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Re: Ability to define billing rules for prorating recurring and usage charges on per product basis

Ability to define billing rules for prorating recurring and usage charges on per product basis

In Zuora, we do not have the capability to configure whether recurring charges/ usages need to be prorated for partial periods on a per product basis. Some organizations may have some products which they would want to prorate for partial periods and some other products which should not be prorated for partial period. Hence capability to define the billing rules for proration on per product basis would be great. 

11 Comments
Community Manager
Status changed to: More Feedback Needed
 
Partner

This is much needed.  Here is an example:

 

Customer charges a recurring software subscription fee on a monthly, quarterly or annual basis and they also charge a recurring "Exchange fee" which is a pass through charge for accessing a data feed from an exchange.   Let's say the subscription portion is $30/month and the exchange fee is $10/month.  If the customer cancels the product mid-term, they want to prorate the subscription fee refund but the exchange fee they do not refund at all. 

 

On an annual term with monthly billing, they would refund in whole the exchange fees for months that were not used, but not the current month as the exchange fee has been incurred already from the third party (who also does not issue prorated refunds)

 

 

Partner

Also - I would think this would be set at the CHARGE level, not the product level.   In my example above, the customer selects a product and rate plan bundle which includes both recurring fees.  One is subject to normal proration when added to or removed from an existing subscription, while the other charge for exchange fee would not be prorated in the period it is added nor in the period when it is removed from the subscription.  I hope this is clear enough.

Zuora Product Team
Zuora Product Team

Thanks for the idea.  Yes, this is something that we have been considering adding, which is to move all the pro-ration and other billing settings to the product rate plan charge level.  I don't have a date for delivery yet, but will update as we get started on this.

Community Manager
Status changed to: Under Consideration
 
Tutor

Agree with the above comments - we've come across a situation where we want to add new products with a monthly supply charge that will need to be prorated. We bill monthly, and a customer should only need to pay for supply from the time they sign up with us. However we have other recurring charges which will need to stay as non- prorated e.g. a paper bill fee - this will be charged at the same rate regardless of a mid month sign up.

 

Are there any updates on the progress of this suggestion since last post?

 

thanks,

Guru

Looking for an update on this as well.  This is a dealbreaker for us

Zuora Alumni

This is still under consideration for the future roadmap and something we would like to do pending other initiatives.

Savvy Scholar

We would also like to see this introduced at charge level.

Guru

Do we have an update on this?