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Usage-based subscription with minimum fixed consumption per billing cycle

tvc_em
Participant
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Dear Experts,

I have troubles achieving the following scenario in Subscription Billing and I would really appreciate your help.

Our customer sells usage-based subscriptions with multiple rate elements.
Pricing is managed with pricing schemes.
Pricing of usage-based rate elements is mainly linear or based on scales.
Usage-based subscriptions are invoiced based on consumption but a fix amount / minimum consumption is always invoiced.

Example:
Rate element R-USAGE has a unit price of 5 € / EA, with minimum consumption of 50 EA (monthly cycle) -> fixed monthly amount billed = 250€.
1. At the end of the month, consumption is 30 EA -> billed qty = 50EA / 250€.
2. At the end of the month, consumption is 60 EA -> billed qty = 60 EA / 300 €.

As a workaround, I used a recurring charge for the fixed qty/amount + a usage-based rate element with tiered pricing (1EA to {fixed qty} = 0€) but this would mean duplicating the number of rate elements involved.
Considering that in some scenarios we have up until 4 usage-based rate elements, my workaround would result in 8 rate elements which would mean also 8 lines on the invoice for only one subscription.
Also pricing maintenance would be more complicated.

Is there a more efficient way to set up described scenario?

Thank you in advance for the help.

Regards,
Elena

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tvc_em
Participant
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Hi Carsten,

Thank you for your suggestions!
The Volume price condition with two tiers seems a valid solution but the suitable quantity really seems to correspond to the scenario I'm trying to achieve.
I tried to set it up but I might be missing something as I'm not getting the expected result..
I created a new pricing field called quantity1 (type = quantity, source = external) -> in the price element specification I added the component "suitable quantity" + the path to find and calculate the price as shown in the screenshot -> I added the price element specification to the pricing scheme -> in business configuration I mapped field quantity1 to attribute "Product Configuration" for subscription item which I called "Minimum usage".
Finally I created a subscription with a configurable product, I added attribute "Minimum usage" with quantity 10 EA -> I created a usage record of 3 EA for the technical resource of the subscription I just created -> the expected result would be an open bill with quantity 3EA and price for the minimum usage of 10EA vs result I got: the bill is not created at all.

Maybe you have an idea of any missing configuration in my process?

Thank you very much in advance.
Kr,
Elena

CarstenJ
Product and Topic Expert
Product and Topic Expert
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On the first glance, it reads like you did the right steps.
As you said that no bill is created at all: did you check the rating monitor if there is an error listed for the usage rating?
And did you choose the correct unit of measure for the quantity field in the pricing field mapping for quantity1?