Usage-Based Products

Salesforce CPQ and Salesforce Billing let you manage usage-based products with either consumption schedules or price schedules. For more information on managing usage with price schedules, check out Rating Usage with Price Schedules.

A product requires several field values to work with a consumption schedule. Several CPQ fields are required by default, and several Billing fields are also needed if you plan to invoice usage based on your consumption schedule in Salesforce Billing. The Billing fields are available only if you have the Salesforce Billing packaged installed.

CPQ Fields

• Subscription Pricing: Fixed Price
• Charge Type: Recurring
• Billing Type: Arrears
• Subscription Term populated
• Billing Frequency populated

Billing Fields

• Billing Rule populated
• Tax Rule populated
• Revenue Recognition Rule populated

• Defining Consumption Schedule Price Rates
  All usage products require at least one consumption rate. The rate sets a quantity-based boundary for usage and defines how much your product costs when its usage falls within that boundary. Consumption rates price usage at a per-unit fee or a flat fee across the entire range of usage. (Salesforce CPQ Managed Package)
• Consumption Schedule Data Flow
  Usage pricing begins when you associate a consumption schedule with a product. This association allows sales reps to review pricing in the quote line editor during quote development. As they move through the CPQ workflow, Salesforce CPQ creates unique consumption schedules each associated with the quote line, subscription, and order product made from that product. When you upload usage to a usage summary, Salesforce Billing rates and prices it based off the rates of the order product consumption schedule. (Salesforce CPQ Managed Package)
• Consumption Schedule Relationships
  Salesforce uses a linking object, called a product consumption schedule, to define a relationship between the product and the consumption schedule. The product consumption schedule has a one-to-many relationship with products, which lets you associate multiple schedules with the same product. You can also associate one consumption schedule with several products. (Salesforce CPQ Managed Package)
• Enable Consumption Schedules for Salesforce CPQ and Billing
  To use consumption schedules in Salesforce CPQ, enable them in Salesforce CPQ package settings. (Salesforce CPQ Managed Package)
• Create a Basic Usage Pricing Setup
  Create a consumption schedule with one consumption rate, then link it to a usage product. (Salesforce CPQ Managed Package)
• Usage Pricing Guidelines
  When you're setting up usage pricing for your products, consider key guidelines. (Salesforce CPQ Managed Package)
• Use Cases for Usage-Based Pricing
  Usage-based pricing lets you configure many types of tier-driven usage rates for your products. When you’re working with usage products, review important use cases and common ways to set up usage pricing. (Salesforce CPQ Managed Package)
• Viewing Consumption Schedules in the Quote Line Editor
  When your quote line looks up to a consumption schedule, you can review the related schedule and its rates within the quote line editor. (Salesforce CPQ Managed Package)
• Contracting Products with Consumption Schedules
  Contract an order to create subscription records for all of its order products that have consumption schedules. Salesforce CPQ also creates a subscription consumption schedule for each subscription. The subscription consumption schedule contains a lookup to the original product's consumption schedule. (Salesforce CPQ Managed Package)
• Amending Products with Consumption Schedule
  When you amend a contract containing order products with consumption schedules and order the amendment quote, Salesforce Billing updates your usage summaries to reflect cancelations or new usage periods. (Salesforce CPQ Managed Package)
• Renewing Products with Consumption Schedules
  When you renew a quote line for a usage-based subscription product, Salesforce CPQ creates a renewal quote with a quote line consumption schedule. The quote line consumption schedule looks up to the same consumption schedule as the original quote line. (Salesforce CPQ Managed Package)
• Consumption Rate Fields
  Salesforce CPQ provides custom-managed fields for consumption rates. Consumption rates describe the billing rate for a tier in a consumption schedule. Page layout and field-level security settings determine whether fields are visible or editable. (Salesforce CPQ Managed Package)
• Consumption Schedule Fields
  Salesforce CPQ provides various custom managed and standard fields for consumption schedules. A consumption schedule organizes a set of consumption rates by which usage-based products are quoted and billed. With certain page layout and field-level security settings, some fields aren’t visible or editable. (Salesforce CPQ Managed Package)