Support Upfront Charges

Beginning in Oracle CPQ 26A, the standard quote process supports upfront charges/payments as needed by business policies, selling channels, etc. Upfront charges can be implemented for CPQ transactions, when quoting for a subscription renewal, or amending a subscription bundle with option updates. Essentially, in all the scenarios where there's a pricing impact in ABO flows, customer may be asked to pay 'upfront' payment at the ordering time. The order can be placed directly through CPQ (direct sales), or through self-service (new or existing subscription amendment, renewal, termination).

Oracle CPQ 26A adds the following attributes to the Commerce Standard Process

  • Transaction (main document) Total Upfront Payment Amount (totalUpfrontPaymentAmount_t) Total Amount to be collected for this order during checkout.
  • Transaction Line (sub document) Line Item Upfront Amount (lineUpfrontAmount_l) Amount to be collected for this line during checkout.
  • Transaction Line (sub document) Upfront Amount (lineUpfrontAmountRollup_l) Rollup Amount to be collected for this root line (and its child lines) during checkout.

Calculations

  1. Line Upfront Amount – This attribute has no seeded calculation and is customer-defined. It can be derived using business-specific rules (pricing, term, discounts, or ABO context) to represent the amount collected for the line at checkout.
  2. Upfront Amount Rollup - For a hierarchy, if the upfront amount is specified for each line (root & child separately) - rollup will be calculated for root level for hierarchies. For standalone items, this value will be same as the Line Upfront Amount.
  3. Total Upfront Payment Amount - Sum of all Upfront Amount rollups (i.e. the sum of all lines upfront payment).

Supporting upfront charges enables businesses to collect required payments at the time of the order through various sales channels. Quotes and orders can come directly through CPQ (direct sales) or through self-service.

Steps to Enable and Configure

Refer to the Oracle CPQ Administration Online Help once this feature is generally available in Oracle CPQ Update 26A.