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Re: Billing alignment questions

Zuora Staff

Billing alignment questions

Hello!

 

I've been doing various test to see the billing behviour whet BillingDay and BillingAlignment vary. I have summarized the result in the XL below:

Capture.JPG

 

Now, the cells represent the  service period during which a simple recurring charge gets billed (the numbers betwenn "()" should be ignored)

 

The ones in red are really puzzling me... why do we get billing until the 5th of May??? 

 

Anyone would have a convincing explanation?

 

Thanx!

 

-e

 

 

 

 

4 REPLIES 4
Master

Re: Billing alignment questions

Hi @Emmanuel

 

(I regarded the date format you indicated as DD/MM/YYYY)

 

I was surprised at this result. Why do you get billing until the 5th of May???

I tried to reproduce with the settings you indicated.

Settings:

  • Account.BillCycleDay: 6th
  • Subscription.InitialTerm: 1 year
  • Subscription.TermStartDate: 10/04/2018
  • Subscription.CED/SAD/CAD: 06/03/2018
  • RatePlanCharge.BillingPeriod: 1 year
  • RatePlanCharge.BillCycleType: DefaultFromCustomer
  • RatePlanCharge.BillingPeriodAlignment: AlignToTermStart

I confirmed that your results will be reproduced!

BillingPeriodAlignment01.png

 

I interpreted this as follows:

  • Since CED/SAD/CAD was set to 06/03/2018, the service period starts from 06/03/2018.
  • BillCycleDay of Account was set to 6th and BillCycleType of Charge was set to DefaultFromCustomer, so Charge's BillCycleDay was set 6th of every month.
  • TermStartDate is 10/04/2018, so "next Bill Cycle Day" will be 6th May of 2018.
  • The end of the service period is one day before the billing day.
  • --> Billing occurred during the period from 06/03/2018 to 05/05/2018

I prepared a figure for explanation:
BillingPeriodAlignment02.png

---

 

Because TermStartDate is later than 6th April of 2018, it seems that next Bill Cycle Day will be May.
For example, if you set TermStartDate to 2018/04/06 (or earlier date), the first service period changes to "06/03/2018 to 05/04/2018":

BillingPeriodAlignment03.png


* Since we set 10/04/2018 as the Target Date of Bill Run, Billing of secound Service Period (06/04/2018 to 05/04/2019) have also occurred.

Highlighted
Zuora Staff

Re: Billing alignment questions

Hello @yamasaki1ma!

 

First thanx a lot for taking the time to look into this puzzling figures Smiley Happy

 

Your explanation makes sense but... it's based on the fact that we bill until 5th of May because the BCD is the 6th, but actually... this is true for all other scenarios as well... 

 

To be honest.... it's still not 100% clear to me :/

 

-e

Master

Re: Billing alignment questions

Hello @Emmanuel!

 

> this is true for all other scenarios as well...
Sorry, you are right...
I made the following assumptions:

  • Account.BillCycleDay: 6th
  • RatePlanCharge.BillCycleType: DefaultFromCustomer
  • RatePlanCharge.BillingPeriodAlignment: AlignToTermStart

That is, I just only explained scenario01 in your fig:

Emmanuel.jpg

 

I will explain in order:

  • Firstly, scenario01 and scenario02 will be the same result. Because in this case both TermStartDate and SubscriptionStartDate become the same date. (These will be different dates only if Subscription have renewal)
  • For the same reason, scenario03 and scenario04 will be the same result.
  • Let's consider the reason why scenario03 (or scenario04) will be like this.

As a prerequisite, make sure that RatePlanCharge (not just Account) also has a BillCycleDay field.
https://knowledgecenter.zuora.com/DC_Developers/G_SOAP_API/E1_SOAP_API_Object_Reference/RatePlanChar...
BillCycleDay field exists in the table of the above link.
If we set DefaultFromCustomer as RatePlanCharge.BillCycleType, Account.BillCycleDay (6th) will be copied to RatePlanCharge.BillCycleDay.

 

Well, on the other hand, when we set ChargeTriggerDay as RatePlanCharge.BillCycleType, what does RatePlanCharge.BillCycleDay mean?
https://knowledgecenter.zuora.com/DC_Developers/G_SOAP_API/E1_SOAP_API_Object_Reference/ProductRateP...
> ChargeTriggerDay sets the BCD to the day that charges for this product rate plan are triggered to start.

You have set 06/03/2018 to CED/SAD/CAD.
So, in this case, even if you chose ChargeTriggerDay, RatePlanCharge.BillCycleDay has become 6th.
(For example, if you set 08/03/2018 to CED/SAD/CAD, RatePlanCharge.BillCycleDay will be 8th)

 

For this reason, senario 01, 02, 03 and 04 all got the same result.

 

Zuora Staff

Re: Billing alignment questions

Hello!

 

Actually, I was ok on the 6th... and why we have 6 in these 4 scenarios.

 

My question is really, why do we bill till the 5th of *MAY* in these scenarios? Why MAY? It's 2 months after worth of billing... why 2 months???

 

Remains a mystery to me...

 

-e