Bill Total Charge Amount
You can use the Total Charge Amount field on the Subscription Product page to specify the amount you want to bill for a given recurring charge.
Any difference between the total charge amount provided by you and what's billed by the application is corrected by making a billing adjustment for the last billing period.
Often, the different CPQ systems used by you to configure, price, and quote your products use a different proration method. This can cause a discrepancy between the price quoted by you and price finally calculated.
Consider this example of a yearly subscription to see how a difference in proration methods can cause discrepancies:
Product | Quantity | Start Date | End Date | Duration | Period | Bill Frequency | Inv Rule | Billing Date | Period Start | Align Billing Date |
Data Storage | 1 | 1-Jan-21 | 19-Jan-22 | 384 | Days | Year | Advance | Period Start | Service Start | 10-Jan-21 |
Charge | Periodicity | Unit Price |
Recurring Fee | Year | $10,000.00 |
Period | Charge | Sequence | Bill-from Date | Bill-to-Date | Amount (Subscription Management) | Amount -Daily Rates |
1 | Recurring Fee | 1 | 1-Jan-21 | 9-Jan-21 |
$241.94 (=9/31/12*10000) |
246.58 (=9/365*10000) |
2 | Recurring Fee | 2 | 10-Jan-21 | 9-Jan-22 | $10,000.00 | 10000 |
3 | Recurring Fee | 3 | 10-Jan-22 | 19-Jan-22 |
$268.82 (=10/31/12*10000) |
273.97 =10/365*10000 |
$10,510.75 | 10520.55 |
You can enter the value quoted to your customer in the Total Charge Amount field to correct this difference in the quoted price and calculated price. This creates a bill adjustment at the end of the billing period to account for the differences.
Product | Quantity | Start Date | End Date | Duration | Period | Bill Frequency | Inv Rule | Billing Date | Period Start | Period Type | TCV |
Data Storage | 1 | 15-Jan-21 | 14-Apr-21 | 3 | Month | Month | Advance | Period Start | Calendar Month | Actual | 3015.50 |
Here’s an example of a 3 month subscription with bill adjustment:
Charge | Periodicity | Unit Price | Quoted Total Charge Value |
Monthly Fee | Month | $1,000.00 | 3000 |
Billing Summary:
Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to-Date | Amount |
1 | Recurring Fee | 1 | 15-Jan-21 | 15-Jan-21 | 31-Jan-21 | $548.39 |
2 | Recurring Fee | 2 | 1-Feb-21 | 1-Feb-21 | 28-Feb-21 | $1,000.00 |
3 | Recurring Fee | 3 | 1-Mar-21 | 1-Mar-21 | 31-Mar-21 | $1,000.00 |
4 | Recurring Fee | 4 | 1-Apr-21 | 1-Apr-21 | 14-Apr-21 | $451.62 |