Create a Discount Charge
Use the following steps to set up a discount charge:
- Click your username at the top right and navigate to Billing > Enable Charge Types / Models.
- Enable the Discount Charge Models that you want to use (for example, Discount-Fixed Amount or Discount-Percentage).
- Create a product rate plan charge that uses discount charge model. You must create the discount charge as a Recurring Charge.
- In the Charge Amount section, specify the following information:
- Charge Model: Select the charge model you want to use, either Discount-Fixed Amount or Discount-Percentage.
- Discount Amount: Enter the discount amount or discount percentage
- Level: Select the level at which you want to apply the discount (rate plan, subscription, or account level)
- In the Timing and Frequency of Charge section, specify the following information:
- Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.
- End Date: Select an end date option from the list. The end date option determines when the charge ends after the charge starts billing.
- Billing Period: The frequency with which the charge repeats. You can configure these options under Define Invoice Periods.
- Billing Day: Determines when the specific charge is billed. You can configure these options under Define Invoice Periods.
Selecting the Default from Customer Account option overrides the bill cycle day specified for the customer. For example, if you select the fifth of the month for the billing date, this charge will be billed every month on the fifth of the month, for all customers who have purchased this product. See Product Catalog Dates: Product Rate Plan Charge Date Attributes for more information about these settings.
- Billing Period Alignment: Select a value from the list.
- In the Additional Options section, specify the following information:
- Apply Discount To: Select the type of charges that you want to apply the discount to (for example, one-time, recurring, or usage if all three charges are present).
Because you selected a discount charge type, you can select whether to copy the accounting code from another (non-discount) charge, or define a dedicated accounting code on the new discount charge. In the Name section, select Use Discount Specific Accounting Code, then select an Accounting Code from the list to use this feature.
Use discount specific accounting codes, rule and segment to manage revenue
If you select the Use discount specific accounting codes, rule and segment to manage revenue checkbox, additional configurations are displayed, as shown in the following figure.
- When the Use discount specific accounting codes, rule and segment to manage revenue checkbox is selected, the discount will use the revenue recognition rule and accounting codes that you configure on the screen shown above.
- When the checkbox is not selected, the discount will use the accounting codes and revenue recognition rule of the charge that the discount is being applied to.
The segment values that the discount uses depend on how you have configured the Discount segment value setting located in Finance > Configure Segments.
See Additional Configurations for more information.
As an example, let's say that you have a rate plan that contains a flat fee charge ("Monthly Service Fee") and a discount charge ("Coffee Discount"). You have not selected the Use discount specific accounting codes, rule and segment to manage revenue checkbox.
When the Coffee Discount is applied to the Monthly Service Fee, the resulting discount invoice item will automatically use the same accounting codes, revenue recognition rule, and segment values as the Monthly Service Fee.
There is a limitation of 100 years maximum between the EffectiveStartDate and TermEndDate of termed subscriptions when using DiscountMetrics.
Change a Discount Charge
You can update a percentage discount charge by creating an amendment. But you cannot update a fixed-amount discount charge to change the value of a discount that you have already provided. Because your customers may have applied the discount to their subscriptions, you cannot change the terms of the discount.
To update a fixed-amount discount charge, you must remove the existing discount charge and add a new discount:
- Create an amendment to remove the incorrect discount charge.
- Create a second amendment to add the corrected discount charge.
- Your customers can then apply the new discount to new subscriptions.