I recently went to the salesforce CPQ training and found it really useful so decided to share my knowledge as I still can remember :) with everyone else as there are not many resources available.
If this is a fresh org without any data first you need to add product family.
Go to Setup -> Product -> fields -> Product Family and add your product families to the picklist values
I only added hardware as a product family.
Then go to product and add new product.
I added "Dell laptop" and selected the "Hardware" as the product family and make sure you click on Active checkbox/
After installing CPQ package you need to change some of the existing layout of the objects, Now let's start with Product object, by default all profiles can see the default layout of product layout.
Go to product pay layout assignment
And click on Page Layout assignment -> Edit assignment and assign CPQ product layout to all profiles and save it.
Go to the one of existing product and view it, this time you should be able to see a layout like this :
Based on the product you selling , you might have a subscription product like selling a licence with some duration or service with some duration or a a laptop,...
All product behavior cane be set here , then later on you can see it in Quote Line Editor.
The first item is Pricing method, this can be List, Block and Cost.
The second item is Subscription products.
If the product you are selling is like a service or licence with subscription then in the "Subscription" section it needs to be configured.
Subscription Pricing can be fixed price , subscription terms can be 1 , also you can say if this product is renewable or not ,...
The other option for subscription pricing can be "percent of total" this is more like a warrant service or administration service that can be applied based on the amount of other selling product, to give you more specific example this can be you are selling a laptop and now you would like to add warranty , the warranty itself is a product with subscription pricing of percent of total , then you need to specify the subscription percentage like 5% or 10%
The last item is bundle configuration.
Note: In order to set the term in you org, go to setup-> install package-> CPQ package and click on configure , then go to Subscription and Renewals tab and set the related "Subscription Term Unit" to Month or day. plus you can set the "Subscription Prorate Precision" to Day, Month, Month+Day
Consider there are two product with following information and term setting is Month and Prorate is Month
LicenseProduct , Term : 1, price :fixed $10
SupportProduct, Term :12, price: fixed $20
Now if you want to create a quote for 3 months and 15 days and 1 quantity the calculation would be
LicenseProduct 1*4 month(because prorate is month) *10 = $40
SupportProduct 1* (4/12) * 20 = *20 = $6.66
How to calculate Prorate Multiplier
Consider a scenario which start date of a subscription is 1/July/2017 and end date is 1/July/2018.
If prorate multiplier needs to be calculated for different Term and Prorate precision, also consider the term of the product covers whole 1 year (12 months or 365 days).
366 days or 12 Months and 1 day in 1/July/2017 - 1/July/2018 period
Prorate Multiplier : Subscription duration / Subscription term duration
Scenario 1
Term : Month
Product term:12
Prorate Precision : Monthly
Prorate Multiplier : 13 / 12 = 1.0833
Scenario 2
Term : Day
Product term:365
Prorate Precision : Daily
Prorate Multiplier : 366/365 = 1.0027
