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Product Setup: Monthly billing of annual overage fee

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Product Setup: Monthly billing of annual overage fee

Has anyone seen this scenario?

 

I have a group who wants to bill an annual overage fee on a monthly basis. 

 

The yearly transaction count would be started in January. Once the count exceeds 85,000 annually, the customer would be charged .38 for every additional transaction on a monthly basis.

 

I am planning on handling this with an annual overage fee and billing it annually. Any other ideas?

1 REPLY 1
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Re: Product Setup: Monthly billing of annual overage fee

Hi @MKent525 ,

 

Here's one common practice for the described scenario, let me know if this setup would work for you!

 

Basically we'll need to create a Charge with the model set to "Overage Pricing". The included units should be 85000/12 = 7084 (rounded), and the List Price is 0.38. The Billing Period should be Month:

 

rolling3.JPG

 

And the Rolling options should be configured like this:

 

rolling.JPG

 

Now, when I upload 10K usage units for every month, it will only start charging on a monthly basis once the total amount for the 12 periods is more than 7084 * 12:

 

rolling2.JPG

 

Supporting reference:

http://knowledgecenter.zuora.com/BC_Subscription_Management/Product_Catalog/B_Charge_Models/A_Overag...



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