This article explains how to set up a recurring charge using the subscription term as the billing period and a list price based on a month. This type of recurring charge setup lets you create subscriptions with different initial and renewal terms.
This scenario explains how to set up a recurring charge to handle subscriptions with a different initial term and renewal term, and a list price based on a month. Suppose you have the following scenario:
- Your customer subscribes to service with an initial term of 6 months and a renewal term of 12 months.
- You want to bill and collect payment for the entire initial term at the start of the term. For example, if the initial term is May 1 through October 31 (6 months), the customer receives an invoice that includes a charge of $600 upon the term start date of May 1.
- You want to bill and collect payment for renewal term at the start of the term. For example, if the renewal term is November 1 through October 31 (12 months), the customer receives an invoice that includes a charge of $1200 upon the term start date of November 1.
Using full-term pricing options, you can create a recurring charge on your product rate plan with:
- A billing period based on the subscription term
- A list price based on a month
Upon renewal, a preview of a subscription will look like the following:
Enable Zuora Billing Settings for the Billing Period and List Price Base
You must enable full-term pricing by defining your Invoice Period Settings. These steps show the required settings for full-term pricing. You can specify other Invoice Period settings as required for your business needs.
See Define Billing Periods for more information on all billing period settings.
Navigation: Click your username at the top right and navigate to Billing > Define Billing Periods
- Select Subscription Term from the Custom Billing Periods section. This option lets you define a billing period as a subscription term.
- Select Per Month from the Customize List Price Base section. This option sets your list price based on a month.
Create a Product Using Full-term Pricing Options
Navigation: Products > Product Catalog in the left-hand navigation section
Create a new product in your product catalog and create a new rate plan.
The following example shows a product rate plan charge that is set up for recurring charges with subscription term as the billing period and a list price based on a month:
Do the following from your product rate plan:
- Add a new Recurring Charge.
- Define the charge amount:
- Charge Model: Flat Fee Pricing
- List Price: $100 with the list price base option of Month. For example, if your subscription term is 6 months, the charge for the full-term is $600. If your subscription term is 12 months, the charge for the full-term is $1200.
- Choose a Trigger Condition.
- Choose Billing Period: Subscription Term
- Choose a Billing Day.
- Choose Billing Period Alignment: Align to Charge
- Save the charge.
Create a Subscription
Navigation: Customers > Subscription in the left-hand navigation section and select add a subscription
See Create a Subscription for detailed steps on how to create a subscription.
The following example shows a subscription with an initial term set to 6 months and a renewal term set to 12 months:
Do the following to see the impact on the invoicing:
- Activate and save the subscription.
- Renew the subscription term.
- Preview the subscription with a preview date set after the start of the renewal term (as shown at the start of this article).