How To Create A Subscription Product

Overview

Subscriptions are the easiest way to implement a recurring charge to your user's accounts. BillingPlatform implements powerful customization features allowing you to dictate how your subscription charges are assessed and applied. Depending on how you would like your subscriptions to appear on an account, there are a few configuration options to consider.

 

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 Subscription.

 

 

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.

 

Click Submit to save the changes.

 

Terms Defined 

Table 1
Field Name Description
Subscription Cycle

Indicates the renewal/charging cycle of the subscription. Available options are:

  • Daily
  • Weekly
  • Semi-Monthly
  • Monthly
  • Quarterly
  • Yearly
Cycle Context

Indicates when the charge is applied relative to the customer's billing cycle. Available options are:

  • Sync with Service Start Date: Charge is applied on the day that the product/component is provisioned to the customer.
  • Sync with Billing Cycle: Charge is applied at the start of the billing cycle.
Prorate Subscription Charges Indicates whether the charge for the subscription is for the whole amount or pro-rated if it is activated in the middle of the customer's billing cycle.
Payment Model

Indicates when the subscription charges are reflected on the customer's invoice. Available options are:

  • Postpaid: Results in the subscription charge being displayed on the customer's invoice after the subscription dates have taken place.
  • Prepaid: Results in the charge appearing on customer's invoices before the subscription dates have taken place.
Initial Invoice Creation

Indicates when the invoice will be created to cover the new subscription. Available options are:

  • Create Activation Invoice for New Customers: Invoice is immediately created for a customer when the subscription being added is the first one for the said customer.
  • Always Create Activation Invoice: Invoice is immediately created for a customer regardless if it is the first subscription or not.
  • Use Billing Cycle Invoice: Invoice is not generated immediately and all subscription charges are included in the standard invoice of the customer (e.g. included in the next billing cycle).
Early Termination Option

Specifies the behavior of a subscription when it is terminated for a customer. Available options are:

  • Early Termination Fee: A fee from a corresponding product in the system is added charged to the customer.
  • Prorate Current Invoice: The subscription charge is pro-rated when the billing cycle is closed.
  • Credit: A credit note is created for the subscription.
Early Termination Product Lookup that will allow the selection of a product that will be charged to the customer if the subscription is terminated prematurely for the customer.
Linked Overage Products

Linked overage components will allow you to add an amount of usage included with your subscription. 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:

  • Subscription: Usage routed to the subscription will be rated if defined in the Overage Component table.
  • Package: Usage routed to any product within the package where the subscription 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 subscription 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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