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Create Product Rate Plan Charges

A product rate plan can contain one or more charges, and each charge can be one of three types: one-time, recurring, or usage-based.

Creating a Product Rate Plan Charge

To create a product rate plan charge:

  1. View the rate plan that you want to edit.
  2. Within the rate plan, select the type of charge model you want to use. Charge models determine how the charge is calculated. Zuora supports four charge models: flat fee pricing, per unit pricing, volume pricing, and tiered pricing.
  3. Complete the fields to create the new charge.
  4. Click save.

The following sections provide three examples of setting up rate plan charges using different types of charges and charge models.

Set-Up Fee (One-Time Flat Fee)

In a flat-fee charge model, the amount to charge is a fixed number applied to a one-time or recurring charge.

To create a flat-fee, one-time charge:

  1. View the rate plan that you want to edit.
  2. Under One-Time Charges, click add new.
  3. Specify the following information:
    • Charge Name: Enter a name for the charge. For example, "Set Up Fee."
    • Description: Enter a description for the charge. This field is optional.
    • Revenue Recognition Code: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition code from the list.
    • Revenue Recognition Trigger: This field is displayed if your company has enabled revenue recognition fields. Select one of the revenue recognition trigger conditions.
    • Charge Model: Select Flat Fee Pricing from the list.
    • List Price: Enter a price for the set-up fee. You can change the list price when you add this charge to a subscription
    • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.
  4. Optionally, select an accounting code for the product from the list:
    • If you are using Zuora Finance, see Map accounting codes for more information about using accounting codes in Zuora.
  5. Click save to save the new rate plan.

Seat Licenses (Recurring, Per Unit)

Recurring charges can be billed on a monthly, quarterly, semi-annual, or annual basis. This example describes how to set up a monthly recurring charge using the per unit pricing charge model. In this type of charge model, the total amount to charge will be equal to the per unit price multiplied by the total number of units (quantity).

To set up a recurring, per-unit charge:

  1. Navigate to the rate plan that you want to edit.
  2. Within the rate plan, under Recurring Charges/Period, click add new.
  3. Enter the following information to create a new recurring, per-unit charge:
    • Charge Name: Enter a name for the charge. For example, you might call this "Ultimately Screen Capture Monthly."
    • Description: Enter a description for the charge. This field is optional
    • Revenue Recognition Code: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition code from the list.
    • Revenue Recognition Trigger: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition trigger condition.
    • Charge Model: Select Flat Fee Pricing from the list.
    • List Price: Enter the price for the recurring charge. You can change the list price later, if necessary, when you add this charge to a subscription.
    • List Price Base: Choose Billing Period, Month, and Week.
      • The Month option sets the list price based on a month charge. For example, if the list price is $100, the invoice for a 12-month period is $1200.
      • The Billing Period option sets the list price based on the billing period. For example, if the list price is $1200, the invoice for a 12-month period is $1200. 
      • The Week option sets the list price based on a week charge. For example, if the list price is $100, the invoice for a 12-week period is $1200.

        The Week option is in Limited Availability. If you wish to have access to this enhancement, submit a request at Zuora Global Support. We can help you evaluate if early adoption is right for you.

    • 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 Billing Periods. 

      The Subscription Term option allows you to choose the entire subscription term as the billing period. The List Price Base must set to Month or Week.  See Recurring Charges for Different Initial and Renewal Subscriptions for more information.

    • Billing Day: Determines when the specific charge is billed. You can configure these options under Define Billing 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 Timing: Choose In Advance or In Arrears.
    • Billing Period Alignment: Select a value from the list.
    • Pre-payment Rules: Enter the number of periods (in whole numbers) for which the customer has prepaid this charge. See Prepayments for more information. In this example of a monthly recurring charge, if you enter 2 under How many periods to prepay, it indicates that the applicable customer has prepaid for two months of service.
  4. Optionally, select an accounting code for the product from the list. 
  5. Click save to save the new rate plan.

Storage (Usage, Tiered with Overage)

Usage-based charges are used to track resources that are metered and charged based on an amount consumed. In this example, we set up a charge for file storage with a minimum included storage units of 500 gigabytes (this is the amount of the included units), as well as an overage price for any storage used beyond the included units. The price for storage is based on tiered pricing in which charges vary progressively as the volume of storage units purchased increases. In this example, the final tier is considered overage.

Tiered with Overage Example

The following is an example of what a tiered pricing table might look like with an overage price:

Tier From To List Price Price Format
1 1 500 0 Per Unit
2 500 1000 .10 Per Unit
3 1000 3000 .08 Per Unit
4 3000 10000 .06 Per Unit
Overage Price .15 USD Per Unit Thereafter

Creating a Tiered Pricing with Overage Usage Charge

To set up a usage charge with tiered pricing and overage:

  1. Navigate to the rate plan that you want to edit.
  2. Within the rate plan, under Usage Charges/UOM, click add new.
  3. Complete the following fields to create a new usage charge with a tiered with overage pricing charge model:
    • Charge Name: Enter a name for the charge.
    • Description: Enter a description for the charge. This field is optional.
    • Revenue Recognition Code: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition code from the list.
    • Revenue Recognition Trigger: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition trigger condition.
    • Charge Model: Select Tiered Pricing from the list. This causes additional fields to appear on the page.
    • UOM: The unit of measure (UOM) for the usage charge. The units of measure are defined by your company.
    • Rating Group: Select a rating group from the list. Usages is rated based on the rating group. This field is only displayed when you select the per unit, volume pricing, or tiered pricing charge model in the Charge Model field. See Rating Usages by Groups for detailed information.
      The Rating Group field is in Limited Availability. If you wish to have access to this enhancement, submit a request at Zuora Global Support. We can help you evaluate if early adoption is right for you.
    • Price Table: Enter the pricing for each tier, as well as the overage price to charge if there is an overage.
    • 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. Select a billing period from the list. You can configure these options under Define Billing Periods.
    • Billing Day: Determines when the specific charge is billed. You can configure these options under Define Billing Periods.

      Many of our customers select Default from Customer Account for the billing day. 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. This setting overrides the bill cycle day specified for the customer. See Product Catalog Dates: Product Rate Plan Charge Date Attributes for more information about these dates. 

    • Billing Period Alignment: Select a value from the list.
    • Smoothing Model: Select a smoothing model from the drop-down list to allow your customers to roll over their usage. This is an optional field. See Overage Smoothing Charge Model for more information.
  4. Optionally, enter an accounting code for the product.
  5. Click save to save the new rate plan.
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