Model Your Products and Prices

After your products are defined, consider how those products should be priced and quoted. Oracle CPQ manages quote lines as part of a hierarchy.

Within the Oracle CPQ quote lines hierarchy, there are two different line types that are grouped into these categories:

Item Type	Model	Part
Root Line	Line types for modeling products and prices	Standalone parts
No Root Line	No-root (child) model lines (when using System Configuration)	Parts that are children of a mode

Root lines are quote lines that have no parent in the quote line hierarchy -- they're the highest-level grouping. Root lines can exist by themselves with no children, or they can have children.

• Standalone part: When a root line has no children, it is a standalone part. It's not part of a model hierarchy.
• Model: When a root line has children, it is a model. Models can have either parts or models as children.
  • Parts never have children.
  • Child models extend the hierarchy as part of a more complex system.

You can manage the pricing on models and parts in a variety of ways. How products and prices are modeled in Oracle CPQ is a key factor in deciding which sync and reconciliation options to select. Let's look at some examples of different product and price modeling:

• Simple products (Oracle CPQ standalone parts), each with a single price

• Complex products (Oracle CPQ models), where the model line doesn't have its own price, but each child line has a price

• Complex products (Oracle CPQ models), where the model line has a price that summarizes all of the model's child lines

• Complex products (Oracle CPQ models) where the model and its child lines all have a price

To ensure that sales forecasts and reports reflect the correct revenue amounts, you must understand which lines contain pricing information that need to be synchronized. The implementor must also balance this against performance considerations, taking care not to synchronize more information than required.