Price Calculation 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:

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
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	Quantity	Net Price	Additional Discount Amt	Additional Discount %	Zuora Price
Month	12	1200	1	1200			100
Month	12	1180	1	1200	20		98.33333
Month	12	840	1	1200		30	70
Annual	1	100	1	100			100
Month	12	3600	3	1200			100
Month	12	3480	3	1200	40		96.66666667
Month	12	1800	3	1200		50	50
Annual	1	300	3	100			100

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:

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
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

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:

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.
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

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:

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
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