Generate Pricing Terms and Billing Summary

You can select specific pricing behavior for a subscription using the Pricing Term functionality. Pricing terms can help when customers want to increase the price for evergreen subscriptions, ramp pricing for termed subscriptions, or want to reprice subscriptions periodically through the subscription term.

You can apply a pricing term to an evergreen subscription and termed lines in draft status. The pricing term option is available on the Create Subscription page and when adding products. By default, the pricing term is disabled. When you enable a pricing term, you must enter the pricing method and the term.

When you enable the pricing term, the subscription regenerates the billing schedule during the pricing term, for both evergreen and termed lines. For example, a 1-year pricing term results in a 1-year billing schedule for an evergreen line, instead of one billing period. Similarly, for a termed line with 3 years' duration, the billing schedule is generated for 1 year. The billing schedule doesn't exceed the end date of the line. For example, a termed line valid for 6 months that has a pricing term of one year, generates a billing schedule of only 6 months.

When you change the pricing method, pricing term, or the start date, the subscription regenerates the billing schedule when you save that subscription. These are the attributes of the pricing term:

Pricing Term Attribute	Description
Enable pricing term	Applies a pricing method to the product for the specified duration.
Pricing Method	Markup: Select this option to increase the list price. For example, if the list price is $100 and you apply a markup of 10%, the calculated price becomes $110. Markdown:Select this option to decrease the list price. For example, if the list price is $100and you apply a markdown of 10%, the calculated price becomes $90. Reprice:Recalculates the latest price. This doesn't change the charges; only the latest charges are retrieved. Markup and markdown apply to all recurring charges.
Pricing Term	On evergreen lines, the subscription generates the billing schedule for the number of periods specified in the pricing term. On termed lines, the subscription generates the billing frequency, for example, reprice the line every month.
Starting On	Select the date when the pricing term becomes effective. If you keep this blank, the start date of the line is assumed to be the effective date of the pricing term.
Generate billing schedule for the full period	Select this option to generate billing schedules for the entire subscription product duration. You can't use this option with evergreen subscriptions and reprice method.

Here’s an example for pricing terms with and without a Starting On date:

Product	Quantity	Start Date	End Date	Bill Frequency	Invoicing Rule	Billing Date	Period Start	Period Type
Subscription Product1	1	01-Jan-21	31-Dec-21	Month	Advance	Period Start	Service Start	Actual

Charge details with pricing terms:

Charge	Amount	Markup Percentage	Pricing Term	Starting On Value	Today’s Date
Monthly Recurring	$ 100	10	1 Month	Leave blank	02-Dec-21

Billing summary after considering pricing terms:

Period	Charge	Sequence	Interface Date	Bill-from Date	Bill-to Date	Amount (USD)
1	Monthly Recurring	1	02-Dec-21	1-Jan-21	31-Jan-21	100
2	Monthly Recurring	2	02-Dec-21	1-Feb-21	28-Feb-21	110
3	Monthly Recurring	3	02-Dec-21	1-Mar-21	31-Mar-21	121
4	Monthly Recurring	4	02-Dec-21	1-Apr-21	30-Apr-21	133.1

Charge details with pricing terms and starting on dates:

Charge	Amount	Markup Percentage	Pricing Term	Starting On Value	Today’s Date
Monthly Recurring	$ 100	10	1 Month	01-Mar-21	02-Dec-21

Billing summary after considering pricing term and starting on date as 01-Mar-21:

Period	Charge	Sequence	Interface Date	Bill-fromDate	Bill-toDate	Amount (USD)
1	Monthly Recurring	1	02-Dec-21	1-Jan-21	31-Jan-21	100
2	Monthly Recurring	2	02-Dec-21	1-Feb-21	28-Feb-21	100
3	Monthly Recurring	3	02-Dec-21	1-Mar-21	31-Mar-21	110
4	Monthly Recurring	4	02-Dec-21	1-Apr-21	30-Apr-21	121