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Viktor Zuora Moderator

Zuora Moderator

Zuora Moderator
Posts: 233
Registered: ‎01-11-2016
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How to configure payment plans / installments?

Question:
I have a product that costs $1000, but I'd like to offer different payment plan options for my customers - like a payment plan for mobile phones.

 

E.g. pay $400 up front, and collect $600 over 12 months, however this needs to be flexible as someone might want to settle the $600 over 6 months.



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Viktor Zuora Moderator

Zuora Moderator

Zuora Moderator
Posts: 233
Registered: ‎01-11-2016

Re: How to configure payment plans / installments?

Solution:
We need to create a rate plan that contains a One-Time charge and a Recurring charge.

 

installment1.jpg

 

Note for the Recurring charge how I set the Billing Timing to Arrears, so the first installment is not collected immediately, but only at the start of the second month.

 

installment2.jpg

 


When you're selling the product, you have the option to edit the number of Billing Periods, and both the starting and the monthly prices.



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sralph Partner

Partner

Partner
Posts: 31
Registered: ‎01-21-2016

Re: How to configure payment plans / installments?

I'm working with a customer who charges a significant  annual fee and they offer installment payment plans.   Example - pay 50% of the annual fee immediately, 50% due in 30 days.   This plan needs to apply upon renewal as well.   The customer also offers plans where the fee is paid over 3 installments (Immediate, 30 day, 60 day) and over 6 instalments.   In all cases, the service is still for a full year but the payments are setup on one of these schedules.

 

Invoice splitting is not really a viable option as they want this built into the subscription rather than having to manually intervene each timethe account is invoiced. 

How would you approach this scenario? 

 

 

Sean Ralph CPA CA
Senior Solutions Architect
Apps Associates Inc
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mikemartin Partner

Partner

Partner
Posts: 48
Registered: ‎01-21-2016

Re: How to configure payment plans / installments?

Agreed. This (I believe but haven't had categoric assurances) is something that zuora have on roadmap. It's fair easier to raise an "annual" invoice that's spread put for payment monthly for example than having a contract that dictates the same. Because and invoice is an invoice, it carries better legal weight. The challenge for zuora is in the Payment Run. Zuora need to develop a payment schedule / payment subscription concept. Competitors have this and Zuora should expose their roadmap in this respect.