Recurring and Non-Recurring Prices

This new feature gives the ability to support MRC and NRC in the same product and on the same line item in the cart. There will be two sets of prices, multipliers, discounts, margin indicators, margin sliders for each item and product type. This allows businesses that have monthly billings to be able to accurately display this pricing in their configuration and in the cart.

A single item can be defined with two prices, a one time fee (non-recurring cost or NRC) and a recurring fee (monthly recurring cost or MRC). For example this can be very useful when selling software product with initial installation/setup monthly fee or if some company is selling subscriptions with initial installation cost and monthly subscription fee.

The cart fields have also been updated to reflect this update, if administrator has chosen to turn it on. In product configuration, recurring price are added to responder for every attribute where check box ‘Show Recurring Price’ is selected. This price is displayed under current price. At the bottom of responder (under Total Price), there is new label ‘Total Recurring Price’ with product recurring price displayed.


Figure A - Responder

All relevant fields in the quote and in quote items (Net Recurring Price, Multiplier, Multiplier Amount, Recurring Extended Amount, Discount Amount, Recurring List Price, Channel Markup Percent, Recurring cost etc.) are duplicated. Additionally, all appropriate fields in quote total are duplicated (also for product types). Same logic that is applied for non-recurring price and cost will be applied for recurring prices and cost. No new quote calculations will be added (existing ones will be changed).

Only layout for ‘QuoteDefault.xslt’ will be changed to support recurring prices and cost. Parameter ‘Use recurring price and cost’ will be used to determine whether recurring price and cost fields will be displayed.


Figure B - Change in quote

In order to use this feature, user has to set up few parameters first.

1. In CPQ Setup → General → Application Parameters → General, there will be a check box ‘Use recurring price and cost’ (not selected by default). For more details see Application Parameters section.

When this is activated MRC/NRC fields in Discounts/Multipliers and Margin Health will be active.

In CPQ setup → Pricing/Calculations → Discounts/Multipliers, fields for ‘Discounts for Recurring Price’ and ‘Multiplier for Recurring Price’ will be added. For more details see Discounts/Multipliers section.


Figure C - Discounts/Multipliers

In CPQ setup → Pricing/Calculations → Margin Health Indicators, in step 3, new fields for ‘Margin For Recurring Price’ are added. For more details see Margin Health Indicators section.


Figure D - Margin Health Indicators

On Tab 1 of the Product Administration, there is a field for ‘Base Recurring Price’ in ‘Pricing’ section.

Figure E - Product Administration Tab 1

On Tab 2 of the Product Administration, there are fields for attribute value ‘Recurring Price’ and ‘Recurring Cost’ in table for attribute values. Also, there is a check box that is labeled ‘Show Recurring Price’. For more details see Product Editor section.

Figure F - Product Administration Tab 2

Figure G - Product Administration Tab 2
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