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Discounts in Industries CPQ and EPC
A discount is defined as a reduction in price on a product, a catalog (collection of products), or the contents of the Cart. The discount is negotiated, approved, activated, and applied towards the current or future purchase of products or services. You can create and apply discounts to an account or define and apply discounts as part of a contract. You can also apply discounts in the Cart.
Discount Management in the Cart
The CSR or sales representative can manage discounts in the Cart:
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Creating custom discounts. See Define Custom Discounts from the Cart in LWC or Define Custom Discounts in Industries CPQ Cart.
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Editing discounts placed in the cart. See Edit Discounts in Industries CPQ Cart.
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Building an optional approval process for discounts. See Approve Discounts in Industries CPQ.
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Discontinuing an active discount. See Activating and Deactivating Discounts.
Discount Definition Stages
Creation: Create a discount. There are two ways to create a discount. The product administrator creates a pre-defined discount using the Pricing Designer (or Product Console). Alternatively, product executives can create custom discounts from the Cart or CPQ. After you create discounts, they are independent of the price list that the Cart is associated with.
The pricing interface implementation should refer to the PricingPlanService (instead of the DefaultPricingPlanImplemenatation) for discounts to be applied. By default, the pricing step "Apply Context Discounts" is included in the pricing plan.
Negotiation: You can negotiate and agree on a discount. For example, an account executive is responsible for negotiating the discount and ensuring that the appropriate agreement with discounts are in place.
In the following example scenario, an account executive negotiates a 10% contract-based discount for all employees of ABC when they purchase iPhone accessories.
Approvals: You can automate the approval of discounts or define custom logic using Vlocity's interface implementations to determine, for example, whether the approval for a specific discount type is required.
Activation: When you activate a discount, it goes into effect when the discount is submitted. The discount is effective in the following cases:
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No end date: If you do not specify an end date for a discount, the duration of the discount is effective from the time the discount was activated.
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Valid end date: If you specify an end date, the discount is active as long as the end date is valid. The duration is ignored. In this case, the end date takes precedence over the duration.
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No end date or duration: If you do not specify an end date or a duration, the discount never expires.
- Types of Discounts in EPC
Discounts can be applied to orders, accounts, or contracts. Each discount type can be associated with products or specific categories or catalogs (a group of products). Discounts have a duration with an effective end date and can be applied to future contracts or accounts. You can apply discounts to all items in your cart or individual items in your cart. You can also adjust the discount manually. - Define a New Discount in the Product Console
To use Discounts, you must run the Create Default Time Policy job at least once. This is required to define recurring adjustments for contextual discounts. There are validations that check for the existence of the Time Policy created by the job and errors occur if something is required. - Edit Discounts in Industries CPQ Cart
You can edit a discount irrespective of how it was added to the Industries CPQ Cart. You can do so by either clicking the pencil icon after the discount is in the cart and before it is activated or by using the "New Custom Discount" button. You can edit specific fields such as the discount percentage, the time plan of recurring discounts, and the duration of discounts. - Define Custom Discounts in Industries CPQ Cart
You can view discounts that are eligible for your order, account, or contract in the selectable list of the Industries CPQ Cart. You can create custom discounts in the Cart if none of the available discounts match your criteria. In this scenario, you can create a custom discount for a set of products or catalog and assign a custom discount amount with a custom time frame (if required). - Define Custom Discounts from the Cart in LWC
You can view discounts that are eligible for your order, account, or contract in the selectable list of the Industries CPQ Cart. You can create custom discounts in the Cart if none of the available discounts match your criteria. In this scenario, you can create a custom discount for a set of products or catalog and assign a custom discount amount with a custom time frame (if required). - Approve Discounts in Industries CPQ
If your business requires you to request an approval for a discount, you can do so by using the Discount Approval button in the Industries CPQ Cart. By default, discounts are set to be auto-approved. - Activating and Deactivating Discounts
You can activate discounts in Industries CPQ Cart. You can deactivate an account-based discount in Vlocity Cart or a contract-based discount by clicking Amend for the contract record in the Aloha interface. - Products and Discounts in Industries CPQ Cart
This section provides a matrix of the different options that become available in the Industries CPQ Cart when products and multiple types of discounts are added to the cart.
