Book Image

The Salesforce CPQ Implementation Handbook

By : Madhu Ramanujan
Book Image

The Salesforce CPQ Implementation Handbook

By: Madhu Ramanujan

Overview of this book

Salesforce CPQ is innovative software that enables you create better quotes, improve quoting accuracy, and maximize sales and deals. It also provides a quick analysis of profits and losses, helping you improve the overall execution of sales processes, and allows a great deal of flexibility for your prospects, customers, and business partners. The book starts with the Quote-2-Cash business process in Salesforce and shows you how to assess when a business needs to implement CPQ. You’ll then progress to configuring opportunities, quotes, and CPQ products. As you advance, you’ll understand how to define and configure price books, price rules for CPQ quote automation, multidimensional quoting, and more. Next, you'll look at how to configure CPQ guided selling and create package configurations, contracts, and amendments. Later chapters will demonstrate how to perform data migration from a legacy system and the order in which the objects are to be migrated. You’ll also explore CPQ billing and its advantages with the help of different use cases before learning about Industries CPQ and how it is different from standard Salesforce CPQ. Finally, you’ll discover best practices for achieving optimal CPQ performance and avoiding performance bottlenecks. By the end of this Salesforce book, you’ll be able to implement Salesforce CPQ for any business.
Table of Contents (17 chapters)
Section 1: Getting Started with Salesforce CPQ Implementation
Section 2: The Next Stage of the CPQ Journey
Section 3: Advancing with Salesforce CPQ

Understanding the revenue recognition process

Billing offers support for ERP systems by converting the Salesforce CPQ quote to cash data into transactional data. This conversion helps ERP systems to inherit matching data that can be used for accounting functions for general ledger and financial reporting. Salesforce Billing uses several objects to manage the revenue recognition system. Revenue recognition is controlled by accounting standards and can be complex.

For example, revenue for a warranty subscription product of 120 dollars for a period of 12 months can be recognized as 10 dollars a month. Revenue can also be partially recognized. For example, 50% of the revenue can be recognized in full and the remaining 50% is based on the product subscription start date and end date. The revenue recognition process in billing can be automated by configuring the following:

  • Revenue distribution method: This defines how billing spreads revenue over a time period.