Agreement Revision

Agreement Revision

Agreement revision at Valio covers specific processes to ensure that commercial agreements remain aligned with evolving product and pricing conditions.

Agreement revisions focus exclusively on products and Product prices. All other dimensions of the agreement (such as rebates, service charges, deal-related information, or Product Group discounts) remain unchanged during a revision.

At Valio we distinguishe three main types of agreement revision:

• Manual Agreement Revision: Initiated by the Sales Rep, this type of amendment i needed when a customer requests a price negotiation or product update. Executed in CPQ.

• Mass Price Update : Initiated but the Pricing Manager, this process covers the update of product prices. Executed in Price Manager.

• Mass Product Change : This is initiated by The Sales Rep. Full details to be completed.

Manual Agreement Revision

This type of revision is initiated by the Sales Representative in the CPQ. It occurs when a customer request or sales initiative requires adjusting products included in an existing agreement.

• Trigger: A sales rep identifies the need to add, update, or remove products from an active agreement.

• Process: The revision request is initiated directly in CPQ, where the agreement is amended to reflect the required product changes.

• Scope: Only product data is impacted. No modification is made to rebates, service charges, or other contractual conditions.

Process description :

The process begins when a product or product price change is identified, typically triggered by customer needs or sales requirements. The Account Owner starts by selecting the relevant customer published agreement in CPQ. Once the agreement is selected, the system generates a new revision of the agreement.

The Account Owner then reviews the recommended prices associated with the revision. If the revision does not require additional approval, the process continues directly to customer communication. If approval is required, the Account Owner submits the revision for approval.

When the approval workflow is triggered, CPQ sends an approval request notification. The approver reviews the line item pricing. If the request is rejected, a rejection notification is sent back to the Account Owner, and the the Acount Owner reviews the Agreement . If the request is approved, an approval notification is sent, and the process proceeds to the next step.

Once approved, the Account Owner sends the revised agreement to the customer. The customer reviews the updated agreement and decides whether to accept or reject it. If the customer rejects the revision, the process restarts from the beginning or ends without publishing. If the customer accepts it, The Account Owner publishes the agreement revision, making it effective.

Finally, the updated agreement product prices are inserted into Price Manager to maintain alignment with the system of record. A notification is then sent to the Price Manager to confirm that the agreement product price records have been updated successfully.

The Diagram below represent the Process Flow for mass price update, and highlights process steps executed in CPQ and in Price Manager:

Mass Price Update

This type of revision is initiated by the Pricing Manager and applies when prices of one or multiple products need to be updated across multiple agreements.

• Trigger: New pricing decisions or market-driven adjustments validated in Price Manager by the Back Office Team.

• Process: The Pricing Manager updates product prices within the Agreement entity in Price Manager. These updates are then pushed into CPQ, automatically generating revisions of the corresponding agreements.

• Scope: Product prices only. The rest of the agreement remains the same.

Process description:

The process begins with the Back Office Team, who is responsible for updating product prices at the agreements level in Price Manager. Once these changes are validated, the updated customer agreements product prices are published and made available to CPQ.

This action triggers an API Call to CPQ and automatically generates agreements revisions based on the incoming data. The Account Owner is notified of the revision and is asked to review the recommended prices to ensure they are consistent with the intended update.

At this stage, the account Awner execute the under review agreement management process which may require an approval workflow depending on the nature of the revision. If no approval is needed, the agreement proceeds directly to customer communication. If approval is required, CPQ triggers an approval request notification. The approver then checks the line item pricing. In cases where the request is rejected, a rejection notification is sent back to the Account Owner for another review. If the request is approved, an approval notification is issued, and the process moves forward.

The revised agreement is then sent to the customer by the Account Owner. The customer reviews the updated product prices and makes a decision. If the customer accepts the revision, the agreement is formally published in CPQ by the account owner. If the customer rejects it, the process can restart or ends without publication.

Once the customer has accepted and the agreement revision is published, the Agreement product prices are automatically updated in Price Manager to reflect the new data. Finally, the Price Manager receives a notification confirming that the update has been successfully applied and closed.

Mass Product Change

This type of revision is also executed centrally and applies when a structural change affects multiple products across agreements.

• Trigger: Situations such as product replacements, product withdrawals, or bulk updates to product attributes that require simultaneous revision across multiple agreements.

• Process: A bulk change operation is executed, updating the affected products within CPQ. The system generates revised agreements reflecting the new product definitions.

• Scope: Product-level changes only, excluding rebates, services, or deal conditions.

• To Be Completed

Data Flow Between Quote, Agreement in CPQ, and Price Manger

This chapter explains how commercial information flows across different objects within CPQ, starting from the Quote, moving into the Agreement, and then being stored for future use and integration with Price Manager to ensures that each quote revision and published agreement maintains data integrity, while also allowing for updates, amendments, and synchronisation with external systems.

From Quote to Agreement

The Data flow process begins with the Quote object. The Quote essential information required for Agreement such as the customer ID, start and end dates, description, and the first date of price update will be mapped with their equivalent in the Agreement object. Each Quote may include:

• Quote Lines for Finished Goods, carrying the product net price.

• Quote Lines for Product Groups, carrying the group-level discounts.

When a Quote is published, it triggers the Published Agreement creation. At this stage, identifiers and key attributes are carried over :

• The Agreement ID is created (before publishing) and linked to the original Quote.

• Customer ID, Start and End Dates, and the Date of First Price Update are copied.

• Line-level details such as Net Price (for Finished Goods) and Discounts (for Product Groups) are pushed into the Agreement Lines.

When the Published Agreement is created it sets the Agreement lines Valid from and Valid to attributes.

Agreement Lifecycle and Revisions

Once an Agreement is published, it serves as the contractual reference point. However, changes can occur over time, requiring revisions:

• Agreement Lines are created for Finished Goods and Product Groups, with attributes such as net price, validity dates, and discounts.

• Amendments allow updates to Customer ID, Start/End Dates, Net Prices, or Group Discounts while retaining traceability.

• Revisions are linked back to the original Agreement ID and Quote ID, ensuring historical consistency.

This structured data model guarantees that any change to an agreement is versioned and traceable back to its originating quote.

Integration with Price Manager

Published agreements and their amendments are synchronised with Price Manager, which acts as the reference for agreement product records. Two types of records are stored:

• Product Agreement Records, which capture customer-specific prices for individual products (including net price, validity dates, and revision).

• Product Group Agreement Records, which store group-level discounts and validity periods.

Data is exchanged between CPQ and Price Manager via API calls, ensuring that every amendment or publication automatically updates the Product Agreement records.

Downstream Use of Agreements

Once stored in Price Manager, Price Agreement records can be updated by the Price Manager. They are referenced during the creation of new revision quotes, so that customer-specific conditions are applied.

When new prices are published this will trigger Quote revision creation through the published Agreement. and the revision Quote is created as described before.