Dynamic Pricing in Zuora CPQ

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The Dynamic Pricing feature in Zuora Tenant and Zuora CPQ is in the Early Availability phase. We are actively soliciting feedback from a small set of early adopters before releasing it as generally available. If you want to join this early availability program, contact your Client Success Manager.

The Commerce catalog in the Zuora tenant allows pricing to be set up based on attributes.

Attribute-based pricing eliminates SKU proliferation, which often occurs when a separate SKU is required for each variation.

In Zuora CPQ, dynamic pricing refers to the ability to calculate product charges at quote time based on attributes. Zuora CPQ integrates with Zuora Billing and Product Catalog to offer flexible pricing models. It allows sales teams to generate flexible, real-time pricing.

Dynamic Pricing in CPQ supports the following charge types and pricing models:

Charge type	Supported models
One-Time	Flat fee
	Per Unit
	Volume
	Tiered
Recurring	Flat fee
	Per Unit
	Volume
	Tiered
Usage	Flat fee
	Per Unit
	Volume
	Tiered
	Overage
	Tiered with Overage

Other considerations

Dynamic Pricing is only supported with Orders API.
Dynamic Pricing is only supported with Quote Studio UI.

Prerequisites

Ensure that the installed Zuora Quotes managed package version is 10.49 or above.
Ensure that the installed Zuora 360 package version is 5.22 or above, and you are using the latest Zuora Connector for Salesforce CRM. See See Zuora Connector for Salesforce CRM Installation.
Set up the sync credentials to connect to Salesforce using OAuth. For more information, see Set up Sync Credentials to Connect to Salesforce.
- Ensure the SOAP API version is 152 or higher.
- Update the SOAP API URL to point to a valid endpoint.
  
  If the Zuora Connector for Salesforce CRM has already been enabled with OAuth credentials for 360+ sync, you can use the existing OAUTH credentials stored in Zuora Billing.
Ensure that Dynamic Pricing is activated in your Zuora tenant. Contact your Client Success Manager to activate the settings.
Ensure that Dynamic Pricing is activated in your Salesforce org. Contact your Client Success Manager to activate the settings.
Ensure that you enable Product Catalog for real-time sync. If you are using manual sync, ensure that you sync manually every time you make a Product Catalog change in the Zuora tenant so the changes are available in Zuora CPQ.
Ensure that you have defined Dynamic Pricing for the products in the Zuora tenant.
Ensure that the cloned Zuora Quotes End User permission set is updated. See Zuora Quotes End User permission set.

Procedure

Log in as a Salesforce user, create a new quote, amend, or renew an existing one.
In the Quote Detail page, click Browse Products.

Add the required products.

Then

All attributes are known

The list price and discount are displayed during product browse/search.

Attributes and attribute values are missing

A fall back price is displayed.

The rate plans with Dynamic Pricing defined in the Zuora tenant and missing attribute values are displayed with text that informs you that they have a price range defined. These are identified with the text “from”.

For example, a flat fee charges from $10/month.

On the Quote Detail page, review the rate plan charge table.

Then

All attributes are known

The list price and discount are displayed in rate plan charge table.

Attributes and attribute values are missing

The icon is displayed in the List Price column when there are missing attribute values that need to be updated.

If the List Price column does not show the icon but includes a hyperlink, Dynamic Pricing is defined for that charge. The price is auto-resolved based on the mapped attributes. For more information, see Mapped attributes.

If the List Price column shows neither the icon nor a hyperlink, Dynamic Pricing is not defined for that rate plan.

Click the list prices that have the missing attributes icon.
The charge details window displays.
For Volume or Tiered charges, you can click the Rate Card tab, and then click the link in the List Price column to view the attribute values for each tier.
(Optional) You can click the charge name to view the pricing details. For more information, see Quote Studio user interface.
Update the necessary information to resolve the missing attribute details and click Confirm.
The list price and discount are updated in the Quote details page.

Mapped attributes

You can define pricing based on fields from the following objects and any other Salesforce fields:

Account
Account.SoldToContact
Account.BillToContact
Subscription
Rate Plan

You need to map the field names in the Zuora tenant with those in Salesforce. For example, you can define the pricing based on the Initial Term. Based on the Initial Term the List Price is auto-populated. For more information, contact your Client Success Manager.

The following table provides examples of field mappings to be used in the CRM Mapping field in the Zuora tenant:

Supported object	Related Salesforce object	Field	CRM Mapping field
Account	Account	Zone__c	Account.zqu__Zone__c
Account.SoldToContact	Contact	Country	zqu__SoldToContact__c.MailingCountry
Account.BillToContact	Contact	Country	zqu__BillToContact__c.MailingCountry
Subscription	zqu__Quote__c	InitialTerm	zqu__Quote__c.zqu__InitialTerm__c
Rate Plan	zqu__QuoteRatePlan__c	Custome_Field__c	zqu__QuoteRatePlan__c.Custome_Field__c

Update attribute for Flat Fee or Per Unit

In the Quote Detail page, rate plans with missing attributes are denoted by . You need to resolve the missing attribute information before you can save and send the Quote to Zuora.

Following is an example flat fee configuration in Zuora tenant:

Attribute (Company size)	List Price
Small	$100
Medium	$200
Large	$300

On the Quote Detail page, review the charge table.
Click the list prices that have the missing attributes icon.
The charge details window displays.
Click the Rate Card tab.
From the CompanySize dropdown select the size and click Confirm.

The list price and discount are updated in the Quote details page.

Update negotiated price for Usage charge type

For charge items of type usage with an associated Dynamic Pricing rate card table, you can negotiate prices for each row within the rate card table at the time of quoting.

Following is an example for usage charge configuration in Zuora tenant:

On the Quote Detail page, review the charge table.
Click the link in the Effective Price column.
The charge details window displays.
Click the Rate Card tab.
Modify the values in the table as required and click Confirm.
The values are updated at the charge-level for the subscription.
You can perform the following actions in the table:
- Add a row
- Modify the product type, operator, effective date, or values
  
  Deleting a row is not currently supported

When you add the same product during amend or renew, the data is populated based on the values available from Zuora tenant.