Frame Agreements

You can use frame agreements to set up product-level, category-level, and account-level discounts and use them to drive pricing of future sales. Frame agreements can also hold general terms (non-pricing terms such as payment period, warranty duration, and so on).

Orders, quotes and opportunities can refer to the frame agreement instead of price lists or price books during configuration and pricing. By using frame agreements, you can save time by avoiding the need for individual contracts for each new deal, because terms are pre-negotiated by the frame agreement.

You can create frame agreements directly from opportunities, quotes, or orders in CPQ. The frame agreements can move through the stages of contract life cycle, just like other contracts. You can generate documents from templates, create new versions, and so on. After completing those stages, CLM sets the frame agreement to the status of Activated.

With Activated status, the terms of the frame agreement are in effect. Quotes and orders created for customers will inherit the terms (both pricing and non-pricing) according to the frame agreement.

You can implement a Vlocity open interface to price products using the frame agreement instead of standard price lists. You can link a master frame agreement to one or more child contracts that are generated by child orders.

• Creating a Frame Agreement
  Frame agreements give you the ability to set up the pricing terms and general terms for future sales. However, unlike a sales contract, this frame agreement does not necessarily mean a customer is promising to buy products but is interested in locking down prices and terms for orders that may be placed in the future.
• Amending Frame Agreements
  If you want to make changes to an existing frame agreement with an Active status, you can easily amend it. After your initial amendment, you can make updates to the amendment if necessary.
• Creating General Terms
  For sales contracts or frame agreements, contract administrators can define General Terms. General Terms are non-pricing terms, such as payment period, termination notice period, warranty duration, and so on.