Which type of discount can be used to apply negotiated discounts to customer orders using frame/pricing agreements?

In the context of Salesforce Industries CPQ (the subject of the IPQ-435 exam), a Contract object is used to store and manage long-term frame or pricing agreements with customers. This functionality, often referred to as Contract-Based Pricing, allows the system to automatically apply pre-negotiated prices, terms, and discounts to any new order or quote created for the associated account. This directly fulfills the requirement of applying negotiated discounts from a frame agreement to customer orders.

1. Salesforce Industries CPQ Documentation

"Contract-Based Pricing": This official documentation details how the Contract object is used to enforce pricing and discounts agreed upon in a master contract or frame agreement. It specifies that when a new order is created for an account with an active contract

the CPQ engine references the contract to apply the negotiated terms. (Reference: Salesforce Help & Training

"Contract-Based Pricing in Industries CPQ").

2. Salesforce Industries Communications

Media

and Energy (CME) Administrator Courseware

"Pricing and Discounts Module": University-level and official training materials for the platform explain that frame agreements are implemented using the standard Contract object. This object serves as the repository for all negotiated terms

which are then programmatically applied to subsequent transactions like quotes and orders.