---
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title: Cost and Margin in EPC
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version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/comms_cost_and_margin_in_epc.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.comms_cost_and_margin_in_epc.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: 797e14b57cc3e64c2f478e2144a45923313111f695ae298b79ae98afa65c8bc3
description: When you create a cost for a product, you can classify it as a one-time cost or a recurring cost. Margins are calculated automatically based on the cost and prices that you have defined for each line item and the product bundle.
products:
  - Communications
  - Media
  - Energy and Utilities
release: "264"
---
# Cost and Margin in EPC

When you create a cost for a product, you can classify it as a one-time cost or a recurring cost. Margins are calculated automatically based on the cost and prices that you have defined for each line item and the product bundle.

Some of the benefits of the cost and margin feature include the following:

- Sales agents can identify the profit and loss margins quickly, enabling them to achieve long-term strategic objectives.
- Companies can define and meet financial targets for specific products.
- By defining profit margins, companies can better project, maintain, and grow revenues while keeping costs down.

Follow this workflow to use this cost and margin.

![Note](https://sf-zdocs-cdn-prod.zoominsoftware.com/tdta-ind-comms_media_energy_managed-264-0-0-production-enus/ff4079f6-a384-475c-b863-578bbbb0ef9b/images/icon_note.png)

Note

You must first create a price list with pricing elements related to costs before you can associate costs to the product. See [Creating a Pricing Element for Costs](https://help.salesforce.com/s/articleView?id=ind.comms_creating_a_pricing_element_for_costs.htm&type=5&language=en_US).

1. Enable cost and margin, create a pricing element for cost, configure a cost for your product, and view it in the Industries CPQ Cart. These steps are required to use this feature. See [Defining Cost and Margins](https://help.salesforce.com/s/articleView?id=ind.comms_defining_cost_and_margins.htm&release=264.0.0&type=5 "Follow these basic required steps to define cost and margin ranges. Each step provides more information about enabling, configuring, and using this feature.").
2. Define and validate margin ranges to ensure that the cost does not exceed the price by a certain percentage amount. This is optional but can be useful if you want to generate warning messages in the Industries CPQ Cart when the margin range is violated. See [Defining and Validating Margin Ranges](https://help.salesforce.com/s/articleView?id=ind.comms_define_and_validate_margin_ranges.htm&release=264.0.0&type=5 "You can define margin ranges using the pricing plan so that the cost does not exceed the price. This is optional. If you do not set up a validation process, users aren't notified when a margin range has been violated.").
3. Optionally, customize either one or both the default margin range and margin validation interface implementations. See [Customizing Default Margin Range and Validation Interface Implementations](https://help.salesforce.com/s/articleView?id=ind.comms_customizing_default_margin_range_and_validation_interface_implementations.htm&release=264.0.0&type=5 "Follow these optional customization steps to build your own margin range and margin validation interface implementations.").
4. Optionally, link service points to line items in the Industries CPQ Cart. See [Link Line Items to Service Points](https://help.salesforce.com/s/articleView?id=ind.comms_link_line_items_to_service_points.htm&release=264.0.0&type=5 "You can link a line item in the Industries CPQ Cart to a service point so you can configure that service point individually. A service point is defined as a service that is available at a physical location. This is an optional step. You must enable cost and margin to link line items to service points.").

- **[Defining Cost and Margins](https://help.salesforce.com/s/articleView?id=ind.comms_defining_cost_and_margins.htm&release=264.0.0&type=5)**  
    Follow these basic required steps to define cost and margin ranges. Each step provides more information about enabling, configuring, and using this feature.
- **[Define and Validate Margin Ranges](https://help.salesforce.com/s/articleView?id=ind.comms_define_and_validate_margin_ranges.htm&release=264.0.0&type=5)**  
    You can define margin ranges using the pricing plan so that the cost does not exceed the price. This is optional. If you do not set up a validation process, users aren't notified when a margin range has been violated.
- **[Customizing Default Interface Implementations for Margin Ranges](https://help.salesforce.com/s/articleView?id=ind.comms_customizing_default_interface_implementations_for_margin_ranges.htm&release=264.0.0&type=5)**  
    You can customize the Margin Range Loader or the Margin Validation interfaces by changing the default implementations. You may want to do this to customize the names of the calculation procedures, matrices, and/or the logic used to validate the ranges. These interfaces are invoked by the Pricing Plan when the LoadMarginRanges method name is specified in a step.