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