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Billing Based on a 1/12th period VS Annually

curtis_saunders
Explorer
676

Is it possible to have a base price set for a service and have that price divided so that it pays 1/12th each month rather than the full price annually?

An example would be I have a service that utilizes device count on a recurring charge basis, not usage-based. The price for each device annually would be $24, but instead I want to charge $2 for each month. I want to maintain the price in the system as some customer may decide to pay annually.

Would this require multiple rate plans to account for both scenarios or is there some kind of calculation that can be done within the Price Calculation Tool?

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Answers (1)

Answers (1)

annette_klute
Product and Topic Expert
Product and Topic Expert

Hi Curtis,

Thanks for submitting your question. For the use case you described I currently see to options:

Option 1: Create 2 rate plans for the product in the same market, as you already pointed out: one with a yearly billing cycle, the other with a monthly billing cycle. In Price Calculation, define prices for the respective billing cycles using the field periodicity. This field is populated with the billing cycle. In the subscription item, choose the applicable rate plan as required by the end customer.

Option 2: Create only one rate plan with a monthly billing cycle. If an end customer wants to pay for an entire year, create a subscription, and in the subscription header, section "Billing", populate the field "Bill Recurring Charges Together" with the value 12. This triggers billing for 12 billing cycles in advance, and they all show up in the same bill.

Defining a price for a year and charging 1/12 of that price on a monthly basis is currently not supported. You could maybe somehow manage the calculation in the Price Calculaton Service, but since the billing cycle is set to 1 year, the system will charge the recurring fee only once a year.

Kind regards,

Annette

curtis_saunders
Explorer
0 Kudos

Understood, thanks Annette!