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Price Calcuation in Zuora Connector for Salesforce CPQ

This article presents how each Salesforce CPQ price setting is mapped to a Zuora charge model and provides sample calculation for the mappings.

Salesforce CPQ prices are translated to Zuora charges as below.

Salesforce CPQ Price Setting

Zuora Charge Model

Price Format

Price Book Entry

Flat Fee

n/a

Price Book Entry

Per Unit

n/a

Discount Schedule - Slab

Tiered Pricing

Per Unit

Discount Schedule - Range

Volume Pricing

Per Unit

Block Price

Volume Pricing

Flat Fee

 

Price calculation in Zuora Connector for Salesforce CPQ can be summarized as below:

  • Per unit, flat rate, and tier charges without an additional discount: The price is copied from the product catalog.
  • Tier charges with an additional discount percentage: The price is copied from the product catalog, and each tier is multiplied by the discount percentage.
  • Tier charges with an additional discount amount: Using the net total as total price over the term, a flat rate of price per billing period is calculated. In Salesforce CPQ, the net price calculations differ among Discount Schedule Range, Discount Schedule Slab, and Block Price. See the below sections for how the net prices are calculated for each type of pricing.

Sample Price Calculations for Price Book Entry

Salesforce CPQ price book entries are translated to the flat fee or per unit charges in Zuora in the following steps:

  1. Salesforce CPQ calculates the Net Price, a unit price over the full term:
    • Net Price for newly added products = Salesforce CPQ Customer Price * Prorate Multiplier
    • Net Price for updates and renewals = Salesforce CPQ Renewal Price * Prorate Multiplier
  2. Zuora Connector for Salesforce CPQ calculates the Zuora Price and sends it to Zuora:
    1. Final Net Price = Net Price with any additional discount is applied against 
    2. Zuora requires a unit price for a single billing period:
      Zuora Price = Final Net Price / Prorate Multiplier

The following table shows sample price calculations for Price Book Entry prices. 

The Contract Terms for all the examples are assumed to be 12 months.

Billing Period Prorate Multiplier Customer Price / Renewal Price Quantity Net Price Additional
Discount
Amt
Additional
Discount
%
Zuora Price
Month 12 100 1 1200     100
Month 12 100 1 1200 20   98.33333
Month 12 100 1 1200   30 70
Annual 1 100 1 100     100
Month 12 100 3 1200     100
Month 12 100 3 1200 40   96.66666667
Month 12 100 3 1200   50 50
Annual 1 100 3 100     100

Sample Price Calculations for Discount Schedule - Range

Salesforce CPQ Discount Schedule - Range prices are translated to Per Unit Volume Charges in Zuora.

Overriding any tiers outside the range is not supported.

  • For no additional discount
    Zuora Connector for Salesforce CPQ copies the Salesforce CPQ List Price to Zuora Price.
  • To apply an Additional Discount Percentage
    Zuora Connector for Salesforce CPQ multiplies each tier price by the Additional Discount %.
  • To apply an Additional Discount Amount
    Any additional discount is applied against the Net Unit Price, then divided by the Prorate Multiplier:
  1. Salesforce CPQ calculates the Net Price. For Discount Schedule - Range, the Net Price is a unit price over the full term:
    • Net Price = Unit Price * Prorate Multiplier
  2. Zuora Connector for Salesforce CPQ calculates the Zuora Price and sends it to Zuora:
    1. Final Net Price = Net Price - Additional Discount Amount
    2. A single flat fee is sent to Zuora.
      Zuora Price = (Final Net Price / Prorate Multiplier) * Quantity

The following table shows sample price calculations for Discount Schedule Range. The Contract Terms for all the examples are assumed to be 12 months.

Billing Period Prorate Multiplier List Price Quantity Net Unit Price Additional
Discount
Amt
Additional
Discount
%
Zuora Price
Month 12

1-10: $100

10-100: $50

11

600

= 50 * 12

   

1-10: $100

10-100: $50

Month 12

1-10: $100

10-100: $50

11

600

  30

1-10: $70

10-100: $35

Month 12

1-10: $100

10-100: $50

11 600 20  

$531 Flat Fee

 

Annual 1

1-10: $100

10-100: $50

11 50    

1-10: $100

10-100: $50

Sample Price Calculations for Discount Schedule- Slab

Salesforce CPQ Discount Schedule - Slab prices are translated to Per Unit Tier charges in Zuora as below.

  • For no additional discount
    Zuora Connector for Salesforce CPQ copies the Salesforce CPQ List Price to Zuora Price.
  • To apply an additional discount percentage
    Zuora Connector for Salesforce CPQ multiplies each tier price by the Additional Discount %.
  • To apply an additional discount amount
    Any additional discount is applied against the Net Unit Price, then divided by the Prorate Multiplier:
  1. Salesforce CPQ calculates the Net Price. For Discount Schedule - Slab, the Net Price is calculated:
    • Net Price = (Unit Price * Quantity)  for all applicable tiers * Prorate Multiplier
      Note that in Salesforce CPQ, the end of a tier range is exclusive.
  2. Zuora Connector for Salesforce CPQ calculates the Zuora Price and sends it to Zuora:
    1. Final Net Price = Net Price - Additional Discount Amount
    2. A single flat fee is sent to Zuora.
      Zuora Price = Final Net Price / Prorate Multiplier

The following table shows sample price calculations for Discount Schedule Slab.  The Contract Terms for all the examples are assumed to be 12 months.

Billing Period Prorate
Multiplier
List Price Quantity Net Price Additional
Discount
Amt
Additional
Discount
%
Zuora Price
Month 12 1-10: $100
10-100: $50
11

12000 = 

(9 * 100
+ 2 * 50)
* 12

    1-10: $100
10-100: $50
Month 12 1-10: $100
10-100: $50
11 12000 40  

$996.666
Flat Fee

Month 12 1-10: $100
10-100: $50
11 12000   50 1-10: $50
10-100: $25
Annual 1 1-10: $100
10-100: $50
11 1000     1-10: $100
10-100: $50

Sample Price Calculations for Block Price

Salesforce CPQ Block Prices are translated to Flat Fee Volume charges in Zuora as below.

  • For no additional discount
    Zuora Connector for Salesforce CPQ copies the Salesforce CPQ List Price to Zuora Price.
  • To apply an additional discount percentage
    Zuora Connector for Salesforce CPQ multiplies each tier price by the Additional Discount %.
  • To apply an additional discount amount
    Any additional discount is applied against the Net Unit Price, then divided by the Prorate Multiplier:
  1. Salesforce CPQ calculates the Net Price. For Block Price, the Net Price is a unit price over the full term:
    • Net Price = Unit Price * Prorate Multiplier
  2. Zuora Connector for Salesforce CPQ calculates the Zuora Price and sends it to Zuora.
    1. Final Net Price = Net Price - Additional Discount Amount
    2. A single flat fee is sent to Zuora.
      Zuora Price = Final Net Price / Prorate Multiplier

The following table shows sample price calculations for Block Price.  The Contract Terms for all the examples are assumed to be 12 months.

Billing
Period
Prorate Multiplier List Price Quantity Net Price Additional
Discount
Amt
Additional
Discount
%
Zuora Price
Month 12 1-10: $100 flat
10-100: $50 flat
11

600 =

50 * 12

    1-10: $100 flat
10-100: $50 flat
Month 12 1-10: $100 flat
10-100: $50 flat
11 600 20   $48.333 flat
Month 12 1-10: $100 flat
10-100: $50 flat
11 600   30

1-10: $70 flat
10-100: $35 flat

Annual 1 1-10: $100 flat
10-100: $50 flat
11 50     1-10: $100 flat
10-100: $50 flat

 

 

 

 

 

 

Last modified
14:41, 10 Jul 2017

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