Approval for Discount Level

Problem

In most business processes, there are some restrictions on what people can quote. For example, there are often restrictions on how much a salesman can quote without an approval for discount, multiplier and/or margin limits. Such quote may need to be submitted for approval because the discount is too high, the total amount of the quote is too high, or other rules decided by the company have been violated. These rules can be very specific, down to a particular user and a product, or very generic such as for a particular user group, product category or a product type. Any combination of selections from 5 criteria groups can be used to specify a discount or multiplier. When modeling business processes in CPQ, approval rules are used to allow users to request an approval when they go beyond their allocated authority/limits.

Solution

Setting up the approval process for discount levels can be achieved in two easy steps.
Step 1: Setup Discounts Levels The Discounts and Multipliers administration can be accessed by navigating through CPQ Setup→Pricing/Calculations→Discounts/Multipliers. You can edit existing discounts by clicking or simply create a new discount by clicking the button. New discount rule can be added in three steps as shown in the Discounts/Multipliers page (Figure A).

When adding a new discount rule, the default discounts is set to 0 for min, max and default values while the default multipliers is set to 1 for min, max and default values, and default condition is set to 1(always true)


Figure A - Discount/multipier page

When using Multipliers, a 1 equals no discount; 0.6 equals 40% discount and so on. When using discounts, the absolute number is the percentage discount. A 20 entered in one of these fields would equal a discount of 20%.
In step 2 on the discount/multiplier page, check the box User can override value: This box determines whether users enter a value that exceeds the minimal and maximal value range. If this box is unchecked, the user will be unable to enter the value. However, if checked, the user will be able to enter the value, but the quote needs to be submitted for approval to the user’s approve parent. Step 3 of the discount/multiplier, signifies the condition when this discount rules will be applied. The condition defaults to a 1. A value of 1 equals = Always true

Step 1a: Define Discount Priorities (Optional)
Priorities are defined on the Global Level, for all categories and products and cannot be defined for the particular category or product. Selecting Discounting Priorities under Pricing/Calculations will open up the page below.

Discount Priorities page

It is possible to have more than one discounting rule apply. If this is the case, the “Rank” determines the order, with 1 being the highest priority. The ranking sets the order in which each are executed, with rank 1 being the highest priority. Setting Rank to 0 is equivalent to disabling the section.


Step 2: Define Approval Rules

Next step is to set up an approval process that is initiated on the discount levels created in step 1. This is setup under CPQ Setup→Workflow/Approvals→Approval rules.

Approval page

Select one user to be the user that this rule applies to. (You can also select a particular user group, company, or combination of these). The condition box ensures that discounting rules are being treated in this approval rule. The formula <*GI(EXCEEDEDISCOUNT)*> will check the “EXCEEDEDISCOUNT” global information variable flag, which will be set if discounting rules are violated. The Approvers list defines two responsible approvers (Aaron Approver and Matt Manager) for this rule. After all this has been set up and saved, the approval process has been successfully set up.Exit Setup and go to the User side and create a New Quote. Note that the default discount is now populated, if you enter a discount out of the maximum range to quote that violates one of the approval rules (i.e. Exceeds discount), the number changes to red and this will trigger an exceeded discount message in the approvals section on the cart.

Discount, number changes to red(Exceeded Discount)

After clicking on the Approvals button, the user is taken to the page where he can leave a comment; see who approvers are, and what rules he violated.

See Also

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