How long does it take your team to send a quote? If the answer is "it depends on who's putting it together," each salesperson is probably looking up prices in their own spreadsheet, copying the last similar proposal, and applying whatever discount seems reasonable. The real margin only shows up once the invoice goes out.
That's the problem CPQ solves. In this guide you'll learn what it is, what its parts are, when you really need it, what Odoo covers, and how AI helps you quote.
What is CPQ (configure, price, quote)
CPQ (configure, price, quote) is software that automates quote creation. It helps the salesperson put together an offer that can actually be delivered, applies the right price and discounts based on defined rules, and generates a document ready to send, approve, and convert into an order.
According to Gartner, these applications automate and optimize quote creation and order capture, and configuration and pricing must also work in self-service channels, such as an online store.
The three letters, one by one:
- Configure: choose the product and its valid options. A desk comes in three sizes, but the glass top may not be available on the largest one.
- Price: calculate the price of that combination using the customer's price list, volume discounts, and option surcharges.
- Quote: generate the document with terms and a validity date, and turn it into an order when the customer accepts.
An example: a distributor orders 40 desks. The CPQ rules out the combination that isn't manufactured, applies the distributor price list and the volume discount, and puts the quote on hold because the discount exceeds what the salesperson can authorize.
Problems a CPQ solves
A CPQ tackles four common problems on sales teams:
- Pricing errors: outdated price lists or a surcharge nobody remembered to add.
- Uncontrolled discounts: each salesperson negotiates at their own discretion, and nobody sees the margin given away until the end of the month.
- Slow quotes: a complex proposal takes hours while the customer compares other offers.
- Impossible combinations: you sell something operations can't manufacture or ship.
Components of CPQ software
All CPQ software, whether standalone or built into the ERP, has four pieces:
| Component | What it does | Example |
|---|---|---|
| Product configurator | Guides the selection and blocks combinations that don't exist | Size, finish, and accessories |
| Pricing engine | Calculates the price based on price lists, quantities, and dates | Distributor price above 20 units |
| Discount approval | Stops the quote if the discount or margin is out of range | Above a certain percentage, management approves |
| Quote document | Generates the proposal with validity, signature, and payment | A link where the customer signs online |
Price lists are the heart of the engine (how to build them by customer and channel is covered in the distributor management guide). The most advanced CPQs add compatibility rules (if you choose A, you need B) and contract pricing: that's what sets them apart from a basic sales quoting tool.
Signs your company needs CPQ
Check the ones that apply to you:
- The valid combinations of your products live in the heads of a couple of people.
- You manage different price lists by customer type, channel, region, or volume.
- Discounts get approved over WhatsApp, or not at all.
- A new salesperson takes weeks to quote without help.
- You find negative margins after invoicing.
- Your online store and your salespeople show different prices.
If you check two or three, an ERP with well-configured price lists and templates is usually enough. If you also have hundreds of combinations with technical dependencies or multi-level margin approvals, consider a dedicated CPQ.
Dedicated CPQ, CRM quoting tool, or ERP with built-in sales
The three paths differ in how much complexity they handle and what happens when the customer says yes.
| Criterion | Dedicated CPQ | CRM quoting tool | ERP with built-in sales (e.g., Odoo) |
|---|---|---|---|
| Configuration | Complex compatibility rules | Generally basic | Variants, optional products, and simple exclusions |
| Pricing | Contracts, formulas, subscriptions | Simple price lists, depending on the plan | Price lists by customer, region, quantity, and date |
| After the yes | Must be integrated with the ERP | Must be integrated with the ERP | Order, stock, and invoice in the same system |
| Best for | Engineering catalogs with thousands of combinations | Simple sales | Small and midsize businesses that sell, ship, and invoice |
The standalone market is shifting too: according to its official page, Salesforce no longer sells Salesforce CPQ to new customers. The product is at end of sale, not end of life: existing customers keep their support, and its successor is Revenue Cloud Advanced (checked in October 2026).
Quotations in Odoo: what they cover and where the limits are
Odoo Sales isn't sold as a CPQ, but it natively includes:
- Product configurator: attributes and variants with an extra price per value, combination exclusions, and custom values.
- Optional products suggested while quoting, and optional sections the customer can add from the portal.
- Quotation templates with a validity date and the option to require online signature and payment to confirm.
- Price lists by customer, country group, minimum quantity, and dates, which Odoo's online store also uses.
- Margin per line, if you enable that option.
Odoo 20, released in September 2026, adds choosing the template when you create the order, saving any quote as a template, pricing rules by period or day of the week, prices by packaging type, and an editable margin on the line, according to its release notes. If you're on an earlier version, you get them when you upgrade your version.
Discount approval in Odoo
Odoo Sales allows line-level discounts, but not a native workflow to approve them by percentage. It's built with Odoo Studio approval rules, which require sign-off from a user or group before a button such as Confirm can run, or with third-party modules. According to Odoo's pricing page, installing Studio moves you to the Custom plan (checked in October 2026).
As an after-the-fact control, Keep Checking, our alert module for Odoo, includes alerts such as "Sale with a margin below X%", "Price (in any pricelist) with a margin below X%", and "Products with no sales price".
The limits
Odoo doesn't have a native engine for complex rules. Exclusions work between attribute values, but they don't handle dependencies like "if you choose this motor, add a mounting kit." For that there are third-party CPQ modules (check who maintains them) or an integrated dedicated CPQ. Keep in mind: Odoo Online doesn't support custom modules or modules from the Odoo Apps Store; you need Odoo.sh or your own installation.
AI-powered quotes: from the meeting or email to a proposal ready for approval
The slowest part is usually turning a conversation into quote lines. That's where AI helps:
- An email arrives, or a meeting ends, with products, quantities, and deadlines.
- An AI assistant identifies the products, the variants, and that customer's price list.
- It saves the quote as a draft in the CRM or ERP, using the right template.
- The salesperson reviews and sends it. If the discount is out of range, it goes through approval.
AI doesn't replace the rules: it uses them. With a messy catalog, the assistant quotes badly, just faster.
At KPB we do this with Kersify AI assistants and agents, such as the CRM and sales agent: they read the request, build the draft with your pricing rules in whatever CRM or ERP you use, Odoo included, and leave the final decision to the salesperson. More context in AI for sales meetings and AI sales automation.
KPIs to measure your quoting process
Before you configure anything, measure how you quote today:
- Quote turnaround time: from the customer's request until they receive the proposal.
- Conversion rate: quotes accepted out of quotes sent, by salesperson and product.
- Average discount off the price list, and who's giving it.
- Quoted vs. invoiced margin: if it drops between the proposal and the invoice, there are costs you're not quoting.
If you quote and invoice in Odoo, most of this data is already recorded. Keep BI displays it in prebuilt dashboards such as "Sales Status & Performance", "Salesperson Status & Performance", and "Profitability". The Odoo CRM guide explains where the quote fits in the pipeline.
Why do it with KPB Solutions
At KPB we don't start by selling you a CPQ. We start by reviewing how your team quotes and how complex your catalog is. Often, a well-designed Odoo product configurator, price lists, and templates are all you need. If that's not your case, we'll tell you.
As an Odoo Gold Partner, in an Odoo implementation we configure variants, pricing, templates, and approvals, and connect quoting with inventory and electronic invoicing with the SII (Chile's tax authority).
Do you need a CPQ, or is organizing your quotes in Odoo enough? Book a meeting and we'll review it with your actual catalog.
