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CPQ for Dynamics 365 Finance and Operations: built-in tools and add-ons
CPQ for Dynamics 365 Finance and Operations covers three jobs. First, you configure a product that can really be built. Then you price it for the customer. Finally, you send a quote that turns into an order. Supply Chain Management already has tools for all three. So many makers of built-to-order goods start there, and only add a CPQ product when sellers or dealers need guided selling outside the ERP.
What Finance and Operations includes for configure, price, quote
Supply Chain Management offers several ways to configure a product. Predefined variants suit goods with a short, fixed list of options. Dimension-based setup builds a variant from the options picked on the order. For products with rules, constraint-based product configuration models are the best fit. For example, a large motor may need a strong frame. The model checks that rule, and then it can create the bill of materials and the route for each item.
Pricing works in a similar way. Trade agreements set prices and discounts by customer, group, quantity and date. In addition, a configuration model can hold a price model that adds up the options chosen. Sales quotations then hold the offer and track its status. When the customer says yes, the quote turns into a sales order, so the item flows on to production and the invoice.
Built-in tools vs a CPQ add-on for Finance and Operations
Signs the built-in configurator is enough
- ✓Your order desk or inside sales team builds the quotes, and they already work in Finance and Operations.
- ✓Your option rules are clear, so an engineer or product manager can keep the models up to date.
- ✓Customers do not need to pick options themselves on a website or a dealer portal.
Signs you need a CPQ add-on
- ✓Dealers, distributors or customers pick options themselves through a portal.
- ✓Sellers need pictures, drawings or 3D views to win the order.
- ✓Pricing needs approval steps, margin targets or guided selling, which fit better in a sales tool.
Connecting Dynamics 365 Sales to Finance and Operations
Many companies quote in Dynamics 365 Sales, because that is where the deals live. However, they fill the order in Finance and Operations. Dual-write keeps customers, products, quotes and orders the same in both. As a result, a quote won in Sales becomes an order in Finance and Operations. Configured items need extra care, though, because the setup itself is held in Finance and Operations. Our page on CPQ for Dynamics 365 Sales covers the CRM side.
How to choose a CPQ setup for Finance and Operations
- 1
Collect real quotes
First, gather recent quotes, including the hard ones. Then list the options, rules and prices they use.
- 2
Model a sample
Next, build a few products as models in a sandbox. That way you see how far the standard tool goes.
- 3
Decide who configures
If only your own staff pick options, stay in Finance and Operations. But if partners or customers do, look at a portal-based CPQ.
- 4
Plan the integration
Finally, agree where the setup, price and order live. Then test the whole path from quote to production order.
Questions about CPQ for Dynamics 365 Finance and Operations
Does Finance and Operations have a product configurator?
Yes. Product configuration models in Supply Chain Management let you set up parts, attributes, rules and sums. In addition, they can create the BOM and route for each item you configure.
Can a configured item be quoted before an order exists?
Yes. You can configure the item on a sales quotation line. Then, when the customer accepts, the setup carries over to the sales order.
Is CPQ in Dynamics 365 Sales the same thing?
No. Sales handles products, price lists and quotes for CRM users. However, it does not have the build rules that Supply Chain Management provides. So many companies use both, linked by dual-write.
Talk to us about your project.
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