1. Implementing Subscription Management
  2. Impact of Charge Periodicity and Billing Frequency on Billing Summary

Impact of Charge Periodicity and Billing Frequency on Billing Summary

This topic descripbes the impact of charge periodicity and billing frequency on Billing Summary.

Charge periodicity or Subscription Product Duration is the number of Periods in a Billing Summary. For example, if charge periodicity is quarter, a subscription for a duration of one year would have 4 periods.

You can use different combinations of charge periodicity and billing frequency to build billing summary. Consider the following instances:

  • If the charge periodicity and billing frequency are different, then the number of bill lines will be based on whichever is the shortest period. For example:
    • If billing frequency is quarter and charge periodicity is year, 4 bill lines are generated.
    • If billing frequency is year and charge periodicity is month, 12 bill lines are generated.
  • Interface Date depends on Billing Frequency. To generate the bill every quarter, interface date will be the same for all the bill lines generated in that quarter.

Here is an example of a subscription with products with different charge periodicity:

Subscription Information:

Subscription Header Start Date End Date Invoicing Rule Billing Date Period Type
Subscription S1 Jan 1st Dec 31st Arrears Calendar Month Actual

Effectivity: Start Date is in future

Product Information:

Products Charge Periodicity Recurring Charge

Total amount

for full duration of 1 year

 Total Amount
Product 1 – P1 Month $ 100 12 months * $ 100 per month $ 1200
Product 2 – P2 Quarter $ 300 4 quarters * $ 300 per quarter $ 1200
Product 3 – P3 Year $1200 1 year * $ 1200 per year $ 1200

Now consider the following example of products with three Charge Periodicities - Month, Quarter and Year, and three Billing Frequencies - Month, Quarter and Year. You can see the nine available combinations and how each bill line will in different billing summaries for all the combinations:

Products Charge periodicity Billing Frequency # Periods # Bill lines Interface date Bill from date Bill to date Amount per bill line
P1 Month Month 12 12 Changes every Month Month Start Month end

$ 100
P1 Month Quarter 12 12 Changes every Quarter Month Start Month end

$ 100
P1 Month Year 12 12 Changes every Year Month Start Month end

$ 100
P2 Quarter Month 4 12 Changes every Month Month Start Month end

$ 100
P2 Quarter Quarter 4 4 Changes every Quarter Quarter Start Quarter End

$ 300
P2 Quarter Year 4 4 Changes every Year Quarter Start Quarter End

$ 300
P3 Year Month 1 12 Changes every Month Month Start Month end

$ 100
P3 Year Quarter 1 4 Changes every Quarter Quarter Start Quarter End

$ 300
P3 Year Year 1 1 Changes every Year Year Start Year End

$ 1200