Salesforce CPQ Manage Renewals and Amendments

1. How to: Salesforce CPQ:
Manage Renewals and
Amendments

3. Forward-Looking Statement
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about the company's financial and
operating results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, diluted earnings
per share, operating cash flow growth, operating margin improvement, expected revenue growth, expected current remaining performance obligation growth, expected tax rates,
stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, environmental, social and governance goals and expected capital
allocation, including mergers and acquisitions, capital expenditures and other investments. The achievement or success of the matters covered by such forward-looking statements
involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially
from the results expressed or implied by the forward-looking statements it makes.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with the effect of general economic and market conditions; the impact of geopolitical
events, natural disasters and actual or threatened public health emergencies, such as the ongoing Coronavirus pandemic; the impact of foreign currency exchange rate and interest
rate fluctuations on our results; our business strategy and our plan to build our business, including our strategy to be the leading provider of enterprise cloud computing applications
and platforms; the pace of change and innovation in enterprise cloud computing services; the seasonal nature of our sales cycles; the competitive nature of the market in which we
participate; our international expansion strategy; the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including
as a result of acquisitions; our service performance and security, including the resources and costs required to avoid unanticipated downtime and prevent, detect and remediate
potential security breaches; the expenses associated with our data centers and third-party infrastructure providers; additional data center capacity; real estate and office facilities
space; our operating results and cash flows; new services and product features, including any efforts to expand our services beyond the CRM market; our strategy of acquiring or
making investments in complementary businesses, joint ventures, services, technologies and intellectual property rights; the performance and fair value of our investments in
complementary businesses through our strategic investment portfolio; our ability to realize the benefits from strategic partnerships, joint ventures and investments; the impact of
future gains or losses from our strategic investment portfolio, including gains or losses from overall market conditions that may affect the publicly traded companies within our
strategic investment portfolio; our ability to execute our business plans; our ability to successfully integrate acquired businesses and technologies; our ability to continue to grow
unearned revenue and remaining performance obligation; our ability to protect our intellectual property rights; our ability to develop our brands; our reliance on third-party
hardware, software and platform providers; our dependency on the development and maintenance of the infrastructure of the Internet; the effect of evolving domestic and foreign
government regulations, including those related to the provision of services on the Internet, those related to accessing the Internet, and those addressing data privacy, cross-border
data transfers and import and export controls; the valuation of our deferred tax assets and the release of related valuation allowances; the potential availability of additional tax
assets in the future; the impact of new accounting pronouncements and tax laws; uncertainties affecting our ability to estimate our tax rate; uncertainties regarding our tax
obligations in connection with potential jurisdictional transfers of intellectual property, including the tax rate, the timing of the transfer and the value of such transferred intellectual
property; the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; factors related to our outstanding debt, revolving credit facility and
loan associated with 50 Fremont; compliance with our debt covenants and lease obligations; current and potential litigation involving us; and the impact of climate change.
Further information on these and other factors that could affect the company’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes
with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of the company’s
website at.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Third party trademarks are the property of their owners.

4. Event Information and Logistics
Post your questions in the webinar
panel during the event and the
Trailblazer Community once it’s
concluded.
First things first
Connect with the Trailblazer Community
Individual Follow-Up Session
Premier and Signature Success Plan
customers can request a follow-up session
with a Salesforce expert through a survey
you will receive after this webinar concludes.

5. In this session, we’ll go over renewals and
amendments in CPQ and review best practices
so you can get the most out of your Salesforce
investment.
Welcome!

6. Agenda
01 Overview
How and when to use renewals and amendments.
02 Demo
A walkthrough of how to use CPQ renewals and amendments.
03
Resources
Guidance to help you drive value with CPQ renewals
and amendments.

7. Overview
How and when to use renewals and amendments.

8. Typical CPQ Flow
Salesforce
Salesforce
CPQ
External
System

9. Contracting
● Once an opportunity is closed-won, CPQ offers additional features designed to assist you in
managing your ongoing relationship with the customer.
● These features can be initialized by Contracting your opportunity or order (Contracted = True).
○ A contract record will be generated, which will serve as an avenue to facilitate
amendments and renewals.
○ Quote lines will be transcribed to subscription and asset records.
CPQ functionality extends beyond the quoting process
Note: Do not contract from both the opportunity and the order. If you are using orders, the best practice is to contract from the order.

10. Contracting with Sales Cloud vs. Service Cloud
*Asset record generation is controlled by the Asset Conversion field on the product record.
Sales Cloud Service Cloud
One-time products become asset records* One-time products become asset records*
Subscription products become subscription records Subscription products become contract line items
Subscriptions will be organized under contracts Contract line items will be organized under service contracts
Subscribed assets link Percent of Total Products to the assets
they cover
Entitlements can be created to link Percent of Total Products to the
assets they cover
Entitlements can also be created for fixed price subscriptions
How is this process different for Sales Cloud and Service Cloud?

11. Amendments
When to Use
● Use to add net-new products to a current contract.
● Use to change quantities of assets or subscriptions.
● Can be performed at any point in the lifecycle of a contract.
● Amendments do not allow for price adjustments.
Benefits
● Ease of use. Amendments are created with just two clicks!
● Easy tracking of all information. When you contract an amendment, changes are
automatically synced to the original contract.
● Great record keeping. To ensure that changes in contracts can be tracked easily, new
records are created for each changed quoted line.
Represent a change in products purchased by your customer

12. Renewals
How To
● Create a renewal opportunity
by checking the renewal
forecast checkbox on the
contract.
● Create a quote for your
renewal opportunity by
checking the renewal quoted
checkbox on the contract.
● Renewal quotes behave the
same way as a standard quote
(you can add, change, and
delete line items).
Benefits
● Great forecasting. Renewal opportunities can be
created immediately upon contract generation,
allowing for your pipeline to be fully accurate with
upcoming renewals.
● Automatic renewal opportunity updating. After
you’ve selected renewal forecast, any add-ons or
amendments will update the renewal opportunity
automatically.
● Complete renewal quotes. When you’re ready to
send a quote to your customer, checking renewal
quoted will generate a complete quote with all
existing subscriptions on it.
Ensure a seamless transition from contracts to quotes for continued services

13. Demo
A walkthrough of how to use CPQ renewals and
amendments.

14. Standard Process
● Renewal Forecasting
● Creating an Amendment
● Renewal Quoting

15. Contracting
Setting the contracted checkbox to
true on the opportunity or order will:
● Generate a contract.
● Transcribe quote lines for one-time
products to assets on the account
based on what is in the asset
conversion field on the product
record.
● Transcribe quote lines for
subscription products to
subscription line items which can
be displayed on the account and
the contract.
Via the contracted checkbox

16. Contracts
Serve as the vehicle for amendments and renewals

17. Renewal Forecasting
Check the renewal forecast
checkbox on the contract to
automatically generate a renewal
opportunity.

18. ● Opportunity Close Date will align with the current contract’s end date.
● Opportunity Products will be created for renewable subscriptions.
● Products on the renewal opportunity will be priced using the Renewal Pricing Method selected on
the account record:
○ Same: Product price will be inherited from the current contract.
○ List: Up-to-date list price for the product will be used.
○ Uplift: Product price will inherit the current contract price and then will be uplifted by the
amount specified in the Renewal Uplift (%) field.
● The Amount field on the renewal opportunity will be calculated from the Net Price of the
opportunity products.
● At this stage, the renewal quote does not exist, allowing modifications to the current contract to
automatically sync with the renewal opportunity.
● Benefit: Renewal opportunities can be captured in pipeline reporting and can assist sales reps in
keeping track of upcoming renewals.
Renewal Opportunity

19. When the customer wants to add or remove products mid-contract, there are two choices:
Why use an amendment?
Amendments
Option 2:
Create an amendment
● Automatically creates a new opportunity and new
quote behind the scenes
● Imports the products from the contract into the QLE,
allowing users to modify products from what currently
exists and add new products as needed
● Automatically co-terminates with existing contract
● Creates new subscription line items on current contract
for accurate record keeping
● Automatically syncs updates with existing renewal
opportunity
Option 1:
Create a new opportunity and quote from
scratch
● The new quote will be completely
separate from the existing contract; it will
not reference currently existing assets or
subscriptions
● A new contract with separate subscription
line items will be generated; existing
records will be untouched

20. ● Pricing on existing line items may not be modified.
○ Price information will be carried over from the existing subscription line.
○ Updated list prices will not be used.
○ New or modified discount schedules will not be reflected in the pricing.
○ The additional discount provided on the original quote will be carried over and locked from
further modification.
● New quote lines can be freely discounted.
● For existing products, amendments are focused on quantity changes. If there is no quantity change,
there will be no effect (nothing will be priced, nothing will be contracted).
● All quote lines on an amendment quotes, new lines as well as incremental changes, will be
co-termed with the existing contract. While co-termination can be disabled, the existing contract
end date cannot be modified via an amendment.
Understand the limitations
Amendments

21. Amendments: Use Cases
Use Case Supported via Amendment
Change quantities of existing products while maintaining same discount as
original quote
Yes
Change quantities of existing products while providing different discount than
original quote
No
Change quantities or add new products; co-terminate to existing contract Yes
Change quantities or add new products; different end date from existing
contract
No*
Modify price/discount of existing products (no quantity change) No
Change dates of existing products No
Terminate existing products Yes
*Co-termination can be disabled via a checkbox on the contract.

22. ● Once the amendment opportunity is closed-won and the contracted checkbox has been marked as
true, subscription lines will be created and added to the contract.
● The start date on the new subscription lines will reflect the start date entered on the amendment
quote.
Amendments: Contract Subscription Lines

23. Amendments and Renewal Opportunity
As long as the quote has not been
generated for the renewal
opportunity, the renewal opportunity
will be updated to reflect the new
product quantities.
Renewal opportunity products

24. Renewal Quoting
● Checking the renewal quoted checkbox on the contract will generate a quote for the
renewal opportunity. The renewal quote will include all the renewable subscription products
available on the contract.
● Once the renewal quoted checkbox is checked, Salesforce CPQ assumes someone is
actively engaged in negotiating the renewal.
● To avoid overwriting the user’s work, Salesforce CPQ will no longer automatically update the
renewal opportunity with additional amendments to the current contract.

25. Notable Fields: Influencing the Renewal Process
Contract Field Name Use
Renewal Opportunity Stage
Override the default stage of the opportunity created by renewing this contract. Do this before
selecting Renewal Forecast in order for the override to take effect on the renewal opportunity.
Renewal Opportunity Record Type ID Choose the record type of the generated renewal opportunity.
Renewal Pricebook ID
Choose a pricebook ID for renewal opportunity if you don't want to use the original opportunity
pricebook ID.
Renewal Owner Set the owner of the renewal opportunity.
Renewal Term Set the length of the renewal. By default, the renewal term matches the contract’s term.
Renewal Uplift (%)
Percentage uplift that will be applied to renewal products if Renewal Pricing Method on the account
is set to Uplift. This field can also be set at the subscription line level.
Combine Subscription Quantities
Combine quantities of subscriptions for the same product into one line on renewal quotes and
amendment quotes.
Product Field Name Use
Renewal Product Product that replaces this product on renewal. Use this to quote a different SKU when renewing.
Note: These fields can be set manually or targeted via process builder.

26. Notable Fields: Influencing the Amendment Process
Note: These fields can be set manually or targeted via process builder
Contract Field Name Use
Amendment Start Date
The start date for amendment quotes created from this contract. If left blank, Salesforce CPQ
uses the date of the amendment’s creation.
Amendment & Renewal Behavior Determines how Salesforce CPQ calculates renewal start date and amendment end date.
Disable Amendment Co-Term
Ignore the value of the Amendment & Renewal Behavior field on this record, and do not
auto-calculate an end date for the amendment quote. If unchecked, Salesforce CPQ sets the
amendment quote’s end date according to the value of the Amendment & Renewal Behavior
field on this record.
Amendment Pricebook ID
Choose a pricebook ID for amendment opportunities if you don't want to use the original
opportunity pricebook ID.
Amendment Opportunity Record Type ID Choose the record type of the generated amendment opportunity.
Amendment Opportunity Stage Override the default stage of opportunities created by amending this contract.
Amendment Owner Set the owner of the amendment opportunity.

27. Early Renewal
1. Update the renewal opportunity.
○ Set the start date of the renewal opportunity to the desired date for early renewal.
○ Update/add products as desired.
2. Create an amendment to credit remaining time on current contract.
○ Set the amendment start date to align with the updated renewal start date.
○ Zero out all line items that are being included on the renewal quote.
This will ensure the customer is credited back the amount they have already paid for the
remaining time on subscriptions under their current contract.
Two steps for an early renewal

28. Consolidation of Multiple Contacts
● To consolidate multiple contracts for an account, navigate to the contracts related list on
the account record, select the desired contracts and click Renew Contracts.
● A single opportunity and quote will be generated containing all renewable products with
dates correctly set for each line item to ensure there are no gaps.

29. Resources
Guidance to help you drive value with CPQ renewals
and amendments.

30. Learn More
See All of Our
Salesforce Services
Accelerate your path to success
Trailhead
Salesforce CPQ Basics
Salesforce CPQ Features
Salesforce CPQ Admin Fundamentals
Salesforce Help Articles
Renew Your Contracts and Assets
Amend Your Contracts and Assets
Complete Portfolio of Expert Coaching
Sessions
Check out our portfolio of expert coaching
sessions to learn more about Salesforce CPQ.
Implementation Architect
A designated single cloud expert will be the
Salesforce lead on your deployment, providing
expertise and oversight for your architectural
needs.
Do It Myself Show Me How Do It with Me
Join the Community
Take a Trail
Register for a Webinar

31. Questions?

32. Send Us Your Feedback!
Need additional support?
Premier and Signature Success
Plan customers can request a
follow-up session with a Salesforce
expert via the survey.
Resource requirements for follow-up
● Participation by your admin or operations
executive with a clear understanding of your
sales processes in your Salesforce instance
● Time commitment of one hour
Technical requirements for follow-up
● CPQ must be installed
● Product Catalog must be fully set up
● An individual session is not a good fit for
implementation guidance or troubleshooting
conversations
After this session, you’ll receive a pop-up with
a survey asking you to rate today’s
presentation.
And request a follow-up