Create prepayment charge

Use the Zuora UI

Suppose you run a software company that charges customers by the number of calls to your API. You can create the following prepayment charges to sell your service:

• Monthly Plan: $20, 10 million API calls per month
• One-time Top-up: $3, 1 million API calls, valid for one month

Steps:

1. Create a product in the product catalog.
2. Add 2 rate plans for the product.

To create the Monthly Plan charge:

1. Within one rate plan created, click +add new under Recurring charges/Period.

2. Complete the following fields:

• Charge name: Monthly Plan
• Charge model: Flat Fee Pricing
• List price: 20 USD/Month

3. Switch on the Prepayment toggle. Complete the following fields:

• Prepayment UOM: Million calls
• Prepayment Units: 10
• Validity Period: Month
• Prepayment Total Units: 10 Million calls/Month (Automatically calculated)

4. Complete the fields in the Timing and Frequency of Charge section as applicable. See product rate plan charge for more information.

5. Click Save. This charge will have a Prepaid icon  next to its name in the rate plan.

To create the One-time Top-up charge:  

1. Within the other rate plan created, click +add new under One-time Charges.

2. Complete the following fields:

• Charge name: One-time Top-up
• Charge model: Flat Fee Pricing
• List price: 3 USD

3. Switch on the Prepayment toggle. Complete the following fields:

• Prepayment UOM: Million calls
• Prepayment Units: 1
• Validity Period: Month
• Prepayment Total Units: 1 Million calls /Month (Automatically calculated)

4. Complete the fields in the Timing and Frequency of Charge section as applicable. See product rate plan charge for more information. 

5. Click Save. This charge will have a Prepaid icon  next to its name in the rate plan.

After creating the prepayment charges above, you will see them listed in your product. 

Below is a summary of the fields specific to a prepayment charge:  

After creating the product and the prepayment charges, you can create drawdown charges in the rate plans to match the prepayment charges.

Use REST API

You can use the CRUD: Create a product rate plan charge operation to create a prepayment charge. Note that WSDL version 114+ is required for the X-Zuora-WSDL-Version header parameter. Determine the following mandatory fields specific to a prepayment charge:

Sample REST API request: Create a monthly recurring prepayment charge.

{
"Name": "Monthly Plan",
"ChargeModel": "Flat Fee Pricing",
"BillingPeriod": "Month",
"BillCycleType":"DefaultFromCustomer",
"ChargeType":"Recurring",
"ProductRatePlanChargeTierData":
{
   "ProductRatePlanChargeTier":
   [
       {
       "Active": true,
       "Currency":"USD",
       "Price":"20"
       }
   ]
},
"ProductRatePlanId":"2c92c0f87a85be74017a88ee747862a8",
"TriggerEvent":"ContractEffective",
"BillingPeriodAlignment":"AlignToCharge",
"AccountingCode":"Accounts Receivable",

//Fields related to prepayment charge
"IsPrepaid":true,
"PrepaidOperationType":"topup",
"PrepaidQuantity":"1",
"PrepaidUom”:"Million calls",
"ValidityPeriodType”:"MONTH"
}

Use SOAP API

You can also use SOAP API to create a prepayment charge. Note that WSDL version 114+ is required for using the Prepaid with Drawdown feature.  

Sample SOAP API request: Create a monthly recurring prepayment charge.

<ns1:create>
 <ns1:zObjects xsi:type="ns2:ProductRatePlanCharge">
  <ns2:AccountingCode>Accounts Receivable</ns2:AccountingCode>
  <ns2:BillingPeriod>Month</ns2:BillingPeriod>
  <ns2:BillingPeriodAlignment>AlignToCharge</ns2:BillingPeriodAlignment>
  <ns2:ChargeModel>Flat Fee Pricing</ns2:ChargeModel>
  <ns2:ChargeType>Recurring</ns2:ChargeType>
  <ns2:Name>Monthly Plan</ns2:Name>
  <ns2:ProductRatePlanChargeTierData>
   <ns1:ProductRatePlanChargeTier xsi:type="ns2:ProductRatePlanChargeTier">
    <ns2:Active>true</ns2:Active>
    <ns2:Currency>USD</ns2:Currency>     
    <ns2:Price>20</ns2:Price>
   </ns1:ProductRatePlanChargeTier>
  </ns2:ProductRatePlanChargeTierData>        
  <ns2:ProductRatePlanId>2c92c0f87a85be74017a88ee747862a8</ns2:ProductRatePlanId>
  <ns2:TriggerEvent>ContractEffective</ns2:TriggerEvent>
//Fields related to prepayment charge
           <ns2:IsPrepaid>true</ns2:IsPrepaid>
           <ns2:PrepaidOperationType>topup</ns2:PrepaidOperationType>
           <ns2:PrepaidQuantity>1</ns2:PrepaidQuantity>
           <ns2:PrepaidUom>Million calls</ns2:PrepaidUOM>
           <ns2:ValidityPeriodType>MONTH</ns2:ValidityPeriodType>
 </ns1:zObjects>
</ns1:create>

See ProductRatePlanCharge for information on the object and its fields.

Validity period

Note the following things when setting the validity period for a prepayment charge.

1. Validity period must be evenly distributed over the subscription term. 

2. Order actions like adding a recurring prepayment product, updating a prepayment product, and extending a prepayment subscription must happen on the first day of a validity period.

3. Validity period must be equal to or multiple times of the billing period of a prepayment charge.

Notes and limitations

• Billing Period for prepayment charges cannot be Week.
• When a prepayment charge is using the Per Unit model, the list price billing period should not be Week.