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Create orders containing multiple subscriptions and multiple charges with odd terms

Zuora

Create orders containing multiple subscriptions and multiple charges with odd terms

The Annual List Price 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. To manage and access features from the self-service interface, see Manage Features.

With Annual List Price, you can create orders that contain multiple subscriptions and multiple charges, and the terms of the charges in the orders are not 12 months.

The charges have aligned full billing periods, and the following requirements are met:

  • All rate plan charges have annual prices.
  • All rate plan charges have full billing periods.
  • The last billing period is prorated.

In this use case, four subscriptions are created with the same term of 10 months, and three invoices are generated based on the billed charges. 

As shown in the following table, four subscriptions are created by creating an order, with a total amount of $58,500.00, the same term of 10 months, and the same billing period of four months. You expect to have three invoices generated, and the last invoice is prorated for two months.

Subscription number Term start date Term (Month) Charge number Charge start date Charge end date Selling price Billing period (Month) Billing cycle day Total Invoice amount
S1 01/01/2022 10 C1 01/01/2022 10/31/2022 $36,900.00 4 1st $58,500.00
S2 01/01/2022 10 C2 01/01/2022 10/31/2022 $21,500.00 4 1st
S3 01/01/2022 10 C3 01/01/2022 10/31/2022 $11,000.00 4 1st
S4 01/01/2022 10 C4 01/01/2022 10/31/2022 $800.00 4 1st

Each individual charge is prorated based on the annual price and the term. Because you have multiple charges billed, the total annual price amounts for all charges are evenly or almost evenly distributed across invoices.

To create such orders, perform the following steps:

  1. Enable the Annual List Price settings.
  2. Create four recurring product rate plan charges with the Flat Fee Pricing charge model.
  3. Create and activate an order with four subscriptions to the four charges, with the total amount of $58,500.00 and the same term of 10 months.

After the order is activated, you can get three invoices.

The following table lists the allocated amount and service period of each invoice item in the first invoice with invoice number INV001.

Invoice item Service start date Service end date Amount Total amount
Invoice Item 1 01/01/2022 04/30/2022 $12,300.00 $23,400.00
Invoice Item 2 01/01/2022 04/30/2022 $7,166.66
Invoice Item 3 01/01/2022 04/30/2022 $3,666.67
Invoice Item 4 01/01/2022 04/30/2022 $266.67

The following table lists the allocated amount and service period of each invoice item in the second invoice with invoice number INV002.

Invoice item Service start date Service end date Amount Total amount
Invoice Item 1 05/01/2022 08/31/2022 $12,300.00 $23,400.00
Invoice Item 2 05/01/2022 08/31/2022 $7,166.67
Invoice Item 3 05/01/2022 08/31/2022 $3,666.66
Invoice Item 4 05/01/2022 08/31/2022 $266.67

The following table lists the allocated amount and service period of each invoice item in the third invoice with invoice number INV003.

Invoice item Service start date Service end date Amount Total amount
Invoice Item 1 09/01/2022 10/31/2022 $6,150.00 $11,700.00
Invoice Item 2 09/01/2022 10/31/2022 $3,583.33
Invoice Item 3 09/01/2022 10/31/2022 $1,833.34
Invoice Item 4 09/01/2022 10/31/2022 $133.33

The amount displayed in the Amount column for each invoice item is calculated based on the following formula:

(Billed invoice amount ÷ (Total invoice amount ÷ (Odd term ÷ 12))) × Selling price

For example, the amount of the first charge line item in the first generated invoice is $12,300.00, which is calculated based on the formula (23400÷(58500÷(10÷12)))×36900 and rounded based on the default rounding rule specified for the corresponding account.

Because the billing period is 4 months for the four subscriptions, the second invoice with invoice number INV002 is generated with the service start date of 1 May 2022.

Similarly, the third invoice with invoice number INV003 is generated with the service start date of 1 September 2022.