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Create Rate Plan Charges and Tiers in Salesforce

A product rate plan can contain one or more charges, and each charge can be one of three types: one-time, recurring, or usage-based. When you select a charge type on the Enter charge detail page, the relevant fields appear for that charge type.

For each charge type, you select a charge model. The type of charge models you select determines how the charge is calculated. 

Create a One-Time Charge

One-time charges occur once only, with no recurrence, and can be used for activation, cancellation, or setup fees.

To set up an one-time charge:

  1. View the rate plan that you want to edit.
  2. On the Product Rate Plan page, click New Product Rate Plan Charge.
  3. Specify the following field values.
    • Name: Enter a name for the charge, e.g., "Set Up Fee."
    • Charge Type: Click and select One-Time.
    • Accounting Code: Select an accounting code for the product from the list.
    • Description : Enter a description of the charge.
    • Charge Model: Select the type of charge models you want to use. Charge models determine how charges are calculated. The following charge models are supported for the One-Time charge type. See Charge Models for detail information about charge models.
      • Flat Fee Pricing: The amount to charge is a fixed number applied to an one-time charge.
      • Per Unit Pricing: The amount to charge is expressed as a price per unit. 
      • Volume Pricing: The price to be charged is based on the volume purchased. 
      • Tiered Pricing: Pricing changes progressively as the volume increases. 
    • UOM: If the Charge Model field is not set to Flat Fee Pricing, select a unit of measure to use to calculate this charge. The units of measure are defined by your company.
    • Default Quantity: For the Per Unit Pricing model, specify the default quantity of units.
    • Minimum Quantity: For the Per Unit Pricing model, specify the minimum number of units for this charge. Use this field and the Max Quantity field to create a range of units allowed in a product rate plan charge.
    • Maximum Quantity: For the Per Unit Pricing model, specify the maximum number of units for this charge.
    • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge is applied.
    • Revenue Recognition Rule Name: Select when to recognize the revenue for this charge.
    • Rev Rec Trigger Condition: Select one of the revenue recognition trigger conditions if your company has enabled revenue recognition fields.
    • Rev Rec Code: Select a revenue recognition code from the list if your company has enabled revenue recognition fields.
  4. Click Save.

Create a Recurring Charge

Recurring charges can be billed on a monthly, quarterly, semi-annual, or annual basis.

To set up a recurring charge:

  1. View the rate plan that you want to edit.
  2. On the Product Rate Plan page, click New Product Rate Plan Charge.
  3. Specify the following field values.
    • Name: Enter a name for the charge. 
    • Charge Type: Select Recurring.
    • Accounting Code: Select an accounting code for the product from the list.
    • Description: Specify a description of the charge. 
    • Charge Model: Select the type of charge model you want to use. Charge models determine how charges are calculated. The following charge models are supported for the Recurring charge type. See Charge Models for detail information about the charge models.
      • Flat Fee Pricing: A fixed price is charged.
      • Per Unit Pricing: The charge amount is expressed as a price per unit. 
      • Volume Pricing: The charge amount is based on the volume purchased. 
      • Tiered Pricing: Price changes progressively as the volume increases. 
      • Discount-Fixed Amount: A fixed discount amount is applied.
      • Discount-Percentage:  A discount that is a percentage of the charge amount id applied.
    • UOM: If the Charge Model field is not set to Flat Fee Pricing, select a unit of measure to use to calculate this charge. The units of measure are defined by your company.
    • List Price Base: Specify the term a recurring charge is based on. 
      • Per Month: Sets the list price based on a month charge. For example, if the list price is $100, the invoice for a 12-month period is $1200.
      • Per Billing Period: Sets the list price based on the billing period. For example, if the list price is $1200, the invoice for a 12-month period is $1200. 
    •  Default Quantity: For the Per Unit Pricing model, specify the default quantity of units.
    • Minimum Quantity: For the Per Unit Pricing model, specify the minimum number of units for this charge. Use this field and the Max Quantity field to create a range of units allowed in a product rate plan charge.
    • Maximum Quantity: For the Per Unit Pricing model, specify the maximum number of units for this charge.
    • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.
    • End Date: Select an end date option from the list. The end date option determines when the charge ends after the charge starts billing. 
    • Recurring Period: Select the frequency with which the charge repeats. 
    • Billing Day: Determines when the specific charge is billed. You can configure these options under Define Billing Periods in Zuora.

      Selecting the Default from Customer Account option overrides the bill cycle day specified for the customer. For example, if you select the fifth of the month for the billing date, this charge will be billed every month on the fifth of the month, for all customers who have purchased this product. See Product Catalog Dates: Product Rate Plan Charge Date Attributes for more information about these settings. 

    • Billing Period Alignment: Select how to align charges within the same subscription if multiple charges begin on different dates. Revenue Recognition Rule Name: Select when to recognize the revenue for this charge. Recognized Revenue Account: Select the name of the recognized revenue account for this charge if your company has enabled revenue recognition in Zuora.
    • Billing Timing: Select whether to bill for this charge in advance or in arrears. See Billing Timing for details about recurring billing timing. This value cannot be updated after the charge is added to a subscription.
    • Rev Rec Trigger Condition: Select one of the revenue recognition trigger conditions if your company has enabled revenue recognition in Zuora.
    •  Rev Rec Code: Select a revenue recognition code from the list if your company has enabled revenue recognition in Zuora.
    • How Many Periods To Prepay: Enter the number of periods for which the customer has prepaid this charge. See Prepayments for more information. 
    • Taxable: Specify whether the charge is taxable. If this field is selected, the Tax Mode and Tax Code fields are required for this charge.
    • Tax Mode: Select how you want to define taxation for the charge.
    • Tax Code: Select the tax code for the taxation rules.
    • Use Tenant Default For Price Change: Select to apply the tenant-level percentage uplift value for an automatic price change to a termed subscription's renewal. You set the tenant-level value in Zuora.
    • Price Change Option: Select whether and how to apply an automatic price change when a termed subscription is renewed.
    • Price Increase Percentage: If you select Percentage Increase in the Price Change Option field, specify what percentage the price is to increase by when a termed subscription is renewed.
  4. Click Save.

Create a Usage Charge

Usage-based charges are used to track resources that are metered and charged based on an amount consumed.

To set up a usage charge:

  1. View the rate plan that you want to edit.
  2. On the Product Rate Plan page, click New Product Rate Plan Charge.
  3. Specify the following field values.

    Selecting the Default from Customer Account option overrides the bill cycle day specified for the customer. For example, if you select the fifth of the month for the billing date, this charge will be billed every month on the fifth of the month, for all customers who have purchased this product. See Product Catalog Dates: Product Rate Plan Charge Date Attributes for more information about these settings. 

    • Name: Enter a name for the charge. 

    • Charge Type: Select Usage.

    • Accounting Code: Select an accounting code for the product from the list.

    • Description: Specify a description of the charge. 

    • Charge Model: Select the type of charge model you want to use. Charge models determine how charges are calculated. The following charge models are supported for the Recurring charge type. See Charge Models for detail information about the charge models.

      • Flat Fee Pricing: The amount to charge is a fixed number applied to the charge.

      • Per Unit Pricing: The amount to charge is expressed as a price per unit. 

      • Volume Pricing: The price to be charged is based on the volume purchased. 

      • Tiered Pricing: Pricing changes progressively as the volume increases. 

      • Overage Pricing: This charge model allows your customer to get a certain quantity of units for free (these are the included units). If your customer exceeds the quantity of included units, the amount used over the included units is charged on a per-unit basis based on the overage price.

      • Tiered with Overage Pricing: This charge model is similar to the tiered charge model, except there is an overage charge for any units consumed above the ending units of the final tier.

    • UOM: If the Charge Model field is not set to Flat Fee Pricing, select a unit of measure to use to calculate this charge. The units of measure are defined by your company.

    • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.

    • End Date: Select an end date option from the list. The end date option determines when the charge ends after the charge starts billing. 

    • Recurring Period: Select the frequency with which the charge repeats. 

    • Billing Day: Determines when the specific charge is billed. You can configure these options under Define Billing Periods in Zuora.

    • Billing Period Alignment: Select how to align charges within the same subscription if multiple charges begin on different dates. Revenue Recognition Rule Name: Select when to recognize the revenue for this charge.

    • Recognized Revenue Account: Select the name of the recognized revenue account for this charge if your company has enabled revenue recognition in Zuora.

    • Rev Rec Trigger Condition: Select one of the revenue recognition trigger conditions if your company has enabled revenue recognition in Zuora.

    • Rev Rec Code: Select a revenue recognition code from the list if your company has enabled revenue recognition in Zuora.

    • How Many Periods To Prepay: Enter the number of periods for which the customer has prepaid this charge. See Prepayments for more information. 

    • Taxable: Specify whether the charge is taxable. If this field is selected, the Tax Mode and Tax Code fields are required for this charge.

    • Tax Mode: Select how you want to define taxation for the charge.

    • Tax Code: Select the tax code for the taxation rules.

    • Use Tenant Default For Price Change: Select to apply the tenant-level percentage uplift value for an automatic price change to a termed subscription's renewal. You set the tenant-level value in Zuora.

    • Price Change Option: Select whether and how to apply an automatic price change when a termed subscription is renewed.

    • Price Increase Percentage: If you select Percentage Increase in the Price Change Option field, specify what percentage the price is to increase by when a termed subscription is renewed.

  4. Click Save.

Create a Charge Price Table

In the Price section on the Product Rate Plan Charge page, create a price table for the charge.

To assign prices for a charge:

  1. On the Product Rate Plan Charge page,specify one or more list price for the charge in the Price section, 
    • Starting Unit: The starting number of a range of units for the tier.
    • Ending Unit: The ending number of a range of units for the tier.
    • Price: The price of the charge if the charge is a flat fee, or the price of each unit in the tier if the charge model is tiered pricing.
    • Price Format: Indicates if pricing is a flat fee or is per unit. This field is for the Tiered and Volume pricing models only.
  2. For the Tiered or Volume charge model, click Add to add another tier.
  3. For the Overage charge models, add a last tier with the overage price without the Starting Unit or Ending Unit values.
  4. Click Save All.
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