SAP CPQ – configuring, pricing, and quoting complex products
For products with many variations, a good quote involves more than just price and documentation. The sales team must first understand which product variant the customer needs—and which configuration is technically feasible.
What is SAP CPQ?
SAP CPQ helps companies configure complex products, determine prices and terms, and generate consistent quotes.
Especially for products with many variants, CPQ creates a structured sales process—from the initial customer requirement to the final quote.
Configure
Assemble the appropriate product according to the customer’s requirements.
Price
Take into account prices, terms and conditions, and sales policies.
Quote
Create a consistent offer from the configuration.
Why SAP CPQ and Variant Configuration Belong Together
For simple products, product lists, options, and pricing rules may suffice for sales purposes. The situation is different, however, when it comes to complex machinery, industrial systems, and products with a wide range of variants.
What performance level is required? Which size is appropriate? Which options can be combined? Which components result from a given selection? And is the desired configuration even technically permissible?
Die Antworten auf diese Fragen stecken häufig bereits in der SAP Variantenkonfiguration. SAP CPQ macht dieses Produktwissen für den Vertriebsprozess nutzbar.
Der Vertrieb verkauft nicht irgendeine Kombination von Optionen. Er verkauft eine gültige Produktkonfiguration.
Product knowledge
Features, options, rules, and dependencies describe the configurable product.
Guided configuration
Sales operations are guided by complex product decisions.
Consistent offerings
The product offered is based on defined product and configuration logic.
End-to-end processes
Configuration and quotation information can be integrated into downstream SAP processes.
SAP Advanced Variant Configuration meets SAP CPQ
With SAP Advanced Variant Configuration (AVC), variant configuration becomes a key component of modern S/4HANA architectures.
In combination with SAP CPQ, product and configuration knowledge can also be leveraged for sales-oriented “configure-price-quote” (CPQ) processes. SAP provides documentation for integrating SAP CPQ with SAP Variant Configuration and Pricing; the specific implementation depends on the individual configuration model and integration scenario.
For companies, this means that product modeling and sales processes should not be designed in isolation from one another.
A successful CPQ architecture must account for sales requirements, technical product logic, and downstream SAP processes alike.
networker variant bridges these perspectives—from AVC modeling and the CPQ process through to integration within S/4HANA.
From customer requirement to order
An end-to-end process – from configuration and pricing to quotation generation, extending into downstream SAP processes.
The product configuration created during the sales process thus becomes the connecting element between the customer, the sales function, and SAP processes.
Consequently, *networker variant* considers not just the CPQ interface, but the interplay between:
Sales · Product Model · Variant Configuration · Pricing · SAP CPQ · S/4HANA
The goal: an end-to-end “configuration-to-quote” process with minimal gaps between sales-oriented and technical product logic.
Leverage product knowledge centrally
Ideally, complex product knowledge should not have to be developed and maintained separately for every individual process, sales channel, or application.
A modern configuration architecture therefore aims to model product logic centrally and make it available for use across various configuration scenarios.
At its core lies the product model, encompassing its variant logic.
From this point, product knowledge can be supplied to a wide range of applications and processes.
Configure. Price. Quota. End-to-end.
A sound CPQ process connects the individual steps of the sales cycle while simultaneously accounting for the technical logic of the products. In this way, CPQ serves as a vital link between customer requirements, product knowledge, sales, and order fulfillment.
Configure
Capture customer requirements and derive technically valid configurations from them.
Price
Determine prices and terms in the context of the specific product configuration.
Quote
Create a consistent offer for the customer based on configuration and price.
Order
Transfer information generated in sales to downstream SAP processes.
Good CPQ processes begin with the product model
A CPQ system can only configure as effectively as the underlying product knowledge is structured and made available.
Especially in the case of products with a wide range of variants, it is therefore necessary to integrate different perspectives:
- What does the customer need?
- What does the sales department want to sell?
- What can be configured technically?
- What can be produced subsequently?
networker variant therefore combines CPQ conceptualization with variant modeling.
Features & Options
Structure the options for a configurable product.
Rules & Dependencies
Ensure that only technically sensible combinations are created.
Product structures
Link the configuration to the underlying product components.
Sales Logic
Translates technical complexity into a manageable sales process.
CPQ Strategy & Architecture
Develop a target state for CPQ, variant configuration, and the future system landscape.
SAP CPQ Consulting & Implementation
Design, implement, and integrate Configure-Price-Quote (CPQ) processes into the existing SAP landscape.
Fast Order Entry CPQ
Our own CPQ solution for rapid quotation processes, based on existing AVC or LO-VC logic.
SAP AVC &
SAP LO-VC
Designing product models and configuration logic as the foundation for complex sales processes.
Integration & End-to-End
Connect sales, configuration, pricing, quoting, and downstream processes.
Workshops & Enablement
Prepare sales, functional departments, and IT collectively for future CPQ and configuration processes.
Frequently asked questions about SAP CPQ.
What is SAP CPQ?
SAP CPQ supports configure-price-quote processes. It enables sales representatives to configure products, take prices and terms into account, and generate quotes accordingly.
What does Configure, Price, Quote mean?
“Configure” refers to the assembly of a product according to customer requirements. “Price” encompasses pricing and terms and conditions. “Quote” refers to the creation of an offer based on the configuration and price.
How are SAP CPQ and SAP Variant Configuration related?
For products with many variations, variant configuration provides the technical product logic, features, options, and dependencies. CPQ makes product and configuration information available for use within the sales-oriented “configure, price, quote” process.
Can SAP CPQ be used with SAP AVC?
SAP provides documentation on the integration of SAP CPQ with SAP Variant Configuration and Pricing. The specific implementation and architecture depend on the individual product model, the components used, and the integration scenario.
What is the difference between SAP CPQ and SAP AVC?
SAP CPQ focuses on the sales-oriented “configure, price, quote” (CPQ) process. SAP AVC is a technology for variant configuration within the S/4HANA environment. When it comes to complex products, both perform distinct roles within an end-to-end configuration and sales process.
Why is the product model important for CPQ?
The product model describes the features, options, structures, and dependencies of a configurable product. It therefore significantly influences which variants can be offered and configured during the sales process.
What is Fast Order Entry CPQ?
Fast Order Entry CPQ is a software solution from networker variant designed for quotation processes involving complex products. The solution leverages existing SAP AVC or LO-VC configuration logic and makes it available for use within the sales process.
Schedule Demo Meeting
Complex products. End-to-end sales processes.
Are you looking to implement SAP CPQ, further develop existing CPQ processes, or determine whether “Fast Order Entry CPQ” is the right approach for your specific requirements?
Working alongside you, our specialists will examine your sales operations, product model, SAP variant configuration, AVC, and system architecture—to develop a tailored approach for your Configure-Price-Quote process.
