Introduction 

StrataVAR Partner Quoting Workspace (PqW) supports handling Cisco commercial credits that are applied in addition to standard discounts on MSDR and other Cisco quotes.

This article explains how credits are represented and used in PqW, including how they affect costs and margins, and how they are handled in the two credit modes: Merged and Split.

Why This Is Needed & Where It Fits in the User Journey

Many Cisco deals include special commercial credits that reduce the partner’s cost beyond standard discounting. Correctly handling these credits in PqW allows users to:

• Reflect the true VAR cost in quotes
• Understand how much benefit comes from discount vs. credit
• Control whether credits are passed on to the customer or retained to improve margin

Credit handling is relevant:

• After importing Cisco/MSDR BoMs into PqW
• When creating and editing PqW quotes from those BoMs
• When reviewing margins and preparing customer‑facing pricing

When Credits Are Used in PqW

Credits are used in PqW when:

• Cisco/MSDR quotes include commercial credits in addition to a standard discount
• BoMs are imported from Cisco/MSDR or distributor sources that carry Cisco credits
• Your organisation’s configuration supports interpreting and using these credits in pricing and margin calculations

Typical scenarios include:

• Cisco deals with promotional or incentive credits
• Large or strategic opportunities where Cisco issues additional commercial support
• Cases where finance or management wants to distinguish between discount and credit impact on profitability

Prerequisites

Before working with credits in PqW, ensure that:

• Cisco/MSDR integration (or applicable source) is set up to send credit information
• Your PqW org is configured to interpret credits and apply them to cost and margin calculations
• You have permissions to:
  • Import BoMs from Cisco/MSDR (or distributor carrying Cisco BoMs)
  • Create and edit PqW quotes

Key Concepts: Discounts, Credits, and VAR Cost

When credits are present, each item conceptually has:

• List Price – The Cisco list price for the item
• Cisco Discount – The standard program or deal discount from Cisco
• Credit – Additional commercial credit from Cisco (for example, promo or incentive)
• VAR Cost – What the VAR actually pays after discount and credits

In simplified form:

VAR Cost = List Price – Cisco Discount – Credit

PqW uses these values to:

• Derive effective discount (discount + credit effect)
• Calculate VAR Cost
• Calculate margin and customer price based on your org’s rules

Credit Modes in PqW: Merged vs Split

PqW supports two modes for handling credits within pricing calculations:

• Merged mode – Credits are merged into the effective discount
• Split mode – Credits are kept separate from the discount

Both modes lead to the same VAR Cost, but they change how discount and credit appear to the user.

Merged Mode (Credits Merged into Discount)

In merged mode:

• Cisco discount and credits are combined into a single effective discount
• Users usually see only one discount field for the item
• VAR cost already includes both discount and credit effects

Conceptually:

VAR Cost = List Price – Effective Discount

Where the Effective Discount is the combination of:

• Standard Cisco discount
• Additional credit effect

Use this mode when you:

• Want a simpler view for sales users
• Do not need to report discount and credit separately

Split Mode (Credits Shown Separately)

In split mode, Cisco discount and credits remain separate values. PqW still calculates an internal effective discount but can display:

• Cisco Discount
• Credit
• Effective Discount / VAR Cost / Margin

Conceptually:

VAR Cost = List Price – Cisco Discount – Credit

Use this mode when you:

• Need visibility into how much of the benefit is discount vs. credit
• Want to report credits separately from discounts
• Need to explain to finance or management how Cisco support is structured

How Credits Affect Pricing and Margin

Credits influence how PqW calculates:

• VAR Cost
• Customer Unit Price
• Margin %

Configuration determines whether credits affect customer pricing, internal cost only, or both.

Customer Price by Discount %

When users set customer price by entering a discount %, PqW takes the List Price and applies:

• Customer discount, and
• Depending on configuration, may or may not pass credits through to the customer

Typical behaviours:

Credits retained by VAR

• Customer price = List Price – Customer Discount
• Credits only reduce VAR cost (margin improves)

Credits shared or passed to customer

• Customer price = List Price – Customer Discount – (some or all credit)
• Credits both reduce VAR cost and lower customer price

The effective discount and margin figures will reflect the chosen mode (merged/split) and configuration.

Customer Price by Margin %  

When users set customer price based on a target margin %, PqW can calculate margin:

• On VAR cost before credits (credits treated as upside), or
• On VAR cost after credits (credits fully included in margin)

This rule is determined by your org’s configuration and applies in both merged and split credit modes.

Step-by-Step: Working with Credits in a Typical Flow

Step 1: Import a Cisco/MSDR BoM into PqW

Use your normal BoM import method (for example, MSDR or distributor BoM import).

During import, PqW:

• Reads list price and Cisco discount
• Reads credit information when provided
• Calculates VAR cost for each line item

Step 2: Configure the Credit Lines

• Go to Configure tab
• Look for BoM Credits in the window
• Click on the check box: Enabled Credit Lines

Step 3: Look for Credits in BoM items

• In the BoM Items view, you will see the items with credits shown.

• From the imported BoM, create a PqW quote or open existing quote if any

Credit information is carried from BoM items to quote items.

The way you see credits depends on whether your org uses merged or split mode:

• Merged mode: a single effective discount field
• Split mode: separate fields for discount and credit (where configured on the layout)

Step 4: Review Credit Impact on Quote Lines

On the quote edit grid:

• Check: List Price, Discount (or Discount + Credit, depending on mode), VAR Cost and Margin %
• In split mode, review the Credit column or section (if exposed) to see credit per line.
• Use these fields to confirm that costs and margins align with Cisco/MSDR expectations.

Step 5: Adjust Customer Pricing

Based on your quoting method:

If pricing by discount %

• Enter or adjust the customer discount.
• Margin updates automatically, considering:
• VAR cost including credits
• Your org’s rule about whether credits impact customer price.

If pricing by margin %

• Enter the desired margin target.
• PqW calculates the customer price from VAR cost:
• Using cost before or after credits, according to configuration.

Step 6: Final Review and Save

Before finalising:

• Confirm VAR costs match the Cisco/MSDR deal where credits apply.
• Check margin levels for key lines and for the overall quote.
• Save the quote and proceed with any further steps (approvals, customer proposal, etc.).

What Happens in the Background

Once credits are imported and applied:

PqW normalises any underlying credit information (for example, multiple credits or time‑bound credits) into a usable form per line.

Effective discount is calculated so that:

List Price – Effective Discount = VAR Cost

• In merged mode, you generally see only this effective discount.
• In split mode, you see discount and credit as separate values where configured.

This ensures:

• Consistent calculations regardless of the credit structure
• A clear user view tailored to your organisation’s preference (simple vs detailed)

Common Checks When Working with Credits

It is recommended to:

• Verify that VAR cost on key lines matches expectations from Cisco/MSDR
• Review margin % after credits are applied, especially on high‑value items
• In split mode, confirm that credits appear on the appropriate items
• Check whether your customer pricing behaviour matches your policy:
• Credits retained vs. credits passed through to the customer
• Any discrepancies should be investigated before sending prices to the customer.

Conclusion

Managing credits in PqW ensures that Cisco commercial support is correctly reflected in your costs and margins. By supporting both merged and split credit modes, PqW allows organisations to choose between a simpler, single‑discount view or a more detailed breakdown of discount and credit.

Once credits are imported and configured, users can confidently price deals, knowing that VAR cost and margin calculations account for both discounts and credits.

What’s Next?

After understanding how credits are handled in PqW, you may want to continue with:

• How to Import Cisco / MSDR BoMs into PqW
• How to Create and Edit Quotes from a BoM
• Margin Review and Approval Processes