Example : Venus Internet services wants to bill its users every month based on usage. 2400 GB is free for a year once the consumer crosses the 2400 GB they will be billed based on the usage.
Some consumers just use 200 GB per month to capitalize on the free GB, but some users cross the free GB in a few months, Venus Internet services want to charge the consumer with $10 per GB after they exhaust the free 2400 GB
Can this use case be supported in Zuora?
Solved! Go to Solution.
Yes, In Zuora we can leverage the Overage Smoothing Charge Model to execute this use case. You can define the overage smoothing charge model when you Create Product Rate Plan Charges
- Smoothing Model: There are two smoothing charge models, Rolling Window & Rollover.
- Number of Periods: The number of periods to carry over the unused usage. Each period is equal to the billing frequency.
- Overage Option when Smoothing: Rolling Window only. Select the overage option to apply when performing smoothing:
- Apply overage at the end of the smoothing period
- Apply overage as soon as it occurs
For the example, which we listed above we would be selecting Rolling Window (Apply overage as soon as it occurs) with number of the period being 12 months and the included GB being 2400, so as soon as the consumer touches the 2400 GB we would go ahead and charge the consumer with $10 each GB after the consumed free 2400 GB.
Screenshot of the condition input at the product rate plan charge level :