Discount Schedule refers to the discount on the Products based on some particular criteria like Quantity of the product that customers buy, Term of subscription of the product and it also depends on the cost of the product.
There are three types of Discount Schedule in Salesforce CPQ:-
- Volume (Quantity) Discount.
- Term Discount.
- Cost Discount.
Structure of Discount Schedule
The typical structure of a discount schedule involves defining specific tiers. Each tier includes tier name, lower bound, upper bound and Discount (percentage/amount) applicable on that particular tier. The upper bound is exclusive and the lower bound is always inclusive in the table to define the range.
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There are two ways of the Discount Schedule Working:-
In this way of discount scheduling, discount applies tier by tier or slab by slab on the basis of the quantity of the product. In this way CPQ breaks the quantity according to tier level and applies the discount according to each tier of quantity.
For e.g.: If a customer purchases 15 quantity of any product and tier break is defined as quantity between 1 to 10 get discounted by 0% and quantity between 11 to 20 get discounted by 5% then discount schedule apply 0% on first 10 quantities of the product and remaining 5 quantities will be discounted by 5%.
In this way of discount scheduling, discount depends on the quantity of product belonging to that particular tier and apply the discount according to that particular tier.
For e.g.: If a customer purchases 15 quantity of any product, then CPQ applies the discount by checking from which tier range 15 belongs and applying that discount on total 15 quantity.
Steps to Set Up Discount Schedule
- Open Salesforce CPQ application from the app launcher.
- Type ‘Discount Schedule’ in the search box of the app launcher.
- Open the Discount Schedule tab and click on ‘new’.
- Set the schedule name,
- Set the type as Range or Slab according to the requirement.
- Select the Discount unit from Percent, Amount and price options as per the requirement.
- For the aggregation scope select Quote or Group as per the requirement.
- Click on ‘Save’.
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Steps to Create Discount Tiers and Associate the Discount Schedule with Product
- Open the Discount Schedule in which we want to create Discount Tiers.
- Click on ‘Edit Tier’.
- Set the name of first-tier name.
- Set the lower bound limit of the first tier.
- Set the upper bound limit of the first tier.
- Set the discount (percentage/amount).
- Click on + button to add a new tier and repeat the steps from 3 to 6.
- Repeat step 7 as per the requirement of the tiers needed.
- Click on save.
- Open the Product tab from navigation bar and select the product where we want to associate the Discount Schedule.
- Click on the ‘Edit’ button.
- For Discount Schedule Field enter the created discount schedule name.
- Click on ‘Save’ button.