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[Music] hello everyone welcome to the salesforce cpq video series in today's session we will be looking at contracts i am sudha sundhra i have 12 plus years of experience predominantly in the sales force in the agile space i have 11 salesforce.com certifications which include application architect and salesforce cpu specialist i'm also a trailblazer mentor here are my linkedin and twitter handles if you would like to follow me please feel free to in today's session we would be looking at an introduction to contracts what are renewal models and how do we contract from opportunity so we have looked at most part of the salesforce cpq process now starting from configuring products to pricing to coding now let us take one step further to talk about the contracting process so generating a lasting record of products and services a customer is purchased or subscribed to this is what contracts is all about so once a deal is closed salesforce cpq needs to generate that record what customers have purchased or subscribed to so this is where contracts comes into play so in sales for cpq once a deal is sealed and the opportunity is closed one we can use the contractor check box on the opportunity to initiate the contracting process so this initiation can be done from the opportunity or orders you know if you have the orders functionality that's being used we could also initiate this from orders so this kicks off the automation inside of the salesforce cpq so again once contracted the products on our code would either turn as assets if they are perpetual products or as subscriptions if they are subscription products so use subscriptions to keep records of subscription product we have quoted or sold and use assets to keep record of standalone products we have coated or sold further we can use these records later to manage amendments and renewals to our opportunities and orders there is this a key field which is related to contracts called the renewal model field so the renewal model field gives us two ways to define how sales for cpq tracks the products we code and sell on our account so we can set the renewal model in the subscriptions and renewals package settings sales for cpq applies that value by default to the renewable model field on the accounts however we can also set the renewal model on our account to a different value if we need to which will override the packages renewable model so now let's take a deep dive into the renewable monitor so when we contract an opportunity or order with at least one subscription product and or a contract based renewable model salesforce cpq creates a contract record it then creates a subscription record for the code subscription product and asset records for the code's product with asset conversion again we will look at this field in detail when we jump into salesforce cpq for our demo so asset conversion to give you an overview is a field which defines whether you want to convert a product to a asset or not as a quick example think about like swags or complementary products that we sell as part of our bundles or we just give complementary swags on our code so these technically need not be converted to acid right so then we can you know make the asset conversion to none so that they don't get converted to assets further we can use the contract record to track the following information for subscriptions we can track quantity start date end date renewal and amendment settings so contracting an opportunity in our order locks the original code lines from further changes so remember to change those code lines sales trips must either amend the contract and edit the code lines on the amendment code or if the contract is ready for renewal they can also renew the contract and change the code lines on the renewal code now let us look at use cases for renewal model say for example you have a use case where you sell many subscription products and want to keep detailed records of their start and end dates so we use contract-based renewal models for this and once we check the contractor checkbox either on your opportunities or order to true salesforce creates a contract record an asset record gets created for each non-subscription product with the asset conversion set and the subscription records get created for each subscription product on the opportunity or order so based on what your code lines are and how they are configured either asset record and subscription record gets created or if there are no acid conversion then subscription records get created for the subscription products so there is something called as the subscribed asset record so one other bit of data sales for cpq can generate during the contracting process is what we call subscribed asset whenever we have a perpetual item and the asset that is covered by a percentage of total subscription very often we want to have a record for this hardware product which is covered by a maintenance so this is really nothing but a junction object which has asset and the covered subscription so it's kind of a link between your hardware products say for example if you have that and which is an asset record and if you have a percentage of total maintenance then it's just a link between these two and we call it as a subscribed asset record so this is uh about the contract renewal model moving on let's look at a next use case you don't sell the subscription products or use only percentage of total products to represent the subscription products so in this case we used based renewal model we do not use contract based renewal model because we do not sell subscription products so in this case once we have the contractor check box true either on your opportunities or order it's an asset record that gets created here for each non-subscription product with asset conversion and this gets associated to your account now let us see how do we contract from opportunity sales for cpq requires the following object and settings when we create a contract from opportunity so please ensure these settings are true if you want to create a contract from your opportunity record so we need an opportunity with at least one subscription product a primary code that looks up to your opportunity a contract based renewal method on your opportunities account so say for example uh just an assumption that all the settings are true and we're able to contract from an opportunity to contract an opportunity select contracted on the opportunity record the contract is created in the background salesforce cpq kicks off the automation process in the background once the contractor checkbox is true on your opportunity record sales for cpq then creates a couple of things right a subscription record or an asset record so it creates a subscription record for each of the subscription products so these records contain pricing and date values for each of the subscription product quoted you can access the subscription records from your contracts subscription related list so by default the subscription will inherit its start and end dates from the quote line groups start and end dates if in case the code line groups dates are null the subscription will inherit its start and end date from the code line start and end its if it gives even the court lines dates are null the subscription record inherits its start and end dates from the code lines effective start date value and the effective end date value otherwise the subscriptions will inherit the values of all other matching code line fields if salesforce cpq then creates asset records for the perpetual products that have either one per unit or one per coat line asset conversion if you remember we talked about this briefly earlier that there is this field on the products called acid conversion and this determines whether the product gets converted into an asset or not like for example we looked at the complementary swags where we do not want it to be tracked as assets then we just mark this field to be none so there are two other values which are associated with this particular field which is one per unit or one per code line say for example we're selling a 15-inch laptop and if we make the asset conversion on this product to be one per unit so what will happen is if you have uh five units of laptops sold on your code then the one per unit will create five different asset records because it's going to create one asset record for each unit of the product if you say one per code line is just going to create one asset record with quantity of five the asset records contains pricing values for the non-subscription products that we have quoted we can access the asset records from the account there are few things to note while we contract from opportunity the first thing is when we contract an opportunity containing a subscription code line with a quantity of zero salesforce creepy queue creates a zero quantity subscription record on the contract the next one will be users with read-only access to subscribed assets can create contracts and subscribe assets through the opportunity and order contracting process although this is not a standard security element salesforce cpq supports it as a business flow so keep these two things in mind while we contract from opportunity now we're in salesforce cpq application let's quickly see how do we seal a deal and create contracts from opportunity i'm on my court record and i'm going to quickly click on edit lines to show you what i have a scout lines on this particular code so i have two quantities of iphone 12 product which is a bundle i have added five quantities of laptop 15 inch bundle and as part of my iphone 12 i've added two products which are like complementary swags mug and keychain and as part of my 15-inch laptop bundle i've had a percentage of total product uh basically this is uh like a percentage of total maintenance based on my hardware product selected so this is the code and the code lines that we have now uh let us quickly navigate back to our code and get on to our opportunity so our assumption here is that this deal is sealed so we're going to make the opportunity closed one so let's say closed one and let's say save you will notice that the opportunity stage is updated to closed one now let us quickly scroll down we see contractor check box under the sales for cpq information i'm going to make the contractor check box to true so that a contract gets generated in the background let's click on save i'm quickly going to refresh this page if you notice as i pre-requested this code is a primary code we have marked the opportunity stage to closed one and we have contracted this particular opportunity if i scroll a little further down i see this section for contracts and this is the new contract that got generated i'm going to quickly navigate to the account and show you what has happened there if i go to my accounts and i click on the related tab i would see contracts as one of the section here and assets for all the perpetual products that got converted which has asset conversion set to a proper value and subscription section where the subscription products are converted so these are the objects that we would be typically working with like as a subscription contract if you're using the sales cloud salesforce cpq does have an optional connector package we can for service cloud if you would like to generate service contracts instead of contracts it would generate contract line items instead of subscriptions service contracts and service contract line items are the standard salesforce objects on the service cloud side uh however assets are used both in the sales and the service cloud so like i mentioned earlier uh i'm going to click on view all just to show you the asset records here so like i mentioned earlier we had a few choices that we could make on the product for asset conversion whether we want to convert a product into an asset or not so let me quickly jump into the products to show you how i have set this up so for my iphone 12 product i have uh set the asset conversion to one per unit so what this means is i want one asset record for one unit of this product coated so if i have two products of iphone 12 coated i want two asset records to be created so keep note that this would explode the coat line quantity and only useful if you want to track serial numbers which is mostly used for bigger pieces of machinery uh since uh we will end up having like 100 asset records if you're quoting 100 units of the product on your code and i'll navigate to another product which is a complimentary product mug if you notice here what i've done is i have given the asset conversion as none basically i haven't selected either one per unit or one per coat line i've done the same for keychain as well because these are complementary products and i do not want it to be converted into an asset if i uh go on to my 15-inch laptop uh just to show you how different this would work i have selected one per coat line instead of one per quantity now let's quickly go back to our accounts and see how these asset records look so this is the asset record so if you notice here because 15 inch laptop had one per coat line it has created just one asset record for that particular 15 inch laptop with a quantity of five however if you notice iphone 12 product here which has been converted into acid since we had one per quantity we are seeing two asset records are created if i scroll down you will notice that the mug and key chain are not converted into asset records because the asset conversion field was set to none now i'm going to quickly go back to my account to show you that the subscription product that we had on our quote line is being converted into a subscription record here so this is our subscription record that has been created here on this particular account so like i said there was i said conversion fee for the asks for assets right for the products to be converted to asset or not we do not have an equivalent fee for subscription inside so subscription product will always generate subscription records we don't have a set field for that it happens automatically so if you remember we discussed about another record called the subscribed asset right so one other bit of data sales for cpq you can generate during the contracting process is what we called as a subscribed asset so uh in this case we had a perpetual item basically an asset that is covered by a percentage of total subscription and this gets tracked as our subscribed asset record to see that let's click on this subscription record and go to the related we would see subscribed asset as a related list so if i click on this you would notice this is nothing but the junction object that links your subscription product to your asset so because the percentage of total maintenance is basically based on an other some other product right other asset so it's going to be a percentage of total of your hardware of your laptop here in this case so this is where that link happens and this record is called as your subscribed asset record if you remember we talked about the renewal model field on our packet setting as well as our account so let's quickly go to our setup and let's go to our packages and click on configure for salesforce cpq packaged and look at our package setting here so if i go to subscriptions and renewals i have this field for renewal model you can either set this to a contract based or an asset based right so choose contract waste if you have subscriptions uh records to be converted on contracts now this is what we said at the package level if i go to my account i have the same field here under my sales for cpq section the renewal model again i can say whether it's contract based or asset based here so note that this is going to override what have picked up on the packet setting so say for example my package setting renewable model is set to contract based and i'm going to select asset based here and this is going to override the package setting value and it's going to work as an asset-based renewal model to summarize in this session we looked at contracts what contracts are how do we create contracts from opportunity and we also looked at a renewal model which is like contract-based renewal model and the asset-based renewal models and we quickly looked at how in sales for cpq we contract from opportunity and some key fields related to contracting thank you for listening in hope you found this session informative thank you apex hours for giving us the opportunity to host this session today you