How To Set Default Pricing

Overview

Every product in BillingPlatform requires a default price. This allows the system a rate to fall back on if contract rates and rate classes are not provided. Products will either have one default price or multiple if it is a tiered product.

Configuring default prices can be an easy side-effect of having to create products with default rating methods. This means that you will, more often than not, specify the default price during the creation of a new product.

If there are changes made to the pricing plan at any level, usage will be automatically re-rated for the product. Changes made only to the pricing plan will re-rate activity where this pricing plan is used (excluding tired pricing plan). If changes  to the start/end date of the pricing plan are made, then usage will be re-rated for all activity for that product where this pricing plan is used for current invoices and other activity falling under the new period of this pricing plan (based on the product). If the rate is changed, upper band or period in a tired pricing plan, then re-rating of all activity for this product on current invoices

 

Procedure

Step 1. Create or open an existing product.

Go to Products > Manage Products > Products and select an existing product. To create a new product, refer to the How to Create a New Product section.

Make sure that the Specify Default Rating Method and Specify Default Rate check boxes are ticked.

 

Step 2. Specify the default rating method and default rate.

Depending on the type of rating method selected, the default rate fields will be different. Refer to the Rating Methods Overview for details on the fields to be populated. However, the Default Rate section will always be consistent.

Update the Default Rate section with the product's default rate. Refer to table 1 below for the field definitions as reference.

 

Terms Defined 

Table 1
Field Name Description
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.
Start Date

Pricing plan effective start date.

End Date Pricing plan effective end date.
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.

Additional Pricing Records

Aside from the default rate, additional pricing records can be added so that different rates can be used for different periods (e.g. different dates). To add a new pricing record, click the New button when viewing the details of the product (not in Edit mode). This will bring up a pop-up with the same fields when defining the default rate of the product. Fill in the information as normal.

 

For instance, the new pricing record example below will be effective for a number of months in 2016 and with a rate of $1.00:

When done, click Submit to save the new pricing record.

When viewing products with multiple pricing records, the currently active pricing will be automatically expanded while the rest are collapsed. If the product does not have any active pricing records at the time of viewing, all pricing records will be collapsed.

There can be gaps between pricing records so be mindful when adding/removing schedules.

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