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Linking Products to Opportunities

You can link products to opportunities to:

  • Track which products belong to the opportunity
  • Calculate opportunity revenue based on product revenue
  • Base your company’s forecasts on product revenue or product quantities

You can also link a product to an opportunity when you create the opportunity. If your company administrator has enabled the Save and Add Product button on the Opportunity Edit page, you can click the Save and Add Product button to save the new opportunity record and navigate directly to the Product Revenue Edit page. If you cancel adding the product revenue record, then Oracle CRM On Demand displays the Opportunity Detail page for the previously saved opportunity record.

Before you begin. Your company needs to inform you of the forecasting method it wants to use. The company forecasting method determines which fields you must select when linking products to your opportunities.

NOTE: You click the Update Opportunity Totals button to calculate the opportunity revenue based on product revenue. The calculation behind this functionality differs depending on whether the Product Probability Averaging Enabled option is enabled on the company profile.

The following conditions apply to the calculation:

  • If the Product Probability Averaging Enabled option is enabled, the Update Opportunity Totals button will update the Opportunity Revenue and the Opportunity Probability based upon each linked product. Therefore, the Expected Revenue will be calculated based upon the average probability for all linked products.
  • If the Product Probability Averaging Enabled option is not enabled, the Update Opportunity Totals button will update the Opportunity Revenue based upon the total product revenue for each linked product. The Opportunity Probability value is not updated; therefore, the Expected Revenue will be calculated based upon the existing percentage.

For the Update Opportunity Totals button to work correctly, the Quantity and Revenue fields on the Product Revenue Edit page must be displayed and populated. Your company administrator can customize your page layout to make these fields available.

To link products to opportunities

  1. Select the opportunity.

    For instructions on selecting opportunities, see Finding Records.

  2. On the Opportunity Detail page, scroll down to the Opportunity Product Revenues section and do one of the following:
    • To link a product, click Add.
    • To update product information, click the Edit link next to the existing product.
  3. On the Opportunity Product Revenue Edit page, fill in the Quantity, Purchase Price, and Close Date fields.
  4. If the product represents recurring revenue, fill in the Frequency and # of Periods fields in the Recurring Revenue Information section.
  5. If your company forecasts revenue based on product revenue, and you want to include this product revenue record as part of your forecasted revenue totals, or your forecasted quantities, or both, select the Forecast check box.

    NOTE: If your company forecasts revenue, based on opportunities, rather than products, it is best not to select the Forecast check box on the Opportunity Product Revenue record.

  6. Save the record.

To calculate opportunity revenue based on linked product revenue

  1. Select the opportunity.

    For instructions on selecting opportunities, see Finding Records.

  2. On the Opportunity Detail page, scroll to the Product Revenues section and do one of the following:
    • To link a product, click Add.
    • To update product information, click the Edit link next to the existing product. (If inline editing is enabled, you can edit the Product Revenues fields inline on the Opportunity Detail page; for more information about editing fields in related information sections, see Updating Linked Records from Main Records.)
  3. On the Opportunity Product Revenue Edit page, fill in the Quantity, Purchase Price, and Start/Close Date fields.
  4. If the product represents recurring revenue, fill in the Frequency and # of Periods fields in the Recurring Revenue Information section.
  5. Save the record.
  6. On the Opportunity Detail page, click Update Opportunity Totals in the Opportunity Product Revenue section.

    This totals the product revenue for each linked product and displays it in the Revenue and Expected Revenue fields for the Opportunity.

To base your company’s forecasts on product revenue records

  1. Select the opportunity.

    For information on selecting opportunities, see Finding Records.

  2. On the Opportunity Detail page, scroll to the Opportunity Product Revenues section, and do one of the following:
    • To link a product, click Add.
    • To update product information, click Edit. (If inline editing is enabled, you can edit the Opportunity Product Revenues fields inline on the Opportunity Detail page. For more information about editing fields in related information sections, see Updating Linked Records from Main Records.)
  3. On the Opportunity Product Revenue Edit page:
    1. Fill in the Quantity, Purchase Price, and Start/Close Date fields.
    2. Make sure that the date in the Start/Close Date field falls within the forecast period, and that the record is owned by a forecast participant.
    3. Select the Forecast check box to indicate that you want this record information to contribute to your forecast revenue totals.
    4. If the product represents recurring revenue, fill in the Frequency and # of Periods fields in the Recurring Revenue Information section.
  4. Save the record.

    NOTE: If a product is not sold, you can update the associated Start/Close date and deselect the Forecast check box on the Product Revenue page for that product to prevent the revenue for the product from being added to your company's forecasts. Alternatively, if one of several products linked to the opportunity is on hold, you can remove the product from the opportunity, and create another opportunity for that product to prevent its revenue from being included in the forecast.

Opportunity Product Revenue Fields

The following table describes field information for product revenue. Your administrator can add, relabel, or delete fields, so the fields you see might differ from those in this table.

CAUTION: If your company bases its forecasts on products, the information that you enter for product revenue can affect its calculations.

Field

Description

Key Product Information

Product Name

Only products marked Orderable by your company administrator can be selected. When you link a product to this opportunity, these fields are copied from the product definition: Product Category, Part #, Type, Status, and Description.

Quantity

Number of units the customer orders. For a recurring product, enter the quantity of the product per recurring period. For example, if you send 10 printer cartridges each month, enter 10 here.

Purchase Price

Product price.

Revenue

The quantity multiplied by the purchase price. The revenue cannot be overwritten. This field affects the forecasts for opportunity products.

Product Category

Category carried over with the product definition. Read-only.

Part #

Number carried over with the product definition. Read-only.

Type

Type carried over with the product definition. Read-only.

Status

Status carried over with the product definition. Read-only.

Description

Additional information about the product. Limit of 250 characters.

Recurring Revenue Information

Start/Close Date

This date is carried over from the close date on the opportunity. For the product revenue item, this date is the expected close date. For a recurring product, this date is the start date. For a recurring product with a close date that ends on the last day of the month and a start date of mid-month, add one record for the full recurring price and another record for the prorated order.

For example: You start supplying paper to a company on May 15th. After that, you will be sending $500 worth of paper at the end of each month through the end of the year.

For the mid-month order, add a product record with these values:
Revenue = $250
Quantity = 1

For the recurring order, add a second product record with these values:
Revenue = $500
Quantity = 1
Frequency = Monthly
#of Periods = 7 (June through December).

Frequency

Frequency for a recurring product.

The term bi-weekly means once every two weeks.

When you populate this field, you must also populate the # of Periods field.

# of Periods

Number of periods for the recurring product revenue. Recurring revenue can support a maximum of 260 periods. The length of time that is covered by the total number of periods varies based on the frequency selected (in the Frequency field). For example, if you have weekly recurring revenue you can track revenue for up to five years.

NOTE: When you populate this field, you must also populate the Frequency field.

Sales Information

Sales Stage

Read-only. Sales Stage carried over from the opportunity.

Probability

Probability of a successful outcome for the product sale. The initial value in this field is carried over from the sales stage of the opportunity. You can change the value, if needed, to better reflect your particular product.

When the sales stage changes, the value in the Probability field for the opportunity record displays the value related to the new sales stage by default, but the value in the Probability field for the product is not overwritten.

NOTE: If the Mass Update feature is used to change the sales stage for one or more opportunities, then the value in the Probability percentage field for the opportunities is not updated to the default probability percentage for the new sales stage.

Expected Revenue

A currency value that is calculated based on the Revenue field multiplied by the value in the Probability percentage field.

Account

Account linked to this opportunity. Read-only.

Owner

Person assigned to this opportunity. This value defaults to the opportunity owner. Subsequent changes to the opportunity owner are not reflected in this field.

Generally, the owner can update record details, transfer the record to another owner, or delete the record. However, access levels can be adjusted to restrict or expand a user’s access.

This value affects which records are included in forecasts, as well as in the reports that you or your managers run (from Reports and Dashboard pages).

Each record has only one owner. However, opportunity records can be shared with other users through Opportunity Team or Account Team pages. For instructions, see Sharing Records (Teams).

 

Forecast

Indicator to include this product in forecasting totals.


Published 5/4/2012 Copyright © 2005, 2012, Oracle. All rights reserved. Legal Notices.