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Amendments and Renewals: Contracting Made Simple!


Hetal Tanna

April 24, 2019

Tracking expiry and renewal dates of thousands of contracts can be a nightmare, especially because standard Salesforce doesn’t provide enough visibility into where a contract stands. This process can be manually intensive, and business insights are tough to get. This is where Salesforce CPQ Renewals turned a savior!

Dealing with contracts is the most common business practice for organizations. My task involved tracking expiration dates and sending reminders, giving end users time to review the contract’s performance and develop a renewal strategy. Furthermore, the use case also involved managing the new pricing of the products and updating the quantities/licenses of the products which were not a part of the initial contract term during amendments and renewals.

Salesforce CPQ Amendments And Renewals
Amendments & Renewals are the superman way to track and manage contracts! Amendments allow you to make changes to an active subscription. When you create an amendment, you create a new version of the subscription. The subscription information is copied to the new version and the Subscription detail page lets you view all previous versions of the subscription. Salesforce CPQ manages complex customer lifecycles to ensure that current deals don’t serve as roadblocks to new deals and renewals.

How It Made My Life Better?
Previously, contract generation, renewal opportunities and quotes were handled via classic Salesforce. However, using Salesforce Classic means a lot of manual work like loading renewal opportunities manually just before the contract ends, which neither gave accurate forecasts, insights or visibility to the customers.
On the other hand, Salesforce CPQ Renewals has a wide range of features like the ability to automatically create a renewal opportunity for a contract, track license usage, manage the pricing of the products, all of which give much-needed visibility to the customers.

Useful Fields On Opportunity While Renewing A Contract:

  • Renewal Forecast: CPQ creates a renewal opportunity on your account automatically once you click this checkbox.
  • Renewal Quote: This checkbox will automatically spin up a Quote on the Renewal Opportunity.

How To Implement Amendments And Renewals:
To have different pricing for the product while implementing Amendments or Renewals, create a new PriceBook with updated price entry. This ensures that we retain the original pricing of the product.

  1. Copy the PriceBook ID and paste it into the Amendment PriceBook ID and/or Renewal PriceBook ID fields on the Contract to use the new PriceBook on future Contract Amendments and Renewals.
  2. Click Amend from the Contract of the Opportunity to update pricing, increase/decrease quantity or add product.
  3. This will take you to the Subscription products that can be amended. Click on Amend button.
  4. On the Quote Line Editor (QLE), new price will be automatically updated for the products that are in the new PriceBook (as in step 1). I updated the Quantity from 1 to 5 within the same contract. Hit Save.
    Note: [New products/bundle can also be added to same contract during amendments]
  5. On the Quote Detail page, Amended Opportunity is automatically created.
  6. Go to the amended Opportunity’s close-won stage and check Contracted checkbox to sync the updated changes to original Contract.
  7. On the original Contract, an additional Subscription is represented by the additional products added above.
  8. From the Contract that we originally started with, click on the Renewal Quoted checkbox – this will automatically spin up a Quote on the Renewal Opportunity.
  9. Renewal Opportunity has updated information about the products as well as the Quote.
  10. Renewal quote is marked as primary with updated result of the Amendments.

And voila! We have reached our goal with standard-out-of-box functionality.

Salesforce CPQ with Amendments and Renewals has proved great for CPQ implementations, with clients reaping huge benefits of Customer Retention, Increased Accuracy, Enhanced Efficiency, and Productivity! Do try it and let me know how you impressed your clientele!

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