Happy Business Starts Here

Align all charges after partial billing for a monthly recurring charge

Highlighted
Community Manager

Align all charges after partial billing for a monthly recurring charge

See Reply



Subscribe to Zuora System Updates at Zuora Trust
Follow Zuora Global Support on Twitter and LinkedIn

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted
Community Manager

Re: Align all charges after partial billing for a monthly recurring charge

Question or Problem Statement:

Is there an option to partially bill for a recurring charge that is added mid-month after the subscription contract effective date and then keep the billing for that recurring charge aligned with subscription contract effective date? See scenario below.

07/01:
- Subscription created and monthly recurring service product rate plan added.
- Billed for the monthly recurring service product rate plan (07/01 - 08/01)

07/15:
- Monthly recurring add-on product rate plan added.

08/01:
- Billed for the monthly recurring service product rate plan (08/01 - 09/01)
- Billed for the monthly recurring add-on product rate plan (07/15 - 08/01) **This is the partial billing that I'm referring to**
- Billed for the monthly recurring add-on product rate plan (08/01 - 09/01)

Solution:

You'll need to configure the rate plan charge accordingly to bill as described. Meaning, if the subscription start date is 07/01/2015, the add-on product needs to be  configured where Billing Day = Subscription Start Day.

Gotchas/Pitfalls:

The scenario and solution presented in this article applies to recurring rate plan charges that are set to bill monthly.

Additionally, proration will occur given your Zuora tenant is configured properly:

  • Settings > Z-Billing Settings > Define Billing Rules > Prorate recurring charges for partial month? is set to Yes

Supporting References:

Proration

Define Billing Rules

Rate Plan Charge Attributes



Subscribe to Zuora System Updates at Zuora Trust
Follow Zuora Global Support on Twitter and LinkedIn

View solution in original post

2 REPLIES 2
Highlighted
Community Manager

Re: Align all charges after partial billing for a monthly recurring charge

Question or Problem Statement:

Is there an option to partially bill for a recurring charge that is added mid-month after the subscription contract effective date and then keep the billing for that recurring charge aligned with subscription contract effective date? See scenario below.

07/01:
- Subscription created and monthly recurring service product rate plan added.
- Billed for the monthly recurring service product rate plan (07/01 - 08/01)

07/15:
- Monthly recurring add-on product rate plan added.

08/01:
- Billed for the monthly recurring service product rate plan (08/01 - 09/01)
- Billed for the monthly recurring add-on product rate plan (07/15 - 08/01) **This is the partial billing that I'm referring to**
- Billed for the monthly recurring add-on product rate plan (08/01 - 09/01)

Solution:

You'll need to configure the rate plan charge accordingly to bill as described. Meaning, if the subscription start date is 07/01/2015, the add-on product needs to be  configured where Billing Day = Subscription Start Day.

Gotchas/Pitfalls:

The scenario and solution presented in this article applies to recurring rate plan charges that are set to bill monthly.

Additionally, proration will occur given your Zuora tenant is configured properly:

  • Settings > Z-Billing Settings > Define Billing Rules > Prorate recurring charges for partial month? is set to Yes

Supporting References:

Proration

Define Billing Rules

Rate Plan Charge Attributes



Subscribe to Zuora System Updates at Zuora Trust
Follow Zuora Global Support on Twitter and LinkedIn

View solution in original post

Highlighted
Scholar

Re: Align all charges after partial billing for a monthly recurring charge

I have a scenario a litle bit different:  

 

07/01: Plan1(Flat Fee Pricing)
- Subscription created and monthly/yearly recurring service product rate plan added.
- Billed for the monthly recurring service product rate plan (07/01 - 08/01)
....
10/15: Plan2(Per Unit Pricing - recurring)
- Monthly/yearly recurring add-on product rate plan added.
- Billed for the monthly/yearly recurring service product rate plan (10/15 - 11/01) - **This is the partial billing**

11/01:
- Billed for the monthly/yearly recurring service product rate plan (11/01 - 12/01) - invoice for Plan1
- Billed for the monthly/yearly recurring add-on product rate plan (11/01 - 12/01) - invoice for Plan2

Adding "Billing Day = Subscription Start Day" - will invoice for period : 07/01-11/01 which is not what I expect.

 

How can I create the amendament and plan type in order to have a prorated invoice for plan2?