To get more profits to an organization, they have to work in a smart and efficient way. Missing information is a waste of time for both the buyers and sellers. The right information and right prices are vital and they should align with the customer’s needs. Having a tool to help with all these functionalities will be a great advantage for any organization. Salesforce CPQ is one such tool that helps with sales that generate recurring revenues.
In this post, we have gathered together the top 30 Salesforce CPQ interview questions that help you in preparing for a Salesforce CPQ developer job position. Go through the below Salesforce CPQ interview questions and answers to enhance your skill.
Frequently Asked Salesforce CPQ Interview Questions
1. What do you know about CPQ?
Ans: Configure price quote (CPQ) is a term that is widely used in business to represent systems that enable the sellers to quote configurable products. It contains several approaches to alleviate the combinatorial explosion. The sales team in an organization will have visibility on different aspects of a project quote. They can easily create a quote without any dependencies.
2. What are the factors that raise the need for a CPQ?
Ans: The following are the reasons that might lead to a need for a CPQ.
- Frequent delays in the quote creation process.
- There might be a rise in errors during the quote creation process.
- Products containing out of date information.
- Lack of visibility for sales process optimization.
- Opportunity about up-selling or cross-selling platforms.
3. Explain about QTC.
Ans: The quote-to-cash (QTC) is a process that has functions like order fulfillment, billing, account management, sales, and accounts receivables. It is like an end-to-end function that is related to sales activities in an organization. The QTC starts with configuring offers and ends with the cash for the sale in question is collected. It reports the entire sales cycle, and the users can analyze it.
4. What is Salesforce CPQ?
Ans: The Salesforce CPQ helps with the quoting process in a smooth way. We can automate contract amendments, usage pricing, and renewals. It provides a single view of customers’ assets in a dashboard. It provides easy to navigate complex product catalogs. It also provides several customized or preconfigured bundles to create effective customer solutions.
5. Explain about search filters.
Ans: The search filters in Salesforce CPQ are used by sales reps to filter the products that are available for selection based on certain attributes. An organization can have several items in the product catalog, which makes the product catalog lengthy. It makes it difficult for the sales reps to go through the list and their desired item. The search filters help them narrow down the product search.
6. What is the product?
Ans: A product is an item or service that can be sold to a customer. There are four types of products.
Product Bundles – It is a product that has optional features that can be included in a single quote line.
MDQ Products – The multi-dimensional quoting (MDQ) products provide an ability for sales reps to pick a specific unit of time.
Subscription Products – The products that run for a specific set of time.
Usage-Based Products – The price scale of these products change based on consumption.
7. What is the key difference between a product group and a product family?
- A product group is a high level of categorization of products based on a business model.
- A product family is a group of similar products. For instance, all the products produced by a company will come under a product family.
8. Explain about price list.
Ans: A price list contains prices of a product, or merchandise, or stock based on a business flow.
9. What are the steps involved in adding products to a product catalog?
Ans: The following are the steps in adding a product to a product catalog.
- Click on the ‘Create New’ drop-down in the sidebar. Select the ‘Create Product’ option.
- A page will product details will appear. Fill all the fields.
- Click on ‘save’, and you will be able to see the list for standard prices of your product.
10. What is Audit Trail in Salesforce?
Ans: The setup audit trail is used to track the recent setup changes that have been made to an organization. It will be useful to monitor organizations with multiple administrators.
11. Name the default filter that is used in Salesforce.
Ans: The default filter that is used in Salesforce is the Date filter. If we select the “All Time” option in the range on the page, the date filter will be removed.
12. What is a filter rule?
Ans: A filter rule is like a product rule in which the Type field is set to Filter. The filter rules use configuration rules to determine if a product appears or not. Filter Field, Operator, and Filter Value are the fields used by filter rules.
13. What is Product Hierarchy?
Ans: A product hierarchy is a classification of products based on essential components in a logical structure. The product hierarchy helps users navigate through the products and complete their tasks easily.
14. How can we create a standalone product in Salesforce CPQ?
Ans: The following are the steps that have to be followed to create a standalone product.
- Go to the Products tab and click on the ‘New’ button.
- Enter all the information about the product and set the Active checkbox to True. Click on the ‘Save’ button.
- Enter the standard price of the product and click on ‘Save’.
- Navigate to the ‘Price Books’ and click on ‘Add to Price Book’. Select CPQ PriceBook from the list and click Select.
- Enter the list price for the CPQ price book and click on ‘Save’.
15. Define the term ABO in the CPQ tool.
Ans: Asset-Based Ordering (ABO) is mainly used for selling recurring licenses, support agreements, subscriptions, etc. It handles these kinds of transactions beyond the initial sale. It helps manage renewals. It has the ability to capture up-sell and cross-sells opportunities, delivers enhanced revenue and profit.
16. Is there any e signature process in the Salesforce CPQ tool?
Ans: Yes, Salesforce CPQ does have a DocuSign eSignature process for creating and getting sign-offs on quotes. We can add e-signature in the Salesforce CPQ quote template. The documents can then be sent to the quote’s recipients, including automatic reminders. Salesforce CPQ provides an electronic signature app through which the recipients can review and sign the documents.
17. Define the term quote template.
Ans: A quote template is a predetermined formatting element that has an arrangement of quote data. Like any other email template, the quote template contains the design, content, and layout of your generated quote documents. The content like Expiration Date will be dynamic in the template. Fields like company name, address, and logo will be static fields.
18. Explain about co-terminated subscriptions.
Ans: Users can add subscription products to an active contract. The Salesforce CPQ automatically calculates prices to co-terminate the subscription with the contract. At the time of quote creation, users will be prompted with an option to check if the account has an active contract eligible for co-termination.
19. Define the term batch quantity in Salesforce CPQ.
Ans: Batch quantity is a feature provided by Salesforce CPQ to price products or their options by lots or bunches. The Salesforce CPQ divides the product option’s quantity with the batch quantity and places it for the resulting quote line’s quantity.
20. List some of the object relationships in Salesforce CPQ.
Ans: The following are some of the object relationships.
- Block Price
- Additional Document
- Configuration Attribute
- Contracted Price
- Error Condition
- Lookup Data
21. What are the alert rules in Salesforce CPQ?
Ans: Alert rules are used to provide informational messages when configuration or pricing is done. It lets the users save configuration or quote without having to change anything. They provide suggestions to the users on optimal but non-required configurations.
22. What are product actions used for?
Ans: A product action is used to perform an action on a product option. Actions can include hiding the option from view or selecting or deselecting the option. The product action targets the product options on the parent product conditions, rule’s scope, and evaluation event.
23. What are discount schedules used for?
Ans: The discount schedules are used for creating volume discounts based on quantity. The users can set the term ranges or quantity in tiers of percentages or amounts of currency. The discount schedules provide discounts on the list price of a product. it uses type fields like range and slab.
24. What are the key aspects of that CPQ transforms the organization’s sales?
Ans: The key aspects that CPQ transforms the organization’s sales are,
- Eliminates errors
- Increases speed
- Maximizes deal size
- Provides accurate and updated information
25. Does Salesforce CPQ provide API capability to connect to third-party systems?
Ans: Yes, Salesforce CPQ provides API capability to connect to third-party systems. It offers several kinds of APIs for quotes, contracts, configuration, etc. To use the Salesforce CPQ API, we have to create classes for each data model in the organization.
26. What are the various product pricing methods available in Salesforce CPQ?
Ans: Salesforce CPQ offers several methods to customize product pricing.
Block Pricing – A product is priced based on different quantity ranges.
Cost-and-Markup Pricing – A product pricing is set for cost and markup amount.
Batch Pricing – A bundle product can be set by static amounts based on quantity ranges.
Contracted Pricing – When a contract is created, the quote line prices are used to price a product from the original quote.
27. Explain about CPQ orders.
Ans: An order in Salesforce CPQ can be created from a primary quote. Once an order is created from a primary quote, the primary quote cannot be edited. When a CPQ quote is ordered, the products inherit the list price, unit price, and total price fields from the originating quote lines.
28. List the types of page layouts available in Salesforce CPQ.
Ans: The Salesforce CPQ has the following page layouts.
- Account page layout
- Asset page layout
- Contract page layout
- Opportunity page layout
- Product page layout
- Product option page layout
- Quote page layout
29. What are the special fields in Salesforce CPQ?
Ans: Admins will have the ability to create custom fields in Salesforce CPQ. Below are some of the special fields.
- Additional Discount Unit
- Additional Instructions
- Apply Additional Discount Last
- Apply Partner Discount First
- Approvals Archived
- Channel Discounts OffList
- Contracted Account ID
- Custom Active Contract
- Document Currency Symbol
- Edit Lines FieldSet Name
- Include Prior Quantity
30. What are the fields that are used for Calculating Fields?
Ans: The following are the fields that are a part of Calculating Fields by default.
- Additional Discount
- Distributor Discount
- Start Date
- End Date
- First Segment Term End Date
- Markup (%)
- Partner Discount
- Subscription Term
31. What is meant by a transfer profile record?
Ans: The users will have specific rights with the applicable in the Salesforce CPQ. These rights can be set up for the users by making use of the transfer profile record feature that is available in Salesforce CPQ. If any user would like to share a particular record, the user will be only able to share it in a read only mode with permission from CPQ specialist.
32. Can you tell me how the asynchronous calculation will work?
Ans: The calculations will be running using the quotation line editor which will be timing out after every 30 seconds in a default manner. If we make use of asynchronous computing within this time of calculation, there may be a skip of timeout. This means that the calculations will not be executed in a faster manner. And these will be running in an unchanged way, probably slower.
33. What is meant by Salesforce CPQ self relationship?
Ans: The Salesforce CPQ specialist is responsible for looking into the relationship that exists between the objects. There will be a self relationship which is accessible from the application user interface layer.
34. What is meant by a junction object and what is the use of it?
Ans: There might be instances where we need to create multiple relationships in Salesforce. The junction object is responsible for building such a relationship. For example, if a single user would like to send a one message to multiple people, then we can make use of the junction object for establishing the relationship between multiple connections.
35. What does a CPQ Specialist do?
Ans: An individual who is working on Salesforce CPQ can be a Salesforce CPQ specialist. A CPQ specialist will have all the credentials to login and perform software configuration based on the requirements provided in the documentation for renewals and pricing aspects.
36. Is it required to write code in the Salesforce CPQ environment?
Ans: There is no need to write any code in the Salesforce CPQ environment. Salesforce CPQ includes predefined buttons which will be accessible from the user interface level present in an application.
37. Can two users use the same profile in Salesforce?
Ans: Salesforce is capable of providing an option – allowing two different users to utlize or work on the same profile. Multiple users can access the same profile irrespective of the departments.
38. List out the different types of objects in salesforce?
Ans: There are two different types of objects in salesforce. They are:
- Custom object: In custom objects, the essential or sensitive information related to the organization can be stored, allowing the users to make necessary changes within the objects. It includes a UI tab, allowing you to establish relationships between the fields and objects.
- Standard object: These objects consist of leads, campaigns, cases, accounts, contracts, dashboards, opportunities, etc.
39. Define Salesforce Dashboard?
Ans: A salesforce dashboard is used for representing the reports in a pictorial way.The salesforce dashboard is capable of adding 20 reports once within a single panel.
40. What are the advantages of nested bundles?
Ans: A nested bundle is capable of allowing the users to add a subset from the product and also helps in the creation of nested bundles.