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Usage changes in the event of cancellation

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Usage changes in the event of cancellation

Hello!

 

We have a service we are offering that we believe should be defined using the Usage Charge model as we will be charging our subscriber a fee each time an event happens.  The number of events cannot not be predetermined.  The events must be charged at a date to be scheduled in the future - let's say 6 months from today.  What we don't know is how Zuora will handle billing if the service is cancelled 3 months from today.  Will the usage that was logged for 6 months in the future still be invoiced?  

 

Secondarily, we have a business requirement that says any event logged within 1 year of contract termination will still be billed for.  If the subscription is cancelled, can we still log and invoice usage to it?

 

Thanks in advance!

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Zuora Support Moderator

Re: Usage changes in the event of cancellation

@lbrown, the usage charge model may work for this purpose as it allows you to charge the user when the event occurs.

 

The thing to keep in mind is that you will be loading in a usage record each time the event happens and then billing them at a regular interval. One popular method for handling a scenario like yours would be to do a per-unit usage charge with the Usage Record Rating Option set to "On Demand" which will allow you to bill for that event once it happens.

 

Here is some documentation that explains this type of usage model:

 

Regarding your second question about cancellations: The ability to bill beyond the cancellation will depend on the dates you input at time of cancellation and when and if you've loaded in usage and billed prior to the cancellation. For example, if you have loaded in usage for an event in December, but the customer has cancelled in July, it will depend on if you've already processed and billed for December. Most customers will not have done so at this point, so usage in December won't be picked up or charged if they cancelled early.

 

For your last note, if the customer has cancelled, but is still within their contract term, you can set your cancellation to do the following:

  • Contract Effective Date = date of the cancellation notice
  • Cancellation Date = set it to a specific day.

Doing this will allow you to be able to continue upload usage and process.

 



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Highlighted
Zuora Support Moderator

Re: Usage changes in the event of cancellation

@lbrown, the usage charge model may work for this purpose as it allows you to charge the user when the event occurs.

 

The thing to keep in mind is that you will be loading in a usage record each time the event happens and then billing them at a regular interval. One popular method for handling a scenario like yours would be to do a per-unit usage charge with the Usage Record Rating Option set to "On Demand" which will allow you to bill for that event once it happens.

 

Here is some documentation that explains this type of usage model:

 

Regarding your second question about cancellations: The ability to bill beyond the cancellation will depend on the dates you input at time of cancellation and when and if you've loaded in usage and billed prior to the cancellation. For example, if you have loaded in usage for an event in December, but the customer has cancelled in July, it will depend on if you've already processed and billed for December. Most customers will not have done so at this point, so usage in December won't be picked up or charged if they cancelled early.

 

For your last note, if the customer has cancelled, but is still within their contract term, you can set your cancellation to do the following:

  • Contract Effective Date = date of the cancellation notice
  • Cancellation Date = set it to a specific day.

Doing this will allow you to be able to continue upload usage and process.

 



If you found my answer helpful, please give me a kudo ↑
Help others find answers faster by accepting my post as a solution √

View solution in original post