the list price when the calculated percent of total falls below the list price
    • List Price is maximum - Applies the list price when the calculated percent of total exceeds the list price
  4. Percent of Total Products are normally calculated based on non-subscription Products. SteelBrick allows you to override the standard calculation by setting the following fields:

    • Check the Include in Percent of Total checkbox for all Subscription Products you would like to include in the Percent of Total calculation.
    • Check the Exclude from Percent of Total checkbox for all Non-subscription Products you would like to exclude from the Percent of Total calculation.

    Upgrade Note: In the upcoming SteelBrick CPQ Spring '16 version 25.0, the word "Maintenance" has been replaced with "Percent of Total" for the Include in Percent of Total and Exclude from Percent of Total fields. Field api names have remained the same.

 

RENEWAL CHECKBOX

The Renewal checkbox on a Quote Line indicates that the line item represents a Product that will be renewed. SteelBrick CPQ automatically checks this field when the line item is a non-subscription Product that was added to the Quote Line in order to renew a Percent of Total Product. This is because the the Percent of Total needs to know the subscription base value - the only way to calculate this value is from other quote lines. Thus, when the checkbox is selected, SteelBrick CPQ ensures that Quote Line's net total is always zero, and that the Quote Line never synchronizes to the Opportunity. 

 

Under normal usage circumstances, users should not manually modify this field.

 

USE CASE - SUBSCRIPTION PERCENT OF TOTAL

You may also use Percent of Total pricing on subscription Products when those products are added to a Quote. A percent of total subscription calculates based on everything within its scope - It only requires a quantity of 1, which represents one unit of a Percent of Total Subscription per Quote.

 

An organization sells support packages with the following Product details:

 

Product Name SLA Silver
Subscription Pricing Percent of Total
Subscription Term 15
Percent of Total Base List
Price $20,000

 

 

The SLA Silver product has a $20,000 entry in the organization's Price Book. However, its Subscription Pricing field is set to Percent of Total, with a Percent of Total (%) of 15. Since its Percent of Total Base is List, SteelBrick CPQ will calculate 15% of the sum of list prices on its quote, which in this case is $29,250. ($25,000 + $50,000 + $120,000) = $195,000 * .15 = $29,250.

 

qle.png

 

 

 

 

What's Next?

Comments
by ttrevisan
on ‎05-10-2016 03:31 PM

Can the product's "Subscription Percent" value be overidden on a quote-by-quote basis based on a custom field on quote?

by ksherwin
on ‎05-31-2016 04:22 PM

Suppose I have a core product that allows for an additional product to be added at a percentage of the calculated price. For example: 

 

License A is purchased at X Amount, however, I can add to my license by "adding additional content (5% uplift)"

 

License total: $3000 per year. 

Additional Content: 5%, 20%, 30% uplift, depending on the content. 

 

 

Would this be the appropriate use case for this functionality? 

by Louis
on ‎03-16-2017 01:39 PM

@ttrevisan I would like to set up the exact same thing (on the quote line would even be better than just the quote) !

 

Have you found any functionalities or workaround ?

Thanks

by ttrevisan
on ‎03-16-2017 01:43 PM

@Louis Yes! You can use a price rule with actions to inject the percentage you on directly on to the PoT product quote line. The field on the quote line is Percent of Total (%).

by Louis
on ‎03-17-2017 03:54 AM

@ttrevisan Awesome, i'll try that ! Thanks

 

by KevinW
on ‎04-11-2017 08:03 PM

the "Percent of Total Category" is not working. Does the % of Total Product have to be an Option or otherwise configured? I have matched the Categories (both are in "Hardware", one is a Bundle Product, the other is an Accessory Option product) but it always calculates th % of Total against the full quote amount. Can we get better instructions and caveats as to what makes this work?

by Nikita_Che
on ‎04-17-2017 03:58 AM

Hello! I can see that Cost and Unit Price are locked when Percent of Total (from List) is selected. On my Product record, I have Price Editable and Cost Editable checked. Has anyone come across this issue?

by TJordahl
on ‎08-11-2017 03:32 PM

Per the description, "Percent of Total Pricing allows a user to set a Percentage on which the Product's List Price will be calculated based on the Quote, Quote Line Group, or Product Bundle's Total." However I am struggling to implement a PoT that is Quote Line Group based and I haven't found any documentation that describes how to have the calculation apply to the group or bundle as opposed to the whole quote. Has anyone done this, or have a link to an article that will assist me? Thanks in advance!

 

(My use case is that a bundle could be quoted more than once on the same quote. For each representation of the bundle the PoT could vary based on the value of the PoT Target. I am open to using the bundle or group to enact separate calculations).

by TJordahl
on ‎08-11-2017 03:50 PM

I found my own answer! Setting the Percent of Total Scope on the Product Option to 'Components' provided the outcome I needed.

Contributors