Prepaid with Drawdown
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.
Use cases supported by Prepaid with Drawdown
With this feature enabled, you have access to the following capabilities:
Configure products
Acquire customers
Manage subscriptions
Track prepaid balance and bill customers
- Prepaid balance transactions
- Track prepaid balance (Zuora UI and Data Query)
- Bill prepaid customers
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.
Additional resources
- Prepaid with Drawdown FAQs
- Prepaid with Drawdown Troubleshooting
- Product Rate Plan Charge Data Source
- Product Rate Plan Charge Object Reference
- Rate Plan Charge Data Source
- Usage Data Source
- Usage Object Reference
- Import Usage Data
- Prepaid Balance Fund Data Source
- Prepaid Validity Period Summary Data Source