How To Create A Prepaid Usage Product

Overview

Prepaid Usage uses the concept of pre-paying usage products as well as provides the ability to re-load or top-up usage products when all of the allocated units have been used up by the customer/account. This behaves similar to the Subscription-type rating method with linked overages where the said linked overages (Usage-type products) will have included quantities that will be free of charge when usage is received until such time that the linked overage threshold amount is reached. When that happens, the prepaid usage product can either:

  1. Generate a new Prepaid Usage charge.
  2. Not generate a new Prepaid Usage charge and the active rate for the linked overage product will be used instead for the usage quantity that is beyond the threshold defined on the linked overage configuration.

Procedure

Step 1. Create a new product.

Go through the motion of creating a new product by referring to the How To Create A New Product section. When asked to specify the Rating Method, select Prepaid Usage.

New_Prepaid_Usage_Product.png

Step 2. Specify the rate details

You have the ability to skip defining the default rate for the product for later definition when provisioning to a customer or when it is added to a package as a package product. For the purpose of this process, we will define the default rate for the product that you created.

Click the Specify Default Rate checkbox and enter the rate corresponding to the currency code that the product will be used for.

Refer to table 1 below for the field definitions to help you populate the rate details and attributes of the prepaid usage product.

Product_Details.png

 

Click Submit to save the changes.

 

Terms Defined 

Table 1
Field Name Description
Auto Refill

Indicates if a new prepaid usage product charge is generated and invoiced to the customer  when the linked usage quantity is used up. If left unchecked, the prepaid usage product will not generate a new charge and the linked usage product will be invoiced using the active rate.

Linked Overage Products

Linked overage components will allow you to add an amount of usage included with the prepaid usage. You may link any usage product that is already configured in the application.

This is specifically useful for product offerings where you have a flat fee and then will charge the customer for any excess usage. This field will then contain the product that will capture the excess usage.

  • Overage Product: The usage based product that you have previously configured.
  • Included Quantity: Define how many units of usage you would like to include with your subscription. Click the unlimited icon to signify that the linked overage quantity will always be "free".
  • Group Name: Applicable only if the Create Group button is pressed. You may assign multiple linked charges to the same group to have both billing components deduct from a created group sum. This way you can give a total for two usage products regardless of which component they use.
Shared Across

Indicates which overage information will be monitored and rated. Available options are:

  • Account: Usage will be validated at the account level. This means that multiple charges across multiple invoices will count towards the linked usage's free units.
  • Package: Usage routed to any product within the package where the prepaid usage exists will be rated if defined in the Overage Component table.
  • Invoice: Any usage in the invoice that is specified in the Overage Component table under any linked usage on that invoice will be rated.
Tiered Rate Type

Only applicable for Tiered Pricing, this allows for choosing the behavior of how usage data is handled for tiered rates. Available choices are:

  • Bulk: Applies the rate of the final tier to all the usage units.
  • Incremental: Applies the rate for usage allocated to each tier respectively
Tier Calculation Level

Only applicable for tiered pricing, this indicate the aggregate level of the tiered rates. Available options are:

  • Package: Calculates aggregation within the package only and if multiple packages, instances of the product within each contribute to will be considered.
  • Product: Calculates aggregation at the usage that belongs to the same product instance.
  • Account: Calculates aggregation at individual levels of hierarchy if account is part of hierarchy.
  • Invoice: Calculates aggregation for all instances of the product on the invoice.
Split Usage Crossing Bands When dealing with large chunks of data, enabling this option will allow the splitting of usage data across bands. Disabling the option will have the large chunk rated against the lower band.
Pricing Type

Indicates the type of pricing that the product will use. Available options are:

  • Standard Pricing: Specify the rate in currencies configured on the platform. This is the basic per usage unit charge.
  • Tiered Pricing: Specify tiered rates. This enables the flexibility of indicating different rates based on the number of usage units.
Rate

Pricing rate of the product.

Min Charge

Minimum charge when this product is charged to the customer. If the computed rate multiplied by the # of consumed units is less than the minimum charge, the minimum charge will be reflected on the customer's invoice.

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