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Prepaid with Drawdown

Zuora

Prepaid with Drawdown

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Prepaid with Drawdown is part of the Advanced Consumption Billing feature. You need to purchase the feature to use it. Contact your Zuora Customer Success Manager for assistance.

Overview

The Prepaid with Drawdown feature is a pricing model for consumption-based services, such as data storage. Under this model, customers pay upfront to receive a number of units, usually for a period of time like a month or a year. Then they consume against that prepayment balance in a use-it-or-lose-it fashion, with a possibility of topping up more units or being charged for any overage. This model strikes a balance between upfront commitment and the pure pay-as-you-go pricing models.

Prepayment charges won't be prorated regardless of the proration billing rules for recurring charges.

Prerequisite

The following requirements needs to be met before you can use this feature:

  • The Orders feature is enabled.
  • If you are using Orders Harmonization, you must turn on the  "Auto-renew by Order" Billing setting.
  • If you are using Zuora CPQ, you must turn on the “Enable Order for CPQ” Billing setting.

Notes and limitations

The Prepaid with Drawdown feature currently has the following general known facts and limitations:

  • This feature deals with non-cash units (for example, GB, Seats, Minutes, or Virtual Currency). Prepaying and holding cash on account is not supported at this time.   
  • Suspend a subscription, Resume a subscription and Change the owner of a subscription order actions are not yet supported. Note that invoice ownership transfer is supported.
  • Order Line Item is not yet supported.
  • Drawdown charges are not supported by subscription preview for now.
  • The Delivery Pricing charge model is not supported.
  • Prepaid Validity Period Summary Data Source supports configuring one or more percentage values or fixed numbers of quantity at the validity period level as thresholds and sending notifications when the remaining balance reaches the thresholds.
  • You can perform the following operations anytime in a validity period:
    • Cancel a prepayment subscription
    • Remove a prepayment charge from a prepayment subscription
    • Shrink the term of a prepayment subscription

    However, the following limitations will be applied:

    • Before performing the above operations, ensure all the billing periods within the validity period are billed.
    • If a validity period of the prepayment subscription contains multiple billing periods and the credit option of the recurring prepayment charge is set to “Consumption Based”, when no drawdown usage is uploaded to the validity period, you cannot perform the above operations.