Overview
A sales agreement refers to a formal contract or arrangement between a seller and a customer that outlines the terms, conditions, pricing, and other details related to the products or services being sold. Buyers and sellers agree on the commercial and legal terms as per the sales agreement, with the understanding that the future orders coming from the buyer will honor the agreement and be priced accordingly.
The diagram below illustrates how integration of Agreement pricing from Oracle Sales Contracts to the CPQ Pricing Engine enables customers to apply this pricing both while quoting in CPQ and to orders originating in Oracle Order Management such as EDI. Note that orders are submitted by CPQ to Oracle Order Management as 'pre-priced' so that the negotiated pricing will be honored on the order's invoice.
Pricing Portal Support for Sales Agreements
Oracle Sales Contract – CPQ Price Agreement Integration
Oracle CPQ 24B introduced productized integration between the Oracle Sales Contracts and CPQ Pricing Agreements to synchronize sales agreement pricing. The Oracle Sales Contract – CPQ Price Agreement Integration allows CPQ Pricing to apply pricing from sales agreements authored in Oracle Sales Contracts.
Price Agreements
The Price Agreements module, also introduced in Oracle CPQ 24B, allows customers to specify agreement pricing within the Pricing Engine UI, via bulk upload, or with REST APIs. Pricing administrators specify the account details, and then add the applicable agreed upon pricing data. As required, Price Agreement pricing is applied to the calculated price. When the CPQ Pricing applies a Price Agreement to a product or service, the Applied Agreement Name, Number, and Integration ID are included in the transaction line item.
Price Agreements are applied as part of the Base Pricing Rule automatically. When discounts or adjustments are specified in a subsequent Pricing Rule/Model these adjustments are not applied since the Agreement price represents the final price negotiated for that customer.
Oracle CPQ 24C provided Sales Agreement Authoring Support in CPQ Pricing, Dynamic attribute pricing for Price Agreements, and Export and Import Matrix Pricing Data.
Sales Agreements in Commerce
Price Agreements in CPQ Pricing Engine to define customer-specific Sales Agreement pricing for products or services. When products or services belonging to a pre-existing agreement are added, the Price Agreement pricing and information is applied on these quote lines.
Existing Sales Agreements can also be imported into the Price Agreement module in the CPQ Pricing Engine. The following Applied Agreement attributes are added to the Commerce sub-document Price Attribute Set to support Sales Agreement pricing in Commerce:
- Applied Agreement Name (
_price_applied_agreement_name) - Applied Agreement Number (
_price_applied_agreement_number) - Applied Agreement Integration ID (
_price_applied_agreement_integrationId)
Authoring Sales Agreements from CPQ Quotes
Beginning in Oracle CPQ 24D, CPQ sales users can author and negotiate a new sales agreement within CPQ using a productized CPQ quote for agreement, without a dependency or integration with Oracle Sales Contracts. This allows sales users to define and negotiate the timing, products, pricing, payment terms, and commitments for sales agreements that will be applied to future quotes and sales orders.
Oracle CPQ 24D introduces new "stage" functionality to provide productized support for sales agreements and sales orders using the current transaction infrastructure. The supported stages are Quote, Agreement, and Order. The default stage for a transaction is Quote. When a transaction is transitioned to a sales agreement, the stage is updated to Agreement. Similarly, when a transaction is transitioned to an order, the stage is updated to Order. Corresponding Step administration enhancements combine stages with workflow management and ensure valid step transitions.
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When enabled, a CPQ sales user can select Quote for Agreement to identify a transaction as a sales agreement.
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After the sales agreement is approved, the sales user can invoke the Create Agreement action to publish the pricing for a CPQ sales agreement to the CPQ Pricing Portal as a Price Agreement for application to future transactions.
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When the sales agreement is published, the Status is updated to "Agreement Created", the Stage is transitioned to "Agreement", and Quote for Agreement is set to read-only.
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The sales agreement terms are saved to the associated Price Agreement in the Pricing Portal.
This feature allows CPQ sales users to propose sales agreements to their customers to establish a common understanding of the pricing and terms that will apply to future quotes and sales orders for the agreement's duration.
Administration
Enable Authoring Sales Agreements from CPQ Quotes
