How a price gets decided. And how you change it.
Layers build the price, formulas define each layer, and gates decide whether it ships. You configure all three. Every number keeps a link to the rate, BOM line or rule it came from.
Scroll. The price builds itself.
- L1
BOM & landed cost
Every component at this month's rate, with import FX, duty, scrap and by-product credits.
+ ₹ 312.40 - L2
Indirect overlay
Power, gas, labour and section overheads, spread by activity instead of a flat percentage.
+ ₹ 111.65 - L3
Inventory
Parts already on the shelf cost differently from parts you still have to buy.
+ ₹ 4.20 - L4
Capacity
Line 2 is 86% booked this month, so this order carries a capacity premium.
+ ₹ 12.00 - L5
Working capital
Sixty-day terms cost money. The engine prices them in.
+ ₹ 9.60 - L6
Freight & logistics
Volumetric freight for this lane and this pack size.
+ ₹ 18.20 - L7
Warranty & service risk
Expected field cost per unit, from your own claims history. Full cost is now ₹ 474.35.
+ ₹ 6.30 - L8
Market position
Competitor quotes, import parity and this customer's past POs set how far above full cost the price can sit: a 16.5% target margin here.
+ ₹ 93.65 - ₹
Recommended: ₹ 568
Floor ₹ 512, ceiling ₹ 604. Next, the gates decide whether the asked price can ship.
Band 512–604
How the quote is calculated, line by line.
The same formula ledger your costing team writes in the configurator. Each line is a formula over master data; the last line is the margin this SKU leaves.
CR Price in INR IF(currency = $, FOB × FX, FOB) 0.128 × 83.80 TC Material cost (S + P) × CR − S × SR 270.80 DU Duty & clearing duty rate × TC on imported lines 41.60 IC Indirect overlay Σ active indirect lines × oh 111.65 IV Inventory carry stock at book + rest at replacement 4.20 CP Capacity max(0, load − 80) × ₹ 2.00 12.00 WC Working capital credit days × ₹ 0.16 9.60 FT Freight lane rate × volumetric weight 18.20 WR Warranty risk claims rate × field cost 6.30 FC Full cost TC + DU + IC + IV + CP + WC + FT + WR 474.35 PF Floor FC ÷ (1 − 7.4%) 512 PR Recommended FC ÷ (1 − 16.5%) 568 PC Ceiling FC ÷ (1 − 21.5%) 604 GM Margin at ₹ 541 asked (541 − FC) ÷ 541 · ₹ 66.65 / unit 12.3% Written in your terms
Formulas use the same names as your costing workbook: S for shot weight, P for runner, SR for scrap resale, CR for price in INR. Finance reads them line by line.
basecostrateloaddaysohmin()max()Margin, three ways
Every quote stores margin at the asked price, at recommended and against target, per SKU. The sales register later checks it against actual cost.
Versioned
Publishing a formula change creates a new version. Old quotes keep the version that priced them; the audit log shows who changed what.
Edit these in the configurator →Play with the engine. Every SKU re-prices as you go.
Pick an industry pack, then change layers, formulas, inputs, rules and outputs. The margin on each SKU and its approval route update live.
Rename a layer, switch it off or rewrite its formula. Formulas can use base (this SKU's master-data value for the layer), cost (cost so far) and the inputs in step 2.
Inputs come from rate tables, the shop floor and payment terms. Move one and watch every SKU re-price.
Margins set the band. The discount limit decides when a quote needs a person.
Routes: inside the limit → ships · over the limit → sales head · below floor → MD
Choose the results a quote shows. In the product, each role can get its own set.
This page runs a simplified copy of the engine in your browser for illustration. In AGT CPQ the server calculates and enforces every number, and screens only display it.
Three gates before any price leaves the building.
Rules come from your approval matrix. The engine only applies them.
-
Band check
Is the asked price between floor and ceiling? Inside the band, the quote moves on.
Asked ₹ 541 · band 512–604Pass -
Floor guard
A price below floor never ships on a salesperson's say-so. It goes to the MD.
₹ 541 above floor ₹ 512Pass -
Discount route
Discount bands per mode and customer pick the approver, who sees the rule that fired.
4.8% off · limit 3%Route → Sales head
Every number shows its working.
Open a line. Each figure traces to a rate, a BOM line or a rule, with its date and source.
+L1 · BOM & landed cost₹ 312.40
- Copper winding · 0.24 kg × ₹ 812.00194.88Rate 01 Oct · purchase register · +6.2% vs last quote
- NdFeB magnets · 4 × ₹ 11.9047.60USD 0.128 × 83.80 + 11% duty · import item master
- Stator lamination38.20Local supplier contract · scrap 3% included
- Die-cast housing31.72Routing: casting + machining · 0.21 machine-hours
+L4 · Capacity₹ 12.00
- Line 2 utilisation this month86%Committed volume from open POs · shop-floor feed
- Premium above 80% load12.00Rule CAP-2 · ₹ 2.00 per point above 80%
+L8 · Market position₹ 93.65
- Target margin for OEM customers16.5%Costing policy v7 · GP definition
- Last two POs from this customer552–571Sales register · Jun and Aug
What AI does
- Explains why the price moved since the last quote
- Flags rates that look stale or out of range
- Writes the reason a sales head can say to a buyer
- Finds past POs and competitor prices to compare
What AI never does
- Set a price
- Approve a discount
- Change a rate, BOM, formula or rule
- Hide where a number came from
One engine, four ways to quote.
Mode FGFinished goodsFull BOM, routing and all layers. The default for catalogue products.
Mode SASub-assemblyPrice a module of your product for another manufacturer, with its own bands.
Mode JWJob workThe customer supplies material. You price conversion, capacity and risk.
Mode CPCost-plusAgreed margin over audited cost, for contracts and private label.