Glossary

What is Configure, Price, Quote (CPQ)?

Configure Price Quote (CPQ) is software that helps define the price of products based on a wide and constantly changing range of variables.

The CPQ software aggregates these variables, which in turn enables the user to configure products optimally. The term Configure Price Quote (CPQ) is also used in the context of configurators and selectors.

Configure

In the “Configure” section, customer product requirements are identified in a targeted manner. The sales team gains insight into all product variants, and configurations that are mutually dependent or mutually exclusive are automatically displayed. Product combinations can be saved in the configurator, and prices are determined automatically.

Price

In terms of pricing, SAP CPQ is typically integrated with an ERP (Enterprise Resource Planning) system. Any price differences—such as those resulting from discount promotions—are automatically taken into account. The CPQ software verifies that the sales representative adheres to their individual discount limits.

Quote

Once the product has been configured and priced, the CPQ software consolidates all the information. With SAP CPQ, you can generate a quote at the click of a button and send it via email or DocuSign. Predefined elements ensure a high degree of standardization, always tailored to the recipients of the quote. At the same time, manual adjustments—such as a personalized cover letter—can be made with just a few clicks.