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Annual subscription to be billed with different Initial Term and Renewal Term

A customer has an annual subscription whose initial term is 37 months and the renewal term is 12 months. They would like to bill for 13 months in the first year and subsequently bill for 12 months in the next 2 years. Can this be done?





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Zuora Support

Re: Annual subscription to be billed with different Initial Term and Renewal Term

This can be handled using the "Subscription term" billing period which allows to bill the subscriptions based on terms. You can provide the initial term as 13 months and then renewal term as 12 months to bill for first 13 months and then subsequently bill for 12 months in the next 2 years(37 months subscription).

 

Method 1: Please follow the steps in the community article to change the product catalog to align to the "subscription term" billing:

https://community.zuora.com/t5/Subscriptions/How-do-I-set-up-a-subscription-with-charges-whose-billi...

 

Is it true that the Subscription End Date cannot be updated?
The renewal term decides the subscription end date and it cannot be updated during renewal, however you will be able to change the subscription end date using update Terms and Conditions order action.

By adding product for the required service period, we meant that the product to be removed and added again so it aligns to the renewal term accordingly. But doing this will negate the contracts of the removed and added product so the TCB will become $0 for the second year, although your invoice will come out correctly.

 

Method 2:

*1. Order Action: Create an Order with the required products with the Contract effective date as 04/01/2019. The initial term to be provided as 13 months and renewal term to be provided as 12 months.

*2. Perform a Bill run on 05/01/2020 which is the term end date. The invoice will be generated for 13 months with one month as pro-ration included in the invoice.

*3. Order Action : Now we need to perform renewal of the subscription for which term start will be 05/01/2020 and term end date will be 05/01/2021.

*4. In order to enable the next term to 12 months for the products, perform order action to remove the products with the contract effective as 05/01/2020 and Add the products with the contract effective as 05/01/2020 again, this will set the Annual product from start date as 05/01/2020 and end date as 04/30/2020.

*5. From then on the Products will be following 12 months term.





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