Which component of Salesforce CPQ handles products that require subscriptions?

The correct choice is Subscription Products because this component specifically focuses on managing products that have a subscription model within Salesforce CPQ. Subscription Products allow businesses to define products that are not sold as a one-time purchase but rather on a recurring basis, such as monthly or annually.

This component facilitates the configuration of subscription details, including billing cycles and revenue recognition. It also ensures accurate tracking of subscription terms, such as start and end dates, renewal options, and any associated discounts or pricing structures tailored for subscription-based services.

By utilizing Subscription Products, organizations can effectively manage their subscription offerings, allowing them to streamline processes related to renewals and ongoing customer relationships. This becomes particularly important in industries where recurring revenue is a primary business model.

Other options, while important aspects of the CPQ system, do not specifically cater to the nuances of subscription management in the same way. For instance, Contract Management deals more with the agreements that encapsulate the terms of sale but without the direct component of subscription management. Quote Templates focus on the presentation of quotes rather than the underlying subscription mechanics. Pricing Rules are critical for determining how prices are set but again do not address the specific requirements and management of subscription-based products.