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Create orders containing multiple subscriptions and multiple charges with annual prices

Zuora

Create orders containing multiple subscriptions and multiple charges with annual prices

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The Annual List Price feature is in the Early Availability 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 charges in the orders are annual prices.

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.
  • All billing periods have the same start date and end date.
  • No prorated billing periods exist.

In this use case, four subscriptions are created with the same term 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, the same term 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 01/01/2022 12 C2 01/01/2022 12/31/2022 $21,500.00 4 1st
S3 01/01/2022 12 C3 01/01/2022 12/31/2022 $11,000.00 4 1st
S4 01/01/2022 12 C4 01/01/2022 12/31/2022 $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 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 $70,200.00 and the same term of 12 months. Order O-001 is then created and activated with the total amount of $70,200.00.

After the order is activated, you can get three invoices. The amount of each invoice might differ slightly because of rounding.

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 01/01/2022 04/30/2022 $7,166.67
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 $23,399.98
Invoice Item 2 05/01/2022 08/31/2022 $7,166.66
Invoice Item 3 05/01/2022 08/31/2022 $3,666.66
Invoice Item 4 05/01/2022 08/31/2022 $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 09/01/2022 12/31/2022 $7,166.67
Invoice Item 3 09/01/2022 12/31/2022 $3,666.67
Invoice Item 4 09/01/2022 12/31/2022 $266.67

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

(Selling price ÷ Total billing periods) × Past billing periods - Billed invoice item amount

The amount displayed in the Total amount column is the sum of all invoice item amounts in this service period.

For example, the amount of the second charge line item in each invoice is as follows:

  • $7,166.67 in INV001
    $7,166.67 is the rounded value based on the formula of (21500÷3)×1. In this formula, 3 represents the total number of billing periods, and 1 represents that this is the first billing period of the year.
  • $7,166.66 in INV002
    $7,166.66 is the rounded value based on the formula of (21500÷3)×2-7166.67. In this formula, 2 represents that this is the second billing period of the year, and 7166.67 represents the billed amount for the first billing period.
  • $7,166.67 in INV003
    $7,166.67 is the rounded value based on the formula (21500÷3)×3-(7166.67+7166.66). In this formula, the first 3 represents that there are three billing periods in total, the second 3 represents that this is the third billing period of the year, and (7166.67+7166.66) represents the total billed amount for the first two billing periods.

Because the billing period is four months for the four subscriptions, the second invoice with invoice number INV002 is generated with the service start date of 5 February 2022.

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