Regular Bundle

Note: This topic is not applicable for the health insurance business.

In case of a regular bundle, pricing is defined at the bundle level. The system determines the rate by identifying the tiering range within which the total service quantities used for all price items in the bundle fall. Note that the rate is determined from the tiering range of the price component whose pricing eligibility criteria is met. Let us understand this with the help of an example.

Bundle X, which is a regular bundle, contains the following three price items:

  • Price Item A

  • Price Item B

  • Price Item C

The following tiered pricing is defined for Bundle X:

Quantity Range Rate ($) per unit
1 - 3000 3
3001 - 4000 2
4001 - 8000 1
Note: In the above example, the assumption is that there only one rate component, one price component within the rate component, and pricing eligibility criteria is not defined for the price component.

Now, when the user consumes 1500 units of Price Item A, 1000 units of Price Item B, and 2000 units of Price Item C, the system adds the quantities of services used for all price items in Bundle X (i.e. 1500+1000+2000=4500), and then determines the range within which the total units (i.e. 4500) fall. In this case, the total units fall in the 4001 - 8000 range, and therefore the system uses $1 as the rate for calculating charges.

If the multi parameter based pricing feature is enabled, you can define pricing for regular bundles based on multiple parameters. For example:

Bundle X Country Currency
Pricing 1 US USD
Pricing 2 Germany USD

Pricing 1 and Pricing 2 are defined for Bundle X based on two parameters - Country and Currency. Before you define pricing based on country and currency, you need to define these parameters in the system. Once you define these parameters, you need to associate them to the regular bundle (i.e. Bundle X) and then add price items (i.e. Price Item A, Price Item B, and Price Item C) to the bundle. Note that you can add a price item to a regular bundle when the regular bundle and price item have same parameters associated with them for the specified date range. Therefore, before adding Price Item A, Price Item B, and Price Item C to Bundle X, you should ensure that Country and Currency are also associated with these price items.

Then, when you define Pricing 1 for Bundle X, you need to set the following price item parameters:

  • Country - US

  • Currency - USD

Similarly, you need to define Pricing 2 with Country set to Germany and Currency set to USD.

The following table lists the tiering ranges defined in Pricing 1 where price item parameters are set to US, USD:

Tier Sequence Rate Tiering Criteria Price Item Price Item Parameters From To
10 2 Number of Transactions Bundle X US, USD 0 500
20 1 Number of Transactions Bundle X US, USD 500

The following table lists the tiering ranges defined in Pricing 2 where price item parameters are set to Germany, USD:

Tier Sequence Rate Tiering Criteria Price Item Price Item Parameters From To
10 4 Number of Transactions Bundle X Germany, USD 0 1000
20 3 Number of Transactions Bundle X Germany, USD 1000

Now, when the user performs 500 transactions (in USD) of Bundle X in Germany, 1200 transactions (in USD) of Bundle X in US, the system creates two billable charges. In one billable charge (with Bundle X, US and USD combination), the system uses $1 as the rate for calculating charges, and in another billable charge (with Bundle X, Germany and USD combination), the system uses $4 as the rate for calculating charges.