New Subscription create

[irachamreddy]

I would like to know the better usage of the following fields,

1. Initial term

2. Renewal Setting

3. Renewal Term

4. Auto Renew

My requirement is:

1. Annual Product with 1 year subscription and ends after that

2. Annual Product with for ever subscription

3. Annual Product with 1 year subscription - should be renewed for next 2 years which means 2 times renewal

While creating the product - Rate Plans - Rate Plan Charges (Recurring Charges / Period), I have given the following values

 List Price - 150 USD / Billing Period

 Trigger Condition - Upon Service Activation

 End Date - Align to Subscription End Date

 Billing Period - Annual

 Billing Time - In Advance

 Billing Day - Subscription Start Day

 Billing Period Alignment - Align to Subscription Start

Now, while adding the subscription to account I have given the following values

1. Whose subscription should end after 1 year

    Initial term - 1 Year

    Renewal Setting - Renewal with specific term

    Renewal Term - 1 year

    Auto Renew - No

2. Subscription for ever

     Initial term - 1 Year

     Renewal Setting - Renew To Evergreen

     Auto Renew - Yes

3. Subscription for renewal

     Initial term - 1 Year

     Renewal Setting - Renewal with specific term

     Renewal Term - 3 years

     Auto Renew - Yes

Are my configurations correct? How the renewal term actually works? 

What is the configuration that I need to set to automatically charge the customer during his renewal?

[Rolando · Accepted solution]

Hello,

Here is how you would set up your 3 requirements:

1. Annual Product with 1 year subscription and ends after that

• Initial term - 1 Year
• Renewal Setting - Renewal with specific term
• Renewal Term - 0
• Auto Renew - No

2. Annual Product with for ever subscription

• Term Setting = EVERGREEN

OR

• Initial term - 1 Year
• Renewal Setting - Renew To Evergreen
• Auto Renew - Yes

3. Annual Product with 1 year subscription - should be renewed for next 2 years which means 2 times renewal

• Initial term - 1 Year
• Renewal Setting - Renewal with specific term
• Renewal Term - 1 year
• Auto Renew - Yes

There isn't an out-of-box way to set an annual subscription to renew 2 times only. You can only set the subscription as indicated above, then create a Terms And Conditions amendment to disable Auto-Renew within the 2nd renewal-year. Or, if you are okay not having to renew every year, you can set the Initial Term = 3 years, Renewal Term = 0 with Auto-Renew NO.

In regards to the configuration that you need to set to automatically charge the customer during his renewal, this is a 2-part process:

1) "Auto-Renew" will trigger the subscription to renew automatically at the end of it's term. This setting is used with the Bill Run processing rule: "Automatically Renew Auto-renew Subscriptions"

2) "Auto-Pay" setting allows you to automatically collect payments during payment runs. 

Resources:

• Subscriptions Introduction: https://knowledgecenter.zuora.com/BC_Subscription_Management/Subscriptions/A_Subscription_Introducti...
• Renewing Subscriptions Automatically: https://knowledgecenter.zuora.com/BC_Subscription_Management/Subscriptions/B_Creating_Subscriptions/...
• Amendment- Terms and Conditions: https://knowledgecenter.zuora.com/BC_Subscription_Management/Subscriptions/E_Changing_Subscriptions_...
• Bill Run Processing Rules: https://knowledgecenter.zuora.com/CB_Billing/J_Billing_Operations/G_Bill_Runs/Creating_Bill_Runs#Bil...
• Auto-Pay: https://knowledgecenter.zuora.com/BC_Subscription_Management/Customer_Accounts/A_How_to_Manage_Custo...

[irachamreddy]

How does the 'Renewal Term' actually works? In the scenario below, I have created annual product. What if I mention Renewal Term as 6 months?

[AmyLy]

@irachamreddy - When you set renewal term, it is setting how many months will be on the contract upon renewal.

For example, some customers will do a 6-month initial term with a 12-month renewal.

Your contract starts 04/01/2017.

The first term will run from 04/01/2017 - 09/30/2017.

If and when you renew the contract for the second term, it will renew for a full 12 months, running 10/01/2017 - 09/30/2018.

[irachamreddy]

Great! Thank you for the clarification.

How does it impacts the rate plan charges when we renew it?

Say, I have a product with 2 different rate plan charges.

   1. 'Annual' billing period with price of $150

   2. 'Quarter' billing period with price of $20

Contract starts on 04/01/2017

Initial Term - 12 months

Renewal Term - 6 months

Auto Renew - Yes

When the contract starts on 04/01/2017, we will charge customer $170. 

After the initial term ends, renewal will begin on 04/01/2018. How much the customer will be charged in this scenario?

Thank You!

[AmyLy]

@irachamreddy:

This was your scenario:

 1. 'Annual' billing period with price of $150

   2. 'Quarter' billing period with price of $20

Contract starts on 04/01/2017

Initial Term - 12 months

Renewal Term - 6 months

Auto Renew - Yes

When the contract starts on 04/01/2017, we will charge customer $170. 

After the initial term ends, renewal will begin on 04/01/2018. How much the customer will be charged in this scenario?

This is what would happen upon renewal:

On 4/1/2018, the first invoice will be for a total of $95

• Prorated charge for the annual fee of $75
• One charge for the first quarter 4/1/18 - 6/30/18 of $20

On 7/1/2018, there will be a second invoice for $20 to account for the remaining quarterly charge from 7/1/18 - 9/30/18.

If the subscription renews again on 10/01/18 for another 6-month term, the first invoice after that will be for $95 which includes the prorated annual fee and one quarterly fee.