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Prepaid with Drawdown

Zuora

Prepaid with Drawdown

The Prepaid with Drawdown feature is in the Early Adopter phase. We are actively soliciting feedback from a small set of early adopters before releasing it as generally available. If you want to join this early adopter program, submit a request at Zuora Global Support.

Overview

The Prepaid with Drawdown feature is a pricing model for consumption-based services, such as data storage. Under this model, customers pay upfront to receive a number of units, usually for a period of time like a month or a year. Then they consume against that prepayment balance in a use-it-or-lose-it fashion, with a possibility of topping up more units or being charged for any overage. This model strikes a balance between upfront commitment and the pure pay-as-you-go pricing models. 

Prerequisite

You need to enable Orders to use this feature.

Notes and limitations

The Prepaid with Drawdown feature currently has the following general known facts and limitations:

  • This feature deals with non-cash units (for example, GB, Seats, Minutes, or Virtual Currency). Prepaying and holding cash on account is not supported at this time.   
  • Prepaid units within a validity period are use-it-or-lose-it. There are no automatic credits for unused units or rollover capability at this time.
  • When changing the subscription term (especially making it shorter), removing products, and canceling subscriptions, prepayments will be credited, without pro-ration, for the number of whole validity periods already billed.
  • When triggering a subscription preview and simulating usage upload for a drawdown charge, the rating amount is calculated as if there are no available prepaid units to be consumed against.
  • Presentation on the invoice of the details of prepayment and drawdown is not supported at this time.
  • Suspend a subscription, Resume a subscription and Change the owner of a subscription order actions are not supported. 
  • The Update rate plan charge trigger condition? and Allow update Subscription trigger dates? settings should be kept to the default option No.
  • Order Line Item is not supported at this time. 

Additional resources