# Configure, Price, Quote (CPQ) > Source: https://netray.co/glossary/configure-price-quote > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Glossary ## Short answer Configure, Price, Quote (CPQ) is software that guides a salesperson through selecting valid product options, calculates the price from rules and discounts, and produces a quote document, then passes the accepted configuration to the ERP as a sales order. ## Aliases - CPQ - CPQ software - quote configurator ## Category erp-core ## Full Definition CPQ solves a specific problem for manufacturers who sell configurable or engineered products: a quote has to be technically buildable, correctly priced and fast to produce. The configure step applies rules (this motor needs that drive, this option excludes that one). The price step applies price lists, volume breaks, customer-specific contracts, margin floors and approval thresholds. The quote step generates the proposal with terms and lead time. The value comes from the handoff. A good CPQ does not just print a PDF. It writes the accepted configuration to the ERP so that the sales order lines, a generated or configured bill of materials and a routing are created without re-keying. That is where most failures occur: the configurator knows a part number the ERP item master does not, or the ERP BOM structure cannot represent the choices the configurator allows. In ERPs, CPQ shows up in different forms. Epicor Kinetic has a Configurator and Quote Entry, Infor SyteLine has a Product Configurator integration and an Estimates form for quoting, Microsoft Business Central has Sales Quotes with item variants and optional add-on extensions, and SAP offers variant configuration in the core system with SAP CPQ as a separate cloud product. Standalone tools such as Salesforce CPQ or Tacton sit in front of any of these. Pure rules-based CPQ is deterministic and auditable, which is what you want for pricing and engineering validity. AI is useful around the edges: reading a customer RFQ and pre-filling the configuration, suggesting similar past quotes, or flagging a discount that is out of pattern. The rule engine should still make the final validity and price decision. ## Why It Matters - Quote turnaround is often a deciding factor in competitive bids, and manual quoting from spreadsheets typically takes days instead of hours. - Invalid configurations that reach the shop floor cause rework, scrap and late orders, so rule enforcement at quote time is cheap insurance. - Consistent pricing logic protects margin and removes ad hoc discounting that nobody can audit later. - A clean CPQ to ERP handoff removes double entry and the transcription errors that come with it. ## In Practice A pump maker sells 400 base models with options for seals, materials and motors. A salesperson picks a duplex stainless casing and a 15 kW motor; the rules reject an incompatible seal, price the unit from the list plus a negotiated 8 percent customer discount, and flag a margin below the 22 percent floor for manager approval. On acceptance, the sales order is created with a configured item and a generated BOM. If the ERP item master lacks the generated part number, the handoff fails, which is the most common integration defect. ## Faq ### Do I need CPQ if my ERP already has quoting? **Answer:** Not always. If you sell standard items from a price list, ERP quoting is enough. CPQ pays off when products have many options, rules or engineered variants, or when pricing depends on complex contracts and approvals. ### What is the difference between a configurator and CPQ? **Answer:** A configurator only validates and builds product options. CPQ adds pricing logic, discount approvals and quote document generation on top of the configuration. ### Where does CPQ data end up in the ERP? **Answer:** Usually as a sales order with configured lines, and often a generated BOM and routing. The exact objects depend on the ERP, such as a configured item in Business Central or a configured product in SyteLine. ### Can AI replace CPQ rules? **Answer:** It should not make the final decision. Rules guarantee a buildable, correctly priced product. AI can draft inputs from an RFQ and highlight anomalies, with a human or the rule engine confirming. ## Search terms cpq, configure price quote, cpq software manufacturing, product configurator erp, quote configurator, cpq vs erp, sales quoting software, cpq integration erp --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json