If you need to apply Partner Discounts before system discounts in your Product Pricing with Salesforce CPQ, you can create a special field named ApplyPartnerDiscountFirst__c on the quote to turn on this feature. Typically if your organization is using this setting, it is best to have this be a number formula field that evaluates to 1 to have this maintained on all Quotes, Amendments, and Renewals in your organization.
This feature makes the CPQ pricing engine apply Partner Discount first off List Unit Price, then any system discounts (Contracted Price, Discount Schedules, Special Price), manual Additional Discounts, and lastly Distributor Discounts.
The Price Waterfall with this feature active modifies the flow of price field calculations to the following order:
List Unit Price -> Partner Unit Price -> Regular Unit Price -> Customer Unit Price -> Net Unit Price
For example, if you have a product priced at $10,000 and a quantity of 100 with a Range Discount Schedule(system discount) of 10% if the quantity is over 10, pricing would flow as follows:
List Unit Price: $10,000
Partner Discount = 20%
$10,000 * 0.80 = $8,000
Partner Unit Price: $8,000
System Discount = 10%
$8,000 * 0.9 = $7,200
Regular Unit Price: $7,200
Additional Discount = 50%
$7,200 * 0.5 = $3,600
Customer Unit Price: $3,600
Distributor Discount = 50%
$3,600 * 0.5 = $1,800
Net Unit Price: $1,800
Behavior with Pricing on Renewals
The following is how this feature works with CPQ's available Renewal Pricing Methods.
'Same'
The Distributor Discount does not pull to the renewal quote lines, but the Partner Discount does.
With the above Scenario, "$3,600" is what pulls over as the Customer Unit Price of the Renewal Quote Line.
'List'
Only system discounts map over to renewal.
'Uplift'
Same behavior of the 'Same' Pricing Method unless an Uplift is applied at the Contract or Subscription level.
If Uplift is defined, the Renewal Quote Line’s Regular Unit Price will be the List Unit Price after System Discounts,
Uplift is applied to the Customer Price of the Subscription to establish the Customer Unit Price on the Renewal Quote Line, and the difference is what is populated in the Additional Discount Amount.
The Distributor Discounts do not pull over to the renewal.
Considerations:
The Product Option's Discount (%) and Discount (Amt) are not considered for calculations when ApplyPartnerDiscountFirst is enabled on the Quote object. While the Quote Line still uses these Product Option fields to calculate Special Price, however, this field is bypassed while calculating any proration when ApplyPartnerDiscountFirst is in use. In this use case, customers can use a Price Rule Price Action to inject the Product Option's Discount (%) or Discount (Amt) into the Quote Line's Additional Disc. % or Additional Disc. Amt fields.
NOTES:
000382096

We use three kinds of cookies on our websites: required, functional, and advertising. You can choose whether functional and advertising cookies apply. Click on the different cookie categories to find out more about each category and to change the default settings.
Privacy Statement
Required cookies are necessary for basic website functionality. Some examples include: session cookies needed to transmit the website, authentication cookies, and security cookies.
Functional cookies enhance functions, performance, and services on the website. Some examples include: cookies used to analyze site traffic, cookies used for market research, and cookies used to display advertising that is not directed to a particular individual.
Advertising cookies track activity across websites in order to understand a viewer’s interests, and direct them specific marketing. Some examples include: cookies used for remarketing, or interest-based advertising.