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Product Groups
Product Groups Presentation
In the CPQ system, Product Groups represent the third level of the product hierarchy and are primarily used to define commercial terms and conditions that are not explicitly captured in the agreement.
These groups serve two main purposes:
Internal Categorisation: They enable internal classification of products , in the product Hierarchy foroperational logic.
Sales Enablement: They help the sales team identify applicable Discounts structures and fees based on group-specific rules.
Product groups are represented as a bundle added to the Quote Line Item and includes the following key components:
Product Group Discount Range: This section displays the Start, Target, and Floor discount values associated with the group. The value applied on the quote can be modified within these boundaries.
Head Office Fees: These are manually defined values provided by the user and applied at the group level.
Sales Allocation: Automatically determined based on the Customer Industry Type (TMA2) and the Deal Size.
Product Group Data Structure
The logic and data associated with Product Groups are managed through several elements in the CPQ platform:
Product Groups: Stored as product records within a Bill of Materials (BOM) under a dedicated Product Bundle. Each bundle represents a group of related products.
Product Group Discounts: Managed via a lookup table named
PG_DISCOUNTS, which uses the Customer Industry Type (TMA2) and Deal Size as input parameters to define the Start, Target, and Floor discounts for each Product Group.Sales Allocation: Maintained in a dedicated lookup table (to be defined), which leverages the Customer Industry Type (TMA2) to assign appropriate sales allocation percentages or rules per Product Group.
For more detail please refer to the Data Model in the CPQ Data Structure Model Chapter