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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?
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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...
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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...
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Re: New Subscription create
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?
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Re: New Subscription create
@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.
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Re: New Subscription create
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!
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Re: New Subscription create
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.
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