Generate Pricing Term and Billing Summary

This topic describes how you can generate pricing terms and billing summary.

You can select a specific pricing behavior for a subscription using the Pricing Term functionality. Pricing term can help where customer wants to increase the price for evergreen subscriptions, ramp pricing for termed subscriptions or want to reprice subscriptions periodically through 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 for the duration of the pricing term, for both evergreen and termed lines. For example, a one-year pricing term results in a one-year billing schedule for an evergreen line, instead of one billing period. Similarly, for a termed line with three years' duration, the billing schedule is generated for one year. The billing schedule doesn't exceed the end date of the line. For example, a termed line valid for six months that has a pricing term of one year, generates a billing schedule of only six 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
Enablepricing term	Appliesa pricing method to the product for the specified duration.
PricingMethod	Markup: Select this optionto increase the list price. For example, if the list price is $100 andyou 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 chargesare retrieved. Markupand markdown apply to all recurring charges.
PricingTerm	Onevergreen lines, the subscription generates the billing schedule for the number of periods specified in the pricing term. Ontermed lines, the subscription generates the billing frequency, for example, reprice theline every month.
StartingOn	Select the date whenthe 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.
Generatebilling schedule for the full period	Selectthis option to generate billing schedules for the entire subscription product duration. Youcan't use this option with evergreen subscriptions and reprice method.

Here’s an example for Pricing term with and without Starting On date:

Product Details and Billing Profile details

Product	Quantity	StartDate	EndDate	BillFrequency	InvoicingRule	BillingDate	Period Start	Period Type
Subscription Product1	1	01-Jan-21	31-Dec-21	Month	Advance	Period Start	Service Start	Actual

Charge Details with pricing term

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

Billing Summary after considering Pricing term

Period	Charge	Sequence	InterfaceDate	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	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 term and starting on date

Charge	Amount	Markup Percentage	Pricing Term	Starting on	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	InterfaceDate	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