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Create orders containing multiple charges with annual prices and unaligned billing periods

Zuora

Create orders containing multiple charges with annual prices and unaligned billing periods

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 charges with annual prices and unaligned billing periods.

The charges have full but unaligned billing periods, and each charge is thus calculated separately. The following requirements are met:

  • All rate plan charges have annual prices.
  • All rate plan charges have full billing periods.
  • The billing periods of the charges are unaligned with the same start date and end date.

In this use case, four subscriptions are created with different terms of 12 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 $70,200.00, different terms of 12 months, and the same billing period of four months. You expect to have three invoices generated.

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 12 C1 01/01/2022 12/31/2022 $36,900.00 4 1st $70,200.00
S2 02/01/2022 12 C2 02/01/2022 01/31/2023 $21,500.00 4 1st
S3 03/01/2022 12 C3 03/01/2022 02/28/2023 $11,000.00 4 1st
S4 04/01/2022 12 C4 04/01/2022 03/31/2023 $800.00 4 1st

For each individual charge, the total billed amount for the annual charge across invoices sums to the total annual price amounts. Because the billing periods of the charges are unaligned with the same start date and end date, the total annual price amounts for all charges are not necessarily 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 $70,200.00 and different terms of 12 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 $23,400.01
Invoice Item 2 02/01/2022 05/31/2022 $7,166.67
Invoice Item 3 03/01/2022 06/30/2022 $3,666.67
Invoice Item 4 04/01/2022 07/31/2022 $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 09/30/2022 $12,300.00 $23,399.98
Invoice Item 2 06/01/2022 10/31/2022 $7,166.66
Invoice Item 3 07/01/2022 11/30/2022 $3,666.66
Invoice Item 4 08/01/2022 12/31/2022 $266.66

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 12/31/2022 $12,300.00 $23,400.01
Invoice Item 2 10/01/2022 01/31/2022 $7,166.67
Invoice Item 3 11/01/2022 02/28/2022 $3,666.67
Invoice Item 4 12/01/2022 03/31/2022 $266.67

The subscriptions are billed with the billing target date: 1 April 2022, 1 August 2022, and 1 December 2022. The total invoice amount is $70,200.00, and it is not evenly distributed into 3 invoices. The first invoice has an amount of $23,400.01, the second invoice has an amount of $23,399.98, and the third invoice has an amount of $23,400.01.

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

(Billed invoice amount ÷ Total invoice amount) × Selling price

For example, the amount of the second charge line item in the first generated invoice is $7166.67, which is calculated based on the formula (23400.01÷70200)×21500 and rounded based on the default rounding rule specified for the corresponding account. 

The sum of charge C2 from the three invoices is 21,500.00, which is the calculation result of 7166.67+7166.66+7166.67. That is, the charge C2 has a price of $21,500.00 per year.