Create prepayment subscription

Zuora UI

Follow the steps as described in Create a subscription. 

Select the desired product for this order. 

Update the charges for this product if needed. 

• For prepayment charge, you can update Price, Prepaid Quantity and Validity Period.

• For drawdown charge, you can update Price and Drawdown Rate. 

If you want to apply a 20% discount to the prepayment charge, you create a percentage discount charge in the same rate plan, and apply this discount to the subscription:

• In the Charge Amount section, specify the related fields as follows:
  • Charge Model: Discount-Percentage
  • Discount Percentage: 20%
  • Apply Discount To: All charges in the rate plan
  • Allow apply to billing period partially: You must not select this checkbox.
  • Reflect Discount in Apply To Charge Net Amount: Select this checkbox.
  • Recurring: Select this checkbox.
  • Include the following product charges: You must specifically select the charges to which you want to apply the discount; otherwise, it will not take effect.
• In the Finance section, specify the related fields as follows:
  • Use discount specific accounting codes, rule and segment to manage revenue: You must not select this checkbox.
  • In the Finance > Revenue Accounting section, select both the Exclude Item Booking from Revenue and Exclude Item Billing from Revenue checkboxes.

REST API

Use the Create an order operation to create the subscription. 

Determine the values of the following fields specific to prepayment charge and drawdown charge in the new subscription:

• prepayment charge: 
  • prepaidQuantity
  • validityPeriodType
• drawdown charge: 
  • drawdownRate

Sample request body:  Create a 12-month termed prepayment subscription for an existing customer.  

{
   "orderDate": "2022-01-01",
   "existingAccountNumber": "A00000010",
   "subscriptions": [
       {
           "orderActions": [
               {
                   "type": "CreateSubscription",
                   "triggerDates": [
                       {
                           "name": "ContractEffective",
                           "triggerDate": "2022-01-01"
                       },
                       {
                           "name": "ServiceActivation",
                           "triggerDate": "2022-01-01"
                       },
                       {
                           "name": "CustomerAcceptance",
                           "triggerDate": "2022-01-01"
                       }
                   ],
                   "createSubscription": {
                       "terms": {
                           "initialTerm": {
                               "period":12,
                               "periodType":"Month",
                               "termType": "TERMED"
                           },
                           "renewalSetting":"RENEW_WITH_SPECIFIC_TERM",
                           "renewalTerms":[{
                               "period":"12",
                               "periodType":"Month"
                           }]
                       },
//Add the prepayment charge and the drawdown charge to the subscription: 
                       "subscribeToRatePlans":[{
                           "productRatePlanId":"402880ed7e2ffb23017e30021f420011",
                           "chargeOverrides":[{
                               "productRatePlanChargeId":"402880ed7e2ffb23017e3002a1c60013",
                               "prepaidQuantity": 10,
                               "validityPeriodType": "Month"
                           },
                           { 
                               "productRatePlanChargeId":"4028818a7e2d8366017e2dae5980001e",
                               "drawdownRate":1
                           }
]
                       }]
                   }
               }
           ]
       }
   ],
   "processingOptions": {
       "runBilling": false,
       "collectPayment": false
   }
}

You can view the customer’s prepaid balance through the Zuora UI or Data Query. 

Notes and limitations

• The evergreen term type is supported. To enable the support of evergreen subscriptions in the Prepaid with Drawdown feature, submit a request at Zuora Global Support.
• The subscription term should be one or multiple times of the validity period. See Create subscription with partial period for an exception. 
• The subscription term type cannot be Day or Week when the validity period of the prepayment charge in it is Subscription Term.
• If the Contract Effective Date and the Term Start Date are different, the difference must be one or multiple times of the validity period. 
• Discount limitation: when you apply percentage discounts to a prepayment subscription, keep the following things in mind:
  • Do not select the Allow apply to billing period partially option.
  • Do not select the Tax Inclusive mode.