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Setting a product rate plan charge on a subscription that gets used on each amendment

I have a use case and I'm not sure how to handle it correctly in Zuora.

 

We have a product that charges on a per-seat license.  Users start out with a set amount of seats, but they can add seats and the product integration with Zuora will amend the subscription if they go above their allotted amount in the contract.

 

The per-seat rate is different for each billing account (for some users it may be $50 per year, for some it may be $35 - depending on the subscription).  This is a licensed product so the charge gets pro-rated over the course of the customer's subscription term when added mid-term.

 

For instance:  Our standard offering is typically 25 seats at $50 per seat per year.  A customer is willing to buy more seats upfront at a discounted rate (negotiated to $35 per seat per year but they're buying 100 up front).  When the customer adds their 101st seat/user in the product, it needs to tell Zuora to pro-rate that seat for the remainder of the subscription at $35/seat/year instead of the default rate plan charge of $50/seat/year.

 

My question is this:  Is there a way to lock in a rate for a billing account or subscription so that every time the product integration adds a seat, the seat's rate plan charge doesn't fall back to the default value (instead of using the negotiated value)?  That way the product would just add a seat and Zuora would know the correct rate plan charge to assign to it (pro-rating the $35 charge instead of the $50 charge)? 


The less billing information I need to capture in the product, the better!  Thanks for any help!

 

1 REPLY 1
Zuora Support Moderator

Re: Setting a product rate plan charge on a subscription that gets used on each amendment

Hi stevenreedkelly, 

When creating the add product amendment, you can lock in a rate for a subscription by overwriting the default price from the product catalog. But the limitation is the new amendment price will only take effect to the new added product, the price will not take effect on the price of the existing charge. 

The commonly used method is create an update product amendment to update the price and amount of the existing charge. When a bill run is triggered, most likely it will generate a negative charge to give back the overcharged part to the customer and generate a new positive amount based on the new updated price and amount. 

Regards,
Yong Xiang | yxiang@zuora.com
Application Support Engineer | Zuora Inc.



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