How To Create A Discount Product

Overview

Discounts allow you to reduce the charges to the customers. BillingPlatform allows you to configure 

 

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 Discount.

 

 

Step 2. Specify the rate details

Now, specify the parameters of the new Discount product. If desired, click the Specify Default Rate check-box and enter the rate corresponding to the currency code that the product will be used for. Otherwise, the rate can be defined when adding the product to a package, or when provisioning it to a customer.

Refer to table 1 below for the field definitions to help you populate the discount details and then click Submit to save the changes.

 

Terms Defined 

Table 1
Field Name Description
Propagate Charges to Heirarchy

When this is checked, the discount/fee will be applied to all customers in the system regardless if the discount/fee is included in the contract/rate class or not.

If this is not checked, the product needs to be provisioned to the customer either as an account package product or an account product.

Discount Type

Indicates the scenarios when the discount will apply. Available options are:

  • Standard: This type will apply the discount rate to a target product(s) whenever they are charged to the account/customer. This discount type can only be targeted to charges.
  • Conditional: This type allows more control on when it will be applied to a product or not. This discount type can allow discount to select eligible and target charges for the discount to be triggered as well as specific products where it will be applied to.
Rate Type

Indicates how the discount rate is applied. Available options are:

  • Percentage Off: The discount will be a percentage of the target product's cost.
  • Fixed Amount: The discount will be a fixed rate regardless of the cost of the product that the discount is applied to.
Itemize Discount

Specifies if the discount is applied to all products that are eligible for the discount on the invoice or not.

  • Checked: Discount will be applied to all occurrences of the eligible product that appears on the invoice.
  • Unchecked: The discount will apply on the invoice once.
Limited Usage

Indicates if the invoice can be used a limited number of times instead of perpetual.

  • Checked: Discount can be used a limited number of times.
  • Unchecked: Discount can be used perpetually whenever there are eligible charges.
Max Number of Uses

Only applicable when Limited Usage is checked. This indicates the number of times that the discount can be used on the invoice.

Use Per

Only applicable when Limited Usage is checked.

  • Invoice: The limited use counter is decremented once per invoice.
  • Item: The limited use counter is decremented for each instance of an eligible product on the invoice.
Discount Priority Indicates the priority of the discount product relative to other discounts. A higher number indicates that the discount will be applied earlier than applicable discounts with a lower number. This is used only when the Apply To option is set to 'Remaining Balance'.
Apply To

Indicates where the discount will be applied. Available options are:

  • Pre-Discounted Balance: All discounts will be applied to the pre-discounted balance. Priority does not apply.
  • Remaining Balance: Discount will be applied to the remaining balance on account in order of Discount Priority.
Discount Eligible Charges

Allows for the selection of the products that will make a customer eligible for the discount. This is only applicable if the Discount Type field is set to 'Conditional'.

An example here is that Customer ABC will be eligible for this discount if he is charged for Product XYZ. This field should have Product XYZ selected.

Units of Measure for Eligible Charges

Indicates the unit of measure that will be used for determining the condition of the eligible charge(s). Available options are:

  • Amount: Rated amount (charged amount on the invoice) of the eligible product.
  • Quantity: Number of units (usage quantity) of the eligible product.

Taking the example from the Discount Eligible Charges field, Customer ABC will be eligible for this discount if he is charged for Product XYZ and either the charged Amount or rated Quantity exceeds the figure specified in the Rate Bands table, depending on the unit of measure chosen for this field.

Discount Target Charges

Allows for the selection of the products in the system that the discount can apply to. Multiple products can be selected, or choosing All will instruct the system to have the discount applicable to all products.

If a discount product has Product ABC defined here, a customer who has this discount product provisioned will have it applied whenever he/she is charged with Product ABC.

Upper Band

This is only applicable if the Discount Type is 'Standard'. This specifies the amount or quantity of the product referenced by the Discount Eligible Charges field that will trigger the system to apply the discount.

Rate

Pricing rate of the product. Depending on the value of the Discount Type field, this will either show the standard pricing table for Standard discount or the Rate Bands table for Conditional discount.

Min Charge

This is only applicable if the Discount Type is 'Standard'. 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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