
30
JanIn a previous blog post, we explored how Salesforce CPQ can enforce minimum product quantities to maintain pricing structures and business requirements. While the principles remain the same, the scenarios in which minimum quantities are enforced can vary significantly depending on the business model. Today, we’re diving into a new scenario: Subscription-Based Services.
Imagine a SaaS company that sells software licenses on a subscription basis. The contract stipulates that the customer must purchase a minimum number of licenses, even if they don’t use all of them. For example, a customer might commit to 100 licenses but only actively use 80. The remaining 20 are still billed to ensure predictable revenue and align with the company’s pricing model. The quantity can fluctuate up and down over time—as long as it stays above the "Committed Quantity" specified in the contract.
To enforce this requirement while allowing controlled adjustments, we leverage Price Rules, Twin Fields, Summary Variables, and Product Validation Rules in Salesforce CPQ. Additionally, a Flow can be used to pass values from the amendment subscription to the revised subscription, preventing discrepancies in the data.
Here’s how it works at a high level:
On the initial New Business Deal, a Price Rule populates a field on the Quote Line with the quantity purchased. This value represents the customer’s commitment and serves as the baseline for future amendments. Using a Twin Field, this value is passed from the Quote Line to the Subscription record, ensuring that the minimum quantity is consistently enforced across the subscription lifecycle.
When changes are made—such as increasing or decreasing the Committed Quantity—the updated value must be properly propagated to the revised subscription. A Flow ensures that if the update happens as part of an amendment the correct minimum quantity is carried forward. Alternatively, this kind of changes can be made directly on the revised subscription.This is particularly important because in Salesforce CPQ, amendment quote lines pull Twin Field values from the original subscription rather than any updates made in subsequent amendments. Without this update, the validation rule could reference outdated data, causing inconsistencies.
Finally, a Product Validation Rule and Summary Variable are used to compare the current quantity against the Committed Quantity field. If the quantity falls below the minimum, the system prevents the amendment from being processed, ensuring compliance with the contract.
Setting minimum quantities in a subscription-based model helps SaaS companies protect their revenue and streamline operations. By automating these processes in Salesforce CPQ, businesses can maintain control over their pricing structures while providing flexibility for their customers.
If you’re exploring how to enforce minimum quantities in Salesforce CPQ for your subscription-based business, we’d love to help. Our team specializes in tailoring CPQ solutions to meet the unique needs of SaaS companies.
Comments (0)