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Set 'Billing Timing = In Arrears', why did the charge still be billed in advance?

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Set 'Billing Timing = In Arrears', why did the charge still be billed in advance?

Question or Problem Statement:

In SubscriptionRatePlanCharge, I set 'Billing Timing = In Arrears', why did the charge still be billed advance?

 

For example, In an Evergreen subscription, there is a recurring Monthly PerUnitPricing charge.

Customer Account BillCycleDate = 1st of the month

ChargeTriggerDate = ContractEffectiveDate = 08/03/2020

Charge.Quantity = 1

Billing Timing = In Arrears

 

So the Service Period = 08/03/2020 - 08/31/2020

 

As per the doc, “Billing in arrears lets you bill your customers after the products or services are provided. Billing with a target date after the end of the billing period will create an invoice for the billing period charges.”

https://knowledgecenter.zuora.com/Billing/Billing_and_Payments/J_Billing_Operations/Billing_Timing

 

If BillRun with ‘Target date = 08/04/2020, this BillRun will not generate an invoice.

If BillRun with ‘Target date = 09/01/2020, this BillRun will generate an invoice.

 

Now do an amendment - Update a product quantity 20 on 08/07/2020.

Now do a BillRun with ‘Target date = 08/07/2020’ - Invoice is generated with proration(08/03/2020 - 08/06/2020).  

 

The charge Billing Timing = In Arrears, set BillRun Target date = 08/07/2020, why the charge was still picked up by this BillRun? Why was the invoice generated? Should the charge be picked up by BillRun with ‘Target date = 09/01/2020’ rather than ‘Target date = 08/07/2020’?

 

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Explanation:

'Billing Timing = In Arrears' still applies to the Active segment. There are 2 segments in the above sample.
Segment 1: 08/03/2020-08/06/2020(Add a product quantity 10 on 03 August)
Segment 2: 08/07/2020-08/31/2020(Update a product quantity 20 on 06 August)

 

08/07/2020 is in Segment 2. Because of 'Billing Timing = In Arrears', there is no new InvoiceItem created in Segment 2, this setting still works. 

 

Please be noted: 'Billing Timing = In Arrears' applies on charge segment.

 

Supporting References:

https://knowledgecenter.zuora.com/BB_Introducing_Z_Business/How_Do_I_._._./How_do_I_find_current_Rat...

 

Video:

https://drive.google.com/file/d/1c8UeHwId2Y2-yAK9VH-0LJMjkltvdCht/view






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