Why are Approval Processes critical in CPQ?

Approval Processes are essential in Configure, Price, Quote (CPQ) because they provide a structured way to ensure that the pricing and discounting practices comply with the organization's guidelines before any quote is finalized. This helps prevent revenue loss or margin erosion by ensuring that all offers have been vetted and approved by the appropriate stakeholders.

By requiring approvals for certain pricing conditions or discount levels, organizations can maintain control over their pricing strategy and ensure that all quotes adhere to the established rules and policies. This process not only helps safeguard the organization’s profitability but also promotes consistency in how deals are presented to customers. Therefore, the focus of approval processes in CPQ is primarily on maintaining pricing integrity and compliance, which is crucial for sustaining business success and customer trust.