1. Using Subscription Management
  2. Pricing Terms

Pricing Terms

Use pricing term functionality to set specific pricing behavior on a subscription.

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

After you enable a 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, then 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 $100 and 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.

Let's see an example of a one-year subscription with 5% price increase every year. To achieve this, let's assume that you select:

  • Pricing Method: Markup, 5%

  • Pricing Term: 1 Year

  • Starting On: Leave blank

If the list price is $1000, the billing schedule is displayed as follows:

Invoice #1 - Year 1 - $1,000
Invoice #2 - Year 2 - $1,050
Invoice #3 - Year 3 - $1,102.50

Update Pricing Terms for Multiple Subscriptions

You can update the pricing terms for multiple subscriptions using the mass update functionality.

The mass update functionality lets you update the Pricing Method and the Pricing Term Adjustment Percentage Attributes.

Note:
  • You can perform a mass update for any product that has the Enable pricing term check box enabled.
  • This is only applicable for those subscriptions that are in draft or active status.
  • Subscriptions that are in expired status are only affected by an update in pricing terms if they undergo an amendment.

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