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Overview of Annual List Price

Zuora

Overview of Annual List Price

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The Annual List Price feature provides you the capability to set up a recurring charge with an annual list price in the product catalog, and then sell the charge with a variety of billing periods, for example, monthly, quarterly, every four months, semi-annually, annually, and so on. You can bill subscriptions to generate expected invoices for your end customers.

In some scenarios, you want to price based on subscription term and bill your customers for the total contracted amount. For example, if a subscription term is seven months, you want to configure the charge with the price as $5,000 per seven months, and the billing period as quarterly. Use Specific Months as list price base option in the Annual List Price feature. For more information about Specific Months list price base, see Specific Months List Price.

Feature overview

With the Annual List Price feature, you can set up recurring product rate plan charges, create subscriptions with annual recurring charges, and bill subscriptions can be billed to generate the expected invoices. To start trying the Annual List Price feature, see Get started with Annual List Price.

For each individual charge, the total billed amount for the annual charge across multiple invoices sums to the total annual price.

If multiple charges exist in one subscription, the total annual price amounts of all charges can be evenly or almost evenly distributed across multiple invoices. The annual charges must have aligned full billing periods, with the following criteria:

  • All rate plan charges have annual prices.
  • All rate plan charges have full billing periods.
  • All billing periods have the same start date and end date.

If the annual charges do not have aligned full billing periods, the total annual price amounts of all charges cannot be evenly distributed across multiple invoices.

Prerequisites and activation

To use Year as a list price base, you must have the Orders or Orders Harmonization feature enabled.

To activate Annual List Price settings, perform the following steps :

  1. In the upper right of the Zuora UI, click your avatar, and then click Billing.
  2. On the Billing Settings page, click Define Billing Periods.
  3. On the billing period customization page, select the Year check box in the Customize List Price Base section to activate the Annual List Price settings.

Supported billing periods

With the Annual List Price feature, you can set up a recurring charge with an annual list price by using a newly introduced list price base: Year. 

The annual list price base works with the following billing periods:

  • Month
  • Quarter
  • Semi-Annual
  • Annual
  • Two Years
  • Three Years
  • Five Years
  • Specific Months
    A year of 12 months must be evenly divided by the number of specific months, for example, 1, 2, 3, 4, 6, and 12. Alternatively, the number of specific months must be equal to or an integer multiple of 12, for example, 24, 36, 48, and so on.

Supported charge types and charge models

The Year list price base supports the Recurring charge type and the following charge models: 

  • Flat Fee Pricing
  • Per Unit Pricing
  • Volume Pricing
  • Tiered Pricing

Enhancements specific to Annual List Price

The Zuora UI, API, data source, AQuA, Data Query, and Object Query are enhanced to support specifying the Per Year enum value for the existing List Price Base field on the Product Rate Plan Charge and Rate Plan Charge objects. 

The following table lists the detailed changes introduced in the Flexible Billing Attributes feature.

Object Field Access approaches
Product Rate Plan Charge New enum value Per Year added to the existing List Price Base field
Rate Plan Charge New enum value Per Year added to the existing List Price Base field

Restrictions and limitations

When using the Annual List Price feature, keep the following restrictions and limitations in mind: