Understanding the pricing structure

This pricing structure describes how Salesforce CPQ applies different prices and discounts to calculate the net price from a list price. The prices defined in each box, such as the original price, list price, and so on, are out-of-the-box features provided by CPQ. This model follows the top-down approach for calculating prices and is also called the price waterfall.

Figure 4.13 – CPQ price waterfall

As shown in the preceding figure, let's learn what each of these prices refers to:

1. Original Price: A copy of the price of a product from the price book.
2. List Price: This is also a copy of the price, but it can be updated with a price rule or other automation.
3. Special Price: This is used for specific situations. The contracted pricing approach described earlier can be used to set a special price. Special prices can also be used in price rules.
4. System Discount: When someone purchases a bulk quantity...